GOOD TIME TO BUY

Some of you know that I write a blog, realestatesummarynews.blogspot.com, in which I summarize the latest real estate news gleaned from the multiple newsletters I receive.  Lately, I have seen that hedge funds and private equity investment firms are snapping up the foreclosures and other low priced homes.  This is driving up US home prices and spurring home building. 

Everything associated with the real estate industry is beginning to have more buyers.  Furniture, tile, bath fixtures, flooring, landscaping and all the other pieces that go into a home are selling faster than in the last four or five years.  You should be able to find good sales as the stores try to bring in former customers.

This is a great time to buy that first home, vacation home or your retirement home.  The prices are still low and the interest rates are low, but by the end of the year all the experts are saying the interest rates will have climbed back into the normal range from these historic lows.  The Federal Reserve can only keep interest rates low for so long.  At some point even Ben Bernanke says they will rise. 

I know that the stock market is doing relatively well.  However, when the Federal Reserve stops printing money, stock prices will fall.  The only reason the stock market is doing well is because of the QE’s.  Only people with assets (i.e. precious metals, petroleum products, real estate) will preserve their wealth.  The stock market will rebound given a few years, but the price of homes will rise more.

We still have the problem of excess of regulation on businesses.  This will impede hiring and income.  If there remains a lack of jobs, the housing prices may rise for a while, but when the big spenders pull back, house prices will fall again no matter what the interest rates are. 

So, I am encouraging all of you who can to buy real estate now.  Let the house prices rise in the next couple years, wait for the big spenders to pull back and buy again.  For those who do not yet have the capital to buy real estate, use this time to save every possible penny to buy when the house prices drop again.

That brings us to auctions.  Auctions are the new wave of selling or buying homes.  Check out real estate auctions.  The process is a little different than traditional real estate.  We have blogs all the time with this company, RealEstateAuctions.com explaining the auction process.  You can contact any of us in the company and ask for info.  Since we are planning to be in all 50 states by the end of the year, you will have someone nearby to help in buying an auction.