January to February Market Update
Part of my job here at Safe Harbor Property Management is to keep abreast of all the latest Real Estate news and today I’d like to provide a market update. I know you are busy and can’t read an article that comes out, so my team and I make a concerted effort to be up on all the forces influencing property management and real estate investment.
A few weeks ago some information came across our desks that we felt needed a response. This information is public knowledge but came in an email from Homebridge Mortgage services.
Some highlights:
New Home Sales fell 2% from January to February … Looking at inventory, there were 407,000 homes for sale at the end of February, which equates to a 6.3 months’ supply.
What does low inventory mean?
Low inventory means more people will still be in the rental world. You can hold onto your rent prices without too much fear you’ll be undercut by competition.
Part of my job here at Safe Harbor Property Management is to keep abreast of all the latest Real Estate news. I know you are busy and can’t read every article that comes out, so my team and I make a concerted effort to be up on all the forces influencing property management and real estate investment. We have our ear to the ground regarding rent prices across the region. Don’t hesitate to reach out with any questions on this issue.
While higher interest rates could be impacting demand, the real story here is also inventory. There were only 870,000 existing homes for sale last month, which is down 16% from last year and 34%
from July.
The Fed also made headlines… “inflation is much too high,” and he pledged to take “necessary steps” to bring prices under control. He said the Fed will continue to hike its benchmark Fed Funds Rate until inflation is under control.
Interest rate changes
With interest rates going up, many buyers will hesitate to jump into the waters of homeownership. Those of us who remember the ’80s still see 5% mortgage interest as being very low! But, those who are new to homeownership may be scared off by this trend. This again reiterates the ability of those people renting their properties to hold onto their rental rates with confidence.
At Safe Harbor, we also help real estate investors know when to sell properties. Because inventory is so low, this would be a great time to consider selling a property if this fits the goals of your portfolio. Again, Safe Harbor has decades of experience empowering our partners to make the decisions that will maximize their profitability for both the short term and the long term.
I hope this quick look at market conditions helps inform your day! If you are a current partner of Safe Harbor, please take the confidence we are looking out for your best interests. If you are not using us as your Property Management partner, we would love to sit down and discuss your goals and realities to see if we can help you keep moving forward into your preferred future.
Safe Harbor, we have our ear to the ground regarding rent prices all across the region. Don’t hesitate to reach out with any questions on this issue.
