Knowing where to put your money and when to strike in the real estate market can be a challenging venture. It can be even more complicated in a market where prices seem high and there are fewer choices than there once were.
The history of real estate encourages a certain amount of restraint on behalf of any buyer. However, with the right agent with an in-depth knowledge of the market, now is as good a time as any to invest in real estate.
It’s perhaps even the best time to buy up properties.
Prices are steadily rising as homes are being appreciated. There is a certain degree of inventory shortage, which resulted in fewer homes being sold this year. This could mean a few things for a potential buyer, namely the great possibility that things are about to improve for a buyer.
1. You’ll Be Able To Sell It or Flip It
Because the forecast for 2018 shows that homes are escalating in price, the inventory levels of homes for sale will go up. We are experiencing lower levels of unemployment and people are in better shape than ever with their finances.
This means that should you invest in real estate and want to renovate, flip, or sell your home in a timely manner you will be able to do so. People are on the literal move again in the world of real estate. Depending on the market in which you live, the probability of you purchasing a home and then turning around and selling it for a higher price is very likely.
2018 is going to be the year of buying as the balloon pops and the industry experiences some alleviation. It’s a fantastic time to buy a home for $500,000, renovate it for $150,000- and then sell it for $800,000.
2. Rates Are Headed Upwards
We’ve experienced quite a few years of substantially low-interest rates (an unheard of 3% even). However, now there are going to be notable increases. The new rate for a 30-year fixed just surpassed the 4% mark in this past year. The economy is growing, and that is propelling the momentum for increases.
Some experts say that rates may even get as high as 5% by the end of 2018. This makes it a perfect time to invest in real estate. You can still apply for mortgages and great rates that are going to make your investment a worthwhile choice and get you a greater return on your property.
For the principal, and lock in a fixed-rate mortgage now before they become too expensive to be seen as a wise investment.
3. Prices Are Steadily Rising, But Not at High Speed
Prices are on the rise again and in steady form. In this past year, prices have escalated. Some wealthy buyers are actually sliding out of their normal price ranges because of the increases.
This is a good thing for most buyers.
However, the 2018 crystal real estate ball is just showing that prices this year are going to be a little bit more moderate. This makes it a great time to invest in real estate because you can buy a home that is going to steadily appreciate over the next few years.
You should buy your properties now while the prices are still at an obtainable price range. Once they soar and skyrocket, you won’t be able to afford the luxury properties that you had your eye on. However, invest now and you’ll watch your property price slowly rise for years to come.
4. You’ll Have More to Choose From
We have been experiencing a fairly severe inventory shortage in the housing market since 2015. There have been many buyers who have to settle for a home they weren’t exactly excited about, just because there has been such a lack of options (a 1,800 square foot home with a dated kitchen for $700,000, anyone?)
This has also kept many gurus who love to invest in real estate out of the game completely. However, experts predict that by the fall of 2018 things will start to change in a big way. A few markets to experience the biggest turn of the tides will be Nashville, Detroit, and even Boston.
There will be a huge inventory surge in the middle to upper housing markets. The amount of new homes being built is also set to go up but at a snail’s pace. There have been new laws passed in the labor market and there are new limits to how many lots and lands are available.
2018 is going to see major inventory increases which makes it the perfect time to invest in real estate. You can get the most bang for your buck by choosing the exact property with the exact qualities you wish for and for the exact amount of money you’d like to pay.
The game is no longer getting away from us. To make smart real estate investments, you have to have options. And finally, the market is going to give us just that. It’s about time, don’t you think?
5. Taxes When You Invest in Real Estate
Politics aside, there was a certain party that tried to get rid of the mortgage interest deduction. While it would only affect a small percentage of people with mortgages, it would certainly have a disastrous effect on the real estate market with soaring mortgage prices.
However, the real estate pros agree that this new tax proposal would not be beneficial to home buyers as the benefits of actually owning a home will go somewhat disappear.
However, that means that not as many people are going to browsing through the wide open inventory to buy homes. With fewer sharks in the water, you will be able to capture your prey with less effort. Perhaps you are even in the price range to see a tax cut.
Go Big and Go Home
2018 is the time to buy big and then move into that big home. You can enjoy it for a few years and then turn around and sell it, or you can buy a home that needs some work and renovate it.
Regardless of what you have in mind, this is a great year to buy and bind. There are mortgage incentives, an increasing inventory, fewer people fighting for the properties you love, and an increase in selling prices.
When you’re ready to jump back into the real estate game, contact us today.