There’s good news and there’s bad news about the housing market. The good news is that the crisis that happened late in the first decade of the millennium is finally behind us, and the market as a whole is recovering nicely, even in the hardest-hit areas (such as Las Vegas). First-time home ownership is slowly but steadily increasing, and overall sales point to a more stable future.
The bad news? There aren’t as many foreclosures available anymore.
To be fair, the foreclosure market was never that lucrative to begin with, certainly not as much as it was hyped. The average savings on a home’s value, even at real estate auctions, was generally around 10%. Is that less than 100%? Of course it is. But is it enough of a margin to make it worthwhile to pursue these homes? Many agents say no.
But for those die-hard speculators who scamper after foreclosures the way a cat scampers after a dot from a laser pointer, take heart. Foreclosures will never be simply gone from the market. Circumstances will always dictate that some percentage of homes are in foreclosure at any given time. In booming economies, that percentage will be lower, that’s all.
But we’re not quite “booming” yet — and there may be one final surge in the foreclosures world.
As the market slowly revolves from a “buyers'” to a “sellers'”, and prices begin to rise, the remaining foreclosure homes may be the first to be snapped up. While more homes will be put on the market, many buyers will still be guided by how low they can keep their mortgages, and even that narrow margin provided by foreclosure homes will look appealing.
But don’t fret, intrepid house-flippers. There is always money to be made in the world of real estate, regardless of the state of the market. You may just have to look a little harder, and be willing to invest a little more money upfront. But once you’re ready to sell, the market will welcome you with open arms. For more about this, go here.