Real Estate Bears, Corrections & Opportunities


The media may finally be getting on the bandwagon, and is turning bearish on housing, after being unable to deny the changing tide any longer. 

So, how much should investors and property owners fear a more bearish market? What don’t the bears understand about the dynamics and fundamentals of the real estate market, and this market in particular? What do you do with your money to stay ahead?

The Real Estate Market Correction

It is true that demand from home buyers may have moderated in the past couple of months. That retail buyers are being less aggressive, and are being hampered by higher interest rates, which is compounding inflation on everything else. 

In turn some sellers in these areas are waking up and are reducing asking prices.

It is a change in the market that we called a long time ago. Well before it was fashionable. 

Yet, while there may be some correcting of the market. It is also giving birth to even better opportunities.

What The Bears Don’t Understand

All of a sudden, those that were the most blindly bullish and careless in their investing, are now also becoming the most fearful. That’s understandable. They didn’t want to accept that it was coming, and haven’t been making the right plays. 

So, there will be some moderation in housing prices, along with office, retail, and industrial. That’s not a bad thing. 

This is also helping to clear out all the wannabe speculators that were just in for the easy ride. Including many lenders, tech companies, and real estate brokerages. It happens every time we reach this point in the cycle. 

What the bears may not get is that we are just moving back to a more common sense market. 

Even in this market, there are still going to be millions of homeowners and renters that will need to move in course with their lives as they always do. 

In fact, there may be even more necessity for many to move right now to find more affordable housing. The need for shelter will never go away. 

This shift in demand is also causing a new surge and shift, as well as opportunities for better value deals. Though it is those with the capital and negotiation skills that are going to be able to dominate this space.

In fact, the best gains are made in these times.

Where Are The Opportunities?

There are plenty of areas of opportunity. Though it is all about finding the hyper motivated sellers, who are willing to provide discounts for cash, and buying right, after having done all your math.

This includes:

  • Investing in buy to sell and buy to rent in more affordable areas
  • Acquiring opportunistic deals from distressed sellers in more prime areas
  • Self storage
  • Builder bailouts
  • Value add properties in areas that are rising in demand

Summary

The market is absolutely changing. That also means more value and great opportunities for those that can fill the gaps and find the deals that the bears are overlooking. 


does this sound interesting?

We look forward to the opportunity to help you achieve your real estate goals.

To learn more about Praxis and our various passive investment opportunities, please fill out the form below and we will contact you as soon as possible.

The Hands-Off
Investor

Want to invest in real estate but don’t have the time? Get the introductory chapter to this insider’s guide to investing in passive real estate syndications.