What We’re Buying During This Housing Correction
Summary
This BiggerPockets blog post discusses the current housing market correction and its impact on real estate investors, including those in the rental business. It suggests that while the market is slowing down, experienced investors see it as an opportunity, and that STR hosts should focus on affordability and the potential for increased equity on the other side of the correction.
Key Insights
- •A balanced market is one with approximately four months of inventory.
- •In some markets (e.g., Florida, Texas) home prices are already down more than the national average.
- •Home prices have been flat or slightly down in real terms for almost three years, and may decrease nominally by 1-2% nationally in the next year or so.
Action Items
- ✓Consider how the correction may affect your specific market and property to evaluate your existing strategy.Effort: lowImpact: medium
- ✓Monitor your local market to assess whether rents are softening.Effort: lowImpact: medium
Common Mistakes
- ⚠Newer investors might have the expectation of the market performing as it did during the pandemic.
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