What is the Current State of the Cash Flow Real Estate Market?

Posted by Chris Clothier on Wed, Apr 25, 2012

Cash Flow MemphisSo you're thinking of investing in cash flow real estate. On the nightly news, it seems like the housing market continues to experience ups and downs, and you're uncertain about how to proceed. So what exactly is the current state of the housing market?

There is an indicator called the Trulia Housing Barometer that might shed some light into the current state of the real estate market. It takes into account such information as construction starts, sale of existing homes, and foreclosure rates to assess the health of the market. At this point in time, the Barometer shows that the real estate market is much stronger now than it was a year ago, but it is currently only about 34% towards a full recovery of the cash flow real estate market. Basically, according to one recent article, "The report will use each month's new numbers to pinpoint the housing market's position on the spectrum, and chart its progress toward recovery. If the market moves at its current pace, it will not fully recover until 2015, the report found."

What does this data mean for those interested in income properties for sale? Well, according to many sources, "homes today are more affordable than they've been in the last 40 years, but that could change soon: Interest rates are finally increasing, and home prices are generally considered to be somewhat close to bottom." If you hope to make money on cash flow real estate, then the time is now, when prices are low and interest rates are only just starting to rise. This is the time when you can get an excellent price on income properties for sale, as well as a great interest rate on a mortgage, if you buy now before the housing recovery is complete.

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Topics: Memphis cash flow, investment real estate advice, Cash Flow Real Estate, rental properties for sale