Fewer houses on the market means more demand for the properties that are available and that means that houses that are currently up for sale are selling more quickly and at a higher price.
Clovis, California (PRWEB) December 12, 2012
ZINC Financial, a premier private money lender servicing California, Nevada, and Arizona, has announced that following the conclusion of the presidential election, property investors are taking advantage of the ideal house flipping opportunities currently available throughout the country.
With the uncertainty of the elections behind the country, the housing market across the United States has entered a period of stabilization. In addition, factors including historically low mortgage rates and an optimal affordability rating have combined to create lucrative opportunities for house flippers and other types of property investors.
"What we're seeing is a collection of important variables lining up in a way that is perfect for property investors," Todd Pigott, President of ZINC Financial commented. "With mortgage rates so low, housing prices on the rise, and more and more people ready to reinvest in the housing market, house flippers have a great opportunity over the coming months to capitalize on their investments."
The San Francisco Chronicle reports that, according to Freddie Mac, 30 year fixed-rate mortgages reached an all-time low of 3.34% in November, helping to improve the housing affordability index. Due to the decrease in mortgage rates, more potential buyers are able to enter the market and purchase their first home with less capital than they have needed in years past. The current affordability index also makes it easier for homeowners to upgrade to new homes, a move which they are much more willing to make now that housing prices are on the rise in virtually all major markets across the United States.
In Southern California in particular the housing market is surging. According to the [Los Angeles Times, home sales were up 18% in October over the previous month and were up 25.2% over the same month last year. With over 21,000 newly built and previously owned homes sold in October, the six-county region of Southern California hit a five-year high for the month. The median sales price for homes sold in October was the same as September, but up 16.7% over October 2011. Come January and the end of the holiday season, experts predict an even greater outpouring of prospective homebuyers will enter the market.
Pigott added, "The increased number of home sales is a great sign for home flippers, but it's not the whole story. In addition to more houses being sold, there is also less inventory on the market." In fact, only 2.14 million homes were up for sale at the end of October across the United States, marking a 22% decrease from one year prior as well as the lowest level of available houses in the last 10 years. "Fewer houses on the market means more demand for the properties that are available," Pigott noted, "and that means that houses that are currently up for sale are selling more quickly and at a higher price." According to the National Association of Realtors, fully one third of homes sold across the United States in October had been on the market for less than one month.
But what does all of this mean for house flippers? In short, it means a more secure investment. Given the confluence of current housing market conditions, investors have an increased chance of re-selling their investment properties more quickly and even at a higher price. Todd Pigott and his team at ZINC Financial have been encouraging their clients, both new and returning, to take advantage of the current market conditions.
"With the assistance of private money loans and rehab loans, house flippers who act quickly can invest in ideal properties for flipping -- properties that ZINC Financial can help them identify-- make quick and affordable changes, and resell their properties within a matter of months or even weeks for a substantial profit. The time to act is now," Pigott urged. "These conditions simply won't last forever."
ABOUT ZINC FINANCIAL: ZINC Financial is one of the premier private money lenders serving the California, Arizona*, and Nevada* housing markets. As a direct lender, the company can offer loans of up to $750,000 within seven to ten business days. Over the past several years, ZINC Financial has funded over $20 million in loans. The team at ZINC Financial has expert knowledge of the residential and commercial markets it serves, providing clients with the insight they need to leverage their wealth and develop lucrative investment strategies. To learn more visit: http://www.ZINCFinancial.net.