Prices are going up, that's it. I could just stop this post with that one line.
But, I won't....Reading an article today confirms what I already know. Investors are backing off in the purchase of properties. They have seen, as I have (and every other Realtor that is working) seen in the last few months, that prices are on the rise.
As always, when making the decision to invest in a property, other than the one you will live in, you absolutely must do the math. Make sure that you work the numbers to see if there is enough profit and/or ROI in the deal to make it worthwhile. With prices inching up, it has become less desirable for investors.
Now, I'm not saying there aren't still deals to be had, there are, but they are harder to come by. Anyone that is regularly reading my blog knows this. To re-cap, inventory is at ridiculously low levels, as are interest rates. And, interest rates this low are one of the main drivers in this purchase market.
We are also seeing more Traditional sellers come on the market. Due to the desirability of an 'easy' sale, they are generally getting more than the Short-Sales and REO's.
With the market flipping from where it was just a few months ago, it's going to be even more important not to leap without doing your arithmetic. We have less distressed properties on the market, and less coming down the pipe-line. And, with a couple of the groups I network with I am seeing more 'Hey, I've got a rental available' than I did a few months ago. But, I hope you who have already made the leap of Real Estate faith, used a vacancy factor and a reduced rent factor in your original calculations.
Be careful out there. Look before you leap.
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