The market for home real estate continues to be in decline, but that doesn’t mean money can’t still be made.
Analysts claim that the current low home sale rate has been caused by a weak labor force, rising mortgage rates, and higher energy costs. According to the National Association of Realtors (NAR), real estate sales by homeowners fell to 4.86 million per year in June 2008. The rates haven’t dropped that much since 1998.
Americans don’t need new homes. They can’t afford their existing houses. California alone saw 63.061 foreclosures between April & June. That’s 40% of California’s total homes that were up for sale in May & June.
The housing market is driven down by the high number of foreclosures. Banks lose money on utilities, maintenance costs, and taxes for empty houses so they sell repossessed homes at bottom-dollar values. The low prices of foreclosed homes can cause a drop in the value of other properties, which can lead to a decline in real estate values.
Some companies believe they can profit from the downmarket and improve the real-estate market. One business, Deer
Park Development Corporation
(deerparkdevelopmentcorp.com), has focused on Nevada, which sees more foreclosures than any other state. One in every 299 Las Vegas homes is at risk from foreclosure. For half of the building cost, you can purchase million-dollar properties.
Deer Park Development Corporation draws upon its 30-year-old experience in real estate to identify homes that are likely to turn a profit when the market improves. The company works closely with agents and brokers with extensive experience in the down market. The company works with homeowners and banks to buy homes at 50 percent off when it finds a property that is worth its while. The company can keep homes for up to 24 months before selling them.
Former homeowners are also allowed to rent out their properties for a specified period of time by the company. Deer Park Development Corporation allows homeowners to buy their homes at a set price when the lease expires.
They are currently looking for investors to cash in on the down market housing market.
For more information, visit deerparkdevelopmentcorp.com.
