Inventory keeps increasing. Longer and longer times to sell. Lowering absorption rate for residential.
At least near me, the market is transitioning to a plateau from the seller's market. Do you have any shift in strategy before a buyer's market occurs?
I've been primarily focusing on major fixer-uppers. But with the softening seller's market, what to do? Wait for home runs by moving more money into HYSA to sit on? Work with "singles" (solid enough, gets on base, but not grand slam home runs). Perhaps start hording cash to buy up single-families (1-units) when the market really turns?
It's not really a crystal ball. Last summer there was 1-2 multi-unit properties for-sale at a given time (in my area). All summer (peak selling time) there has been 20+ multi-unit. Houses priced right would go contingent in about a week back then. Now they're floundering for months.
If you don't believe, then just assume that's the case for my local market. What gear to shift to?
The housing market is nearing a plateau, at least near me, what strategy to shift to?
byu/tooniceofguy99 inrealestateinvesting
Posted by tooniceofguy99
3 Comments
I believe you. I am ready to 1031 out of a townhome, but it just doesn’t get me anywhere – all the metrics are the same except that the numbers are bigger because I’ve taken on expensive debt.
I’m seriously considering just taking the cash for now. Leverage is great… unless it costs 6.5%.
People forget that massive appreciation for the last few years means that the next few will be low or negative. Holding real estate equity could be expensive opportunity cost for a while.
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Realestate is not for day traders.
Think about Money flow into your area.
If AI or self driving cars, or import export kills your local economy like manufacturing, steel , coal, kills your economy, housing prices go down.
If your economy builds weapons, or healthcare or domestic food you are likely ok.