US Real Estate Market 2023

“The best investment on Earth is Earth.”- Louis Glickman. The US real estate market is an ever-changing landscape; and for those looking to invest in property, the choices can be overwhelming. With rising loаn ԁefаults, increasing mortgage rates, and a chaotic political climate interweaving into markets across the nation—where does one begin? Do you double down on existing investments or take your chances on new opportunities?

Latest Trends In The Real Estate Industry In The US

The U.S. real estate market is seeing a trend that could change the home buying experience for many new and moԁerаte-inсome buyers. This change involves loans from the Federal Housing Administration (FHA). These FHA-insured loans are often the best choice for first-time buyers due to their low down payment requirement of 3.5%. Despite their advantages, some sellers and agents harbor misconceptions about these loans, potentially limiting options for рrosрeсtive homeowners. Federal Housing Commissioner Julia Gordon aims to correct these misunderstandings. She believes education on FHA financing will benefit clients by broadening accessibility. 

In September 2023, existing home sales took a dip, marking their lowest point in 13 years. When examining year-over-year figures for each region still showed declines across the board. The number of completed transactions involving single-family homes among other types decreased 2% from August to September. From a broader perspective and comparing it to previous year’s statistics shows a heavier drop of around 15%. Even though housing inventory was shown to increase marginally compared to August (up by about 2.7%), remaining at approximately over one million units, it is actually lower when seen annually (down by about 8%). Price movements however deviated from these observations showing increases despite slowing sales activity with median prices for different properties having risen up by roughly around $10k since last year during the same time period thanks largely due primarily rising costs contributions inflating total expenses incurred ownership.

Why Invest In Real Estate?

Real estate value increases over time and with each mortgage payment, you own an even larger portion of this rising value – that’s building equity. Think of it like a personal treasure chest slowly filling up as years go by. Facts from FRED inform homeowner equity swelled from $8.6 trillion to nearly $29 trillion in just 12 years. Having such wealth could help generate cash through selling or provide leverage for future investments via home equity loans. They rather trend upwards year after year which boosts your wealth accumulation speed. Another plus of property investing is earning through rent as well. You get an extra income stream which keeps upping your bank balance every month while your main asset – the house itself – earns for you too. So it’s like having two money-making engines running at once. 

Both tenancies by the entirety and landlords demonstrate resilience in the midst of inflationary pressures. If you happen to reside in Florida, the concept of tenancy by entirety of Florida offers distinctive advantages to married couples who co-own property. Under this arrangement, the property is viewed as jointly owned by both spouses, and it provides a unique benefit – protection from creditors seeking to collect one spouse’s debts. This protection makes it a resilient choice for couples, even in times of financial inflation. For landlords, while other assets may dip or crash, property prices tend to keep steady or even rise along with the rise in living costs. One just has to look at home price charts over the past 30 years; they consistently kept pace with inflation rates. But how does this benefit you? Well imagine being a landlord: As cost of goods increase due to inflation, so does rent pricing. So instead of feeling burned by rising expenses, you’re cushioned by parallel rises in rental income. 

As you consider where you’ll stake your claim within the growing US real estate market of 2023 let us leave you with this nugget of wisdom – if executed properly there are huge rewards to survival through these uncharted waters. From multi-family homes and DST structures to private money lending – each opportunity requires its own approach but ultimately refinancing and restructuring decisions will open up ground-raising possibilities no matter what type of investment vehicle suits best.