Competition in today’s housing market is hotter than ever due high due to high demand and record low supply. Creating heavy competition for both buyers and sellers all throughout the United States.
So, it can be a little frustrating for investors to find good deals in today’s market. There are two major factors contributing to the heavy housing markets:
1. Supply and Demand – Demand for real estate investment deals is greater than the supply. There are more people buying than selling investment properties at a discount.
2. High Sell Prices – Properties are being sold for higher than the as-is value. Investors are overpaying for the properties, or owner-occupants are buying more fixer-uppers to get into a home at a lower price. According to the S&P Case-Shiller home price index, home prices are up 11% from last year.
Right now, we will remain in a seller’s market until people are no longer willing to overpay for properties or there is a big economic change, like an interest rate hike or something similar to the mortgage meltdown of 2008.
So, what can investors do now to continue to find good deals and profit in real estate?
1. Start outbound marketing to find deals direct from homeowners instead of relying on listed properties.
Direct mail is a great way to reach off-market properties. Send owners a letter to let them know you are interested in buying their house. The second is staying active on social media groups in the areas you want to invest in.
2. Start locating properties outside of where you live that have less competition and more deals available.
Right now, targeting areas where prices are still low is a great way to get ahead.
Together, it leaves all your investing options open for you to explore creative financing options. We at Coastal Equity Group offer efficient and flexible lending options for your next fix and flip, long-term rental, or new construction investment property. We focus on cultivating a lasting relationship with our clients throughout the Southeast states.