After our Real Estate Forecast Panel, week, we’d like to share our predictions for everyone who couldn’t make it, or who perhaps missed some parts of what our speakers had to say. Here are the predictions for the next year in real estate from Brian Spitz, Darel Daik, and Ray Sasser.
THE OIL BUMP
Oil prices rising into the 50 dollars a barrel range has made a big impact on Houston consumer confidence and spending. A rise in consumer confidence means there are buyers out there looking to purchase. A very large mortgage bank disclosed that they saw a massive uptick in the number of new loan applications that came in in January. This is another reliable indicator that there is an active market of buyers out there looking to purchase…Download PDF to continue
DON’T EXPECT A FORECLOSURE FIRESALE
Because most of the changes to the real estate market are influenced by the price of oil and not the overall economy, there shouldn’t be a credit crunch or any reason to expect foreclosures to go up in 2017. It’s still a good time to buy “buy and hold” properties from wholesalers and other off-market real estate providers because there won’t be dirt cheap houses available on the open market. We don’t think prices will…Download PDF to continue
Rental price might soften a little throughout the entire city. There won’t be a massive reduction of rent price due to the rise in consumer confidence, but with the supply of apartments that are available there is just so much more available for rent….Download PDF to continue
4 FINAL TIPS
1. Prepare for slightly greater hold time – focus on buying flips in area where there is not too much on the market. When evaluating your rental
properties focus on keeping good tenants in place rather than trying to raise market rents.
2. Pay attention to the number of houses available that are ACTIVE relative to the number of houses PENDING – you always want to see a strong number of homes pending in areas for flips.
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