Showings continue to decline as expected as new listings continue to fall, not even trying to catch up with the number of showings that were about the same for the last two years.
New and pending listings grow closer as they follow the typical decline at the of the year.
Coming soon listings that used to be the hope for the future continue to be lackluster. Even price changes continue to drop. With falling prices and sellers more willing to negotiate fewer buyers are backing out, rising interest rates are no longer a surprise. Multiple offers still exist, just not with the craziness of the last two years.
A tactic gaining in popularity with younger buyers is buying an investment property as their first home purchase. They may not be able to afford to buy where they want to live so they continue to rent… and buy a home to rent out where they can afford it with the goal of generating passive income and diversifying their assets. Read more about it in the article below from our blog at Keeping Current Matters.
Sharlene Hensrud, RE/MAX Results – firstname.lastname@example.org
“. . . younger generations of Americans are not buying into that dream in the same way that older generations have. A growing number of Americans are choosing to make their first real estate purchase as an investment property.”
Instead of buying a home and moving into it themselves, some young buyers are purchasing a home so they can use it as a rental. This tactic may be gaining popularity, at least in part, because of the affordability challenges brought about by today’s higher mortgage rates. The report above mentions how many people in this group are considering this approach. It says:
“Almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.”
Why Younger Buyers Are Buying a Home To Use as a Rental
This strategy allows buyers to continue living in their current location, like the bustle of a city apartment or a neighborhood that they know and love, where they couldn’t afford to buy. But instead of giving up on the idea of owning a home, they buy a home in a more affordable area with the intention of renting it out.
In a way, they’re getting the best of both worlds. They live where they want, and they still own a home where they can afford it.
Their goal is to generate passive income and diversify their assets. It works like this: in addition to having a rental stream of income, the equity they build in their house will also help grow their net worth over time.
If you’re thinking about buying a home as an investment strategy to build your wealth, let’s connect to explore your options and nearby areas that may have homes that fit what you’re looking for.