Marcus & Millichap CEO Hessam Nadji discusses the changing trends in the American housing market.
While fears over the spreading coronavirus continue to rock the U.S. stock market, some investors may find an attractive opportunity in another sector: real estate.
Continue Reading Below
“For investors, it’s important to always be aware that investment involves risk and there are no guarantees,” Tendayi Kapfidze, chief economist at LendingTree, told FOX Business. “That said, if homeownership or investing is a goal, interest rates near all-time lows which does create opportunity.”
Wall Street is even increasingly betting on another Federal Reserve rate cut, given economic uncertainty over the coronavirus outbreak.
Those same fears drove mortgage rates down to a three-year low on Wednesday.
However, there are a number of considerations to factor in before buying property.
Affordability, for example, is one challenge, Kapfidze noted.
WHAT MORTGAGE? HOW TO BUY A HOME WITHOUT ONE
HIGH-TAX STATE EXODUS DRIVES BOOM IN 'SECONDARY' LUXURY HOUSING MARKETS
As previously reported by FOX Business, inventory was expected to remain constrained throughout 2020 – particularly in the entry-level segment – pushing prices up for prospective buyers. The total number of available homes for sale could even hit a record low, according to a forecast from Realtor.com.
Additionally, investing in property could be a less attractive option, depending on where in the country you’re looking.
A $10,000 cap on state and local tax deductions has driven some residents away from high-tax states, like New York and New Jersey, toward lower-tax states like Florida and Texas.
“This has caused a dynamic where you will see a continued drop in prices [in the high-tax states],” Jarred Kessler, real estate expert and CEO of EasyKnock, told FOX Business. “Conversely, areas that have a cheaper cost of living will see a bump.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Another factor an investor should take into account is their timeframe. While the U.S. economy is strong, experts – including former Federal Reserve chair Janet Yellen – have warned that a recession could be on the horizon, particularly given uncertainty over how the global spread of the coronavirus could impact the supply chain.
“If you have a short term outlook it’s not a good time,” Kessler said. “If you have a long term outlook, it’s a good time. Since 1968 the average appreciation has been 5.4 percent a year.”
Overall, whether it is a good time to get in on the market ultimately comes down to an individual’s personal financial situation and goals, Kapfidze said.
READ MORE ON FOX BUSINESS BY CLICKING HERE
"looking" - Google News
February 29, 2020 at 01:29AM
https://ift.tt/2TsxSrf
Looking to invest in real estate? Consider these opportunities, risks - Fox Business
"looking" - Google News
https://ift.tt/2tdCiJt
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Looking to invest in real estate? Consider these opportunities, risks - Fox Business"
Post a Comment