Not much has changed with the real estate market in the last month. Buyers continue to retreat the market due to increasing interest rates. As a result, sellers are taking their homes off the market or are holding off on listing. This slowing supply is keeping the absorption rate stagnant as it hovers around a 3-month supply. This means it would take 3 months for all the homes currently listed to be sold without any new inventory. Absorption rates are forecasted to increase up to a 5-month supply, but that won’t happen until more homes are listed.
This slow real estate market has its advantages, including off-market deals and investment opportunities.
- Off-Market Deals. Our Fluid Realty team knows homeowners who would love to sell but are choosing not to list their home due to the down market. When working with a professional realtor who is plugged into the community in which you’re looking to buy real estate, you may be presented with an off-market home option due to the realtor’s network. These are exciting win-win deals.
- Investment Homes. A slow real estate market is also conducive to investment purchases. There are sellers who can’t wait out the market and need to sell now. These sellers are willing to negotiate on price. An investor can get a great deal and then choose to either rent the home long-term or flip it. Renovations can take place during these slower months. By the time the home is ready to sell interest rates will have decreased and more buyers will be back on the market. It is predicted that interest rates will lower in the next 3-6 months.
If you’re curious about buying a fixer-upper for the purpose of flipping I would highly recommend reading “Buy, Rehab, Rent, Refinance, Repeat” by David Greene.
If you’re interested in capitalizing on the current market, Fluid Realty is here to help. Reach out to our team today.
