US Foreclosure filings remain high
I’m in Dallas, Texas at the annual eWomenNetwork conference which starts today. Reading the USA TODAY Moneyline section with the headline noted above. “The number of homeowners hurt by the slump in the US housing market kept growing last month as foreclosure filings were more than 50% higher than in June a year ago, according to data released today. Nationwide, 252363 homes received at least one foreclosure-related notice in June, up 53% from the same month last year but down 3% from May, RealtyTrac said. One in every 501 households received a foreclosure filing last month. Nevada, California, Arizona, Florida and Michigan continued to have the highest foreclosure rates.”
There are incredible deals in the US market. You can buy upper middle class to high end homes for 50-60 cents on the dollar, or less. the thing to watch out for are the really deep discounted properties. There’s a reason why the banks are offloading them so cheap. There are excellent properties available for a fraction of the sticker price. The key is to conduct thorough market research and know what you’re buying before you buy. Please resist the temptation to go running off to buy because everyone else is buying. Buy for your reasons.
The date to watch for is February 2009. The last of the Adjustable Rate Mortgages (also known as ARM’s) are set to readjust, and you know what that means. More foreclosures coming but it will be the last of the subprime meltdown. It will be a good time to buy in the US for the next couple years as the housing market remains undervalued. Real estate markets follow a cycle which is about 5 to 7 years. That means that what goes up must come down and what comes down must go up. The US market is still coming down and will stay down for about 5 to 7 years. Then the market will turn around as it always does and valuations will begin to increase. That’s why real estate investing is a long term game plan. If you can cash flow positive in a down market, then it’s a bonus when the market begins to appreciate. Have patience. Have a plan.
July 9, 2008
