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High Sales of Repo Properties Contributing to Positive Real Estate Predictions

Analysts have become more optimistic about the future of the U.S. real estate industry. A big part of this optimism is attributed to the continuous increase in residential property sales, particularly repo homes.

High Sales of Repo Properties

A big number of bargain-hunting investors and home buyers are behind these strong sales, with most of them taking advantage of the low prices and the record-low mortgage rates. The high level of purchase activity in the housing sector is part of the reason why industry analysts have become more optimistic about the outlook for the sector.

Distressed Property Supply Dropping

Sales of homes continue to rise during the first three months of the current year, as a lot of buyers heed the advice of housing experts that repossessed homes are their best bet toward homeownership. As the market starts to recover, more buyers are entering the market and are making their move before supplies disappear.

Experts' warning about taking advantage of the bargain opportunities as soon as possible is justified, as some areas are starting to show diminishing supplies of cheap distressed dwellings. In California, for example, inventory of these bargain homes is declining, with distressed houses accounting for only 14 percent of supply in certain local markets.

Outlook for Housing Highly Positive

Strong residential property sales are expected to continue for the rest of the year and even the year after. Housing experts actually predict that this buying frenzy will result in a healthy 2013-2014 home industry, with prices projected to rise and housing starts expected to double.

Data from the National Association of Realtors shows that the number of residential properties sold to investors surged by 65% in 2011 compared with 2010. The rise for this year is anticipated to be as high as the previous year and may even be higher, with most market observers saying that the thriving rental market will contribute to higher investor purchases.

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