Ok, so it’s been a while since I have been able to post any updates to the blog. This spring we were busy buying, selling and rehabbing houses. Plus I spent a lot of time building and improving our website and member management and event registrations system call PROS – Professional REIA Operating System for REIA’s (Real Estate Investors Association). And now we are spending our time creating new marketing campaigns and chasing down anything that might smell like a lead.
So what’s going on in the markets right now? There are several issues we are dealing with lately. Most recently, Interest rates have started to climb and there is a huge lack of inventory. The lack of inventory can be explained by the rise of hedge funds buying billions of dollars worth of inventory directly off the market and from the banks, pulling most of the Shadow Inventory, out of the shadows.
That is one of the primary reasons for the lack of inventory, but not the only one. The banks stopped filing foreclosures, or at least slowed way down last year to deal with other issues, including packaging up shadow inventory for the hedge funds. The banks are back on track now, but all that inventory that would have been hitting the market right now, is just now going through the foreclosure process and is expected to hit the markets later this year.
I have been hearing from fairly reliable sources, that the amount of expected foreclosures over the next few years is equal to the amount of foreclosures that have already happened over the past few years. It should be an interesting next few years.