Climbing Real Estate Prices Often Mean Demand Will Soon Cool. Not This Time.

Many experts believe agree that rising real estate prices, low housing inventory, and high demand will be with us, at least for the next year or two for the foreseeable future, despite getting mitigated by rapidly rising interest rates. According to the National Association of Realtors (NAR), home prices rose in 99% of the 183 markets the NAR tracked in Q2 2021. 78% of markets seeing double-digit rises in appreciation. As home prices rise significantly, so does the choice to rent over buying. You either fall into two categories of people in The Great Resignation, a common term used to try and encapsulate a seismic shift in multiple layers of our economy, such as the millions of people saying “I quit!” As well as “I’m outta here,” too cramped city living just to avoid long commute times. By the millions people are chanting we want to work from home and we want to live better in our homes. The two categories people are finding themselves in are renters and owners. 

For anyone in the position to purchase rental properties buying single-family homes in large metropolitan areas, in the suburbs, preferably, brand new and located in the Sunbelt states would be wise not to wait on a market dip. 

I have focused on new single-family homes as rental investment properties in the sunbelt states, near major metropolitan areas for decades, and have seen these investments greatly increase their value over time and provide investors with great wealth for decades even generational wealth. To learn more how about the best strategies to employ during the rising real estate prices of 2022 and where the best places are in 2022 to make a move visit ICGRE.com/guide 

That is the question! Where to make the move, either as a real estate investor/owner or as a renter. Compared to say buying a condo or multiple family living units like triplexes, it’s a single-family home that is very liquid. Everybody wants single-family homes. Families with kids want them, families with kids tend to become long-term renters which investors love. 

“Long-term renters, which prefer single-family homes provide predictable investment growth and that provides peace of mind and the ability to plan for your future. That’s what we all want. That’s the ICG sweet spot for investing: stability and growth.” - Adiel Gorel, owner of International Capital Group.

Today more than ever, people appreciate having a yard, and many families who aren’t in the position to buy a home with a yard are turning to renting long-term. Add into the mix that people want to have room for home offices, what type of investment property is best clearly comes out as single-family homes in the suburbs. The real estate prices have shown us just how super popular single-family homes have become in the past couple of years and these rising real estate prices are driven by a longer-term trend. Experts are saying not to wait for a bubble to pop. In fact, most agree this is not a bubble. The supply is lower than the demand and the supply is not speeding up. Because the cost and accessibility of building materials are still rising. In fact, The Washington Post recently reported that home insurance policy premiums have risen an average of 4% in 2021, due to “rising material costs,” and “supply chain disruptions.” Rising costs of owning, including the rising costs of home insurance is another contributing factor to rental properties being such solid investments. 

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Created on Apr 9th 2022 02:01. Viewed 119 times.

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