Bottoms Up Real Estate Market

Some people tell me they are waiting for the market to go bottom up. They're waiting to buy until they can get a "deal," until they can snag a property that someone can't afford anymore. What people are failing to take into consideration is that Americans on average have more equity in their homes than ever. Many of them have earned that equity in a very short time. This makes foreclosure less likely, it makes short sale less likely and it gives people who may be headed for trouble options to fix them. 

 

What that means for those of you looking for the bottom of the market is, you're unlikely to find it. At least not in Colorado Springs and the surrounding areas. I'm not saying the deals aren't there, I'm just saying it will be like finding the proverbial needle in a haystack. It will be far and few between and you'll be gambling on an unsure bet. 

 

Our local market is still facing a serious home shortage. A low inventory of desirable homes, fewer home flip opportunities that make sense to investors, and shifting interest rates have all played a factor in keeping our market unsaturated with homes for investors. We aren't expecting it to change any time soon. Yes, there are gems out there, plenty of chances, but most of those gems are being snagged up by wholesalers and private investors so the stuff you the deal house hunter are seeing are all the things that haven't been snagged up because for some reason, or another those investors and wholesalers didn't see the ARV or deal in snagging it up.. Or maybe they just missed it. 

 

 

Most economists I follow are predicting a nationwide increase in home purchases in the 2nd quarter of 2024 and beyond. They are predicting a multiple-offer market and an influx of buyers with an increase in sellers but not enough to curb buyer demand. I am a little more conservative in my views but I do know people always have to move and people always want to buy. What I do not know is what the market will do in the future, my crystal ball seems to be cracked. But I do know that economists usually can predict markets pretty well. And the guys that have been in my business for 40+ years also think there's going to be a semi-repeat of what we saw in 2021. Low inventory, multiple offers, and an increase in market price. 

 

So no the bottom is not falling out, no I do not believe there is going to be a repeat of 2009. I think all the people telling you that are doing you a disservice. What I will tell you is that if you are ready to buy a home to live in or you're looking for investments for your real estate portfolio, if you have the money, if it fits your plan, and if it makes sense then it's time. If you are afraid, if you are on shaky financial ground, if you're not ready then don't do it. Know that I will be here for you whether it's now or later to help you on your real estate journey. 

 

Check out this from ATTOM: ATTOM Forclosure Data Report