If there is one thing that we can learn from economics, it’s that change is inevitable.
Nothing stays the same forever.
Economic trends that were present in a previous decade, simply don’t hold in the present.
For example, many financial pundits still talk about a repeat of the 2000s housing crash.
However, there’s one key detail missing in this analysis:
For a market crash to occur, there has to be a large amount of distressed homeowners. This was in effect during the 2000s.
Prior to the housing crisis, countless unqualified home owning applicants were allowed to take out mortgages and obtain housing that fell way outside of their financial means. In normal economic conditions, these people would have not been able to acquire a loan, much less buy a house.
Currently, lending standards for housing have indeed stiffened. In the present, the average home buyer possesses a credit score of 776. In a similar vein, existing borrowers have a FICO score of 751.
Overall, there aren’t as many distressed homeowners nowadays. People tend to hold more cash than debt.
On top of that, there is currently a housing inventory problem. Namely, entry level housing units are largely under-supplied. That said, inventory is slowly climbing upwards.
These are the contemporary trends of housing markets across the US.
Successful income property investors pick up on trends and act decisively on them. That’s why it pays to stay on top of the latest trends unfolding in real estate markets nationwide.
Contrary to what many financial “experts” say, housing isn’t going to be going through a catastrophic collapse.
Housing is not going anywhere, folks.
It’s the center of the universe and people will always need a roof over their heads.
This is fantastic for the income property investor looking for cash flow yielding assets.
With so many people leaving volatile, cyclical markets and moving towards linear markets in Middle America, there will be a gold mine of investing opportunities to tap into.
That’s how the game is playing out in this chaotic epoch. So prepare yourself accordingly,
In the meantime, check out Jason Hartman’s latest video on how income property investors can raise rents on tenants to maximize their cash flows.
Maximize your return on life here.
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