How to prepare for the upcoming Buyer’s market
Yes, like everything else, real estate is also cyclical. Following a seller’s market is of course a buyer’s market. The market shift often surprises people especially sellers but those who are purposeful score especially well during market shifts.
For investors wanting to score during a buyer’s market it is imperative to be positioned and ready to jump when the iron is hot. Having financing or funding in pace is job one. Having identified where is the best place to be investing is, is job two. Investing for sustainable returns in the best possible buyer’s market is what separates the seasoned investors from the new investors.
So how do you know where the best place to invest is? If you want the best most powerful investment market here are the signs to watch for.
Signs of market shifts
Days on market of listings grow from a low of 21 days to 30 then 40 and so on. The longer a home sits on the market the closer to a shift we are getting to.
New construction tapers off with fewer homes being built
The number of home permits being pulled are lessoning.
Job growth is slowing
Population growth is slowing or perhaps declining.
Home affordability levels are getting to high
So, if you currently own real estate in markets that you identify the above signs you may know that your investments values are about to level off or perhaps decline. In a perfect world you sell these assets at the beginning stages (or better yet before these stages) and you re-position your assets to the next emerging market. Take your big gains and continue to ride the economic wave of prosperity.
The above-mentioned indicators will give you great insights as to when and where you want to invest for long term sustainable investment returns.
Next you want to decide what you want to invest in.
This has a lot to do with personal choice, single family or multi family. Residential or commercial property. There is no right or wrong, it is more about which of these investments most interest you.
As most people who read these posts are residential investors looking to buy houses lets touch on best residential investments.
Best most lucrative and sustainable investment houses to invest in.
Properties with the highest rent to price ratio
Single family homes with the most buyers (the 3/2/2)
Dwellings with a price point equal to the area’s median home price
Homes in a predominantly owner-occupied area
Properties that are newest vintage for the price point with good roofs, mechanicals etc.
Dwellings that are in the path of progress (the area of the city that is experiencing the most growth.
So, as we approach another buyer’s market it is imperative to stay on top of the markets that are best poised and positioned to bring you the best most sustainable growth. Then you want to monitor that market to ride the wave of economic prosperity and again watch the signs to sell and reposition as the next emerging market a decade or so into the future.
Happy Investing