3 Trends that Could Impact Real Estate Investors

1 - Less new construction of homes at lower price points

Home builders across the country are reporting that the high-costs of lumber, and the increasing costs of getting building permits approved, have lowered their profit margins and reduced their incentive to build starter houses at lower price points. This means that first-time homebuyers have less inventory to choose from when it comes to buying their first home. Less supply means higher prices, and this could be a good thing for real estate investors who jump into the market now.

2 - Investors are less likely to rebuild after natural disasters

A recent study conducted by Harvard University showed that real estate investors are less likely to repair and rebuild the houses they own after they’ve been damaged by natural disasters.  This means that if you live in an area that has been impacted by a natural disaster, you may be able to find some great deals in today’s market by buying from other real estate investors.

3 - Low inventory of affordable (and desirable) homes

Many first-time homebuyers today are looking for starter homes in move-in-ready condition.  For the reasons stated above, these types of homes are hard to come by these days.  This provides real estate investors with a great opportunity to buy less-than-desirable homes that other homebuyers are passing up.

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PLEASE NOTE: THIS LETTER AND OVERVIEW IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX, LEGAL OR INVESTMENT ADVISOR FOR SPECIFIC ADVICE PERTAINING TO YOUR SITUATION.