While the real estate market has its own local trends, it’s important for those who work with flip loans to keep an eye on the larger trends affecting the whole country. The Economic and Strategic Research Group at Fannie Mae has been making some predictions for the national housing market. House prices have been going up in ways that are unsustainable for the past few months. The research group and many other economists believe that the house prices will stop increasing and start stabilizing in 2019.
This can be good news for those planning to invest in real estate with fix and flip loans. While every investor hopes to get top dollar for their properties, the flip side of high prices is sluggish sales. This means that investors have to pay more interest on flip loans while waiting for a house to sell. They may also have to lower the price or even take a loss in order to unload property.
Investors in Fix and Flip Loans May Find 2019 a More Profitable Year
As far as mortgages go, Fannie Mae and other experts that rates will rise from 4 to 5 percent. Again, this is probably actually good news for anyone buying or selling houses. If prices moderate and mortgage rates don’t go up too far, this means that houses will overall be more affordable in 2019 than they have been over the past few months.
As we discussed in a previous post, winter can be a good time to buy a house at a low price. It will be ready to put on the market when people really start looking in the spring. If consumers are feeling the relaxation in prices, there will be more demand for inventory. Investors can sell their properties more swiftly, which is overall better for their bottom lines, too.
Get in touch with LendingXpress to discuss your real estate investing plans for the new year. We’d be happy to help you find the right loan products for your ventures.