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4 Recent Signs of a Bottom in Housing

Tuesday, January 13, 2009 posted by Tommi Crow

While battered, beaten down and bruised, the US housing market is not dead.  In fact, it is beginning to show some signs of life.   Those looking for an opportunity to Buy Low and Sell High should pay close attention.  These Signs could be an early Signal that we have reached the Bottom.

  1. Foreign Buyers are overwhelming interested in acquiring property in the US.  Recent polls show the deep correction, weak dollar and once in a lifetime pricing opportunities have investors salivating for US real estate.  Foreign investors are bullish and ready to buy, especially in hard hit Florida, Arizona and California.
  2. Investors which specialize in distressed assets are grabbing up properties at bargain prices all over the US.
  3. Buyers recently snapped up thousands of foreclosures, bank-owned property and deeply discounted property owned by desperate sellers.
  4. The Credit Crisis is Over.  The latest poll of mortgage applicants showed that 80+ percent experienced no problems in obtaining financing at historically low rates of interest.

The real money has always been made by the Brave who Buy when Everyone Else is Selling.   Smart investors should pay close attention to the bullish signs and be prepared to act on the deal of a lifetime.

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In light of the numerous frauds, schemes and lack of regulation in the “once revered” securities and banking industry, real estate is beginning to look like the only safe haven for your money.

Unlike stocks, bonds and other exotic investment vehicles, real estate investors own something that they can see, touch, smell and enjoy.  In other words, “Real estate is Real”. 

While many unfortunate victims of the Madoff and banking ponzi schemes, may be forced to fire sale their mansions on millionaire road, I don’t see a huge negative impact on area’s like Palm Beach, FL.   There are simply too many ultra rich people on this planet, licking their chops at the prospect of getting a deal on trophy property, that was at one time unattainable.  These individuals are simply waiting on the sidelines, with cash in hand, to swoop down on a deal of a lifetime, with bragging rights included.

We are also beginning to see “the real estate is real” phenomenon take hold in other parts of the US, as well.  Housing sales are up in Las Vegas, Palm Springs and other desirable second home communities.

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