The issue of high-interest rates is a serious problem that has been affecting the housing market for some time now. The high-interest rates directly impacted the buyer’s purchasing power, while sellers haven’t adjusted their expectations on their property valuation. It will take time for sellers to adjust to close the gap between buyers and sellers.
The real estate industry is in a constant state of change and volatility. It is essential to stay on the edge of upcoming market shifts to navigate them and make the right decisions. The three ways outlined below can help you do that.
First, you must stick to your criteria and what you can control during this transitional period. We dont’ know where things will go from here, so betting on the future could be risky. It will take some time for buyers to adjust to the market trend created by high-interest rates.
Second, stress test your real estate underwriting, which will give you a better understanding of the market conditions that your investment can endure, allowing you to make better decisions on how much time and money you should invest into a property.
Last but not least, Investing in multifamily properties is a great way to deal with market uncertainty because these properties are more stable than single-family homes, which fluctuate more in value. If you are looking for a long-term investment that will provide financial stability and social benefits, consider investing in affordable housing projects or other community benefits that will generate economic and social impact for the area.