Investment Strategy
SPONSORED CONTENT Market-Proof Your Strategy THINK REAL ESTATE IS SLOWING DOWN? THINK AGAIN. WITH THE RIGHT INSIGHTS AND TOOLS, 2025 COULD BE YOUR MOST PROFITABLE YEAR YET.
JOHN V. SANTILLI
R ates are still high and housing inventory is still tight, but many experts suggest 2025 will be an opportune period for property investors. Let’s explore some tips and tricks for building lasting wealth through strategic real estate investments in an evolving market. The first tip? Don’t deny the math. If the buy, hold, and sell costs do not make sense and allow you to return 10-15% on your money, walk away. Cutting corners never works. You are better off staying conservative during tumultuous market conditions. HOUSING APPRECIATION The median existing home was $430,584 in late 2024, with projections indicating a moderate increase. The good news is we don’t see a global value depreciation;
it will be regionally driven. Additionally, the housing market shows signs of supply recovery, with modest growth of 5% in 2025. Home price appreciation may slow but will not turn negative in 2025, according to a Dec. 20, 2024, CBS News Money Watch report. The fact remains there are more buyers than sellers, which will drive prices up but only with affordable houses. Tip: The renovated houses that are moving quickly are under $350,000 or those above that are in economically strong and desired locations. The average consumer cannot afford homes with larger asking prices. HOT SPOTS Some regions are emerging as primary growth centers, with several markets showing exceptional potential. Notably, these top-performing markets—Boston, Charlotte, Greenville, Hartford,
Indianapolis, and San Antonio—all share these common characteristics:
▷ AVAILABLE INVENTORY AT AFFORDABLE PRICE POINTS ▷ HIGHER INCOME GROWTH FOR YOUNG ADULTS
▷ AGING IN PLACE PEOPLE IN CITIES ▷ SOUTHERN RELOCATION, CREATING DEMAND IN SOUTHERN STATES ▷ NET MIGRATION INTO SPECIFIC METRO AREAS SUPPLY AND DEMAND Due to high interest rates, construction costs, and labor market constraints, the housing shortage remains a persistent challenge. Builders will not get ahead of the market like they did in the early 2000s. Most homeowners with interest rates under 6% (and many closer to 4%)
26 | think realty magazine :: march - april 2025
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