How Is Rapid Home Price Appreciation Impacting Real Estate Wholesaling
How is the swift rise in U.S. home prices affecting wholesaling properties as an investment strategy?
Some have posed that home values in some areas are already back to their previous peaks of before the crash. So if this is true, is there still room for more growth in the U.S. housing market, will opportunities for wholesaling houses dwindle, and how can wholesaling CEOs be prepared for what’s next?
Has the Market Returned to Peak?
Some real estate players and media outlets have spun sensational stories over the last few weeks posing that increasing demand has pushed home prices back to their peak levels. However, even in the hottest markets in Miami, FL and San Diego County, CA the real data shows that prices haven’t quite made it back yet. In fact, even in these counties which are considered among the healthiest in the country homes are still selling for thirty to fifty percent under what they did seven years ago.
What’s the Outlook for Growth?
Even when home prices do make it back to their previous highs which could take another year or two, history shows that property prices typically double in new upward phases, which last about 9 to 15 years. That means we are just approaching ground zero for a new extended growth spurt.
Massive Opportunity
Despite foreclosures officially declining on a national level and more players entering the market to buy homes there is still massive opportunity for wholesaling property from coast to coast right now. There are literally tens of billions of foreclosure properties in process right now and on their way to market, and many new loans defaulting or re-defaulting.
Wholesaling Works Best in this Environment
Even as foreclosures do taper in real terms and home values rise those wholesaling properties have little to fear. Remember that the glory days for wholesaling houses for most investors were when prices were at their peak and rising fastest. This is when wholesalers were buying homes at the top of the market prices straight out of the MLS and wholesaling them for six figure profits in days in many cases.
Wholesaling Houses Works in Every Phase
The great thing about this investment strategy is that it works in all conditions and phases of the cycle. Just make sure you are flexible, wired into trends and have a scalable business structure in order to enjoy long term success.
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