In 2012, property prices are set to hover around the same benchmark throughout the year. This indicates that the hardest hit areas such as the residential real estate market has already reached rock bottom. According to Zillow’s Real Estate Market Reports, residential property figures in the US had increased 0.8% from January to March which was the largest increase since May 2006.
There is more evidence to suggest that in the last seven months before 2012, there will be slight changes in a positive direction which are set to occur later in the year. Many forecast and predictions like these have surfaced over the last couple of months pointing to the fact that it is time to start shopping.
In accordance to a recent analysis from CoreLogic, since the start of the financial crisis in September 2008 led by the sub-prime mortgage crisis, there have been a total of 3.5 million residential homes that have been foreclosed on in the US alone.
Zillow chief economist Stan Humphries said that it was time for those shoppers who have been waiting to purchase their home because the market is close to the bottom. However, when the rock bottom hits, it is nearly impossible to make a purchase at exactly the right time where the price is at the lowest.
Thousands of people are starting to invest in real estate because of the recent events happening in order to capitalize on the massive transition currently taking place. Research done by the Commerce Department shows that over 92% of Americans attain their wealth from equity that they own in their homes. Owning a home is the main priority for the working class, and so millions of people tend to wait for a suitable time to make a residential purchase.
On the other hand, if you look at real estate to earn some fast cash, this could be the best time frame in 2012. Fast profits can be attained in property by purchasing at below market value prices from sellers whose priorities are to get rid of properties as soon as possible. Exactly where to find these motivated sellers is another issue entirely. But, if you can find them, then you’re in good shape to make solid profits. However, if successfully executed these properties could be sold for a substantial profit.
In addition to this, people are finding success in making fast cash by purchasing properties that are “physically” dilapidated. Although it might be pretty run down and would require a lot of maintenance and utility repairs, hundreds of thousands of American real estate investors are purchasing these types of real estate properties below market value. The next step is to fix up the place and sell it for substantial profits. Just remember to find opportunities where you can add value.
From a property investor’s perspective, the current events happening are a very positive indication that the buying season is getting underway. This is evidently a spark of revival in the housing market that has been in a very bad shape since September of 2008. The Zillow report also pointed out that in the 1st quarter of this year, the rate of homes foreclosed actually fell to levels that were exactly in 2009. This meant that in every 10,000 homes, there were 7.4 being foreclosed.
Overall, there were over 65,000 completed foreclosures in March of 2012 compared to last year, which was at more than 80,000 homes. This marked an improvement of over 15,000 homes being foreclosed. Two of the biggest improvements were seen in the states of Nevada and also Arizona.
All the facts and figures from the property investment outlook this year promise a gradual recovery. Prices of real estate are on the rise indicating a vital sign of revival in the housing market. Even in states such as Phoenix, one of the worst hit areas in the 2008 downturn is showing signs of gradual improvement. Middle income earners are aiming to make money on rentals because of the improved affordability. Due to these circumstances, first time buyers are beginning to make a move for rental homes, which is really boosting the housing market in 2012.
Therefore, the property market in 2012 is allowing lots of people in all walks of life to make a difference in achieving financial stability through the investment of real estate. Simply by understanding that the time might be right now for property investment that you may allow yourself the opportunity to stumble across the investment of a lifetime.