Top 5 Things Real Estate Investors Need to Know for 2024
As we enter 2024, the landscape of real estate investment, particularly single-family rentals, is evolving in ways that demand your attention and strategic foresight. This year is set to unfold under the complex interplay of economic factors, market-specific trends and shifting demographic preferences. Your role as a real estate investor specializing in single-family homes for rental income requires not only an understanding of these dynamics but also an ability to navigate through them with agility and informed decision-making. Here are the top five things real estate investors need to know in 2024.
1. Interest Rates and Mortgage Rates
Expect interest rates to be a major talking point in 2024. While hopes for a return to 3% mortgage rates might be unrealistic, you should plan for rates to hover around 7%. Remember, when mortgage rates drop, home prices rise, so Pick Your Poison. Act fast when you find a viable property, as waiting for a major rate drop is unlikely. MartelTurnkey has an excellent selection of cash flowing homes available now, based on current rates. And, if the rates drop, your cashflow will rise!
2. Stability of Single-Family Rentals
Single-family rentals are the most stable investment, especially when compared to the volatile stock market, and the condo market, with unpredictable insurance and HOA fees. The interruption of millennial family formation by the pandemic, coupled with a robust job market, is anticipated to drive millennials towards renting single-family homes for starting families. This trend brings both strong rental demand and property appreciation.
3 . Market-Specific Trends
Real estate investment in 2024 will be highly market-specific. Don’t expect significant growth in traditionally high-demand areas like San Francisco or Austin; these markets might experience flat appreciation. Conversely, there is a continued strong demand in Midwest markets such as Cleveland and Detroit. It’s vital to research and understand specific market data to make informed investment decisions. At MartelTurnkey we’ve done the analysis for you, and we stand strong in our preferred markets.
4. Inflation Variances
Nationwide inflation is around 4%, but this varies significantly across markets. For instance, cities like Miami are experiencing inflation rates closer to 8%. These variations impact housing affordability, especially in high-demand areas. Preserve your purchasing power amidst such inflationary pressures by buying a property with returns that beat inflation. Our easy-to-read cashflow spreadsheets show you the cash-on-cash return on your property, so you can see you are beating inflation.
5. Stock Market Volatility and Economic Outlook
The stock market is expected to be highly volatile in 2024. Signals from the Federal Reserve, such as potential interest rate decreases, might be interpreted as preparatory measures against economic downturns, hinting at possible recessions. The end-of-year negative manufacturing index adds to these concerns. The stock market currently may not be fully accounting for these potential issues, so any unexpected developments could lead to significant market reactions.
As a real estate investor in single-family rentals, your strategy for 2024 should be proactive and well-informed. At MartelTurnkey, our business is finding and flipping properties in solid markets, despite the economy. We are constantly analyzing where to invest in single family homes with positive cashflow and a strong upside for appreciation.
Remember, real estate investment is as much about timing as it is about property selection. We say now is a very good time to buy. Wishing you a prosperous 2024! Check out our inventory here.