While there has been a surge in new construction homes going up, it’s still not enough to meet demand. Inventory is hard to come by in a seller’s market because everything sells faster. And while new builds may be an option, they can take between 6-9 months to complete. Investors looking for renovated homes will also be competing with home buyers on the market.
Buying an investment property in a seller’s market can be a difficult proposition. But, there are some benefits that come from buying in a seller’s market.
RealWealth® Investment Counselor Aristotle Kumpis gives his expertise on the benefits of buying real estate in a seller’s market and potential pitfalls to avoid.
For starters, there’s a good chance that whatever you buy will continue to go up in value (at least for awhile). The value of homes increases in a seller’s market, so owning a property under these market conditions is a pro. Finally, if you’re thinking about selling, it’s always a good time to sell in a seller’s market.
Pitfalls for investors to avoid in a seller’s market typically include feeling pressure to make a rushed purchase due to lack of inventory and overpaying for a property. Or buying a property that isn’t the best investment opportunity.
Savvy real estate investors understand that real estate markets ebb and flow. While it may be a seller’s market now, eventually the market will even itself out.