Now Is the Time to Buy – Foreclosure Investing

by on Real Estate Investing

Foreclosure Home for Sale Sign and House

When it comes to real estate, it is very important for you to learn more about local real estate market when buying a home, especially for those looking for discount properties such as foreclosures in a market where home prices and mortgage rates are rising.

If you are looking for a new home or investment property, the first thing to do is look for states with a high foreclosure inventory.

States with High Foreclosure Starts

One of best ways to find states with a large foreclosure inventory involves looking for states with a high number of foreclosure starts. The following five states are starting to see a surge in foreclosure starts: Arkansas, Connecticut, Hawaii, Maryland, and New Jersey. Therefore, investors and potential homebuyers should keep a close eye on the foreclosure inventories of these states in the near future when looking for discount properties.

Nationwide, foreclosure filings increased 2% from April to May of this year with an 11% increase in bank repossessions. Although these numbers may appear alarming at first, it is essential to note that these increases are more than likely as a result of lenders looking to unload foreclosures now that home prices are finally starting to rise. Therefore, this information is not indicative of a real estate market that is taking steps backwards as opposed to making progress toward recovery.

Is Now the Time to Buy?

With all of this information in mind, should you be buying or renting in the current real estate market? Although home prices are rising and mortgage rates exceeded 4% last week, now is definitely the time to be buying a new home – regardless of whether you are an investor or potential homebuyer.

Purchasing a home in any real estate market obviously has some risks; however, in the current real estate market home prices are rising and are predicted to continue to increase throughout the future, making now a great time to buy a new home or investment property.

At the end of the day, investors and homebuyers looking to take advantage of a real estate market with still-low home prices and low mortgage rates (in comparison to pre-crash numbers) should start looking today as home prices and mortgage rates are rising. When looking for distressed properties, turn to online foreclosure listings to quickly find foreclosures in the area in which you are looking to buy or invest.