Real Estate Investment - Cash homes buyers

By Burt Graves

Do you ever notice how all the so called "experts" come out to tell everyone how to fix the economy when it's having issues? We see it all the time and no what time of real estate investment you're thinking about making, they supposedly have the right answer. Listen, the economy will do what it will do, and if you want to profit from this arena then you have to find the right cash homes buyers.

Around the first quarter of the year the country saw a steep decline in the retail values of the housing market. In fact, it happened to be 60%, and even though the 2nd and 3rd quarters had minor gains, it was only a slowdown of the overall process. Today, realtors are predicting that there will be a slow steady rise in home values. According to them, it's smooth sailing from here.

So do you think these guys and gals are really in touch with reality? The first thing you have to think about is the supply and demand factor. It's really easy to understand and it all starts with the price being predicated on availability. Around the spring of 2007, potential buyers had begun to hold back. The winter brought about over-flated prices, but tended to level off. Once the 2nd quarter came about buyers weren't worried about all the usual cautionary considerations. Needless to say it was a sobering time for many, and now deflation seems to be the trend if you're looking for a real estate investment.

Now, traditionally families prefer to move during the school summer break. How many are content to transfer their family's residence once school is back in? Not most. Hence, there is greater demand during this time and prices are logically driven upwards.......even if only a little.

Recall the federal mandate to banks temporarily holding up the flow of foreclosures hitting the market. This occurred nationwide during this time of greater demand. Where was the supply now? With a sizeable percentage of all listings on the market held back (foreclosures), the falling values across the board would naturally slow if not reverse slightly. And that is exactly what the market experienced. The supply was lower while the demand was higher.

What, then, does this spell for the near future? Well, peak season came to an end and September brought a new flood of foreclosures hitting the streets. The tables had turned once again and now supply grew while demand diminished. The massive number of foreclosure files yet to be processed is an indication of a steady supply from desperate sellers. Thus the trend will likely continue in a downward direction at least till next spring.

Another thing to understand is that many of these foreclosures are considered "A paper" loans. Those who have larger incomes realize what is happening, and decide to get rid of their homes and relieving a monumental piece of debt. However, two years from now they will be able to purchase the same home for much less and end up making out. You can see that this makes complete sense.

The foregoing scenario presents some interesting real estate investment opportunities for the cash home buyer. That's why we buy homes all over the United States during these market conditions. While the market trend may not be as favorable for the retail buyer, cash homes buyers in most U.S. markets are making insane profits by skillfully applying the simple principle of "supply and demand. - 23212

About the Author:

Lance Wilson an active Invesdoor Territory Managers and real estate investment expert . Need to Sell Your Home , we Buy Houses for cash fast . We pay cash for homes.