Real Estate Markets for Home Buyers and Home Seller are Changing in Southern California, Arizona, Southern Nevada, and some parts of Florida
Howard Edward Haller, Ph.D.
CEO, Real Estate Mentor Co. “Doc” Haller is a respected United States Real Estate Mentor & Commercial Real Estate Expert, Residential Real Estate Expert, Professional Real Estate Keynote Speaker, Seasoned Real Estate Investor, Probate Real Estate Expert, Experienced Commercial Real Estate Developer, Licensed California Real Estate Broker (over 25 years), Licensed California Contractor for 20 years, and Real Estate Counselor and Advisor
The real estate market is changing and an unexpected problem has occurred. Now in many markets there are more buyers than homes up For Sale. The real estate market has changed again for buyer, seller and real estate agents.
According to the National Association of Realtors, Headquartered in Chicago, IL – “the number of homes For Sale with Realtors has dropped to 2,500,000 in April 2012.” Note: The United States residential real estate market has not had an inventory level that low anytime in the last six years.
Eager home buyers are jumping on the limited offerings For Sale and even approaching owners with offers on properties not even on the market. Home buyers trying to find a nice house is more difficult and potential home buyer are now finding it very competitive in Southern California, Arizona, Southern Nevada, and Florida.
The sharp drop in inventory the low home mortgage rates have significantly stabilized the prices in the even markets most severely hurt in the 2006- 2011 real estate market. The lack of quality inventory is in evidence in the entire Southern California (even in areas such as Watts), the entire Las Vegas area, the Valley of Sun (Phoenix metro) and even Miami, Florida.
The experts have predicted the real estate foreclosures would flood the market has not occurred and there is no major dumping by financial institutions of their REO homes onto the real estate market. Mortgage foreclosures are down, plus real estate lenders are getting a handle on their REO’S, they are working to do HAMP refi’s when possible, and they are working on managing the process and paperwork on Short Sales.
Recently there has been a number of Hedge Fund and Private Equity Groups buying the REO portfolios and turning the homes into rental properties with positive cash flow. Private investors have been buying nice REO properties at a discount “As Is” then doing minor fix up and putting them on the market as rentals for a nice profit.
I am pleased to say that several of my Real Estate Mentees are successfully buying the REO portfolios and turning the homes into rental properties with positive cash flow in 2011 and 2012 in the right real estate markets!
The home builder and real estate construction industry is not supplying new homes at their previous levels. The construction industry information and the official US Census Bureau data shows that the number of For Sale new single-family homes and the new homes under construction where both at historic lows.
According to the online real estate brokerage firm, Redfin- The Southern California market inventories have dropped 35% to us much as 53% in Los Angeles, Orange, San Bernardino, San Diego, and Ventura Counties.
The Southern California Real Estate Board’s “Day’s on Market” (DOM) is dropping form 43 days to 33 days in the last year. The velocity of home sales is increasing in Sothern California, as well as Arizona, and Southern Nevada.
Real Estate investors in Southern California, Arizona, and Southern Nevada have an opportunity to take advantage of this market through private sales of unlisted homes and approaching banks about buying their REO’s “As Is” and fixing them up for rental.
Dr. Howard Edward Haller, CEO, www.RealEstateMentor.Co
509 465-9300 Real Estate Mentor, Real Estate Keynote Speaker, Real Estate Broker, Real Estate Developer & Real Estate Investor
Copyright© 1985-2014 Howard Edward Haller, Ph.D., www.RealEstateMentor.co, Haller Commercial Real Estate, www.HallerCommercialRealEstate.com, Haller Construction and Engineering Co., Medical Office Building Expert Co., and The Leadership Success Institute.
All Rights Reserved.