03/12/2023
Jean M.

As the world slowly emerges from the pandemic, the real estate market is once again in the spotlight. Investors are constantly looking for opportunities to grow their portfolios, and single family real estate investing remains a popular option. However, the question on everyone's mind is: is now a good time to invest in real estate?

The current economic climate can be described as volatile at best. The effects of the pandemic are still being felt in many industries, and the real estate market is no exception. The market has seen a lot of changes in the past year, with housing prices rising to unprecedented levels in some regions while others have seen a decline. In this context, it is understandable why investors may be hesitant to invest in real estate. 

According to a report from the National Association of Realtors, the median sales price for existing homes in the United States rose by 14.9% in 2021 compared to the previous year. 

Source: https://www.nar.realtor/newsroom/existing-home-sales-ascend-in-december-and-2021-overall

A recent report from Redfin found that the number of homes for sale in the United States was down 21% in January 2022 compared to the same month in the previous year. 

Source: https://www.redfin.com/news/housing-market-update-homes-for-sale-down-21-yoy/

A survey conducted by the National Association of Home Builders found that homebuilders are facing rising costs for materials, such as lumber and steel. The survey found that 96% of builders reported at least one material was experiencing shortages or delays. 

Source: https://www.nahb.org/news-and-economics/industry-news/press-releases/2021/09/material-shortages-continue-to-squeeze-housing-affordability

But despite these challenges, there are still opportunities to be found in the single family real estate market. Savvy investors know that success in real estate investing lies in finding good deals. One way to do this is to work with wholesalers, who can provide access to properties that may not be available on the open market. Wholesalers have relationships with sellers and can often offer properties at a lower price than what investors may find on their own. Working with a wholesaler can also save investors time and effort, as the wholesaler handles much of the legwork in finding and vetting potential properties.

Another option for finding good deals in today's market is to work with a real estate investment acquisition specialist. These professionals have the expertise and knowledge to identify properties that are likely to yield a high return on investment. They can also assist with due diligence and negotiating the purchase price, ensuring that investors are getting the best possible deal.

Of course, no investment comes without risk. The key to success in real estate investing is to do your due diligence and thoroughly research any potential investment before making a purchase. Investors should consider factors such as the local real estate market, the condition of the property, and the potential for rental income. By doing their homework and working with experienced professionals, investors can minimize their risks and maximize their returns.

In conclusion, while the current economic climate may make some investors hesitant to invest in real estate, there are still opportunities to be found in the single family real estate market. Working with wholesalers or real estate investment acquisition specialists can help investors find good deals and minimize their risks. However, as with any investment, due diligence is key. By carefully researching potential investments and working with experienced professionals, investors can position themselves for success in the ever-changing world of real estate investing.

A recent report from Realtor.com found that the top markets for real estate investing in 2022 include Boise, Idaho; Austin, Texas; and Raleigh, North Carolina. These markets were selected based on factors such as job growth, rental demand, and affordability. 

Source: https://www.realtor.com/research/top-markets-for-real-estate-investing-2022/