myEmpirePROToday we’ll be discussing the first deal in 30 days wholesale real estate. We appreciate all our returning viewers and thank you for hitting the like button and subscribing.
What is Wholesale Real Estate?
Wholesale real estate is the process of finding deeply discounted properties by finding motivated sellers first. We access data through www.EmpireBIGData.com and use skip tracing to contact potential leads. After executing marketing outreach, we can convert leads to contracts.
Partnering for Success
We’re here to partner with you to do deals together. We often partner with attorneys, title agencies, and other wholesalers to get deals done. If you’re not familiar with the four stages of data, contact, leads, and contracts, we can guide you through the process.
The fifth stage of wholesale real estate is deal disposition – closing on the deals and finding an end buyer who will pay for the property. You don’t need your own money or experience to be successful in this industry.
We specialize in wholesale real estate, which involves finding deeply discounted properties by targeting motivated sellers. This process includes four stages: data collection, skip tracing, marketing outreach, and lead conversion.
We partner with others to do deals, including attorneys, title agencies, and other wholesalers. You don’t need money, credit, or experience to get started. Consistency and a willingness to learn are key.
We offer a free course on our homepage, a free masterclass at www.RealEstateMoneySecrets.com, and three free downloadable books. If you’re already generating contracts and looking for buyers, you can partner with us and submit your deals to www.myempirepro.com/submit
We will now dive into some important news and updates in the industry. Stay tuned for a quick and to-the-point discussion.
Let’s talk about interest rates and real estate markets.
Interest rates are a driving force in the market and affect real estate markets worldwide. A recent article on Yahoo Finance discusses how interest rates could affect the real estate market.
This is not just a concern in the United States, as real estate markets all around the world are impacted by interest rates. It’s important to pay attention to what’s happening globally because it affects our exposure.
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The Importance of Paying Attention to Interest Rates in the Real Estate Market
Interest rates are the driving force of the market, and they affect not only the US but also countries around the world, such as Canada, the UK, and Australia. Thus, it is essential to pay attention to what is happening globally.
Impact of Bank of Canada’s Decision on Interest Rates:
Recently, Toronto mortgage experts predicted that the Bank of Canada’s decision to hold its key interest rates would impact the country’s real estate market. This decision marked the second consecutive hold since rates started climbing in March 2020, which could lead to more confidence for buyers and sellers to make a purchase soon.
Despite the impact of interest rates on the real estate market, it is also essential to be prepared for the opportunities that will arise in the marketplace. By staying informed, you can take advantage of the various opportunities that will emerge in the market.
Thus, it is critical to keep a close eye on interest rates in the real estate market and to stay informed about the latest news and developments.
Let’s talk about Canada and its impact on the United States. It’s important to pay attention to what’s happening outside the US, especially in Canada, United Kingdom, and Australia because we are all exposed to each other. Toronto mortgage experts predict that the Bank of Canada’s decision to hold its key interest rates will heat up the country’s real estate market. This is the second consecutive hold since rates started climbing in March 2020.
Opportunities in the Marketplace
As rates spike, we can expect to see the impact not only in Canada but around the world. The good news is that lots of opportunities will be coming to the marketplace, and we need to know how to play it. The overnight rate hold at 4.5% sends a strong signal to buyers and sellers that rates have hit their peak. This will prompt more sales and give buyers and sellers more confidence to make a purchase soon.
Regular consumers like us may be affected by the need and demand for housing, especially in densely populated regions such as Vancouver and the greater Toronto area. If it looks like the rates are not going any further, it may create an emotion that will run to the marketplace, making people feel like they could get a little greedy.
Top Forecasters Divided on Housing Market Outlook
- Little things like interest rates will continue to affect the marketplace.
- Volatility means money is changing hands and there will be a lot of movement.
- The goal is to have some of that money end up in your hands as a wholesaler.
- Top forecasters are divided on the housing market outlook for 2023.
- Zero economies expect home prices to rise over the next year while those at Moody’s see the opposite.
- The housing market has sent mixed signals with ups and downs.
Market Uncertainty and Real Estate Forecasters’ Predictions
The housing market is experiencing mixed signals, with fluctuations in home prices happening concurrently. This uncertainty has left real estate forecasters unsure of what’s next for home prices. Some regions are experiencing declines while others are seeing gains. The future largely depends on the Federal Reserve’s trajectory on interest rates, which is affecting the market.
The market is currently in panic mode due to the uncertainty of the direction it will go in the short term. Many people are wondering if the market will go up or down. However, real estate will continue to go up in the long term due to the serious demand in the marketplace, particularly in residential areas.
The Impact of Interest Rates
The spiking interest rates are due to the government having to compensate for all the money that they printed, which was essentially free money. The interest rates are affecting the market, and it remains to be seen how the Federal Reserve’s trajectory on interest rates will impact the housing market in the future.
Market Speculations and Housing Market Outlook for 2023
The speculation in the marketplace is causing volatility and money movement, and the housing market outlook for 2023 is uncertain, with top forecasters divided on home prices.
The housing market is sending mixed signals, with declining prices in the West and gains in the South and East. The market is in panic mode, and the government’s inability to decide on interest rates is affecting the market.
High interest rates influence mortgage rates and affect both renters and homeowners. However, those who know how to make their moves in the marketplace can benefit from the uncertainty.
Home Price Projections for 2023
Analysts forecast a 0.5% increase in home prices from January 2023 to one year, with a lack of inventory making it difficult to anticipate price declines. The demand for housing is increasing, but the spike in interest rates is making it unattractive for some to move to another home.
The current state of the housing market is unpredictable due to market volatility caused by the uncertainty of interest rate hikes. Financial turmoil beginning with Silicon Valley has led analysts to forecast possible rate hikes which will influence mortgage rates and ultimately home prices. Zillow and CoreLogic both expect home prices to rise, but Zillow warns that the lack of inventory makes it difficult to anticipate price declines.
