Is It Time To Invest in Real Estate?

Have you ever heard the expression, “It’s a buyer’s market?” That phrase describes what’s happening with today’s residential real estate: homes are selling for under their asking price and are taking longer to sell. Good news for buyers; not good news for sellers.

Are you a real estate investor or ever thought about buying an investment property? Though interest rates remain elevated, it might make sense to purchase real assets right now.

I’m not a real estate professional, but I do understand that a home is often a critical asset for families. Furthermore many investors have used real estate to build their personal wealth, so I feel it might be a good idea to update you on recent real estate trends and statistics.

As you can see, homes are selling at nearly 2 percent below the asking price. Perhaps even more concerning, homes are taking 56 days to go under contract–the longest in almost five years. So you may be seeing “for sale” signs up in your neighborhood for longer than you expect.

As you would expect, higher mortgage rates are the main reason for the slowdown. Higher mortgage rates mean monthly payments are near record highs. However, for an investment property, if your investment meets your return metrics at current interest rates then it might be a good time to look into a purchase. And if you feel secure in your income prospects, purchasing a home now might also make sense for you.

If you have questions about your home, I encourage you to speak with a real estate professional with insight into your local market. But if you have questions about either your home's role in your overall personal finances or how an investment property can help you build wealth, please let me know.

I’ll continue to pass along any information I have, including any updates on the outlook for interest rates.