Housing market in 2023

[Colby Zeller]

Ive recently been hearing a-lot of buzz around on the housing market going into a so called "recession" in 2023 and its got me a little worried. I plan on buying my first rental property somewhere in Qtr 3 or 4 of 2023. Ive been doing my dueldillengence and trying to studying up on market trends, but everyone is saying different things and it hard to block out the noise. Would be nice if some experienced investors could give me their insights in the comments thanks !!!!

[Marc Rice]

Columbus, Ohio as a market is very diverse and not concentrated to one or two economic drivers. Also relative to other cities, Columbus is extremely affordable with an increasing population. The city still has a housing shortage as well.

Having seen the market since 2018, it's hard to really "time the market". I would recommend to write offers at price points that make sense for you with current interest rates and current rates. If rates go down in the future and rents go up, you will be very happy you didn't delay. 

Another reason to "buy now" is because people are scared right now and will give you price discounts. An additional reason is that you can do a house hack loan every 12 months. If you start with a first time home buyer 1-2 unit loan first (First Financial, First Merchants, etc), do a 5% down conventional home possible loan on 2-4 units (or another local portfolio product on a 2-4 unit like what CF Bank offers) your second year, and then do a FHA loan your third year then you will have built up a nice sized portfolio in a very short time doing only low money down house hacking loans.

[Ben Firstenberg]

I wouldn't let it stop you. All a recession means is it's going to be harder to find deals that make sense. Rents might go down, values might go down and interest rates are already high. But if you find a deal that makes sense don't be afraid to move on it!

When you're dealing with small multifamily, the macro economic trends effect you a lot less. I won't say not at all, because they do have some impact. But it's different than if you were a multi billion dollar private equity fund. 

So just be smart, don't try to force it, wait until you find a deal you like and then make your move. 

[Remington Lyman]

Quote from @Colby Zeller:

Ive recently been hearing a-lot of buzz around on the housing market going into a so called "recession" in 2023 and its got me a little worried. I plan on buying my first rental property somewhere in Qtr 3 or 4 of 2023. Ive been doing my dueldillengence and trying to studying up on market trends, but everyone is saying different things and it hard to block out the noise. Would be nice if some experienced investors could give me their insights in the comments thanks !!!!

 If I had listened to someone who told me it was the wrong time to invest I would have never gotten started. If you are looking to buy and hold for 30 years you are not going to be disappointed you bought a 1-4 unit rental property

[Patrick Drury]

@Colby Zeller
You're never going to time the market perfectly. If the numbers work, pull the trigger. 

[Andrew Syrios]

If someone could predict the market perfectly, they would be wealthy beyond anyone's wildest dreams. There will always be different opinions. I generally think the market has reached the peak of affordability but there's still a housing shortage. There's little pressure forcing people to sell like 2008 (since most have fixed, 30-year mortgages and low rates), but with interest rates now so high, a lot of volatility in the economy (think Silicon Valley Bank and Signature Bank) and inflation still high, it's hard to see how housing prices wouldn't go down some and at absolute best, flat line. (They've already gone down a little bit since the peak in the middle of 2022.)

[Dennis Nguyen]

Buy if the numbers make sense for you! Savvy investors buy in both good and bad markets. "Time in the market is better than timing the market". Block out the noise from what you hear from the news, the news sell based off of fear and click bait.