As a real estate investor, you need a basic understanding of shifts in the real estate market to make real-time adjustments to earn the highest possible returns from every investment dollar and to protect your holdings. While real estate is a tangible asset, the market is fluid, and history shows the changes in the cycles can be predicted and managed to provide a reliable cash flow by savvy investors. In addition, current interest rates, government policies, the national and local economy, and significant demographic shifts are all areas that investors must monitor, as these are the influential factors that strongly affect real estate investing.
We’ve consulted our seasoned expert investors to offer guidance on maintaining a healthy portfolio during every phase of the fast-paced, ever-evolving real estate market. So read on as we explore what Baltimore real estate investors need to know about shifts in the real estate market. Please note that this article is for informational purposes, not financial or legal advice.
One phase in the cycle that Baltimore real estate investors need to know about to understand shifts in the real estate market is the recovery phase. Housing starts and building permits can provide your first clue that the market has entered the recovery phase. Dwindling available inventory and bidding wars, with rising final sales prices, are other sure signs that a recovery is underway. As a result, investors are in a position to take advantage of lower prices to build their portfolios, knowing they will be earning respectable returns on the investment in the future.
The expansion phase is another thing Baltimore real estate investors need to know about shifts in the real estate market. During this cycle, which follows a recovery from a recession, supply is low, demand is high, and new construction abounds. Overall, consumer confidence rising affects the demand for more housing. At this time, investors tend to focus on developing or redeveloping properties to meet the demands.
An oversupply of available properties is another phase that Baltimore real estate investors should understand about the real estate market. During this shit in the market, many investors, who prefer the long-term approach, and realize a recessionary phase is on the horizon, opt to buy and hold. Others who are focused on short-term investments may consider selling during this phase.
The recessionary phase is another thing Baltimore real estate investors need to know about shifts in the real estate market. Supply will outpace demand at this time, and prices will begin to fall. Opportunistic investors may also enact the buy-and-hold strategy at this time, again looking towards the future for big profits as they wait out the recovery ahead.
Maryland Home Solutions
The professional buyers at Maryland Home Solutions first built a career investing in Baltimore and keep their fingers on the market’s pulse to help real estate investors stay prepared for the shifts in the real estate market. From locating great investment opportunities to on-site property management, and everything investors require in between, a professional buyer from Maryland Home Solutions works with a full-service in-house team of industry specialists to make investing in Baltimore real estate easy for investors like you. The professional buyers at Maryland Home Solutions have vast connections in the real estate industry to swiftly take action on potential investments and handle everything from rehab to closing. At Maryland Home Solutions, our highly regarded property management team can assist with tenant placement or on-site management to ensure your holdings are secure and your tenants are happy. And don’t forget to ask about our steady inventory of the best investment properties available in Baltimore. Call Maryland Home Solutions at (410) 657-2523.