It Cost How Much?!
I know you’ve been noticing those gas prices! $5.00+/ Gallon! I mean I understand the whole getting rid of gas & oil argument, but at the same time, people still have to live; and at the center of it all is this war between Russia and Ukraine. Now, outside of oil prices, why would that affect us, and specifically, why would it potentially affect our real estate prices?
Mortgage Rates Might Be Up…. or Down
Being that this war is providing a less stable environment on a global scale, there may be some underlying fear in the market causing the economy growth to stall, however, with inflation numbers coming out at their highest in this pandemic, it seems like the markets are not really planning on slowing as far as price increases are concerned. This means that the economy could start to slow a little as prices increase and people have a harder time affording basics. This could also lead to a slowing in the housing market which, if there is a big enough shift might cause the Fed to adjust rates down a little more to keep the housing market going being that it a large driver for the economy on the whole.
What To Do?
If you are a real estate investor, in this time of changing environment, I believe it is still a good time to buy and hold over a long period of time, or even a medium period of time. If you purchase the deal right it is always a good time to purchase in my opinion, and therefore, you can continue to search the markets for your next property.
People will always need a place to stay, and even if the markets crash, there will be a lot of capital that comes out, but the end use case for owning real estate is still there. People still need a roof over their head and they will be willing to pay you for that roof over their head.
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Synergy Real Estate & Property Management
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