Skyrocketing housing prices in California is prompting nearly a quarter of the residents to seriously consider moving to cheaper digs elsewhere.
California has the nations third fastest rate of home price appreciation this year, behind Nevada and Hawaii, rising more than 18 percent compared to last year, 84% in the past five years and a whopping 338 percent since 1980.
Less than one in five... 19%... of the states households can afford the median priced single-family detached home, which was $465,540 in September.
Lots of these Californians are selling their homes for big dollars and moving to other states where they can buy a similar home for a fraction of the price.
Arizona and Nevada are prime target areas.
In those states the number of sales of homes to San Francisco Bay Area residents has risen by as much as (gulp!) 6,000% percent. That demand forces prices up!
Here in the Phoenix area we are smack dab in the middle of a home buying frenzy. In the last three months we have put four homes on the market. Each of them sold in ONE DAY! Offers above asking price are common.
Real estate agents are tearing their hair out because they cant find homes for their buyers. Our listings with a discount broker prompted dozens of calls from desperate Realtors.
The other side of the coin is that its very hard to find good renters. Anyone with the slightest record of financial resonsibility is buying a home.
If you are a cycle investor you buy near the bottom and sell near the top.
Is this the very top? I cant say, but when homes are selling a few hours after being listed it would seem to indicate that we can see the top from here.
If you are in one of these hot areas it is the perfect time to buy and flip.
Start walking neighborhoods in the early evening and weekends. Knock on every door asking, "Are you the folks with home for sale? Do you know of anyone who would be interested in a fast sale?"
You will find properties! You can sell them the next day! Racking up a profit of five grand a week is not impossible... if you are willing to put in the work.
With buy and flip you dont have to worry whether or not a top is near. Using options just about eliminates any possible risk.
Real Estate Options!
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Even a better idea... that can get you a mind-blowing price... is to sell using the "How To Sell Your Home In 5-Days" system...
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JUST CHECKING!
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WEB DETECTIVE
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Thanks for your help!
Until next time - Go Forth and Prosper!
Mark Walters~
P.S. Have you visited our "Investor Base Camp" lately? Go there now: http://CashFlowInstitute.com
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About The Author...
Mark Walters is a third generation investor, author, speaker and publisher. He is the Webmaster of
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