Market & Trends
Stable Markets Aren’t Easy Street LESS MARKET VOLATILITY IS GOOD FOR LONG-TERM STRATEGY BUT HARDER ON SHORT-TERM RETURNS.
JOEL MOYES
A s the real estate market evolves, one of the top concerns for investors and real estate professionals is predictability. Will the market stabilize or remain volatile? And how can we position ourselves to thrive in the face of uncertainty? Lawrence Yun, chief economist of the National Association of Realtors (NAR), has shed some light on these pressing questions. He predicts a shift toward market stabilization after a period of unprecedented upheaval. This outlook presents both challenges and opportunities for investors and agents who are prepared to adapt.
MARKET STABILITY IS ON THE HORIZON Yun’s key message for the coming months is clear: Although fluctuations have been the norm recently, the market is heading toward more stable conditions. “The wild price swings we saw in 2020-2022 are unlikely to return,” he notes, adding that current economic factors such as lower inflation and easing mortgage rates point to a calmer housing market. This is good news for investors who rely on predictability to strategize long-term. From a property management perspective, market predictability can
also translate into more consistent rental income as potential homeowners may take a more cautious approach to buying. As a result, demand for rental properties is expected to remain strong, creating opportunities for those managing or investing in rental units.
WHAT THIS MEANS FOR INVESTORS
For real estate investors, predictability is a double-edged sword. On the one hand, a more stable market means fewer risks and more calculated, long- term investments. On the other hand, it means fewer opportunities for the
36 | think realty magazine :: march - april 2025
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