During the 1990s the explosion in house flipping was incredible. In many ways it was to be expected with prices rising so high many thought it was foolish not to get in on the act. Then when the crunch came buying a house became as popular as having a tooth pulled, the market crashed and the Real Estate boom drifted away into oblivion.
In many ways the silence was deafening. There are still houses out there for sale, the market is still bouncing along but the cost of property is mere pennies in comparison to what it used to be. The logic is as clear as day, if everyone is selling who could be buying?
The funny thing is, nothing has really changed, just the perception of the value of property. There are buyers out there, making fortunes but not in the way they used to. With prices so low and opportunities so vast only the investors who know the real state of the market are players. So why if things are so good isn’t everyone flipping houses?
Before the housing boom buying a house was seen as a long term commitment, something you do maybe once or twice in a lifetime. When people bought a home they did it because they wanted to live there for a very long time. Once the market exploded this just didn’t make sense anymore. If properties were doubling in value every few years cashing in and reinvesting seemed like the only logical course of action.
After the boom ended it seemed like the house flipping market was over as well. All the pluses became negatives in nearly everyone’s eyes and there was hardly anything said about real estate which was positive. A house wasn’t seen as an investment but a liability which had to be got rid of at any price.
A recession, no matter how you look at it is a very natural thing. It clears out the dead wood from the market and puts properties back onto the value department.
It all depends on how you look at it. A glass can be either half full or half empty but still contains the same amount of water. Have a look at the house for sale in your local newspaper, there still the same houses that were there three or four years ago but only with drastically reduced prices.
If no one else is buying the the prices are lower. Currently they are much much lower than ever before. Compound this with the fact that sellers are willing to let go of properties for a song and you have the ultimate environment for making money.