Impact of Interest Rates
The trajectory of interest rates largely influences the direction of the housing market, causing uncertainty and panic. Homeowners may panic and rush to buy before rates increase, causing a surge in demand for homes. If there is not enough inventory to meet demand, home prices may continue to rise. On the other hand, if the interest rate increases too quickly, the market may stabilize as buyers become hesitant to purchase.
The lack of inventory has contributed to increased demand for homes, which has led to rising home prices. However, if there is more inventory, prices may begin to decline. CoreLogic predicts that home prices will continue to rise due to pent-up homebuyer demand and declining rates. Overall, the housing market remains uncertain and unpredictable due to various factors such as interest rates, inventory, and demand.
When it comes to the housing market, one of the biggest factors influencing it is interest rates. The trajectory of interest rates depends on the actions of the Federal Reserve, and financial analysts are keeping a close eye on where things might be headed.
Zillow predicts rising home prices
According to Zillow’s home value index, analysts are forecasting a 0.5 percent increase in home prices from January 2023 to one year later. However, the lack of inventory makes it difficult to predict price declines, as fewer people want to sell due to the spike in interest rates.
Home prices may fall, says Moody’s Analytics
Moody’s Analytics predicts that home prices may fall by 4.2 percent between December 2022 and the present, due to likely increases in unemployment and a potential recession later this year. The firm’s chief economist suggests that a sizable amount of the market may be desperate to sell for a range of reasons, which could lead to falling prices.
Impact on wholesalers
For wholesalers, it’s important to pay attention to the housing market and where it’s headed. As long as there’s movement and money is changing hands, there is potential to make a profit. However, changes in interest rates and market conditions can greatly impact the housing market and should be closely monitored.
National Association of Realtors Predictions
In this section, we will focus on the National Association of Realtors (NAR) predictions.
It’s important to note that NAR has a vested interest in more people coming into the marketplace to buy, as they make money based on the percentage of the house price.
In a report published in March, NAR predicted that existing home prices will see a 1.3 percent climb by the first quarter of 2024, and new home prices will see a 2.6 percent increase for the same period.
Nadia Senior Economist and Director of Forecasting at NAR stated that the market will continue to see price increases as long as there is demand from buyers. However, if there’s no traditional buyers coming into the marketplace, NAR will have problems.
The housing market is highly volatile, and there are a lot of speculations about the direction it’s headed in. There is pent-up demand from buyers due to declining mortgage rates, which could lead to an increase in home prices by 3.7% by February 2024, according to CoreLogic.
Moody’s Analytics, on the other hand, predicts that home prices will fall by 4.2% between December 2022 and December 2023 due to likely increases in unemployment and a potential recession.
The National Association of Realtors predicts a rise in home prices. However, their motives may be questioned as they have a vested interest in more people entering the marketplace to buy. In a report published in March, the Nar forecasted that existing home prices would see a 1.3% climb by the first quarter of 2024, and new home prices would see a 2.6% increase for the same period.
High-interest rates impact everyone in the long run, but in the short term, it affects homebuyers more than renters. Homeowners who have locked in their rates for 30 years are unaffected. However, those looking to refinance or buy a home will be affected by interest rates.
Moody Analytics Predicts Home Prices Will Fall
In contrast to the other agencies, Moody Analytics predicts that home prices will fall by 4.2 percent. This prediction is noteworthy because they don’t have any direct vested interest in stimulating people to come into the marketplace. Moody Analytics cites likely increases in unemployment as a leading indicator for more pre-foreclosures in the marketplace.
Investors, particularly those looking to buy and hold onto properties, can affect the markets in both directions. While they may be willing to sit on a house for a long time, they are also affected by the fate of regional banks. If the government keeps bailing out collapsing banks, this can only last for so long. Additionally, all the money that was printed has to be paid for somehow.
In summary, there are various factors at play in the housing market, and it’s difficult to predict with certainty what will happen. While some agencies predict rising home prices, others suggest that they will fall due to factors such as unemployment and pre-foreclosures. Additionally, investors and the government’s response to bank collapses can impact the market’s fate in the long term.
Tips for Wholesalers in a Crisis Market
As a wholesaler, focus on the comparables that are three months or less to the time of the offer in a crisis market, to ensure your credibility with both sellers and investors.
Going back one year for comparables will not provide accurate numbers and could lead to renegotiation or overpricing, damaging your reputation.
Pay attention to Moody Analytics’ predictions, as they have no vested interest in stimulating the market.
The crisis market affects everyone in the long run, but short-term impacts are greater for those looking to buy or refinance.
Investors willing to hold onto property for an extended period are better positioned in a crisis market, but the fate of regional banks and government intervention will impact the market.
Money printed to stimulate the market will have to be paid back at some point.
Pre-foreclosures are a leading indicator for potential falls in home prices.
Conclusion
Wholesalers must stay informed and cautious, paying close attention to the market and comparables to make proper offers and maintain their credibility.
If you’re a wholesaler, the only thing that matters in a market crisis is your comparables. They need to be as close as possible to the time of the offer, so don’t use one-year comparables because your investors won’t like the numbers you come up with. Make proper offers so that you don’t kill your credibility on both ends.
Pay attention to the marketplace and make sure you’re locking in good deals. If you have good deals, let me know and we’ll buy them. There could be increased demand for housing, and if we’re locking in good deals, we’ll continue to succeed.
If you don’t know how to get through phases one through four from data to contracts, download the books for free from www.RealEstateMoneySecrets.com We also have a free course on the home page of this channel.
I hope this was enlightening and helpful. See you on the next one and peace.