Real estate is local, and every market is unique. However, certain trends are national in nature, and the law of supply and demand doesn’t change from market to market. Playing out in the Las Vegas, NV market right now is a situation with cash buyers leaving the market. It could be a learning tool for investors in other markets to mitigate risk and even possibly wait for better deals to appear with lower demand.
Pending Home Sales Up
Pending home sales rose sharply in May. Low mortgage rates and increasing inventories helped. All four regions of the country saw increases. The Pending Home Sales Index increased by 6.1% in May. This is the largest monthly gain since April, 2010.
Minimum Wage Increases Make the Day for Mobile Home Park Owners
A statistic overlooked by many investors is the relationship between mobile home park values and the minimum wage. With the minimum wage at $7.25, a monthly income of around $1,200 mandates rent of roughly 38%, or $456 per month. While apartment project and single family landlords can rarely get their rents down to this range, it’s common for mobile home parks to provide housing for around $500/month.
The people saying that certainly aren’t engaged in flipping. Watching the house flipping “reality” shows on TV, it’s no wonder that everybody and their brother wants to jump into flipping. After all, it’s easy to grab up a dilapidated bargain, slap on some paint and new countertops, and sell at a big profit … right? Maybe.
Redfin pulled some average flipping profit numbers that certainly seem to bear out that it’s a major profit generator for many. The top 27 markets averaged $90,200 in profit per flip in 2013. California dominated the top of the list for average per-flip profit with:
• San Francisco $194,600
• San Jose $152,000
• Oakland $134,500
• Los Angeles $126,100
Take a look at any recent or even past marketing or market-related reporting coming from NAR, the National Association of Realtors, and you’ll find that it’s always a good time to buy a home. Right now with dismal sales, a lousy economy, and almost no first time home buyers anywhere to be found, just where is the “pent up buying demand” that the industry wants so much to promote? By promising that demand is about to spike, it makes some people feel safer in buying and expecting prices to appreciate.
Unfortunately, almost no data exists to support this theory. People aren’t buying or selling homes for a number of fundamental reasons:
• They’re insecure in their jobs.
• They’re experiencing wage increases below the inflation rate.
$500,000 profit margin. YUP. Closing tomorrow. Oh, did I mention? NONE OF MY OWN MONEY! Oh, and in Los Angeles area.... Hmmm :)July 2nd, 2014 | posted by Zion Properties
Hello DG Family,
Well, I wanted to make an effort to get here to this site much more frequently. But, sadly that hasn't happened. I've been working on a deal for the past 11 months that finally has come to fruition. You know me..., its one of Tammy's crazy deals! A short sale with 2 loans that's a divorce with IRS and other liens. Yes, I attract the problem properties, don't I? But I'm not complaining. I AM A PROBLEM SOLVER after all. And this one, I left in other's hands to resolve the problems while I worked on a few other deals.
New Cities, but Also Moving Downtown
The first article in this issue addresses companies moving to attract younger workers who want a big city lifestyle. There’s another trend however, as in just about all cities all workers are moving closer to the center of the city and the activity. They’re leaving suburban areas and commercial buildings are beginning to go to empty status in the suburbs.
More Homeowners Becoming Landlords