The 2015 real estate market has been improving gradually. Steadily increasing property prices resulted in first-time buyers sitting out the feeding frenzy while they waited for market rates to stabilize. However, what they’ve not realized is that foreclosed homes are still available for sale says Jeff Adams. In fact, the number of foreclosed homes is expected to double as several factors come in to play in 2015.
The 2015 Foreclosure Market
Industry expert Jeff Adams #1 Real Estate Trainer points out a very simple fact. The mortgage crisis that affected the real estate market in 2009 was temporarily stopped by implementing several financial measures and laws. These laws were expected to terminate after a set period of time. In fact, the US Government expected the local economy to improve by the year 2015 and these laws would no longer be required.
This situation in 2015 is not what the government expected. The local economy has improved but not to the extent that was predicted. The financial measures just managed to stave off the foreclosures, for a few years. Most of these financial measures are expected to terminate in 2015. With interest rates creeping up, there is a very good chance that thousands of loans will go into default and foreclosure. For buyers, it is going to be a really good time to start investing.
Apart from internal factors, the US real estate market is also facing external factors that will make foreclosure investing really affordable. Large investment firms dominated the market in 2013 – 2014 but this is expected to change in 2015. As interest rates increase, it is now no longer feasible for large investors to buy and rent property.
Home price appreciation has resulted in most of these large companies now preparing their properties for sale. As a result, small investors can now find foreclosed properties much more easily. They can also find rent-to-buy options available from these same large investors as well.
Foreign buyers were another impediment for local buyers. Chinese, Canadian, and Russian buyers flocked to the US real estate market to invest in low-cost foreclosed properties. However, as the dollar increased in value, US housing slowly became too expensive for foreign buyers. Moreover, most countries like China and UK started taxing citizens that were investing in foreign property above a certain value.
This trend has become already apparent in California where foreign investment in real estate has dropped by as much as 25%.
All Good News for Local Buyers
For small investors, this is now a buyer’s market. Large investors and foreign investors are out of the picture. Inventory is available and mortgage rates are still affordable. To ensure that their investments work out, it would be a good idea to learn about foreclosure investing from an industry professional like Jeff Adams.
With the right research and help, it is possible to invest in residential and commercial properties. As with all real estate, foreclosures carry their own unique problems. However, expert help from a professional will ensure that you find just what you are looking for.
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