Perhaps it cannot out do last year for unexpected twists, but 2017 promises to have its own bag of tricks in store. According to this Inman article, "Overall, 2017 will be an unorthodox, non-traditional and unpredictable year, both nationally and globally. Those who are nimble will manage it best."
I think the same applies here in St. Louis. We have seen a lot of change in the last year alone, with a remarkable amount of new construction and renovation in and around the city. Rehabbers are feeling the squeeze as the competition for projects tightens.
Last Spring fur flew during a fiercely competitive spring market, and all signs point to an equally busy 2017. My colleagues and I will be watching very closely as the drama of slowly but surely rising mortgage interest rates, a 15 year high in consumer confidence and the increased Millenial housing demand all come together here and around the country.
With marriage now being put off or skipped out on, more single women are becoming first time homebuyers. According to this recent article on Realtor.com, women place more value on planting roots and saving money.
What do we like about QT versus any other gas station? The simple upgrades. Same goes for homes for sale or rent: perks sell.
The St Louis Business Journal recently predicted that over 10,000 tech jobs will be created in our fair city. Jobs & housing go hand in hand.and we'll be here providing modernized homes for all those new employees.
With household creation back to pre-recession levels nationwide, housing demand is ticking up as we speak. St. Louis, in particular, is hot. Recently named one of 2016's hottest market, the numbers from last quarter seem to foreshadow what we already know:
According to this recent article, St. Louis Real Estate Prices Are Up 3.8 Percent
As classic as the chicken versus the egg, this age old real estate investing question continues. This author weighs in for "Camp Multi Family", loving the 'Twofer' benefits only multi unit dwellings can offer.
The recession is apparently becoming a receding memory, and new household formation is on the rise. That's right: the 'kids, AKA older Millennials (25-34) are moving out at an impressive rate & the trend is expected to last over a decade. Read up on the numbers at keepingcurrentmatters.com.
Like mama used to say: raise your child for the world, not for yourself, so your little chicks can fly the coop one day. This sage advise translates well to the renovate and flip world: renovate the property for the world of buyers, not to your own taste so your home project will fly off the shelf one day. Since today's buyers may not share your ('90s) love for mixed patterns and distinct spaces, it is essential to stay on top of both broad and more neighborhood specific market trends. In this week's featured article, Realtor.com lays out the latest & greatest in home feature trends. Take note rehabbers, and be sure to prepare your project for the real world.
When investors text, it may look something like this: "OMG my ROI on that SFR rocks, but TROI & ROE are amazn."
So when it comes to analyzing a potential cash flow property, you should know the lingo and the math. This way you are able to consider what the investment could do for you short term and long term. (And don't forget to consider the depreciation as well!).
If you do your math correctly, real estate investing should have you LOLing all the way to the bank.
The Business Insider recently placed St Louis at the top of their list for fastest start-up scene. St. Louis earned the top spot with a whopping 342.70% deal growth in 2015, and 33.02% average growth since 2012. We like to think it's more than the lower cost of living and affordable housing our fair city offers; St. Louis also happens to be an art & music loving baseball town with a great park system & impressive restaurant scene. It also helps explain why St. Louis is a top real estate market for 2016.
Director of REI Mode