A look at our current market and the best areas to invest in.

A lot is happening with our economy this year. We’ve seen interest rates go up and stocks go down on Wall Street. What does that mean if you’re a homeowner or a real estate investor in our current market? 

The great thing about real estate, it’s usually a very safe place during times of uncertainty. Unlike Wall Street, which can go up or down 5% or 10% in a short period of time, real estate does not typically have price swings so dramatic and typically holds its value. Unlike what we saw during the Great Recession about a decade ago, the fundamentals of real estate are different this time. There is still pent-up demand for homes, and there’s still a lack of supply of available homes. Builders have just not kept up with this demand over the last 10 years. 

“The fundamentals of real estate are different this time around.”

Investors that have rentals are doing great in this market. The principal and interest portion of that investor’s mortgage was fixed when they purchased the home, and rents are locked in for the duration of the lease. There are still more renters out there searching for homes than there are available homes for rent.

Most economists are predicting home prices to continue to appreciate, even if we enter a recession. Although home buyers might be paying more in interest rates, if you buy now, you can lock in the price of your home, and you can refinance later when the economy stabilizes and rates go back down. 

Warren Buffett talks about some of the best investments you could have would be owning a few rentals. It’s a great way to accumulate wealth and provide monthly income for you in retirement. As always, contact a trusted, networked and experienced real estate agent to go over your specific situation and opportunities in your market. 

Please go to johnschustergroup.com to see all available properties in the Twin Cities or to see what your home could be worth in today’s market. You can call us any time at (952) 222-9000. Thanks so much for watching and have a great day.