The housing narrative can paint the picture that institutional investors are the reason there is low inventory and housing prices are soaring. Although they are a slice, they are not the whole pie. In the last issue of The Hatcher Report, I revealed six things that are contributing to low housing inventory; couple that with the latest documentary from 60 Minutes and pile on the news that the Atlanta Federal Reserve Bank has deemed metro Atlanta unaffordable in their Southeastern Rental Affordability Tracker. If you are an investor or boutique property portfolio investor, you may start to think you are adding to the problem, but you’re not. In fact, we need you!
More developers and house flippers right now can add much-needed inventory to the housing market. They can also remove blighted properties from neighborhoods that are just now seeing investment and new homeowners entering their communities, and they aid in adding diversity to our available housing inventory.
I recently phoned a longtime developer friend who stepped away from speculation building after getting burned in the last downturn and since then has only been building custom homes or additions. Even for him, the wounds were still too fresh to rip off the Band-Aid, but he did agree to take a look at some current properties and data. Unfortunately, this reluctance is shared by a lot of builders and developers who were very active during the last boom. If you are similarly hesitant but nevertheless thinking about investment, buy-and-hold, fix-and-flip or new construction opportunities, now is the time to get back in the game, and an experienced Realtor can help, providing you the in-depth market data you need to make a well-informed decision.
I keep hearing in the news about the big reset that is supposed to be coming and what will happen with rising interest rates. It’s important to keep in mind in today’s market that people have jobs, and businesses are hiring. Interest rates may be rising, but they are still low. Future homeowners can save to buy a home and rent until they are able to purchase. Those with additional money to invest and want to diversify their current investments or hedge against inflation should do so. Atlanta is well-positioned for future growth, and if you made that bet over the past two years, you are already seeing big gains from your real estate investments.
Realtors can continue their education and learn how to navigate this nuanced market by partnering with builders and other strategies at Atlanta Realtors’ upcoming Working with Buyers in a Seller’s Market class on May 18. If you are new to investing and want to learn more or want dedicated guidance providing you education and consultation along the way, please follow me @property_ninja on Instagram.
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