Who are buying homes now and why?
Sunday, August 22, 2010
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Let’s see, home prices per CNN.Money.com are rising in some areas of the United States and lagging in others. What are the local trends of home sales in your area? You might look at the local real estate trends as provided by Trulia. Interest rates are so low that only grand parents or great grand parents remember lower rates. However, the job market appears to be unstable and inventory of foreclosed homes is also rising. So who is buying a home and why?Most calls I am getting are from investors who believe the bottom has been reached in our area of California, (Benicia, Danville, Martinez, Alamo, Vallejo) and now have plucked or seized the day (Carpe diem). Investor-buyers are realizing that there is a profit to be made right now with positive cash flow in many cases and security in knowing that the economic up cycle is expected with equity build up in the property. Are primary or potential owner occupied home buyers simply afraid? Is that the problem? Why are you as a potential home buyer not buying right now?
