Investing in real estate is not for the faint of heart. However, it’s not rocket science either. Understanding how to make money in the right market is critical to investing. Whether you’re planning on flipping a few houses, becoming a real estate mogul in your area, or simply ready to purchase your dream home, we’re here to help. Check out LandCentral’s 5 Market Signs it’s Time to Invest in Real Estate:
#1: High Employment Rates
Economies nationwide are booming. The U.S. unemployment rate is at a record low. These are all signs you’re in a good market to invest in real estate. And the wider the range of economic markets that are thriving, the bigger the sign times are good. More jobs means more job seekers. More job seekers means more residents. And more residents means more potential buyers or renters for your real estate. So open your eyes and pay attention to this sign.
#2: Migrations and Transplants
A byproduct of a booming economy is people having the means or the drive to hop states in pursuit of a better life. If you’ve noticed a huge migration in your area or an area you’d like to invest in real estate, you’re already seeing this sign. More people moving to an area will be looking for not only existing housing, but more housing choices. If you’re interested in becoming a developer or flipping old houses, then this sign is right for you.
#3: Days on the Market
In a good real estate market, houses for sale or rent spend less than 21 days on the market (DOM). The less time a property sits on the market, the better. In years past, say in 2008, property DOM stretched several months or even years. If you’re surfing sites like Zillow, RMLS or LandCentral and noticing real estate flying off the shelf, it might be time to get in the game.
#4: Even old houses are selling
In a prime real estate market, you’ll find older homes are selling for a decent profit as is, a key indicator the market is hot to invest in real estate. You’ll also find older, outdated homes for sale at a reasonable price. This is prime real estate for investors looking to renovate, flip a house, or simply fix it up and turn it into a high-class rental.
#5: Supply and Demand
Investing in real estate is a numbers game. Watching the market in your area, is there enough real estate to go around? When the demand for housing, whether affordable or high end, exceeds the supply, you know it’s time to invest. This is one of the biggest signs that going from shopper to landlord will provide you with a huge ROI (return on investment). Just remember to know your market. If you’re ideal investment is scooping up affordable properties only to turn around and sell them for a profit, make sure the market in the area is supporting a buyer’s market. The same is true for a renter’s market. Make sure the area has a large number of renters and set your rent to a competitive rate.
Investing in real estate takes a perfect balance of market stability, affordability and patience. It also takes a keen eye to pay attention to the signs. Good thing you’re now well-versed in the 5 Market Signs it’s Time to Invest in Real Estate. And LandCentral’s got the properties to get you started.