Investment Mindsets, Strategies, and Market Updates: The Five
As the Fourth of July holiday comes to a close, we hope that you enjoyed some quality time with friends and family. With summer temperatures continuing to creep up, the housing market is similarly white-hot. Investment mindsets and strategies are of the utmost importance right now. Indicators were seen pre-pandemic that only got amplified when the coronavirus hit. Builders have had to get creative to deal with market conditions and corporate behemoths like Amazon are taking action to build new homes in strategic areas. Keep reading for insights into these topics and more.
How Did the Housing Market Turn White-Hot? It Wasn’t Just the Pandemic (NBC News)
The scorching-hot housing market has undoubtedly been developed during the pandemic but it started before that. There were supply shortages pre-pandemic that have been amplified during it. When you combine these shortages with record-low mortgage interest rates, consumer demand for larger homes with home offices and sizable backyards, and older Americans choosing to refinance and stay put—you can see how we’ve arrived where we are. As a result, many prospective homeowners are effectively being priced out. Of the homes built in 2020, none were priced below 100K and only 1% were priced in between 100K and 150K.
10 Markets Where Homes Flip Fastest (REALTOR Magazine)
If fix and flips are part of your investing strategy, you may be targeting specific markets across the country. According to ATTOM Data Solutions’ Q1 2021 US Home Flipping Report, a fix and flip project provided a 38% ROI. REALTOR Magazine has crunched the numbers and has found the ten markets in the country that had the fastest times to flip a home in the first quarter of 2021.
The Power of a Mindset Shift to Build or Enhance Your Business (Forbes)
Your mindset can mold your relationships, beliefs, and actions. It can be even more important for entrepreneurs who are their own bosses and charting their own path. Seven techniques are offered to build success: (1) create value; (2) embrace failure; (3) see the bright side; (4) celebrate growth; (5) allow room for change; (6) lead with purpose; and (7) be mindful.
Strategies Builders Employ to Combat Rising Building Material Costs and Shortages (NAHB)
Builders have had to adjust to recent shortages and rising material costs (including the skyrocketing cost of lumber). The June survey for the NAHB/Wells Fargo Housing Market Index sought to find out what strategies builders are employing. Unsurprisingly, raising prices on the home was the most used method, followed by pre-ordering materials and including price escalation clauses. While traditional wood framing remains the norm, builders are starting to consider alternatives such as steel, structural insulated panels, insulated concrete forms, and concrete masonry.
It Takes a Village to Work for Amazon: Let’s Build Some (Millionacres)
Affordability in the housing market has become a real concern as the average asking price of new homes continues to rise to new highs. Amazon is doing its part to combat this trend in the markets where it has a strong presence. The e-commerce giant has hubs in Seattle, Arlington, and Nashville. Amazon has pledged 300 million to build affordable housing in these areas. It has already begun providing developers with capital to start building quickly.
Final Thoughts
The housing market is truly in a different place than it has ever been, and while that brings both opportunities and challenges, it doesn’t change the fact that investment strategies abound for a profitable ROI. With the right mindset and action, even the most novice investors can find success. We hope that the knowledge provided by these articles will help you in your real estate investing journey!
Additionally, be sure to check out our latest success story with Annemarie as she discusses her success in joint venturing a wholesale deal. Read, watch, or listen to get insight on how you can follow suit.
We’ll catch you next time for another selection of hand-picked resources to boost your real estate investing business.
Stay safe, stay healthy, and happy (and profitable) investing.
