Subprime mess is OVER!

The subprime mess is over....here in Florida, the houses at the bottom of the market, the houses involved in the Sub prime crises, are being snapped up left and right by long term investors. When you can buy a house that sold for 200K in 05, for 40K now, and rent it for 700/mo., it just makes sense for a small real estate investor to make the purchase. It's a decent long term investment which will throw off some cash. It's this type of transaction, and only this type of transaction, that has created the increase in sales activity the past couple of weeks.

In addition to real estate investors buying low valued foreclosed properties, the government has more or less turned off the flow of foreclosures by instituting moratoriums and stepping up modification efforts. However, if jobs losses continue, the government will have a very difficult time holding off the second wave of foreclosures that I think is looming.

More expensive residential properties (that can't be rented by an investor for profit), and commercial property, have yet to be affected by the next wave of foreclosures that I think is coming. Unfortunately, I don't know when the next foreclosure wave will arrive, but from the increasing supply of more expensive residential property coming to market, and a VERY noticeable increase in short-sales and foreclosed investment properties coming to market, I am confident the second wave IS well on its' way.

If I have learned anything over the past few years its the importance of TIME! What looks great today, may not tomorrow, and vice versa. I believe we are at a crucial period right now where bullishness is rampant, and many are proclaiming the worst is behind us. However, I think the abundant "green chutes" and current bullish sentiment is a short term phenomena, and that our real estate crises has not yet run its' course.