How was this year 2021? What's your expectation for 2022?

Question

Howdy Houston REI's and Investors from all over US who invests in Houston,

It's been a while since I posted in the forum. Thank GOD for keeping me busy helping investors even with all the COVID situation.

Many of you will concur with me that Texas market really super highway this year whether it's Houston or Austin or Dallas market. Houston didn't pick up until late but did join the band wagon of bidding wars and high asking prices. Investors were sidelines with the above asking market prices and not many options. We have very low supply of OFF market properties as many sellers want to wait and see how the market goes. Even with all that, we had very good year in my real estate career and as an investor as well. We just flipped one house but didn't make much money. We had rehabbed almost 15 properties under BRRRR strategy. As they say, every problem is an opportunity in disguise and that's very true during this last year.

What about next year 2022?

I expect the storm to start in spring and continue next storm since many buyers stopped shopping and sheltered in rental houses temporarily. They will come back to market next year which should create demand but depending on the inventory flow we have to wait and see. Many internet buyers like Zillow, Offerpad made the market fierce and worse in many ways for buyers and sellers this year. Now Zillow is gone out of flip business, i hope things will mature and goes better as per gut feeling.

So investors expect for competition for turn key properties next year but keep look out for OFF Market deals which might flow better next year as COVID situation eases.

How was 2021 for you? Please don't hesitate to share your success and lesson learned.

Happy Holidays to every one!! Be continue to be safe and let's welcome the new year with more hope for worry free year!!

Caleb Brown · Answer

It was a busy year, doubled business. Super competitive. Fall/Winter so far has been busy don't see it slowing. Not as many homes are hitting the market but should pick up in Feb. Should be busier but Covid and the mandates will always linger(it seems). BRRR's and flips have done really well with values shooting up. Buy and holds are doing well too, more competitive. Multi family continues to rise, makes it harder to find deals that make sense. 2022 should be interesting :)

Vijaianand Thirunageswaram · Answer

@Michael K Gallagher That's good observation on your side. I feel the same way but the problem is real estate takes roller coaster ride. Unless you have lots of clients on your pipeline by funneling the leads regularly, you cannot continue to grow and its' tough for many to do that. That's why we try to other things to balance or compensate if the sales goes down. I don't know whether it's good to be jack of all trades or king of one trade in this market :-)

@Mike D'Arrigo Appreciation in Houston has gone way more than many expected and if we continue to push the market more and more it's going unaffordable market for many especially investors. I hope it corrects and settles down and competition slows down.

Mike D'Arrigo · Answer

After a tough 2020 due to COVID, 2021 has been a great year. Much of our growth has come from expanding in to a 3rd market. Although inventory is still tight in most markets, there are signs that it is beginning to loosen up. My prediction is that it will remain a sellers market in 2021 however, the rate of appreciation will begin to slow down, which it has already begun to. Now with the expiration of the foreclosure moratorium, we're seeing some increase in foreclosures, although I don't expect there to be a repeat of 2008.

Michael K Gallagher · Answer

hey @Vijaianand Thirunageswaram thanks for sharing your reflections on your year. I'd have to agree with you regarding some buyers backing out of the market and waiting for the spring. My biggest lesson learned was not so much real estate but business focused. I realized that I really am most successful when I only concentrate on a couple things and do them well and consistently. going into 2022 is going to be building out that system to make sure I'm operating at my peak and doing what I actually enjoy.

How was this year 2021? What's your expectation for 2022?

How was this year 2021? What's your expectation for 2022?

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