The real estate market is a wild animal.
And the problem is, everybody “knows” where it’s going to go, because everyone’s an “expert” when it comes to real estate.
I certainly don’t claim to be, but I know that the trends are the experts, and they’ve made me millions in real estate up until now.
Here’s what they look like for the next year…
1. Prices continuing to rise
85%+ of markets in the US have housing costs that are more than 30% of the household income. That’s a BIG problem. And it doesn’t appear to be turning around anytime soon.
That trend is almost certainly going to continue into 2024—especially if rates start coming down—so get ready for a market in which renting continues to be more affordable than buying.
2. Increasing mortgage rates
“Rates” is the buzzword that many people like to throw around these days.
It appears the recent raises haven’t knocked prices down at all (as they usually do). We’re in a weird time where rates could go either way in the next few months, and any drastic change could knock the market one way or another.
3. “Will it crash?”
Having lived through the crash of 2008, that term has been extremely popular over the past 10+ years.
I’m sure you’ve either heard or had that question yourself.
It’s a valid question, but everybody believes the next crash will be as devastating as the last… News flash: it won’t.
But we could potentially see a crash (which is actually good news for us investors).
Housing levels are creeping up to 2007 levels (just before the last crash). Arm yourself with as many cash generating avenues as possible, but bear in mind when houses become cheap again, you’ll want to scoop up as many for rental investments as possible.
4. Generational impact
What many people don’t realize is just how significant the roles of different generations have on real estate.
For baby boomers, those entering retirement will play a double role of both selling their existing property as well as buying new property in many cases.
Generation Xers are now entering their prime years alongside continuing recovering financial conditions.
And Millennials will continue to emerge as the largest force in the real estate market as first-time buyers as the final and largest wave of them enters prime buying age (mid-30s).
With these trends in mind, YOU could become a real estate investing force to be reckoned with.
Use these trends wisely and be ready to pounce when the time is right.
