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The Residential Real Estate Market: Undersupplied And Rising Prices

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There’s never been a more promising, or more challenging, time to invest in real estate. The real estate market is booming, but with rising costs and limited supply it’s harder than ever to find good footing in this market.

Here’s what you need to know to make smart real estate investing decisions in 2022.

Why Are Housing Prices Trending Up?

There are plenty of reasons for why housing prices have been trending up recently. Let’s take a look at a few key market indicators.

The amount of foreclosures are only increasing. The dramatic increase in foreclosures is further troubled by homeowners not having expert help for handling a foreclosure. This causes a drop in the liquidity of the housing market and ties up properties in the foreclosure process.

Another factor to consider is covid-19. The pandemic has created both an increase in demand as well as a drop-in supply for housing.

Real Estate And Supply Chain Issues

The U.S. Department of Housing and Urban Development’s data shows us that housing prices have skyrocketed to historic highs, but buyers have yet to recover to their pre 2008 subprime mortgage crisis levels.

A key factor in this dramatic drop off is the ongoing supply chain crisis. Whether you’re looking to invest in new builds or get materials for renovating worn-down properties, there is a high premium to pay for materials in this crisis.

The Impact On Your Investments

Here are three quick strategy tips to diversify your real estate investments in 2022.

Diversify Into Other Types Of Real Estate

The first thing that you can consider doing is diversifying into other types of real estate. If you primarily have been investing in residential properties, you should consider branching out into commercial real estate. Diversifying your real estate portfolio only makes it stronger.

Change Up Your Geographies

Exploring new geographies is another strong tactic for bolstering the strength of your real estate portfolio. Consider investing in new cities, states, and regions.

Invest Ahead Of The Housing Curve

The current housing market also favors buyers who are ready to handle a fixer up. You can vest ahead of the housing curve by picking up properties that need a little TLC.

Get The Cash You Need To Make Smart Real Estate Moves

You need experienced financial help when you’re making real estate investment decisions. Whether you’re looking for investing advice or a loan to repair and flip a fixer upper, Hard Money Lenders AZ can help.

Reach out to Hard Money Lenders AZ today to learn more about their financial services for real estate investors.

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