We have had an amazing winter down here in paradise and we expect it has been the same for you. The trends are all pointing in the right direction because the frigid north continues to make people into popsicles and it didn’t hurt that the entire world got to see how sunny it is here during the Super Bowl!
But the overall conversation on the housing market has been tepid at best and concerning at worst.
Most of the present indicators have been trending downwards including a decrease in year over year housing starts in the South. But these indicators are actually only signs of a health market and not of one that is in decline. Lawrence Yun, Chief economist with the National Association of Realtors cites an increase in permit issuances as a sign that construction is heading for a boom this year. This will add inventory and keep prices from appreciating too quickly which will place pressure on those hoping to buy and keep them renting which is obviously great news for income properties.
However, the fact that builders are confident enough to make additional capital investments is a clear indicator that the long term grow trend is expected to continue for some time, so for the first time since the real estate crash of 2006 the market is exhibiting both long term and short term indicators of minor fluctuations and thus overall health.
So for the savvy buyer this is the perfect time to buy. The perceived weakness in the market will encourage seller’s to discount their prices while ensuring the long term stability of appreciation. The savvy investor should look to build their portfolio within the next year to cash in on the low prices compared to the expected state of the market over the next 5-10 years. If you are looking for advice on your next income property purchase please contact us at 305-517-3900.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.