As we all watch the market go from 0 to 100 and back in real time, questions arise regarding when things will be less uncertain. If an investor purchases a property to flip, will they be able to sell it for more? Will they profit? These are new questions entering the atmosphere as evaluations are starting to mildly decline.
On the other hand, becoming a buyers market is not the worst thing in the world. Since inventory is still low, the bidding wars have made it difficult for homebuyers to find “the one.” Prices have scared away first-time homebuyers, and investors have been sitting on the fence, more or less.
This could be a time to buy and hold. Purchasing properties while evaluations are low and holding them until the market changes is usually a logical move. Data from Realtor.com shows that many homeowners are more reluctant to list their property than perhaps a year ago.
Inflation has cooled, and the Federal Reserve intends to pause the rate hikes that have been keeping potential buyers from taking action. Even as a private lender, we have finally dropped our baseline DSCR loan rate below 7%.
