If you have a house or have ever considered buying one, you are probably aware of the substantial decline in residential real estate in the United States. Sales have declined to their lowest rates since 2020, while interest rates are rising and are already at 6.5 percent. This situation does not imply that investors should avoid purchasing real estate entirely; it’s important to consider all your options.
Though housing prices are high, other real estate types are not overpriced. For example, real estate investment trusts (REITs) own various properties besides just residential ones. REITs include hotels, apartment buildings, hospitals, office spaces, big malls, and retail spaces. These protect investors from the danger of rapid price falls.
Investors are still optimistic.
Despite the current scenario, investors are still enthusiastic about the residential market. They’re using financing options to take advantage of low housing inventory, which contributes to high housing prices.
The investor share of single-family houses sold in the first quarter of 2022 reached 28%, up 11% from the same time in 2021, as reported by property intelligence data company CoreLogic. According to statistics, investors who own a thousand or more homes purchased 3% of houses so far in 2021-2022, up from 1% in previous years.
Billionaire investor says now’s the time to buy real estate.
Grant Cardone, a billionaire real estate investor, author, and sales trainer thinks today’s real estate market is prime for an investment opportunity.
“I believe we are entering the BEST real estate market opportunity since 2008,” he said.
“With the Fed raising interest rates, it has sidelined home buyers, which means prices are going to pull back. If you are an end-user looking to enter the housing market, now is a great time to buy a house cheaper than it would have been at the beginning of the year,” he recommended homebuyers.
“You should look for people who, late last year or early this year, were hoping to make a quick flip and had an adjustable loan. They are waking up without a market to sell into and payment on their loan that is doubling,” he continued.
“Also look for institutions who have already written much of their portfolios down and will bring a lot of product/inventory to the market in the last quarter of this year,” he concluded.
With his statement, “I am an aggressive buyer through the end of the year and next year of income-producing real estate,” Cardone affirmed his belief that investors need not shy away from investing in real estate.