The residential home market is to say the least,"strange". With the huge number of homeowners that are either in pre-foreclosure or in foreclosure, there should be a huge number of "distressed" homes on the market, but there are not. What we are seeing in Southern California is an extreme shortage of inventory. This is changing what should be a "buyer's" market into a real seller's market, with multiple offers causing properties to often sell for 10-15% more than the listed price. This is creating a frenzy among potential first time buyers who are planning getting an FHA loan to purchase their first homes. Many are getting discouraged after looking at dozens of properties and writing dozens of offers to no avail. Even "short-sales", the scourge of the real estate market according to most realtors, are getting multiple offers well over the listing price.
According to all of the reports, foreclosures are still on the rise, along with the number of homeowners that are behind on their mortgage payments. My advice to buyers is to be patient. More great buys are coming!
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Bill, I think as investor we should choose such investment options that give your better returns at comparatively shorter term. There are lots of businesses and investment opportunities are wide-opened for everyone, but still investment should be in bits with small money involved rather then putting all money in single project...
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