INVESTMENT STRATEGY
MARKET SHIFTS
Should Investors Be Alarmed About Recent Market News? NOT IF YOU USE IT TO MAKE SMARTER INVESTMENTS!
by Jason Engelman
t doesn’t matter where we get our news, none of us have been
We’ve become accustomed to interest rates being extremely low, especially during the pandemic. Seeing houses receive multiple offers way above asking price and going under contract within hours of being listed was common in many markets. The demand for homes versus available inventory and “cheap” money via low interest rates created a buyers’ frenzy. As a
result of these forces, the real estate market experienced tremendous never-seen-before growth. With rising interest rates, however, investors are already experiencing several shifts in the market. NO. 1 INCREASING INVENTORY Many sellers who wanted to sell their homes have waited. Because of rapid appreciation, many people were afraid to sell their home too
I
able to escape talk about an upcom- ing recession, rising interest rates, and “historically” high inflation. Seeing the Federal Reserve raise interest rates another 75 basis points can definitely be disheartening. Although it is certainly a warning, it shouldn’t be a reason for investors to lose their heads.
28 | think realty magazine :: september - october 2022
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