Monday, August 25, 2008

Real Estate Question of The Month: Housing Starts Are Up For July, Is That Good News?

This months question comes from Ken Hilton from Austin, TX.

" Housing starts are up for the month of July, is that good news?"

Hi Ken, thanks for the question. Unfortunately the data that was provided in the month of July is known in the investor arena as a false positive!

Sales of existing homes rose 3.1 percent in July, easily beating Wall Street's expectations, as buyers snapped up deeply discounted properties in parts of the country hit hardest by the housing bust.
However, the number of unsold properties hit an all-time high, the latest indication that the worst housing market slump in decades is far from over.

Even though President Bush last month signed sweeping housing legislation that aims to prevent foreclosures by allowing an estimated 400,000 homeowners to swap their mortgages for more affordable loans, but only if their lender agrees to take a loss on the initial loan it seems this will not be enough!
Even with government help, nearly 2.8 million U.S. households will either face foreclosure, turn over their homes to their lender or sell the properties for less than their mortgage's value by the end of next year, predicts Moody's

So now, more than ever it is the time to think about using lease options ( to control property for maxium profit - please visit my web site for latest tips and strategies for the leveraged investor.

Be well,

James Gage