Increase In Pending Property Sales Shows Market Is Beginning To Recover

Increase in pending property sales shows market is beginning to recover

by

Trapp

Property developers will be pleased to note that there has been an increase in pending home sales. In the recent past, due to the economic climate, change in lending conditions and other factors, sales of new and existing homes and condos have been fairly stagnant. Now, however, indications have come in that residential property sales are on the upswing in specific areas of the country.

Specific areas show the most increase in pending property sales

While this trend is not universally true across the country, specific areas are showing a definite increase in the number of pending property sales. For example, sales of homes and condos in the state of Florida have increased by approximately twenty percent. This is much higher than the national trend which is showing an increase of approximately two to eight percent. This range depends on whether you are viewing trends in the last two months or are looking at sales results for the last twelve month period.

What this means for property developers

This news means several key things for individuals who are interested in property development. The first is that residential properties are selling again. It may mean that developers can begin to look at residential properties as a way to generate income rather than sticking with commercial development opportunities.

It also means that developers need to pay attention to the kinds of properties that have the highest increase in sales rates. Condominiums are likely to be a better development opportunity whether you are purchasing and revamping existing units or you are looking at investing in a new construction opportunity.

It also means analyzing the sales that have taken place in a specific area in order to find out which sales have the potential to make the highest profits possible. This may generate slightly different results than finding out which areas have the highest increase in sales rates. A developer may then want to consider whether or not they are interested in a quick sale or one that can make them the biggest return on their investment.

How to find the information to make your decision

Learning how to find the information that is needed to make a property investment decision is critical. If you cannot access the right data in a timely fashion you may find that you are making development decisions that are faulty. This can end up costing a developer a large amount of money in the long run.

Working with a

real estate

professional that can tell you what the trends are as well as find out past sales performances on individual properties is crucial. They should be able to look up what specific properties sold for in the past and how long they were on the market before they sold so that it becomes easier to determine where you want to spend your investment funds.

You may also want to make sure that you have your financing in line before making any inquiries about a specific development opportunity. That way you can make an offer and be certain that you have the money to back that offer up.

Justin Trapp is a Licenced Property Broker who writes about topics concerning Property Investment and development in the USA, To find out more about him visit his website

us-properties-direct.com

Article Source:

ArticleRich.com