VIEWS: 20 PAGES: 2 CATEGORY: Residential POSTED ON: 11/12/2012
I have something very important to say to you that can have a direct impact on your real estate success. You see... real estate investment isn't rocket science. It's a science (and an art too).
Home Sales Drop in the US By: Curt Cloyd – Director Personal Wealth Academy, LLC Dear friend, I have something very important to say to you that can have a direct impact on your real estate success. You see... real estate investment isn't rocket science. It's a science (and an art too). All one needs to do is to intelligently guess. Intelligent guesswork can take you from nowhere to a real estate superstar within a couple of years if you know how to play the game the right way. That's what I really love about real estate. You get to study a lot of patterns, data which you can use to make decisions. It's a lot like the stock market... but a bit safer and at the same time very lucrative. I just saw this article on HousingViews.com that talks about the sudden home sales drop in the US for June. This is some news that every real estate investor is going to have to pay attention to. It's going to have a direct impact on whether or not the property you've just purchased is going to produce you the return you'd like it to. The U.S. housing statistics report that home sales dropped by 5.4% in the month of June (4.37 million unit rate). The number is significantly lower in comparison to 4.62 million units that was predicted by experts allover after a sudden increase in U.S. housing sales from 4.55 million units to 4.62 million units in the month of May. The number of single family home sales has dropped by 5.1 percent and condo/apartments have dropped by 7.8%. If you're asking yourself what this means to you, pay close attention here. There are some possible conclusions that you can derive out of these statistics. These conclusions can influence all the deals that you put under contract in the next couple of months. Here are some of the possible conclusions that we can derive from these statistics... 1. Expect a lower profit margin So if you're into fix and flips or reselling wholesale properties it is wise to assume that you are going to have to settle for a lower profit margin. Here's why... The market demand has dropped and is likely to drop a little more for the next couple of months. So you won't get the same number of interested prospects as you did last month/a couple of months ago. ©2012 Personal Wealth Academy LLC http://personalwealthacademy.com The construction costs have risen since April-May. So a repair that cost $800 in the first few months of the year is now likely to cost anywhere from $900 - $1000. It may not be much when you're looking at it at a per house basis. But when you look at things with a bigger perspective (as in the whole economy), you'll find that it does make a massive difference. 2. Real estate stocks likely to plummet Real estate stocks have risen significantly in the last couple of weeks owing to the sudden increase in the U.S. housing starts and the increased buyer demand in the months of April-May. But now... things are likely to change. The increased construction costs and reduced buyer demand is likely to reduce investor confidence and we can safely assume that real estate stocks are going to see some percentage of decline. Whether it's a sharp or a minor decline is dependent upon how soon the market recovers from this situation. As you can see, these conclusions are of massive value to any real estate investor. It can REALLY mean the difference between success and failure (whether you turn profits consistently or just every now and then). If you'd like to do some intelligent guesswork that can REALLY make a massive difference to your real estate business, I strongly recommend that you check out what we have for you at Personal Wealth Academy - Click Here ©2012 Personal Wealth Academy LLC http://personalwealthacademy.com
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