Is Now the Time to Invest in Real Estate?
Quite a few clients and/or customers have asked me if now is the time to start investing in real estate or if it would be best to wait until the market hits bottom. My answer has been a thought-provoking: If not now, when?
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There are many signs that although we may not be out of the woods, we could at the beginning of the economic recovery which will result in stabilization of the real estate market. For example, according to a New York Times article, consumer confidence continued to rise in May for the third consecutive month. Will this confidence translate to your local real estate market? It has in mine where we (the real estate community as a whole) have been having a banner month, including a record high sales price for a condo (at a cool $12M). Of the mainland areas that I track on a regular basis, I have seen significant improvements in the past couple of months which local experts expect to continue.
In addition, mortgage interest rates are hovering at near-record lows, which in turn allows buyers with increased purchase power and/or lower payments. If you are financing your real estate investing, will there be a better time to take advantage of today’s interest rates? Furthermore, significant employment gains in professional/business services, health care, hospitality and manufacturing indicate that dynamic areas of our economy could be in the recovery stages. Will this result in long-term real estate sale increases? We will have to see. There are countless other positive economic indicators, but I think my point has been illustrated: there may not be a better time to invest in real estate for a long while.
Of investment vehicles, real estate is said to be the one that has created (and will continue to create) the most fortunes. By trying to wait out until the real estate market hits rock bottom (assuming it hasn’t already), you could potentially be missing out of unparalleled opportunities. Invest today, reap the rewards tomorrow.