Investment Property Market Predictions for 2024
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January 3, 2024

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While the housing market may remain a challenge for many homebuyers this year, there will be plenty of unique opportunities for savvy real estate investors.

Let’s dive right into housing market predictions for 2024 and how they will impact investors and investment properties.

Home prices will keep rising

Home prices skyrocketed during the COVID-19 pandemic and have continued to steadily rise since. Prices are expected to keep rising in 2024—just at a slower pace.

Experts have predicted anywhere from a below 1% increase to a 3% to 4% increase in prices in the New Year.

This is because mortgage rates remain high and home supply is low. 

Despite these obstacles, home demand remains strong.

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What this means for investors

Many homebuyers are still priced out of the market, but that doesn’t mean that their lives have stopped.

People still need to move for job opportunities, family matters, or other influencing factors—and they’re going to need a place to live.

Because these folks can’t qualify for a mortgage in today’s market, they will have to turn to rental properties.

Investors with their finger on the pulse of these markets and a connection with local real estate professionals can step in to purchase rental properties and provide suitable housing.

Experts also predict that the mass moving trend toward suburban areas during the pandemic is coming to an end, and we can expect more people to return to cities.

Interest rates will remain elevated

General economic conditions and the battle against inflation pushed mortgage rates higher and higher in 2023.

While interest rates aren’t expected to rise significantly in 2024, they also aren’t expected to fall below 6%.

That’s better than an 8% rate but still may be too high for many homebuyer hopefuls.

What this means for investors

Similarly to high home prices, high-interest rates keep buyers priced out of the market.

Rental properties will always be in demand, but high-interest rates coupled with high home prices create scenarios where demand is more urgent and widespread.

Home supply will increase slightly

Active home inventory in November 2023 remained 37.8% below typical 2017 to 2019 levels, according to Realtor.com.

The National Association of Home Builders expects that the national housing shortage will persist through the end of the 2020s.

Still, experts predict that there will be more homes constructed in 2024, and more homeowners will be interested in selling their homes if rates hang out in the low-to-mid-6% range.

What this means for investors

Setting your sights on properties to flip or land to build will help add more supply to the market.

It presents opportunities for house flippers to put their research and skills to the test and seek out distressed or foreclosed properties that need a second chance.

Purchasing a property at a low price and significantly boosting the value of the home through necessary repairs, renovations, and updates will help bring more supply to the market—and boost your profits.

A lack of supply also will turn more buyers to renting until they can find a home they can afford in the area where they want to live.

The market will continue to favor sellers

In a seller’s market, the demand for homes exceeds the supply.

The lack of inventory contributes to a competitive environment where buyers are willing to pay higher prices to secure a property.

What this means for investors

The increased demand and competition can result in faster sales and higher selling prices, allowing investors to maximize their returns on investment.

Investors who can renovate and improve properties quickly may find a receptive market for their projects.

9 tips for investors to stay on top of opportunities 

Whether you’re seeking long-term rental property investments or quick fix-and-flip projects, investment opportunities will be plentiful this year.

Here are nine tips for investors to stay on top of their next investment property opportunities in 2024.

  1. Keep yourself informed on the latest trends in the real estate market, including local and national conditions and property values
  2. Build a strong network of real estate agents, property managers, a hard money lender, and other professionals in the industry to hear about upcoming opportunities or off-market deals
  3. Leverage online platforms and tools to search for properties, track trends, and connect with sellers
  4. Diversify your portfolio with a mix of fix-and-flip projects, rental properties, and various property types to manage risk and provide various streams of income
  5. Attend real estate auctions to find distressed properties and unique opportunities
  6. Maintain financially ready to act swiftly when a promising opportunity arises
  7. Conduct your due diligence on potential properties, including assessing the neighborhood, property condition, market demand, and potential returns
  8. Remain adaptable and ready to adjust your strategy based on market shifts, economic conditions, and emerging opportunities
  9. Use the technology and software available for property analysis, financial modeling, and market research to streamline your process

The most helpful investor tool in 2024 is a reliable, trustworthy source of financing.

A partnership with a hard money lender is crucial for your upcoming investments.

Hard money loans will help more investors secure financing

While investors are affected differently by the housing market than regular buyers, you may find yourself impacted by similar factors such as high property prices and interest rates.

Investors need a reliable source of quick, flexible financing to fill the gaps in the housing market and positively contribute.

A direct hard money lender is key to accessing the types of financing you need to be successful as an investor in 2024.

Park Place Finance offers the following loan products:

  • Fix-and-flip loans: Cover the costs of purchasing and renovating a property
  • Debt service coverage ratio (DSCR) loans: 30-year fixed-rate rental property loans that base approval on the property’s cash flow
  • Bridge loans: Short-term loans that help you close quickly on a property and compete with cash offers
  • Construction loans: Cover the costs of purchasing land and ground-up construction costs—can also be used to renovate a mid-construction project

The major benefits of hard money are the speed and flexibility. 

Rather than focusing on your financial situation, hard money lenders want to know the value of the property.

Start the loan process with Park Place Finance

Park Place Finance lends nationwide and has nearly two decades of experience in the business. 

We are your trusted hard money lender, and we pride ourselves on providing you with a personalized and efficient lending experience. Start the loan process online or call us at (866) 407-1599 to speak with an account executive now.

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