Real Estate Pro Articles

Investing in Foreclosed Homes for Sale in Los Angeles, CA

[Valid RSS feed]  Category Rss Feed -
By : John Cutts    99 or more times read
There are various reasons why investing in foreclosed homes for sale in Los Angeles, CA is workable and profitable.

The first reason is the huge number of available foreclosure properties for sale in the Los Angeles metro area. In addition to the already existing inventory of foreclosure houses for sale in the area, a recent study reported that there were more than 59,000 homes in the area that entered the foreclosure process in the first quarter, the highest number posted by a metro area during the quarter.

Additionally, a coalition composed of community organizations like the Los Angeles Alliance of Californians for Community Empowerment and the SEIU Local 721, reported on its website that there are currently over 25,000 bank owned foreclosed houses in its database.

If these foreclosure numbers are added, they will result in a number favorable to investors, loosening competition that typically push up home prices and giving buyers lots of options in terms of price ranges, property types and location.

The second reason for investing in the Los Angeles area is the recent increase in the median price for all types of homes in the area. This means that the housing market has become stable enough to withstand the price pressure of foreclosed homes for sale in Los Angeles, CA. With a stronger market, foreclosure investments can be resold at a great profit earlier than expected or can be rented out at higher rates.

In March, the median home price in Los Angeles County rose by 9.7 percent year-over-year to $329,000. In the Southland areas, the median price rose by 14 percent to $285,000.

Another reason for investing in the area is the strong prospects for recovery in Los Angeles. Currently, the city of Los Angeles, just like the state of California, is suffering from a budget deficit of $485 million. But the deficit has forced city officials to assess city operations, determine where cuts can be made and make the city lean but stronger.

As the second largest city in the U.S., it cannot be allowed to collapse. City officials have launched a $4.34 billion budget plan for the fiscal period from 2010 to 2011.

In the same way that investing in foreclosed homes for sale in Los Angeles, CA is viable, investing in California foreclosure homes is also workable. Bank owned homes in California increased to 46,445 units in the first quarter, increasing buying opportunities for foreclosure investors in the state.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

Related Articles

Print This Article
Add To Favorites




© All rights reserved to Real Estate Pro Articles