I've been in real estate for 10 years and during this period I have watched prices double, certain neighborhoods become popular and multifamilies go from rundown and unwanted to 'hot'. In 1998 I could have have listed 50 2 family homes in our region. No one wanted one and they were cheap! Within a 3 year period, the inventory shrunk by two thirds and prices started climbing.
Money is made on the lean side of the market. In a tough buyer's market, you want to have buyers because with big inventories and great rates, it's pretty certain they will find a house.
The point of all this, is that I think I see a trend coming. I have been watching the stats in our region very carefully and it appears that multifamilies are selling quicker than single family homes. Our company is also getting a large amount of calls for rentals.
One theory I have is that because of all the big problems with the stock market, real estate investment is looking very attractive. A second point is that the days of 100% financing is gone. This eliminates the dabblers. This means less competition for investors as an investor needs 20% or more to be buying. I believe this is an excellent time for investors to purchase.
The increased rental activity is somewhat of a mystery. It could be a coincidence , but I feel it is somehow tied into this market. This could be part of the mystery of why more people aren't buying right now.
THE LIGHT AT THE END OF THE TUNNEL! Start calling multifamily owners and see if they want to buy more or sell to the investors looking for a new start in real estate. Call the investors in your database and share with them the possibility of a hot new trend. take a fresh look at the multifamily stats in your area.
Is this truly a light at the end of the tunnel or just a mirage? One thing is for certain. There is an end to this tunnel and there will be great opportunities for those who can see them .