The tax credit certainly borrowed from future sales as seen in the National Association of Realtors recent Existing Home Sales Index showed.  June’sexisting home sales were 5% lower than May’s when seasonally adjusted, but did register nearly 10% higher in the year-over-year numbers.

I’d expect this number to continue to look ugly in the near term as the hangover is felt from the tax credit.  While it did provide stimulus, we can see that it was an artificial stimulus at best.  Builder confidence remains low and even lower interest rates are doing little to generate demand.

These reports show that the recovery is far from over.  Because of this you should know that window to enter in at low price points and low interest rates will be open for some time.  Being prudent as an investor and waiting for the fat pitches can certainly be the strategy.

I recently was working with an investor who started evaluating real estate opportunities in November of 2009 and recently just made his first acquisition.  During this period, he was able to perform extensive due-diligence on many markets and firms before choosing to purchase a quality investment home.   This signals how buyer psychology is changing.  People are being more selective knowing the present opportunity will likely be here tomorrow.

- Ryan Hinricher, Founder, Senior Housing Analyst