How to Handle the Market in the Fall of 2022
In June of 2022, we wrote an informative blog about the mismatched housing market and predicted that the sharp rise in mortgage rates paired with inflation would push people away from buying homes. Unfortunately, our predictions were correct, and the real estate market has taken a hit!
Change is Inevitable
There is one constant in real estate and that is…the market is constantly changing. In 2011, the housing market started its upward climb to a feverish climax in 2021 and early 2022. After ten years of growth, the market has now pumped the brakes and moved into a cooling trend. While some may call this a housing “recession,” others merely look at it as a “rebalancing”— a pivotal moment for the housing market where the supply and demand imbalance has created a new type of market.
The Cooling Housing Market
Mortgage applications dropped to the lowest level this year at the end of June. With the current change in the economy and the U.S potentially entering a recession, the next 12 months will be telling. With that in mind, here are a few strategies for the shifting housing market.
- Patience is Key: Now is the time for buyers and real estate investors to take their time finding a home. While there is still a short supply of homes, those who are interested in buying a home or investment property have much more control.
- Work With an Experienced Professional: Teaming up with an experienced real estate agent is always important, but it is downright necessary with the current market conditions. With prices and rates changing on a regular basis, an agent who knows their way around the neighborhood (literally and metaphorically) is invaluable.
- Trust Your Gut: Know your finances and personal/professional goals to make the best (and comfortable) decision when purchasing a home. The twists and turns of the housing market can be tricky, so go with your gut while also being as informed as possible.
Real Estate Investment Tips for the Current Market
Investing is a numbers game based mostly on economics. When the economy takes a dip, so can an investor’s portfolio. However, real estate is one of the most stable investments because housing is a basic need. During a decline in the economy, many property owners become renters leading to a higher demand for rental housing. AND…If COVID-19 taught us anything, residential real estate (over commercial) is often not subject to economic and global trends. People need to live and seek shelter, no matter what is happening in the world on both a financial and personal front.
Know the Raleigh Market
Whether you are looking at Raleigh for your next home or purchasing an investment property, there are a few things to consider.
- The Research Triangle Park is located between Raleigh, Durham and Chapel Hill and generates a lot of high-tech/high-pay jobs.
- A diverse economic base in Raleigh and the surrounding area protects the community from the rises and falls of unemployment trends. The high-tech sector, major hospitals, schools, international airports…the list goes on, add a buffer for the economy.
- Raleigh is a college town and a great place to buy investment properties due to the constant flow of student renters and professors.
- Low taxes are another benefit of purchasing a home in Raleigh.
- North Carolina is also a landlord-friendly state.
At Oak City Properties, we have been helping those in the Raleigh area purchase and sell homes for years! Whether you are a family trying to sell your home or a landlord wanting to diversify your rental portfolio, our full-service property management company is here to help.
If you are interested in learning more about our services or speak to our listing agents, give us a call at (919)-232-9222 or check out our website: https://oakcityproperties.com
Want to read more?
Take a look at the following blogs about property management services
- 7 Benefits of Using a Property Management Service
- Do You Need A Property Management Company?
- How a Property Management Company Can Help with a Vacant Rental
Take a look at the following blogs about the Raleigh Housing Market
- It’s a Great Time to Own a Rental Property in Raleigh
- How to Sell a Home In Raleigh
- Raleigh Housing Market: A Smart Investment
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