2022 was a strange year in real estate. In the first part of the year, we were moving full steam ahead just like 2021 and then the rate increases started to take hold and slow everything down… Like a big locomotive steaming downhill with a hot fire, all the sudden the conductor slammed on the brakes and the big engine seized up and slowed down quickly. So, the big question is, Does it still make sense to Flip? Buy Rentals? To borrow Private Money or Hard Money?
This chart shows where the national real estate market ended the year and as you can see it cooled off pretty quickly in the second half of 2022. So the question is: Does it still make sense for real estate investors to be buyers? Let’s look at the numbers..
Like the rest of the nation, Berkeley County saw a decrease in home sales in 2022, BUT for the ones that did list and sell, the prices keep going up! Home sales went down 27.7% BUT home prices went up 15%. That’s pretty amazing! The Average sales price ended at $287,450!
I guess the answer to the question is a resounding YES! After a small drop due to the rate hikes and uncertainty, prices have begun to march right back up again. As a flipper and rental investor, the low inventory environment has kept demand for homes very high keeping prices on the rise.
Rental investors still need to factor in refinance rates when buying but as Gary Keller stated recently “The days of 4 and 5 % rates may never be seen again in our lifetime”
As a Flipper, if you can get anything in and around the average price point, and make the numbers work, you will more than likely be in a multiple-offer situation and be rewarded for your courage and hard work.
Jump Capital is here to FUND your investment properties. We offer our partners tons of local market experience. If you are an experienced investor or a new investor feel free to reach out and see how we can work together on your next deal.
Call Bill – Jump Capital 301-707-1678
Hard Money lender / Private Money lender / Maryland / West Virginia / Virginia / Pennsylvania