What is going on?

is a good question. As I speak to folks facing foreclosure too many of them don't know where they will be going 'after this.' Some are moving in with family members. Because of this I am reaching out to section 8 investors.

Lea
SPR Property Solutions, LLC

Do you think as the banks are foreclosing, releasing REOs, and places are being auctioned that the rental pool just can't keep up with what's coming available? Seems like a great time to flip properties on lease/option, though? Or is that a wrong assumption? Just curious.
Her we still have an almost unlimited source or renters.. Everything I buy I have under lease before I even own it (even if it's been sitting vacant prior to my purchase).

Rina

We are seeing the exact same thing in the Chicago/Indiana area. I know many families are deciding to share a home and live together to dsave money. Some younger people are also moving back in with Mom and Dad or waiting to move out on their own based on fidning a job in this economy. I believe it will improve in the Spring. It will be interesting to see what happens. Believe and Achieve! - Joe

I agree L/O is a great option for some, those that have an income and money to put down. Our partner does this.

Last week I spoke to a lady who did a loan mod on her property and before the 1st payment was due she lost her job and hasn't made a payment since (August 1st.) Her loand mod was only a temporary fix and would/will go up to where it was soon, so that would have put her back where she was anyway. When I asked her how many payments behind she was I could sense her shame as she explained her difficulty keeping lights on and putting food on the table. I did my best to make her feel that she hasn't done anything wrong. Some investors just don't want to get involved in this stuff. For me I would sleep better at night at least knowing that I've done my part to connect people together so they have a roof over their head(s) after they leave their property.

Lea
SPR Property Solutions, LLC

Rina, I am not sure. I don't have the numbers on the apartment rentals, but the news said that they were at an all time high vacancy rate. There are 4,407 active home rentals in the city of Phoenix alone. This does not include home rentals listed by property managers. The average DOM for active listings on the MLS is 130 days. On leased properties (rented), over the last six months the average DOM was 51. I have not been able to find an annual comparison chart.

Al

There is nore transition tacking place in our nation than ever before due to people going where the jobs are available and the cost of living is lower. With that having been said, I have a business partner who has worked in the construction industry for well over 15 years. He has never seen such a shift in this industry as he is seeing now. He use to have a great crew of latin workers that he could call on for anything. He told me that most of his latin contacts have gone back to where they are from, changed industries or transitioned to an area where they can have consistent work. Due to the construction being a large employer in Phoenix and LAs Vegas, you are seeing the shift from demand to excess supply. In some of these areas they have over built too, so the number of properties actually exceeds the occupant base. In essence, there will be an adjustment period where the local market will have to sit on these vacancies until the local market adjusts to meet the number of homes available. In some areas, we are seeing 7-15 years. Crazy huh!!!

The economy has also caused consolidation of households too like it was mentioned my many other DG family members. If you want to see where the heck these people are going or see howmany are coming in versus moving from a given area I use the moving companies as a great source. They have market reports that help sell their franchizes, but can also help us as real estate investors figure out trends over a given period of time or population shifts.

I use these sources.

Atlas Van Lines http://www.atlasworldgroup.com/migration/
ABF/UPACK http://www.upack.com/press/PressReleases/2010/MovingTrendsReport.pdf

An additional source to consider :
http://pewsocialtrends.org/maps/migration/

I would look at unemployment rates, businesses closing, relocating, or consolidating. On a positive note, you can watch for businesses moving in to an area, tax breaks that the local government is offering, and the decrease in unemployment. Normally, the number of house starts or permits pulled for a given area is an indicator of market stagnation or market improvement.

The biggest thing to do is remember there is opportunity in any market, you just might have to dig a little deeper or identify a specific need that is not being met in any given area. Once you do that, you can start making some great money in that market.

I hope this helps!!!