Investor Intel |
More homes are hitting the market just as buyer demand is slowing, which could create an opening for real estate investors looking to purchase. New listings reached their highest level since April during the four weeks ending August 23, while pending sales fell to a six-month low, according to Redfin. That combination means investors in some markets have more properties to choose from and fewer buyers to compete against, giving them greater negotiating leverage. |
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Graph via Redfin |
For investors, the opportunity isn’t necessarily about waiting for home prices to plunge. It’s about using that leverage to improve the numbers on a potential investment. Properties that have been sitting for several weeks, undergone price reductions, or need repairs may have sellers more willing to negotiate on price, closing costs, inspection terms, or even a mortgage-rate buydown. Those concessions can improve an investor’s potential return even if the purchase price doesn’t fall dramatically. But investors still need to be selective. Markets including Miami, Nashville, and parts of Texas currently favor buyers more heavily, while other areas remain competitive. I’d look for markets where inventory is rising faster than demand, then determine whether the property still offers strong rental demand, cash-flow potential, and long-term fundamentals. More negotiating power can create a better entry point, but only if the investment itself still makes sense. What investors are prioritizing now: |
Information courtesy of The Close! |
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