U.S. House Prices.

One of the most intriguing questions at the moment is how to determine the real house prices before making an offer for a residential real estate investment. Like everything else, house prices are set by supply and demand; but clearly, the supply situation in 2014 is very different than how it was in 2007. Real estate inventory for residential housing is very low regardless of the high foreclosure rates throughout the country. Banks are keeping the inventory at hand in order to avoid flooding the marketplace with excess of properties driving demand low and prices along with them so they must artificially manage the inventory that makes it to the market place in order to avoid another housing catastrophe.

graph by: http://housingbubble.jparsons.net

Make sure you take a look at the supply and demand conditions of the market that you are considering investing. If you are planning to buy, fix and flip you must look at the demand in order to understand what your exit price will be. You also need to look at the supply and how much inventory is available in order to understand the likelihood of your offers being accepted. If your strategy is to buy and hold, then you have other factors such as price to rent ratios to consider before making an offer.

If you want to learn more about our real estate investments or if you are looking for new funding options please contact us at info@hiscapitalfunding.com.

Luis Daniel Roque