The perspective of the Kamhkpartners team on making the most of this cooling market.
Following the start of the pandemic, the real estate industry found itself in a very unique situation.Financial uncertainty and job loss prompted many unstable property owners to sell, while the remote work model brought others the opportunity to relocate and travel away from the city to smaller urban centres and more remote areas. Increased demand and lower borrowing rates caused listing prices to skyrocket and stories of properties selling for hundreds of thousands over asking became the very norm.Fast-forward to the present-day market. Due to the feds tightening policies, Interest rates continue to climb and the market has cooled. Property values are falling and many potential buyers are wondering if it’s the best time to buy or wait it out.
Kamhkpartners: Here’s why a cooler market can be a hot time to invest. Buying while the market is still softening has obviously a definite advantage.Motivated sellers: Dipping prices and steadily increasing borrowing rates have some property owners feeling the pinch. As the trend continues, they are more likely to sell before the situation bottoms out.On the other hand, once the downturn does begin to improve, those same sellers will be motivated to hang on to those assets or hold out for a higher price in the near future.Less competition: Wise investors recognize those times when they have the upper hand in the scenario, and that time is now.Potential buyers looking for Dallas real estate are hesitant to move forward in an unstable market, meaning those stories of bidding wars and umpteen-thousands-over-asking are further and fewer between.Investment value: Properties purchased during a softer market can often be obtained at a lower cost than what was paid even a year ago. As the economy becomes stronger and those properties regain their market value, today’s investors will be left with solid value in long-term assets.
To learn more about renting, buying, or moving contact the Kamhkpartners team: email@example.com or visit us www.kamhkpartners.com