August 16, 2012 · 1 Comment
If the U.S. housing market is really on the rebound how long do real estate investors have before we hit another bubble?
When everyone is calling a recovery the only way for media to grab attention with sensational headlines is to allow the pessimists to rant and scare with stories to the contrary, real estate investing pros just need to be educated enough to see it for what it is.
Believe it or not the recovery is here; just don’t call it a “boom”, yet…
All indicators firmly point to use being in the recovery phase but that doesn’t mean we are going to see double digit overnight appreciation rates yet and that’s probably a good thing in order to prevent a pre-mature bubble.
Those who are serious about their real estate education know that the upswing after a slump has typically lasted an average of 12 to 15 years. These historical housing cycles have been proven over and over again and around the globe.
That’s plenty of time to make a killing from real estate investing…
Investors just need to see it coming. This is only the beginning of a tougher “seller’s market” where property owners will not only be more demanding about prices but get tougher on terms too. Fortunately that also works in the investor’s favor too, especially when flipping houses.
Just watch out for another bubble swelling in 10-20 years from now. Make sure you have plenty of equity in homes you may want or need to sell and begin demanding bigger discounts so that you aren’t caught short with a handful of over-priced inventory.
Perhaps, thanks to the web the public will have a better real estate education this time around and be able to sustain this positive real estate run for longer, though ultimately greed and “greenback goggles” often get the better of us.