MARKET & TRENDS
WHAT TO WATCH
4 Industry Trends You Cannot Afford to Ignore REAL ESTATE IS CHANGING … AGAIN.
By Tom Olson
he post-pandemic world is a volatile one, and the real estate
quarter 2023 (if they are not already doing so), so be alert and be aware.
holding costs, and even the amount of time and capital you dedicate to repairs. So, carefully monitor your local market conditions and watch those “days on market” metrics closely. Remember, as more listings appear and fewer people are comfortable borrowing at a 6% or 7% interest rate, it is going to take longer to sell your properties, even if sales prices remain high. Extremely low interest rates have made buyers extra sensitive to any rise in rates,
T
industry is just as susceptible to volatility as any other sector. Real estate has long been a “hedge asset,” one that is somewhat insulated from economic pressures and declines. As a result, investors often believe their strategic decisions are insulated from economic pressures. However, four trends began emerging this summer that will affect your returns as soon as third
1. THE “FREE MONEY FOUNTAIN” HAS BEEN SHUT OFF There are more houses being listed every day, and although most markets are still quite “tight,”you will start to see “healthier” inventories with multi- ple months’ worth of homes listed. This will dramatically affect how you should calculate your returns,
36 | think realty magazine :: september – october 2023
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