As we say goodbye to another year, you may start to see predictions in the news about the real estate market next year.

This year, the market definitely changed…a lot! If starting your real estate investing journey was a goal, but you were confused or overwhelmed by everything going on, you may be wondering what’s in store…

Is the housing market going to crash?

Are prices going to drop?

Are the rates going to get higher or continue to go down?

No one can predict what’s going to happen for certain. As I’ve said before, there’s never a good time to start investing!!!

Even so, when you start thinking like an investor, you’ll see there’s opportunity in any market!!

Much of the talk so far about is about how mortgage rates are expected to stay high because the Fed is still increasing interest rates to lower inflation.
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Although home prices are predicted to fall about 5% nationally, prices will still be considered unaffordable compared to before the pandemic.
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That’s what we’re hearing about the market overall, but for investors, here are 2 things to keep in mind that can work in your favor:

  1. According to U.S. News, existing home sales will slow from a combination of low affordability and homeowners who are locked into record-low mortgage rates not selling. However, this also means that more owners will keep their homes as investments and rent them out rather than accept a lower sales price. This is a strategy I teach my students inside my cohort!! I call it the step-up strategy! This is, by far, the easiest way to become an investor!

​What’s great about this is that there are also predictions that demand for rental housing will rise!! With housing prices still considered to be relatively high, potential homebuyers may still want to hold off on buying and keep renting instead.

​If you’re currently a homeowner looking to become an investor, instead of giving up your low mortgage payment, you can keep your home and convert it into a rental!! When you “step-up” to your new home, you’ll actually have another advantage…you won’t be buying in a seller’s market!!
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Something else to keep an eye on…the short-term rental market! Between new regulations and Airbnb guests pushing back against hidden and high cleaning fees, the short-term rental market definitely went through a shake-up this year! Something to potentially look for is some Airbnb owners selling unprofitable properties! If you come across an opportunity, and the numbers look good, it could be an investment that you can turn into a long-term rental!