First time home buyers and real estate investors are swooping in on homes that are priced under two hundred thousand dollars. For investors, real estate is a safeguard from inflation. Real estate is a safe place to put money as the value of the dollar decreases among economic uncertainties and increasing federal debt. As the U.S. dollar becomes weaker investors know that real estate is a safe place to keep money. Rather than a chunk of change loosing it’s value in the form of cash in the bank, investors decide to trade money for an asset that is holding it’s value and expected to appreciate. Homes are tangible assets that will always have some value. Real estate investment is a relatively inexpensive, safe investment to carry because renters cover many of the expenses of home ownership. After the horrible crash of the stock market, investors have a renewed interest in real estate. Real estate agents, builders and investors are taking things one step further in real estate investment by flipping homes. Buying foreclosure properties in bad condition is the first step. Next they sink 20 or 30 thousand dollars into repairs and to improve the overall appearance. Then investors introduce the product onto the market where demand is super strong! Finally they sell the home and reap the profits. A quick flip can mean quick profits. The shear volume of flips that I see on the market is an indication that there is profit being made. If investors have a presentable product for less than 200k in a decent neighborhood it will sell quickly. It is that simple. Quite often homes under 200k go pending in less that 8 days. This is happening all over in the Sacramento area. Especially in places like Rosemont, Citrus Heights, Rancho Cordova, and south Sacramento. Mediocre to decent areas is where the flipping is most active. The demand for homes in the 350 + range is still weak because they are less affordable.
Dear reader, If you want to talk shop, call me, Mark Divittoiro at 530 957 1577. I can set you up with the best access to property information including automatic updates for the properties that you have your eyes on.
