How are there happy home buyers in a market like this!?
Even in the face of higher interest rates.
10 Things I See From Current Home Buyers
Fact Based Observation #1
Smart money is buying and accumulating property. The offers that keep coming through are from private equity firms, corporations, and investors. So clearly smart money is bullish. On every one of my listings almost 40% of the offers are not coming from individuals or families!
Fact Based Observation #2
Buyer that are looking for their dream home are now able to shop for homes without worrying about fighting off multiple offers. When a home receives a multiple offers it creates a situation that is more favorable for a seller. Some families have to keep shopping for homes regardless of what interest rates are at.
Fact Based Observation #3
The investors who rebounded from 2007-2008 are by far the most confident and not as worried as new investors.
Fact Based Observation #4
Investors who are pivoting are looking to stabilize their portfolio from growth to income and they do this by developing a section 8 portfolio since banks love underwriting income.
Fact Based Observation #5
Landlords who were trying to push the market are dropping rental rates. I have already seen multiple properties drop their rental rate to stop vacancy loss.
Fact Based Observation #6
Buying a multifamily over a single family is a far better strategy when it comes to building a rental portfolio during these times.
Fact Based Observation #7
Making sure your rental properties make money without having to be in the top 25% unless you are a luxury property.
Fact Based Observation #8
Unemployment is below 5% and is currently in the 3%'s
Fact Based Observation #9
Forclosures are below .4, which means the likilhood of foreclosures are less than 1%!
Fact Based Observation #10
The MSCI index is extremely low which means the buyers who can buy today are very qualified.
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