While the year-over-year period from January 2019 to January 2020 saw prices increase by 12.63%, the January to May 2020 period saw a slight decrease of 2.2% compared to the 5.93% increase seen during the same months in 2019. This indicates that COVID-19 slowed typical spring market momentum but did not cause a massive price correction.
In June 2020, the above $600,000 segment had approximately 1.35 months of inventory and 19 days on market, indicating a seller's market. The under $600,000 segment was even more competitive, with 0.8 months of inventory and homes selling in an average of 10 days, often above the asking price.
According to guest Chris Shabib, the answer depends on your strategy; flipping and pure commercial retail face uncertainty and require dialed-in systems, but long-term buy-and-hold residential investors targeting $1,500 per month rental units can still find good deals because housing demand remains fundamental and secure.
Yes, many lenders are still allowing the use of secured lines of credit for down payments and closing costs on rental properties, although some lenders have introduced new restrictions, so it ultimately depends on where your file qualifies.
