A new report out of RealtyTrac shows that California is no longer on the Top 10 Foreclosure list. In the month of March, California dropped to number 11 on the list of states with the highest numbers of foreclosures. The drop off the list is great news for the state, though it may mean that some fix and flip professionals will need to adjust their strategies in order to stay competitive in the house flipping market.
According to the report, California reported 7,565 notices of default, 7,514 notices of trustee sales, and 3,410 notices of bank take-backs in the month of March. While these numbers are far from low, they mark a 59% decrease from the number of foreclosure filings in the same month last year. When foreclosure filings were at their worst in California, it was not unheard of for there to be over 20,000 filings in a single month.
As the Number of Foreclosures Decrease, Competition will Increase
The decrease in foreclosures is accompanied by increasing sale prices and demand for available homes throughout the state of California. This means that investors still have excellent opportunities to turn a profit in the burgeoning California housing market, but they need may need to rethink the way they approach it. As the number of foreclosures continues to go down, competition over new foreclosure listings is becoming increasingly fierce. With the right investment partner and a strong sense of the market, flippers can still take advantage of the foreclosures that are available, but other methods of investment should also be explored.
Short sales, for example, are a great way to get a hold of undervalued properties in the California market that can be renovated and flipped within a matter of months. There are also opportunities to purchase undervalued homes and apartment buildings that could be valued much more highly with minor adjustments.
But the real trick to being competitive in this increasingly complicated market is finding a private money lender that you can rely on.
ZINC Financial is helping clients earn record returns on their investments in the current California housing market. Competition is admittedly fierce, but only because the opportunities for profit are so great. With our years of experience and in-depth knowledge of California cities, neighborhoods, and communities, ZINC Financial is able to help clients achieve exceptional ROI in a matter of months or even weeks. Give us a call today at (559) 326-2509 to learn more about current opportunities in today’s market.