September 2009 Shows Increase In Existing Home Sales: Real Estate Wholesalers Act Fast!

November 27th, 2009 | Author: Michael Kimble

September of 2009 showed a 9.4 percent increase in existing home sales from August, and a 9.2 increase from September 2008.

Thanks to the government credit for first-time home buyers, we are seeing some of the highest home sales activity since July 2007. Higher sales activity means that the housing market could start getting competitive again. This is great news for investors who want to wholesale real estate.

The government has created several new economic stimulus packages in the last year, and most of us are wondering how much they’re helping the economy. Since 45 percent of all homes sold in the past year were to first-time home buyers, we can assume that this package is doing its job. The slump in the housing market was a huge contributor to the recession, and is the reason why home values are so low right now. It’s also why real estate wholesalers aren’t experiencing the profits they have in past years.

Just like gas, water, or any other commodity, housing prices rise and fall with the rate of supply and demand. Most people would never think about purchasing a house during a recession, especially those who haven’t owned property before. If they were to lose their job, they would face foreclosure. Better to wait. However, when the government offered to put $8,000 in the pocket of all first-time home buyers, they loosened their purse strings and started to envision life as a home owner.

In order to wholesale real estate, you have to acquire homes at sizable discounts, and flip them to an investor for a profit. For the last year, profits for wholesale deals haven’t been as high as past years due to the depressed real estate market. However, if people continue to buy houses, the housing inventory will decrease. As the inventory shrinks, values will stabilize again. Real estate investors will see greater opportunities for profit.

So what should you do now to guarantee that you get the greatest wholesale real estate deals? Buy now while housing is still cheap and available! Buy now and hold on to the properties until they’re worth more. If you have the money to fix the properties up and rent them out, even better! When the market stabilizes, sell the properties and make a big profit.

Spend this time building your buyers list and marketing, so that you have people to turn your properties over to when they’re worth more.

If you want to learn more about real estate investing and “The REI Lifestyle,” please visit Wholesale Real Estate, then visit Michael Kimble’s blog at Wholesale Real Estate blog.

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September 2009 Shows Increase In Existing Home Sales: Real Estate Wholesalers Act Fast!