16 Apr 2014

Predicting the future of the Housing Market

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The housing market is getting better, no wait it’s getting worse. To me it really depends on what you read and who you listen to. I have learned this much…there is only one thing that remains the same and it is that everything changes constantly.

Rumor has it that Blackstone and others are talking of being done buying SFR’s in 2014 and pulling out of Florida and so other funds will follow. Foreign

buyers grow cool and flippers turn to holders. Housing starts are down as builder confidence wanes. The news just said that BOA has been caught being dishonest in their short sales. Our government has roughly 4 month until it hits a debt ceiling again. Will all of this make it easier for investors to find investment homes and get a good rate of return or harder? And will the news change tomorrow?

Housing Market Lessons

I learned a lot in the crash but the one thing I have learned for sure is that NO ONE but God can predict the future. You can have a good housing market and when bad news comes out and in a moment you have a bad market and just the same you can have a bad housing market and good news can come out and you have a good market.

Markets are driven by the public and the public or consumer confidence as they call it is driven by people and people are very emotional: thus, the decisions they make for the most part are based on their emotions. They are swayed by news and not facts based upon information.

Toronto_home_prices_up_or_down-300x225They say that foreclosure starts are down and REO’s are in small supply because of it. I feel that it has much to do with the new regulations that came out this summer. The same thing happened last year and once the banks

and their attorneys settled in

to how to operate under the new regulations things loosened up.

Either way I follow this rule: As a real estate investor you make money when you buy real estate not when you sell. When I broke that rule I lost a lot of money.

 

By Buzz Slattman
BuzzBuys.Biz

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