Opportunities with Real Estate in 2023
What are you experiencing?
Expanding your family, new job, promotion, relocating, retiring, down-sizing, event losing a loved one, are all reasons people move. Could you be contemplating a move?
Last month we talked about your housing goals in 2023. When it comes to moving, lifestyle is usually the key indicator for housing decisions. Expanding your family, new job, promotion, relocating, retiring, down-sizing, even losing a loved one, as well as affordability are all reasons people move. What are you experiencing this year? What is your reason for contemplating a move this year?
The Opportunities
1. Buyers - This may be the best time in the foreseeable future to buy. Rates are softening and buyers have more choices
2. Sellers - The Great Equity Grab. Depending how long you’ve lived in your home, you have more accessible equity than ever
3. Investors - Rents are a trailing indicator for Inflation. Rental income is projected to grow another 6%+ this year
Buyers
Reports are coming out that this may be the best time, for the foreseeable future, to be a buyer. While interest rates peaked around 7% in November and stalled plans to buy, rates have moved down closer to 6%. Pent up demand still exists. There are many buyers sitting on the sidelines ready to re-enter the market. Here’s how we know:
In the past 24 months we have seen an unusual housing market. With work remote scenarios in place, population growth for affordable mid-market cities have grown creating a supply-demand issue. Also, we are coming off the hottest recorded real estate market in history. With an average of 5.6 offers on every home, there are still 4.6 (weird # I know) buyers who missed out on a home and had to try again. There were more buyers than what we had homes for. With more choices this year and rates leveling off, I’m sure we will see most potential home buyers choose owning over renting.
Sellers
The opportunity for sellers is what we like to call, “The Great Equity Grab.” If you’ve been a home owner for more than 3 years, you’ve seen your home value rise dramatically. This year we should see appreciation somewhere between 3-8%. Still growth, but not as rampant as before. When you sell your home, you get immediate access to the equity you’ve gained. Some people will use this to increase the down payment on their next home and some will use it for personal finance reasons such as; college, remodeling, or even buying investment real estate. What is your plan for your homes equity?
Investors
Have you been thinking about investing in real estate? Did you know 25% of our business is Investment Real Estate. We’ve carved out a nice niche here in Northeast Indiana by supplying national investors affordable homes that cash flow. We should continue to see rents increase due to inflation and population growth. The best hedge against inflation is appreciating assets. Now is your time to consider a jump into the investment space.
We’re here to help! If you’re looking to move or invest in property, contact us here.