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We knew this was coming… back last month when Pending home sales rose 6.7% to the highest level since late 2006. Contract activity was at the strongest pace since December 2006 and Pending Sales have been above year-ago levels for the past 25 months. At the time, Existing-home sales were projected to increase 8.5 to 9.0%, reaching about 5.07 million in 2013, the highest in seven years. But that number is about to be blown away.

Just in today… Check this out…

Existing-home sales data came out today – and well above expectation.

Not only is it up 15.2% higher from last year, but it has stayed well above year-ago levels for the past two years. And median prices are up 13.5% from last year, with 16 consecutive months of year over year increases and 7 straight months of double-digit increases. The last time we saw prices rising this quickly was from February 2005 through May 2006.

What’s causing this surge in prices? Scarcity. Just look at the red line in this chart. There just simply isn’t enough homes to satisfy home buyer demand (blue line buyers). Listed inventory remains 7.6% below a year ago, now at a 5.2 month supply nationwide. Many coastal markets, like in California, have a much lower available supply (currently at 2.9 months) and bidding wars are breaking out, pushing prices even higher.

Distressed homes – short sales and REO foreclosures – are now at 15% June sales, are the lowest share since monthly tracking began in October 2008 (they were 26% in June 2012).

Many owners who were hurt by the downturn are now in the market.  Rising values have improved their position and 16% of Realtors^® surveyed in June reported they worked with a client that previously had an underwater mortgage. Of those previously underwater owners, 53% were planning to buy another home and 22% intend to rent, but 25% weren’t sure what they’d do.

Lawrence Yun, NAR chief economist, said there may be a fence-jumping effect.  “Even with limited choices, it appears some of the rise in contract signings could be from buyers wanting to take advantage of current affordability conditions before mortgage interest rates move higher. This implies a continuation of double-digit price increases from a year earlier, with a strong push from pent-up demand.” (Full report at realtor.org)

So what does this mean to you, the wholesale property buyer?

It’s obvious the chances of you finding a low priced REO or Short Sale listed on the market, is not in your favor. There simply isn’t enough houses on the MLS to satisfy the demand of current buyers. If you are looking for a below market deal, you’re going to have to dig one up that is not listed for sale.

The way you find deals in this market, is no different than how I found them in the early 2000′s when prices were rocking and foreclosures were a thing of the past. You must prospect owners in default directly, build trust and confidence and help them make the right choices during their difficult period. They may be looking for solutions to stay in their home, or they may be looking for solutions out… and just need the right person to help them.

Let me show you how YOU will be that right person, who will help make them make the right choices for their situation. And when it’s clear that selling and starting over, is their best option, then working with an honest, ethical investor, who can buy their home as is, and close quickly, will be key.  That investor needs to be you.

Join me this Wednesday, and you will learn exactly what you need to do, to find, fund and close these “hidden” pre-foreclosure deals, that are NOT on the MLS… and put money in your bank, and feel good about helping those in need. It’s a true win-win.

Make sure you Register for “How to Buy Wholesale Foreclosures and Make Fast Profits Now” and then Join me This Wednesday at 6pm Pacific, 9pm Eastern. Talk to you then!