It’s fairly easy to determine the tempo and trend of real estate activity (and the ebb and flow of foreclosures in particular) in your local county area. That’s because most county recorder offices publish a monthly, computerized tabulation (see example on the reverse side hereof) of the most common documents being recorded. Title companies, and property information services (i.e. Core Logic, DataQuick, etc.), academicians and other real estate specialists avidly collect such data to keep abreast of “what’s happening” while it’s happening. We also are keenly interested in being in the vanguard of the market’s zigs and zags.
If you’d like to get such a statistical summary yourself you might copy our simple system. Just ferret out the particular clerk in your recorder’s office who’s distributing their statistical data, via email to outside parties and ask to be added to the list. They’ll agree to give you the info since they can’t agree to send it to some parties, but not to others.
We are primarily interested in the data that indicates the trend of current real estate sales, refinancings (number of deeds and trust deeds) and the current foreclosure rate (trustee’s deeds versus all deeds). We extract that data from the recorder’s statistical summary and keep a monthly, yearly and cumulative total for the comparative analysis that we base our short-term prognostications on.
Because we focus on buying deeply discounted property that’s being foreclosed upon, we don’t have to hold it for appreciation to occur. So we’re constantly flipping or reselling our properties as quickly as possible (within six to nine months). Thus our short-term outlook colors the type of property we’re interested in buying. If the market trend is restrictive we’ve learned to focus on buying just “entry level”, single family housing. However, when the market is upbeat and expansive we know we can readily flip a much wider variety of property (lots, condo’s, move-up housing, apartment houses, vacation homes, etc.).
We endeavor to stay lean and nimble and not be saddled with property we can’t readily resell. Being stuck with a bloated, non-moving inventory saps our attention and locks up our foreclosure capital. So we exercise a lot of discipline and tailor our buys according to our reading of the current market trend in terms of pricing and marketing times.
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Something big is happening in the U.S. housing market—here’s where 27 leading research firms think it’ll take home prices in 2023
Something big is happening in the U.S. housing market—here’s where 27 leading research firms think it’ll take home prices in 2023 Do you like this Article ? Sign up HERE for your FREE M&M Account to receive more Real Estate related information and news and THIS...
California Buyers Still Can’t Afford Homes
The issue for California residential real estate remains the same. Poor affordability means that despite latent demand, buyers can’t afford the prices of homes in the Golden State. For that reason, many have left to find much cheaper homes in other states. Unemployment will likely be on the rise along with lower business profitability (tech sector continues to lay off workers) which means fewer buyers are likely for 3 to 6 months.
The stronger consumer optimism is running against sticky inflation and a likelihood the FED can’t lower interest rates. But will that discourage buyers in California? Demand is always intense in CA. No other place offers what California has, and buyers today do seem to put lifestyle at the top of their list.
The luxury housing market, like most other real estate sectors, is adjusting to a slowdown. Affordability and home size are every bit as much on wealthy buyers’ minds as other consumers. “The reality is we are coming out of one of the best real estate markets in history,” Gary Gold, a luxury property specialist with Coldwell Banker Realty in Beverly Hills, Calif., notes in the latest Coldwell Banker Global Luxury Trends Report. “But that level of demand and price appreciation wasn’t sustainable.”
Nearly 90% of respondents to the Coldwell Banker survey say they believe the real estate market will be better than or the same as 2022 for property investment. The following emerging trends were noted in the report.