If we look back at the last few years in the real estate market, we can see trends and factors that are now playing an import role in the current housing market.
In September of 2021, the real estate market was experiencing a robust recovery from the effects of the COVID-19 pandemic. Home sales were strong, with a high demand for housing, low inventory, and record-low interest rates driving up prices in many markets.
Additionally, the pandemic had led to a shift in housing preferences, with many people seeking larger homes and more outdoor space, which had increased demand for single-family homes in suburban and rural areas.
However, there were some challenges in the market as well. Rising construction costs and supply chain disruptions had led to a shortage of new homes, exacerbating the already low inventory of homes for sale. Additionally, there were concerns about affordability, as home prices had risen faster than incomes in many areas, making it more difficult for first-time buyers to enter the market.
It is important to note that the real estate market is constantly evolving and can be influenced by many factors, such as economic conditions, government policies, and natural disasters, which we have seen a lot of in the last three years.
Partnering with a lender you can trust is essential in your real estate journey. At Gauntlet Funding, we pride ourselves with working with many repeat borrowers time and time again.
We’ve compiled a short breakdown of where we are at and where we are heading:
According to the Urban Land Institute’s Real Estate Economic Forecast for 2023, the consensus among industry experts is that the real estate market will remain strong, but with some changes in the types of properties and markets that are expected to perform well.
Overall, there is expected to be a continued demand for housing, driven by demographic trends such as population growth and household formation. However, rising interest rates and a potential slowdown in economic growth could lead to a more moderate pace of growth in the market.
In terms of property types, experts are predicting a shift towards more affordable housing, including rental apartments and single-family homes in suburban and secondary markets. This is in contrast to the recent trend of luxury condominiums in urban centers.
Additionally, there is expected to be a continued focus on sustainability and technology, with a greater emphasis on energy efficiency and smart home technology – this is something that is important to consider if you are building a new home or flipping a current home that has the ability to add in these features.
Overall, while there are some uncertainties and potential challenges on the horizon, the real estate market is expected to remain strong in 2023, with opportunities for investors and homebuyers alike.
If Gauntlet Funding can be of assistance to you in your next real estate investment project, contact our team today! We’d love to partner with you on your next loan.