I recently read an article that said that home prices are at its highest right now then in the last 7yrs. They stated that part of this is due to the number of available homes for potential buyers has shrunk by about 17% in just the past year . Phoenix, San Francisco, Las Vegas and Atlanta are among the chart toppers for increased percentages of sales.
So what does this mean for today’s real estate investor? To put it simply, its time to buy as many homes as possible because prices are not going down but rather going up. I can tell you that in just the last 9 months we are buying homes for an average of $4,000 – $5,000 more then we would have before all these hedge funds came into town. They are not just in Memphis but they are buying up property in every major investing market across the country and they dont seem to be slowing down anytime soon. This increase in purchase price at the wholesale level gets passed on to you the end investor.
There are still plenty of good deals to be had for real estate investors but why wait? With interest rates at all time low’s combined with cheap home prices and high rental demand, this makes for a win win anyway you look at it. I suggest getting off the fence, put your big boy hat on and take action before you wake up one day and find out you missed the boat!!