This week there’s been much seemingly bad news about the real estate economy. New home sales hit a record low, existing home sales have dropped, and are poised to drop further.
For an investor it can be challenging to figure out how you should be involved in real estate today. Over the last 12 months, Investor Nation has put an unparalleled focus on locating properties that outperform the market. We use the term, “blue-chip” because they are the bellwethers or dividend stocks of the market.
This type of home offers investors safety and performance in uncertain times. In fact, this type of home is what existing home buyers are purchasing as opposed to new homes (where the builders can’t compete with distressed asset prices). Because of this, there is simply more demand from buyers and renters for this product, while the product on the low end continues to decline being purchased by investors only.
This weekend, I’ll be discussing key fundamentals of this asset class at the Summer Wealth Summit in the San Francisco Bay area. Despite the real estate market struggling, opportunities do exist in the post-crisis economy.
- Ryan Hinricher, Housing Analyst
