The housing market has been experiencing frequent fluctuations since the onslaught of the COVID-19 pandemic in 2020. Now, real estate investors are watching closely to know what they should expect for the remainder of 2023. Because a return on investment is a guarantee, rehab investors must understand the opportunities and risks they may face during this time. Keep reading for more on what rehab investors should expect in 2023.
Increase in Residential Rental Rates
The last three years have brought many changes. For example, renting a property has become the most feasible option for many people in the US. Because of the rise in interest rates, remote work environments, inflation, and stagnant wages, buying a home is no easy feat.
Buying is more expensive than renting a property, increasing the demand for rental properties. Due to this increase, the rates for these units will also rise. With fewer homebuyers, rehab investors may find it difficult to make a return on investment as quickly as they hoped.
Increased Chance of Foreclosures
While housing and rental demands are high, so are the chances of a recession, increased unemployment, and foreclosures. According to the ATTOM mid-year report, foreclosures are up 13 percent from last year and increased 185 percent from two years ago. This could present real estate investment opportunities to create more accessible housing and mixed-use properties. However, investors should prepare for a complex purchase journey from start to finish.
Buyers May Win in the End
Rehab investors should be patient and selective for the remainder of the year. The housing market could make a positive change by the end of the year. By reducing mortgage rates, there will be more opportunities to invest in properties. However, it will take a skilled investor with a precise strategy to overcome this difficult market.
Rehab investors should do their homework for the rest of 2023. If you plan to invest in fixer-upper properties, research your properties, create a plan, and find the best lending partner to make your dream come true.
If you’re searching for a partner who will focus on your best interest and offer investor rehab funds, you’ve come to the right place. At Val-Chris, we will help you earn a return on your investment and come out on top of this unpredictable market. Contact us for more information on how we can help.