Housing Market Looks Promising - Investors Are Making a Comeback
on Jan 22, 2010 | Tagged in: housing
According to RealtyTimes.com the housing market is sure to be getting a boost as real estate investors return. This positive upturn indicates a profitable housing market is on the rise.
With low interest rates, at or below 5%, low home prices, and a “new and improved” home-buyer tax credit, the potential gain from real estate investments is drawing many homebuyers. During the summer of 2009 only about 5.6% of homebuyers planned to purchase a home as an investment, compared with more than 12% today.
These findings were collected from a Move.com Homeownership survey where 1,004 consumers were surveyed between October 16 and 18, 2009. According to Errol Samuelson the chief revenue officer for Move, Inc. “This latest Homeownership Survey validates what many had hoped to see in the housing markets – affordable prices and ample inventories are restoring the appeal of real estate to investors while providing opportunities for first time home buyers to enter the market.”
Many of these homes are selling in foreclosure – with 25.3% of home buyers planning to purchase a foreclosed home. These buyers are confident that these will serve as investments, with expectations that their homes will appreciate 10% percent or more in five years (73% of respondents buying foreclosed homes), or appreciate 20% ore more (28% of respondents). Most buyers expect that these homes can be purchased for 20% or less of their market price, and even the remaining foreclosure buyers expect to get a 25% or greater discount price.
Right now might just be the right time for investors. RealtyTrac.com explained how lenders list their homes below market value, offering properties at a discount, in order to unload “overhead-heavy” inventories consisting of repossessed and foreclosed homes. These purchases automatically give the homebuyer built in equity. With these numbers in the buyers favor 42% plan to purchase their home as an investment, while 57.6% plan to live in the home themselves, or many buyers may rent their homes for an investment.
Whatever the reason to buy a home, now is the time to buy. With the stability of the Houston market and the great resources nearby, this is also the place to buy.



