OK, here's the last questions for today atleast....
So, back a year or 2 ago, flipping almost was a slam dunk i assume due to a risking market...Now the market is flat to declining....How are people faring with flipping now? What are you doing differently? Is it 'simply' a matter of reducing even more the max % of FMV you will pay for a property and then when re-selling, price the property below those in the area to help get a quick sale?
Lastly - HUD properties that the government is trying to sell - I have yet to read a lot, so i will try to find some good posts on them here...But in short, do people find them a good deal either for rentals or flips (if indeed u can flip them)?
While it is true that the market conditions nationwide are not as HOT as they were a couple of years ago, and indeed, some areas are declining, there are lots of areas in the country that are doing just fine, and some areas that are booming! The media, however, suggests that it's all doom and gloom.
Then of course, the interest rates are higher making it more expensive to own the property.
In an area that is not doing well, or declining I would be very cautious about the price I would give and look for deeper discounts for sure, to make sure the numbers work! 20% in equity could erode to 10% or 0% or -10%.
I like to focus on areas that are doing well where I feel confident in the values remaining strong and continue to appreciate.
thanks minimouse! What stats do u look at to see the health of a market and where do u go for your 1 stop shop of these stats?
- avg time on market compared to past years
- avg price compred to past years
- number of foreclosures
- others?