The time is getting short to purchase investment real estate at historical low prices. We’ve seen these prices for the last five years and think it's just going to go on and on. I never said this in six years but I think the end of these historical low prices is getting near.
I have a few examples to back up my thought process on the investment real estate market. Let's first talk about the Cleveland market, I saw in the real estate news this week that real estate sales had doubled in the area. Tim one of my agents I work with mentioned that over 180 sales of homes in the Garfield Heights area sold this month.
I also heard in another large city that a new subdivision was being built and they expected a few sales to happen on their grand opening. When they opened up there were 30+ people waiting to get into their sales area. Within two hours they had sold 39 homes and had to shut down the sales area in order to fulfill the paperwork needed to get the 39 deals under contract.
The banks are a lot more willing to modify home loans according to the news. They are quickly getting People's mortgages lowered and getting the payments back on track.
I just read a USA today article that Ben Bernake said that the banks were starting to lend more money for mortgages. The mortgage rate is still at historically low rates and with the refinances up this means more money in the real estate world.
The good news is it is still not too late to get into the game, and getting with the right company that can get you properties quickly is the key to your success. I know I took a lady around on Monday that cannot understand how I have so much real estate under contract and in progress. She had been searching for literally six months and has gotten nothing. I quickly informed her that she needed to get with the our company because we deal with investment real estate only. We have people on the ground every day they bring us the best deals.