Increasing strength in the U.S. housing sector has dramatically raised real estate income for those participating in today’s market.
Nationally, house prices have been rising by more than 10% annually. Subsequent real estate income has also seen a large increase. This jump in value is motivating banks to complete the foreclosure and repossession process on distressed properties. High prices are also enabling more homeowners to sell, adding more inventory and fuel to the market.
While demand for homes as residences, vacation properties and real estate investments remains strong, the snowballing improvements in housing are now adding new confidence for banks and mortgage lenders who are excited about taking more risk on new home loans.
We’ve already seen main street banks offering incentives for applying for home mortgages, hard money lenders increasing marketing efforts, commercial lenders relaxing underwriting standards and more money being piled into private mortgage markets. One sizable California trust that specializes in making jumbo mortgage loans recently said that they expect loan volume to blossom from $2.5 billion last year to $8 billion in 2013.
Credit Suisse’ director in New York recently told Bloomberg News that statistics show real estate agents realized the largest jump in commissions in April in almost 20 years. As a result, real estate income is expected to continue growing for the time being.
If Realtors are seeing swelling incomes for increased transaction volume, it is only logical that real estate investing pros who traditionally make more per deal than agents are also seeing their incomes rise too.
This applies to wholesalers and those flipping houses that are ramping up volume and cashing in on the spreads between distressed property acquisition costs and rising home values.
Expect the trend in real estate income to continue, but don’t hesitate or miss out on some of the best investment opportunities and market conditions. There are many ways investors can increase their income in today’s market.