March winds bring market changes
March winds are bringing more than unexpected storms! New, more positive shifts in the real estate market are appearing. Signs that show a stabilization of our "new reality" - higher interest rates yet stable values.
Sometimes I think my alter ego may be as an investigative reporter! During the past 3 years I've had a laser focus on news - what's real and what's hype - digging into trends and insights to better understand the complexities of current dynamics.
With all the confusion of the past 8 months, it's understandable to put real estate plans on hold.?Although I certainly don't have a crystal ball, it's clear the media hype about market crashes isn't a reality for us in the greater Philadelphia area.?
Overall, it's a de-escalation which can?FEEL?like a drop in value. But it's really a drop in expectation of value. Both the spikes in values, and hikes in interest rates were caused by factors not associated with typical real estate "cycles" or shifts.
Wall Street and foreign capital investments into residential real estate drove up values as homes started being treated as a commodity with rental income as a dividend.
A completely different paradigm than traditional real estate valuations, and buy / sell cycles.
领英推荐
As my alter ego played reporter, I interviewed asset managers from Wall Street last year asking why funds would pay above market for real estate when the out sale later is likely to show a loss. It baffled my mind looking as I usually do at ROI on acquisitions.
I learned that from a Wall Street perspective, loss in value isn't a concern - it's the "dividend" return of rental income that's the priority. And?foreign investors are focused on return OF money - not return ON money.?Real estate's stability is what's attracting them.
That explains a lot! Including the so called failure of AI based real estate portfolio acquisitions. Fund managers may want to show a loss for specific financial strategies unlike what you or I would want.
All that back-story to say -?please don't get scared out of the real estate market by false realities, and dynamics fueled by Wall Street and foreign capital.?
This is a great time to negotiate with "tired" sellers who have been beat up by the past 8 months. It's also a great time to bring your property to market if you're thinking of?selling.?
When people ask me "how's the market" - my answer is "it's complicated."??Our normal market indicators fall short when it comes to analyzing trends.
For insights into your home's current market value, get your?instant home valuation?now. This is based on Artificial Intelligence and we'll need to review data carefully to determine the truth in your micro-market.
In our?personal consultation, we'll dive into details to sort out the TRUTH of your micro-market. Click?here?for a personalized?market report?for your area.
Let's collaborate! I'm here to help.