2023 Spring Market Update

As we look ahead to the 2023 housing market, it’s becoming clear we’ve shifted away from the unprecedented activity that has become synonymous with the pandemic, but many are left wondering if moving this year makes financial sense. We are certainly working through some turbulence in the housing market, although the fundamentals remain strong. In contrast to the crash in 2008 caused by both inflation and loosely regulated lending practices, demand from qualified buyers still outweighs supply. We’re trending down from the 7% interest rate peak on a 30-year conventional mortgage, now back down to about 6%. Many buyers are choosing to wait it out, so if you’ve been considering a purchase, there is a window right now with less competition and greater buying opportunities. In general, we remain cautiously optimistic that the housing market will warm up again, as it does each spring. Any further reduction in rates will certainly turn up the heat. No matter what market we find ourselves in, we’re here to navigate the landscape and guide you toward your goals! Feel free to reach out anytime, we’re here to help!

Single Family or Multi Family Investing?

Deciding whether to invest in single family or multi family real estate is a complex decision that depends on a variety of factors. Here are some things to consider when making this decision:

Cash flow: One of the key factors to consider when deciding between single family and multi family properties is the potential for cash flow. Multi family properties tend to generate higher rental income, if the purchase price is right. However, when selected carefully, single family properties may also provide a good source of rental income, especially in high-demand areas.

Financing: The type of financing you are able to obtain can also influence your decision between single family and multi family properties. Financing for single family properties may be more readily available, especially if you are looking to purchase a smaller property, although making sure the numbers work on each opportunity is most important.

Management: Managing a multi family property can be more complex and time-consuming than managing a single family property. You will need to manage multiple tenants and leases, deal with potentially more expensive maintenance and repair issues, and handle unique tasks associated with running a larger rental property. This can be a significant time commitment, and may not be suitable for everyone. The upside for multi family is that there is just one roof, often one heating system, and one yard, so opportunities of scale would start to factor here as you grow a portfolio. When one unit sits vacant, the others are still covering expenses.

Appreciation: The potential for appreciation is another important factor to consider when deciding between single family and multi family properties. Single family homes tend to appreciate in value at a slower rate than multi family properties, but this can vary depending on the location and how long you plan to hold the property.

Overall, the decision to invest in single family or multi family real estate depends on your specific goals, financial situation, and tolerance for risk. It’s important to carefully evaluate your options and consider the pros and cons of each type of property before making a decision. If you’d like to discuss more about the various options of investing in real estate, please reach out. We’d love to chat!

Buying/Selling in the Fall

What You Need to Know About Buying and Selling Real Estate This Time of Year

This time of year, and especially in this market, we often get asked if it’s a good time to buy or sell a home. There are certainly potential benefits and risks that come with engaging with the real estate market during the Fall, and the most important thing you can do is keep yourself informed. Consider the pros and cons below:

Buying a home this fall will give you a slight reduction in prices and less competition. This gives you more time to shop around and consider your options. Some of the downsides for the current 2022 market are that we’re seeing increased interest rates and some uncertainty with future market conditions

Selling Real Estate in Autumn

Thinking of Selling? With the cool down in the market, some sellers are deciding to wait it out, although it’s not all bad. Listing this fall would offer less competition with other listings. We’re also seeing historically high prices and, although we’re not at the value peak, we’re close to it. A reason you might want to wait to sell would be waiting to see if the interest rates come down, thus creating stronger buyer demand. It also might be worth waiting for the traditional Spring buyer rush. This can create more interest around your home, and thus, potentially higher asking prices.

Overall, we encourage our clients to make a move when the time is right for them. Timing the market is difficult, but you can make an informed decision with a knowledgeable Broker or REALTOR®.

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