The above chart shows the number homes on the market for sale. This comparison is from July 2008 to July 2009 and is representative of the US market. The supply for homes below $250,000 has decreased over the past year. As the inventory is reduced, the housing market starts to return back to an equilibrium market. The lower priced homes under $250,000 will sell with the $8,000 first time home buyer federal credit and foreclosures fueling price reductions. Also, interest rates remain low. The higher price points will continue to see high inventories and the time on the market will lengthen due to the difficulty if not impossible to obtain a jumbo loan necessary to finance a high end home. Also, the number of buyers for homes over $500,000 is significantly less.
Tip for Today: Search for a home for sale below $100,000 and has more than 1.5 acres. For this property, make sure the property has significant lot frontage. Determine if the property can be re-subdivided - check the zoning. The intent is to subdivide, retain the house for rental purposes and achieve a vacant lot from subdividing the lot. Sell the lot at a price below the market. Look for the needle in the haystack!!! Don't waste your time on marginal properties. However, if you see the potential of creating additional lots from the original property - act. This approach is to hit a single rather than a homerun. Properly manage your risk.
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