Invest Today: Home Prices Climb and Foreclosures Decline

by on Foreclosures

Houses and Maps

The real estate market is a very fragile thing in its current state, which has often left many investors skeptical and weary of investing in everything from residential to commercial real estate.

In fact, the incredibly low home prices and low interest rates have provided very little incentive for most investors to take the leap of faith required for real estate market investing with the current state of the United States economy, job market, and of course the real estate market.

However, we have been seeing some positive signs of progress toward recovery over the last few months, finally providing some solid signs of a progressing real estate market. Despite these obvious signs, some investors have still been watching from the sidelines instead of playing the real estate market investment game.

Attention investors: Invest in real estate now (while prices are still low and foreclosures are still on the market) before you run out of time!

Falling Foreclosure Rate

According to the CoreLogic National Foreclosure Report, the number of completed foreclosures for July 2012 fell to 58,000 from 62,000 just last month and 66,000 in July of 2011. Not surprisingly, California, Florida, and Michigan are the three states with the highest foreclosure rate. In fact, the top 5 states with the highest number of foreclosures account for 48% of all foreclosures throughout the country.

The falling foreclosure rate is a great sign that points toward real estate market recovery, but also indicates that the foreclosure inventory will not be around forever. Therefore, investors looking to purchase a foreclosure property and make minor to moderate repairs before selling the property for a profit should probably start buying today before the foreclosure inventory shrinks.

Rising Home Prices

Along with fewer complete foreclosures, the SP/Case-Shiller index rose 6.9%. With rising home prices, some people believe that investors will start backing away from the housing market; however, if investors are smart then the opposite will be true.

It’s Time to Buy!

Investing in the real estate market right now is an excellent idea, and here’s why:

  • Home prices are still low
  • Mortgage rates are still low
  • The foreclosure inventory is still high
  • Real estate market recovery is underway

If investors wait much longer to invest in the real estate market then they will miss out on the opportunity to buy low and sell high. However, if they invest now while distressed properties are still on the market and home prices are low, they can watch as the real estate market moves toward recovery and then sell the property after home prices rise to reflect the recovery.

If you’re an investor then make the smart choice-invest now before you miss your chance!