3 ways the economy impacts your investing game

Believe us… it will impact the real estate market

 

Like all investment strategies, the real estate market is not immune to the ups and downs of the economy. Real estate market fluctuations can be directly linked to the health of the global, national and local economies. These ups and downs often come in waves and sometimes (despite the attempts of great economists) we just can’t predict the precise impact.

But that doesn’t mean economic analysis isn’t important and it certainly doesn’t mean it’s a topic you should remain ignorant on. At the November ICOR meeting we’ve invited Tracey Wilson from IPX 1031 Exchange who will address the economic trends from both a national and statewide perspective.  His insight will undoubtedly help you better understand the market.

So in preparation for his presentation we’ve compiled three important economic factors you should consider when preparing for your next investment.

  1. Interest Rates: Current interest rates greatly impact your real estate strategy; if rates are high there are less traditional buyers to compete with because rates keep potential buyers unable to afford reasonable mortgages. This creates a need in the market for housing and thus drives market prices up. Conversely, low rates make it easier for traditional buyers and investors with little cash or creative financing to buy. There is less demand forcing prices lower and making it harder for investors to find great deals.
  2. Overall health of economy: If the economy is sluggish, chances are you’ll see some sluggish-ness in the real estate market. When GDP is low employment dips, cost of living increases and manufacturing stalls consumers begin to feel strapped. What is the dollar worth on the global market? When we see huge economic plummets, like the Great Recession, the real estate investing market floods with short sales, foreclosures and bank-owned properties — you then see the rental market explode. But when the market rebounds, consumers are able to afford to buy resulting in a higher number of traditional home sales, less need for rentals and less properties available to investors.
  3. Housing Demand: Are we in a buyers’ or sellers’ market? How does construction and new build look in your community? Are we seeing lower cost for home repair goods on the market? How does the local rental market look? Are prices high or low? Are you seeing a large influx of retirees or college students? The demographics driving local housing needs will directly correlate to the investing strategy you consider. Interested in learning more about the current national housing indicators… check this out.

Join us this November for a deeper and more meaningful analysis of the current market and how the economy will impact your investing strategy in the New Year.

 

 

November Meeting:

90 Questions in 90 Minutes: Real Estate Legal Panel

5:45 pm: Registration open - Food served
6:00-7:00pm: The Investor Lab — An Updated State of the Economy with Tracey Wilson for IPX 1031 Exchange
7:00-8:30pm: Main Meeting — 90 Questions in 90 Minutes: Real Estate Legal Panel
8:30pm: Continued Open Networking

Logistics & Information:

 

Spotlight
Tuesday, November 10th
Colorado Springs Monthly Meeting – 90 Questions in 90 Minutes: Real Estate Legal Panel
Spotlight
Wednesday, November 11th
Denver Monthly Meeting – 90 Questions in 90 Minutes: Real Estate Legal Panel
Spotlight
Thursday, November 12th
Northern Colorado Monthly Meeting – 90 Questions in 90 Minutes: Real Estate Legal Panel