Cash In on the Boom in New Home Sales In The USA
Cash In on the Boom in New Home Sales
by Michael Sexton
If buying and holding new houses is your strategy for investing in real estate, this could be your lucky day.
Thousands of new homes are on the market - and they are selling for record low prices. Here’s what the Associated Press reported yesterday: 
* 981,000 new homes sold in April. That’s a jump of 16.2 percent over April of last year - the biggest one-month jump in 14 years.
* But at the same time, new home prices are tumbling. The median price of a new home fell 11.1 percent between March and April alone. As the AP article explained, “The big price decline indicated that builders are slashing prices in an effort to move a huge overhang of unsold homes.”
The handwriting is on the wall, written with a broad brush. This is a great time to buy a newly constructed home - or a block of them - for a rock-bottom price. But to take advantage of this opportunity, you need two things: 
First, financial resources. If you are prequalified for a mortgage or have cash in hand, you will be just the kind of buyer that sellers are looking for. You’ll be able to move fast, negotiate hard for the lowest prices - and leave unprepared buyers far behind. 
Second, current knowledge. Actually, the boom the AP reported was just a small tremor in some parts of the country. The strongest sales uptick - 27.8 percent - occurred in the South. But in the Midwest, sales actually dropped by 4 percent. So knowledge is power, and you can’t fly blind.
But if you know how to arrange powerful financing and negotiate deals like a pro, make no mistake about it. These are days of unprecedented opportunity for investors. And if you are simply looking for a nice new house for yourself and your family, now could be a great time to make your move. 