Four Reasons to Make a Move in Today’s Real Estate Market

Let’s slow down a bit, take a breath, and find the advantages for both sellers and buyers in today’s real estate market. By the way, these tips are good for nearly every market condition – today or otherwise - including when home prices rise or slow, when interest rates increase or decrease, and whether inventory is high or low.
 
Real estate investments can deliver long term wealth and cashflow opportunities. We recommend thoughtful decisions rather than emotional impulsive choices. This approach will most likely lead to more money in our pockets and more stable investments. What’s more, cashflow can happen quickly for savvy investors by working with creative loan officers, wise realtors, and motivated sellers.
 
Aaaand breathe… here are four advantages in today’s (and tomorrow’s) real estate market.
 
(1) Interest Rates have stabilized.
 
Yes, rates rose throughout 2022, dipped a bit, rose again and then dipped again. They’ll continue to do the same in 2023 and 2024. All said, rates change daily and at times, more than once a day. They always have and probably always will. What we must do to acclimate to the real estate market, is adjust our mindset.
 
If we own our home, we are a real estate investor. And as a real estate investor watching and reacting to interest rates on a daily or weekly basis will drive us batty.
 
Instead, let’s find an honorable and reliable loan officer, share with them our long-term real estate plans, and then let our loan officer keep us informed on any advantageous rate changes and loan products for our personal plan. Establish a relationship a reliable Realtor and they can regularly share with you housing opportunities.
 
In general, when interest rates change, up or down, in amounts of .125%, .25%, or even .5% - it seems daunting, but in many cases, our monthly payment over a 30-year loan term do not drastically change. Of course, this depends on loan size, type of investment property, and some other minor factors. The more we understand the better – hence my recommendation to surround ourselves with an honorable real estate agent and loan officer.
 
(2) Home prices are decelerating, not depreciating.
 
Meaning, if we’re a seller, houses are holding their value, and in time, values will continue to rise, as they always have.
 
If we’re a buyer, there are many affordable options in great neighborhoods. There are also opportunities for seller buydowns, seller credits, and lender credits – which will save us more money.
 
When considering a purchase, talk to a loan officer who can get you pre-qualified, or better, pre-approved. This way, when we’re searching with your favorite Realtor, we already know what we can afford, and sellers will see that we are one step ahead of the next potential buyer.
 
(3) Housing inventory continues to rise.
 
This means there are more options for homebuyers in every category of home, including single family, condominium, townhouse, and multi-family.
 
The great news is there are homes that are affordable for nearly any price point – let’s simply ask our real estate agent to help us find our dream home in our favorite community. And if we don’t yet have an agent or a loan officer, I have some awesome people for you to meet. 😉
 
(4) Real Estate investors are buying.
 
Good advice in any industry is to watch and emulate those who are experienced and successful. Throughout our lives, we do this often. We learn from teachers, coaches, instructors, parents, and – yes – real estate investors.
 
If investors have continued to purchase properties over the past year, they see an advantage. And so should we. Investing in ourselves is important and necessary for our continued wealth accumulation and financial stability.
 
All four of these reasons help deliver a level of optimism to this market – banks are adjusting their policies, so loan officers now have more options to qualify homebuyers. Realtors and sellers are working to make homes easier to sell through curb appeal enhancements, upgrades, seller credits, competitive pricing, and clean offer negotiations. The industry experts are working on behalf of the buyers and sellers.
 
Here's where we are now and what we must understand as real estate investors…

Interest rates have consistently declined for the past 30+ years until they hit the lowest-ever point at under 3% for qualified buyers through Q1 2022. Therefore, our real estate investor mindset for much or most of our lives has been, “rates decrease over time.”
 
When rates started to go up a bit, we weren’t used to seeing it. So, it took us a bit to readjust our mindset when rates increased from that lowest-of-lows 3 percent mark.
 
Today, rates within the 5-7% range are still common, and they are good loan investments. Many buyers are surprised when they find out how affordable and cashflow efficient home loans can be.
 
My final tip and the best way to begin and continue our real estate journey – find a realtor and loan officer we can trust. I’ll see you out there!
 
Yours,

Blaise