The Federal Housing Finance Agency announced recently that it has extended moratoriums on single-family foreclosures and real estate-owned evictions until “at least” September 30. This means that banks are still prevented from repossessing properties due to the nonpayment of mortgage debt, which will lead to an already-scarce inventory of homes in markets across the country.
However, this does not mean that the time for real estate investing has passed. In fact, if you play your cards right, you can come out of this moratorium a winner in the market — and with a great real estate portfolio to show for it.
Real estate prices are only rising, and those in the market for a home are hungry to purchase — and are willing to pay. Real estate prices are only going to go higher thanks to the moratorium extension, so if you’re looking to build a high-value portfolio, the time is now.
“Now is the ideal time to make the most of the high-value real estate market,” Farrah Ali, real estate investment expert and author of Diaries of a Female Real Estate Investor, said. “Buyers want to buy, but they’re coming up short because the market doesn’t have enough supply to feed demand. This is the time to get top dollar for your portfolio.”
According to the National Association of Realtors (NAR), home prices have jumped by double digits across nearly every U.S. metro market, with the median existing single-family home price rising 22.9 percent year over year during the second quarter of 2021.
Given the extension of the eviction moratorium to at least January 2022, it’s safe to say that those home prices are only going to rise, and that more and more buyers are going to be entering the market. Now’s the time to get in on the action.
It cannot be overstated that real estate investors should be keeping a constant eye on the market. It’s a great time to buy and hold onto real estate, but don’t hold onto your properties for too long. Laws and guidelines are changing every day, and a lapse in mindfulness could make thousands of dollars of difference.
It’s likely time for you to purchase and flip properties as soon as you can, especially since any new property on the market is likely not going to stay on the market for long. In 2020, the housing market saw a surge in sales more than any other year since 2006 (a historic 22 percent rise), and that trend is continuing, according to Census Bureau data.
Additionally, the COVID-19 pandemic hasn’t just caused an upset in the real estate industry, but it has also resulted in a rise in the price of construction materials, and that too is predicted to rise. If you do plan to purchase and flip properties, take the chance now before you miss out on your bottom line.
The real estate market is moving faster than ever before. The demand for housing is high and the supply is low, meaning there’s never been a better time to start investing. Now more than ever, properties are selling well over list price, and buyers are chomping at the bit to purchase — the market has never been more ready for you.