Spring, summer, fall, winter. In this world, everything changes with the season. Nothing is static. Just as we have seasons in the year and in a lifetime, we also have seasons in the housing market.
As a Realtor, I have watched as the last two years have been the season for sellers. High home values, low inventory and unprecedented interest rates meant folks selling their homes were loving life like every day was the Fourth of July.
As we transition to a season for buyers, it’s true that the hot market is cooling. Interest rates are rising into the 7% range. Inventory has increased. Homes are staying on the market longer. Sellers are accepting contingencies, paying closing costs and lowering their asking prices by thousands of dollars.
While some see this new real estate season as a time to hunker down for a cold spell, others are just getting warmed up. Investors are loving this market. They are primed and ready to scoop up properties from fatigued sellers.
The end of the fourth quarter of 2022 and the beginning of the first quarter of 2023 will be a wonderful period for investing. It’s time to diversify your portfolio. Think long-term rental, Airbnb, student housing and multifamily. Add an investment property, and cash in on the shifting market. This, quite literally, is how people create generational wealth.
Real estate markets change like the seasons. It’s all about how you look at it. While sellers are looking at a chilly forecast, investors are headed to the sunny beach of return on investment.
– Joannie Bates is a Realtor for Keller Williams Signature Partners. She works with clients in the surrounding area, with a focus on luxury and investment properties.