When I started my real estate investing journey in 2002, I didn’t have any training or a real estate license; like lots of folks starting out, I learned a lot as I went. At that time, the median price for new homes increased to $182,700 during the first quarter, which was up 8% from the first quarter of 2001. The average monthly rent price was just $658 dollars, which was a 3.95% increase from the previous year.
Fast forward to now, twenty years later: here in Phoenix, where I live, the median list price in February 2022 is $438,000! That’s an increase of 30.7% compared to last year!
If you’re looking to get into real estate investing, these numbers might send you running for the hills. But the good news is, you can invest in the market, you just need to have a strategy in place.
I recently joined a new podcast from BiggerPockets, On The Market, where Dave Meyer, myself, and a host of phenomenal panelists talk about what is going on in the market right now. One of the first things we discuss is how someone can get into investing in real estate this year with all the challenges the current market brings.
Here’s my take on how to master the market in 2022:
What the Current Trends & Predictions Mean
So what is the landscape of real estate investing right now? Three words: buyers are buying!
The reasons for it are simple:
- They’re taking down tighter deals
- They’re buying on speculation
- Inflation
Buyers aren’t dumb, so they’re pulling the trigger on deals today instead of waiting. There’s tremendous volume and activity because of current market conditions. We already know that there was a 17% year over year gain in home sales at the start of 2021. This was following a tumultuous year, resulting in supply chain issues across the board which affected home construction in high numbers.
But Jamil! What about inflation?
The world is crazy right now, and prices have risen across the board, which is a huge factor in housing and the broader economy. But…