Real Estate Investor · Ogden, UT · Member since 2015 · 38 posts · 7 votes
I'd like to get an opinion from the community regarding the eventual likelyhood of rising interest rates & subsequent lack of purchasing power. The market in Utah is really hot right now & as much as we are trying, we are not finding any buy & hold deals with good enough margins.
As we are anticipating an eventual "cooling off" period, my wife and I are well capitialized enough to take advantage of better deals. But we may have less purchasing power if that slow down comes because of rising interest rates. So what happens when interest rates rise & then we see a slow down in new construction & retail home sales? Doesn't this risk factor put us in the same boat as a hot market with low interest rates?
As we have looked at many properties, price appreciation is at the bottom of the list of important factors. We are primarily looking for long-term buy & hold rental properties with good cash flow. PM me & I will give you all the details of what specific properties & margins I am looking for.
Record low interest rates are only one of many factors driving the market right now.
The biggest one, however, is inventory. We have not fully recovered from the lowest home starts ever a few years ago.
The general consensus is that an uptick in interest rates will soften the frenzy we are now seeing (multiple offers over list, etc). This means that the rate of appreciation will slow, but prices probably won't actually fall. That usually comes from overbuilding and speculation.
Record low interest rates are only one of many factors driving the market right now.
The biggest one, however, is inventory. We have not fully recovered from the lowest home starts ever a few years ago.
The general consensus is that an uptick in interest rates will soften the frenzy we are now seeing (multiple offers over list, etc). This means that the rate of appreciation will slow, but prices probably won't actually fall. That usually comes from overbuilding and speculation.
The best time of the year to buy real estate for the long term is in from November to February with February being the lowest point. Depends the the price range but it starts to slow down after school starts because people don't want to move their children after school starts. However, it really drops off, I would estimate 3-5%, after the Thanksgiving holiday. @William Hochstedler, is correct in that it is a issue of supply and demand. People don't want to go out in February and house hunt. This is seasonal and a year over year trend. However, it is also true that outside forces such as rates, jobs, etc impact the housing market at different times of the year.
Joseph Davis I would love to talk with you at your convenience. Two reasons. 1. Like to learn about your investment services for some of my clients. 2. I'd like to see what your objectives are and if we could be a match for you. Thanks.
Steven Bond I would love to connect. I have a detailed report I can send you on what we are looking for. If you view my profile you can see the general idea of what we want. Also, I can show you some tools I have that can help you serve your clients investment goals.