Saturday, June 23, 2007

Real estate investment bubble

The bubble has burst, but that doesn’t mean that there is no longer money to be made in real estate. It simply means that you need to be much more careful in your investment choice, and you may need to change your investment strategy.

Currently, foreclosures, real estate owned and bank property inventories are on the rise. This is simply due to the fact that for the short term, in many markets, the annual appreciation that we have enjoyed over the last nine years has stalled. However, because of this shift in the inventory status of banks and lending institutions, they are becoming more willing to negotiate and deal on their inventory than they have been in many years. If you are in a real estate market or area that has stalled, but still provides the fundamental economic drivers of property appreciation (job growth, education centers, industry, etc.) then buying short sale investments and negotiation pre-foreclosure purchases may be a great way to maintain and grow your portfolio.

For REALTOR investors, this is a great time to leverage those expired mls listings and those properties that are facing repossession as well. It all depends on your real estate investment strategy. Oh, yeah, don’t forget to use the IP Ware software to help evaluate your investments.

TAGS: real estate bubble, appreciation, short sale, real estate owned, economic fundamentals, expired mls listings, bank owned, real estate has stalled

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