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As everyone has already seen the effects of buying high; in most cases buying when things are too high. For example, the real estate industry in most markets is now appearing to suffer from an ever-increasing foreclosure surplus. Foreclosures are still ongoing with more being added daily, except for the last two weeks in this month. A short reprieve for Christmas and New Year’s holidays.
But the foreclosure tidal wave will not only resume in the New Year but will also see a higher amount from the McMansion sector. Many of the suburban areas built expensively expansive homes in out lying areas. Many of the McMansion homeowners realized the house and the commute have become too much for them. So the new foreclosure landslide is the luxury market as more and more people decide to move closer to work. This movement back to urban areas is creating an on slot of lower vacancy rates in areas where work is not as hard to find.
There exists a possibility of a shortage of rentals due to older more established homeowners. Although a “shadow” market does exist of the very same established homeowners moving away from city areas preferring something with a slower pace and less congestion; Although conveniences has always been a consideration among younger and older alike.
Now we are in the buy low phase which increases rate of return. Now is the time to start purchasing commercial property and more specifically, apartments. People going through foreclosure are now displaced and looking for a place to rent. The banks ever tightening their grip on credit is also contributing to people not being able to purchase homes. The market of renters in middle-income areas are still a viable group. They did not move to homes, or maybe they were foreclosed upon, but all in all they will need a place to live.
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