The housing market is still hotter than ever. Despite a tumultuous 2023, the market is poised to reach new highs in 2024 with stabilizing rates and rising home prices.
So, what does this all mean? If you're new to real estate investing, you may be confused as to whether it's the right time to buy your first investment property. Here are some key insights into understanding the real estate market.
Buyer's Market or Seller's Market
You may have heard real estate and financial experts using the terms "buyer's market" and "seller's market." These are the two broad definitions of the condition of the real estate market.
In a buyer's market, prices are low and inventory is high. This means that buyers have more negotiating power and can get into their new home at a lower price point.
A seller's market is the current state of the 2024 real estate market. Home prices continue to be high, and inventory is low.
Since there is more demand for housing than current homes available, sellers have the upper hand in the transaction. Many sellers are seeing bidding wars for higher than their original listing price.
Look at Prices in Your Area
The best way to get a grasp on your local real estate market is to observe your area. Find local real estate listings on websites and see how much the average cost per square foot is. This can depend on factors like location, amenities, and whether the neighborhood has a homeowners association, or HOA.
If you feel overwhelmed, it may be a good idea to work with a property management company. Trust the experts who often have more insight and experience with the real estate market.
Real Estate: A Long-Term Investment
In general, the real estate market tends to appreciate. That means if you buy a property, there is a high likelihood it will go up in value over a long period.
The buy-and-hold method is a solid strategy if you want a guaranteed return on your investment. In the meantime, you can turn it into a rental property and generate rental income to help cover your mortgage and other expenses.
Why Buy an Investment Property?
Property is a great investment because you can grow your portfolio in a stable way. Your property value increases, and you may have a property to pass on to your children.
You can also sell if you need a quick cash infusion. This is what makes buying property one of the smart investments you can make in the long run.
Increase Your Knowledge of the Real Estate Market
You don't have to be an expert to understand the real estate market. Hopefully, this guide will help demystify the market and give you the confidence to start investing in real estate.
Ready to begin your investing journey? PMI Atlanta OTP is here to help. With extensive property management expertise and market knowledge, we're the perfect partner for your investing needs.
Reach out to us today if you want to learn more.
