What Every Property Investor (and Landlord) Should Know
The current housing market is in a state of “mismatch”— housing prices are rising due to the lack of supply, but the demand is ever-present. In fact, the Raleigh housing market is a prime example of this mismatch between supply and demand!
With the influx of individuals flocking to the Raleigh-Durham area and the millions of millennials entering the home buying market, there aren’t enough properties to accommodate everyone migrating to the sunbelt region of the United States. This disequilibrium is creating a rental trend that every landlord or property investor loves to see:
A mismatched housing market + influx of people = increased rent prices
Change is Coming
The housing trends have shifted over the past year(s), with the median list price of a home reaching an all-time high, but that is set to change. The sharp rise in mortgage rates, paired with inflation, is driving home buyers away from the market. This new trend will slow the rate of home price appreciation and reduce the possibility of an overheated market. Since there are 1) not enough houses available on the market, 2) the elevated mortgage rates and 3) increased home prices…there will be fewer people with the ability to afford a home.
What Now?
As a property investor, this new trend doesn’t mean you should offload your rental property because of the red-hot housing market. While everyone else is flocking to cash in, a wise investment choice might be to take a different approach entirely. In fact, now is the time to hold on to your investment properties!
Offloading your current investment properties because of the allure of the market means you may take a potential hit on your ROI (Return on Investment). Let’s face it, renting and investment properties never go out of trend…but the profit margins do! The sharp rise in mortgage rates and the scarcity of inventory are forcing many to turn to renting instead of buying. With the housing market predicted to stay robust over the next 3-5 years, those renting trends will not change anytime soon. According to Rent.com, “rent prices rose over three percent for one-bedrooms and 0.7 percent for two-bedrooms in April.”
Need Help?
With the average rent in Wake County being $1,485 (+21.6% since 2019), now is the time to stay the course with your investment properties! However, now is also a good time to enlist some help.
The Oak City Properties team has decades of experience that we can leverage to make the best property investment decisions possible. We can help to create and implement a real estate investment strategy that maximizes the value of your portfolio and delivers real-time, real-world results.
We are also a full service property management company that can become the physical intermediary between you and your tenant. At Oak City Properties, we work with you each step of the way when renting your property. Our full management property service will market the property, locate prospective tenants, and show the home. Once a tenant is placed in your rental property, we will: collect rent payments, assess and collect late payment fees, provide 24/7 maintenance, help with accounting/tax services, and deal with any court appearances in the event of an eviction.
If you are interested in learning more, give us a call at (919)-232-9222 or check out our website: oakcityproperties.com.
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