Does A Housing Downturn Help Real Estate Investors?
As the United States enters a recession, the U.S. housing market is officially in a downturn that could potentially last for 12 months or longer.
The big question that most investors want to know is if a housing market downturn will help the rental market, or hurt it.
Thankfully, whenever the housing market faces a downturn, real estate investors can look for opportunities where economists expect defeat because real estate investors typically benefit the most when home prices fall.
Fewer People Buying, More People Selling
The housing market has been a nonstop boom for the last five to 10 years, especially in Portland Oregon, where home prices have gone through the roof, and in many cases, it’s made it next to impossible for people who earn under $100,000 a year to buy homes.
When it comes to investors, with fewer people buying, and more people selling, this means more properties are available than ever on the market for them to choose from.
Opportunities like this don’t come around very often, the last time that we saw market conditions like this was after the 2008 “Great Recession” when home prices tanked and stayed at record lows for several years.
The current recession is only just beginning, and even though some economists are saying that it’s not going to last very long, it’s likely that we could see this recession last for 12 months or longer.
Is A Housing Crash Coming?
Housing recession usually stems from “speculations.” What does speculation entail? This activity occurs when investors buy houses to make huge profits from them when they make a sale in the future. Speculation creates high demand, invariably skyrocketing the prices of homes.
With more speculators joining in on the party, an ultimate crash is imminent. When there’s a downturn in the economy, those who took mortgages and loans will find it difficult to clear their debts as interest rates increase. Most investors will seek to sell their properties for lower rates to stay afloat, giving room for lower prices.
Although a housing recession can negatively impact a country regardless of its economic prowess, it’s vital to understand that these events are usually short-term, meaning that economic recovery is achievable within a short period. Nonetheless, select occurrences can make this recession form last for long periods.
Ultimately, many economists have said that the state of the 2022 housing market is a lot different than what we saw in 2008 because the lending fundamentals are different than back then.
With the market built on stronger fundamentals, it’s likely that the current housing market downturn may not last for as long, or have as great an impact on the economy as some have predicted.
While investors wait for the housing market downturn to end, there’s still going to be a fair number of deals out there including multifamily and single-family homes for sale in Portland, and the greater PDX area.
Also, A Great Opportunity for First Time Investors
Besides being a great opportunity for longtime real estate investors, the current real estate market is also presenting ample opportunities for new real estate investors who are moving from stocks to real estate
Rental real estate presents a “steady Oasis” in any recession because of the simple fact that rental properties continue to earn passive monthly cash flow while most other well-known investments are tanking.
Once they add rental properties to their investment portfolios, some new real estate investors may choose to manage their rental properties themselves, getting first-hand experience in working with tenants, plus overall property management.
Yes, rental properties can be managed by any DIY investor, but the reality is that for passive income, it’s always a better decision for an investor to choose an experienced property manager like rent Portland Homes – Professionals.
When investors choose property managers to manage their rental they could have peace of mind in knowing that all aspects of property management will be handled from start to finish including property marketing, tenant selection, rent collection, maintenance, customer service and so much more.
Besides the ease and convenience of working with a property management company, another benefit is that owners can live anywhere in the United States while having confidence that their rental property is effectively being cared for and maintained by a company property manager.
New investors can take heart that rental real estate will continue to be a steady source of cash flow for them for years to come including good real estate markets, and bad.
What’s also most important to know about the state of the rental market is that with homes still out of reach for many buyers nationwide, rental real estate will continue to be in high demand in the years to come.
Why? People will always need a place to live and search for rental properties in Portland or surrounding areas nationwide.
Contact Rent Portland Homes – Professionals
At Rent Portland Homes – Professionals/4RentLocal.com, we specialize in property management for Beaverton, Portland, and surrounding areas.
Founded by Fred Marlow, our company has decades of combined property management experience in the PDX area. This means that regardless of if you are a new or inexperienced investor, you can have Peace of Mind in knowing that the best property management team in Portland is managing your rental property.
For a property management quote, or to learn more about the services that we can offer you, contact us today by calling or clicking here to connect with us online.