Home » Real Estate Articles » EquityBuild Says "Drop in Delinquency Signals Changing Times"
EquityBuild Says "Drop in Delinquency Signals Changing Times"
Equity Build's CEO Jerry Cohen states, "The 30 day delinquency rate is a leading indicator of housing marketing conditions. In other words, it's one of the first indicators analysts see as a market begins its turn around. These leading indicators are the tips investors use to determine when to move into a market, and right now is the time to move into the rental real estate market."
MARCO ISLAND, FL, July 07, 2011 /Real Estate PR News/ -- Equity Build's CEO, Jerry Cohen states, "The 30 day delinquency rate is a leading indicator of housing market conditions. In other words, it's one of the first indicators analysts see as a market begins its turn around. These leading indicators are the tips investors use to determine when to move into a market, and right now is the time to move into the rental real estate market."
The Falling Delinquency Rate
The fact that the delinquency rate is falling is good news for our country. Delinquency on mortgage payments hurts the economy. However, a falling delinquency rate is an omen for real estate investors. It indicates that the boom is probably over and the opportunity to take advantage of peak ROIs is passing by. If a dropping delinquency rate is an omen, then back to back months with a declining delinquency rate is a sign of the times. And, that's just what has happened. According to this Wall Street Journal article,
March logged another 8.6% drop in mortgage loans that were 30 days past due or in foreclosure. This is the second month in a row that the delinquency rate has dropped.
Beating the End of Year Trend
Add to this the fact that delinquent mortgages dropped from 15.02% to 9.47% in Q4 of 2009. Historically speaking, there is a sizable upsurge in delinquencies in the final quarter of every year. For whatever reason (heating bill increase, the holiday season, etc.), more home owners tend to get behind on their mortgage payments around the end of the year. However, in 2009 homeowners reversed this trend and the delinquency rate plummeted against the normal trend.
No Time Like the Present
Putting these two factors together, it's clear that things are changing for the real estate investor. The prime time to invest is right now.
For more information visit: http://www.equitybuild.com
About EquityBuild
http://www.aboutus.org/EquityBuild.com
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