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Real Estate Investing Market Update: 10-13-2022

Every week we send a market update to thousands of real estate investors. Our goal is to provide data-driven insights to help you build wealth through real estate and navigate the current market volatility and uncertainty.

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Have we reached a breaking point?

๐Ÿ“ˆ Interest rate volatility: 30 Yr FRM at 7.2%, +25 bps WoW
๐Ÿ“ˆ Inflation: +8.2%, higher than expected
๐Ÿ“‰ Unemployment rate: down to 3.5% in September from 3.7% in August
๐Ÿ“ˆ DSCR Loan Index: 8.45%, +11 bps WoW
๐Ÿ“ˆ Fix & Flip Loan Index:
11% (OfferMarket is at 9.99%)
๐Ÿ’ธ Home price affordability: lowest level in 37 years
๐Ÿ  MLS Active Listing Count: 732,276 in September, little changed since August
๐Ÿš๏ธ OfferMarket Active Listing Count: 381

๐Ÿง  Housing Market Opinion

With unemployment at record lows and inflation persisting, the Federal Reserve will need to continue aggressive rate hikes to meet its mandate of price stability. In the near term, housing prices will remain supported by low inventory as would be sellers contemplate the โ€œlock-in effectโ€ of low rates. While the housing market is already in recession, we expect the broader economy to continue to deteriorate as the financial health of the consumer continues to decline and businesses cut back on labor and capital investments. Financial markets may not bottom for another 6 - 15 months. As an investor, itโ€™s extremely important at this stage of the economic cycle to be disciplined in order to avoid forced selling. Investors with strong balance sheets and access to reliable funding should find increasingly attractive opportunities to deploy capital.

Disclaimer: this is solely our opinion and does not constitute financial advice