Economic recoveries spur rising prices in housing markets, but the 2013 recovery has an extra incentive for housing investors – historically low interest rates.   The Federal Reserve has continued to keep interest rates down, adding some rocket fuel to the opportunities available to housing investors today.

• Housing prices are on the rise as the economic recovery gains momentum.
• The rise in housing prices is following the largest housing “bust” in history.
• Unprecedentedly low interest rates allow investors the opportunity to have ridiculously low mortgage payments allowing for massive cash flow on rentals
• The Fed is less likely to push rates higher while it is hesitant to hurt the recovery.
• Buyers believe interest rates will rise with the economic recovery.  Most want to close a deal sooner rather than later to stay ahead of any increase in sale prices or interest rates. Fannie Mae (Federal National Mortgage Association or FNMA) recently reported that 62% of consumers believe interest rates will go up.

The market is changing fast, and is no longer ruled by the buyers to the extent it was not so long ago.  Indeed, in some markets the sellers are taking control.  Buyers find that listings are selling much faster than they were a year ago, and in many markets there are far fewer listings to browse.

More buyers are getting into the market as their own finances emerge from the troubles of the last few years.  People shopping for homes quickly realize that if they like a property, it is better not to wait, or the home is likely to be snapped up by someone else.

Housing investors are in a similar situation – now is the time to move on a project!

• It is rare that key economic conditions are lined up as favorably as they are now. 
• Investors don’t want to later regret missing out. 
• Fix-and-flips will benefit from a stronger market and less competition from other distressed properties.
• It’s an ideal time for a buy-and-hold, enjoying the rental income while the value of the property increases with the recovery and being able to capitalize on some of the lowest interest rates in history.

Do your homework and find the areas with rising home prices and enough demand to keep the sales moving.  Get your partner-team together and find that next project – and the next one after that.

If you are a first-timer, or if you think your past strategy may need an overhaul, take a look at our coaching program to help you get started successfully.  This is one of the best chances in many years to get into housing investment for the first time.  For experienced investors, don’t delay finding your next project.  The economic recovery means profits are waiting for those who will go and make them happen!

What type of areas in your local market are showing both increasing sales and increasing prices?

Today’s market presents great opportunities to profit from new foreclosures still emerging from the process.  The key is to select the right property, in the right location, at the right time – and those are the factors I help my clients master to find truly under-valued properties to tap profits.  If you are new to real estate investing and exploring this process, I suggest starting with my free ebook guide to finding undervalued properties.