Depending Upon Who You Ask - It Just Might Be

If you are well-qualified to buy property, it is a good time for you. Like most things in life, the pendulum swings both ways… and right now, getting a mortgage is much more difficult that only a few weeks ago. As a result, the market for buyers has strengthened. More inventory because fewer buyers can qualify.

At the same time, we are experiencing an increasing rate of foreclosures - and many of the banks are getting serious about reducing their REO (real estate owned) portfolios. In fact, we are starting to see more real estate auctions than ever - further evidence that the downward pressure is on.

For the buy-and-hold investor, this is good news. The selection of property is good, and more often than not - you have the time to truly analyze the economic viability of any particular property. You also get the added bonus of getting remediation performed at a more reasonable cost, as contractors are not as busy as they used to be.

You also get the benefit of more renters entering the market, as the purchase option has been taken off the table for them.

For the purchaser looking to occupy the property, you share most of the benefits that the investor now enjoys.

The only purchaser who is not benefiting from this market is the flipper. To purchase a property, renovate it, then hold it for a year while trying to get the profits seen on some TV show is a recipe for disaster.

But to purchase, renovate, rent it out - then look to sell in the future when the market shifts again in the favor of sellers IS an intelligent move.