Bargain hunters are jumping in to find the hidden gems in spite of the housing market's current state of affairs, becoming a segmented market in and of itself. In short, it's deal time!
Among those are affluent baby boomers, looking for a smart buy to grab now and enjoy after retirement, having been locked into a good interest rate. Another group is the high-end shoppers who have been waiting for prices to drop and for more to choose from on the market. Of course, you also have the investors who are committed to snapping up a hot commodity at a cool time.
The number of houses on the market is rising, especially in places that host second-home markets. Napa Valley, Florida, Nantucket, and Cape Cod, to name a few, are showing ample opportunity for bargain-hunters. Prices have already come down significantly in Southern California, a strong primary and second homeowner's market.
During prime time, amateur real estate investors were able to flip houses in as short a time as three months, but in the current climate experts advise investors to budget themselves under the assumption that this for a longer haul. They should be prepared for a three to five year ownership and consider carrying costs that include taxes and maintenance. Get it while it's hot, yes, but always take precautionary action when handling high temperatures.