Are Conditions Improving For Wholesaling Houses?
Are conditions getting better for wholesaling houses, or worse?
Some have recently debated whether an improving U.S. housing market could be bad for investors wholesaling houses. So could declining foreclosures and rising home prices mean the end of the line for easy money from flipping houses?
Not if you know how to read the indicators…
7 Reasons Conditions are Getting Better for Wholesaling Houses
1. Inventory Up
While many media outlets and real estate agents have recently been scaring the public with stories of scarce housing inventory the Wall Street Journal recently reported that available inventory as actually been on the rise.
2. Bidding Wars Easing
While demand for homes is still high, real estate brokerage Redfin has announced that bidding wars have fallen for 4 months in a row. Just over half of the firm’s agents now face multiple bid situations in 23 major U.S. housing markets. This will certainly make it easier for investors to get better bargains on homes for sale.
3. More Distressed Properties Coming To Market
Contrary the message some have been spreading, new data from RealtyTrac shows that foreclosure starts actually increased by 6% nationwide in July 2013. The statistics also reveal the number of homes entering foreclosure up in 26 U.S. states last month, with some cities seeing foreclosure rates doubling and tripling.
4. Less Competition
On August 16th 2013 Bloomberg reported that home builders actually started work on less homes in July, which means less competition from new housing stock for wholesalers.
5. Home Values Rising Fast
Most of the nation is currently experiencing rapid home price appreciation, which is widely recognized as the best environment for wholesaling houses and quick paydays.
6. Motivated Buyers Flush With Cash
Additional survey and trends show that over half of recent home purchases have been cash transactions, while some types of mortgage lending get easier, and rising rates create more motivation among buyers; spurring them to act quickly.
7. Seasonal Sweet Spot
Now at the end of the traditional summer rush those experienced at wholesaling houses know they can typically expect regular home sellers to reduce asking prices over the next few months out of panic; creating more bargains and seasonal opportunities for investors.
Summing it up those wholesaling houses should recognize that these are some of the best days for turning over homes quickly for large profits. Considering the future outlook for the next couple of years suggests more of the same, this is the ideal time for wholesalers to scale up and reap even more rewards.
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