March 23rd, 2010 by Mohammed Cheaib

Real estate investors are back, say the National Association of REALTORS® and other market observers.

Investors made more than 17 percent of home purchases in January, with 26 percent of all sales transacted in cash.

“We bottomed out in 2008, and in late 2009, prices stabilized and investors have returned,” says Mark Fleming, chief economist at research firm First American CoreLogic. “It’s a different type of investor going after foreclosed properties and expecting to hold on for longer time frames.”

These buyers believe that the only direction housing values can go is up, because it costs more to build than it does to buy. Leonard Baron, a real estate professor at San Diego State University, says. “It’s because prices have dropped so much and rents really haven’t. The deals were unbelievable.”

Source: USA Today, Stephanie Armour (03/22/2010)

March 23rd, 2010 by Mohammed Cheaib

Potential buyers of short-sale homes might consider waiting until April 5th before making a formal offer.

That’s the date the federal government will begin offering lenders financial incentives to hasten the process. Under the new rules, banks will seek a BPO before the property is listed for sale and let the sellers know a minimum number they are willing to accept. If the sellers bring a buyer with a good offer, the lender must accept it within 10 days.

Not all sellers are eligible for the program, dubbed the Home Affordable Foreclosure Alternatives (HAFA), but enough are that it is probably worth waiting.

Source: The Wall Street Journal, June Fletcher (03/19/2010)