Record Home Price Drop in January 2009 Good News for Investors
It’s no secret that the key to investing success is to buy low and sell high. Whether you are investing in stocks, gold, silver, real estate, or coffee beans a weak market is an investors dream.
The Standard & Poor’s/Case-Shiller 20 city housing index released on Tuesday, March 31, 2009 dropped by a record 19% in from January 2008. This is the largest decline since the index started in 2000. Their 10 city index also dropped by a record 19.4%. All twenty cities indexed showed both monthly an annual declines.
While this news is dismal for homeowners already inverted or nearly inverted in their mortgages, its great news for investors of real estate. Historically speaking we can expect to see housing prices climb to nearly their heyday of 2006, from where prices have fallen 30%. In 2003 we saw similar lows which reversed in only three years.
Some economists are now saying that March 9th was the bottoming out of the current recession, and home sales are up. This could be the hot time for investors to pick up properties and flip them in a relatively short period of time.
Even though no one can predict exactly when the best time to buy will be, we can learn from past events what the best time to buy was. It looks like right now will be the time investors will wish they had picked up properties.
As always, keeping you abreast of exciting market news to coach you to ultimate buying and selling machine success,
Larry Goins
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