Thread by @nelsonepega

1/15 *Thread*🧵US Housing Market 2023: An investors outlook🏠

Key trend: Low supply, strong demand. Let's explore why investing in this market cycle could yield strong returns.
#USHousingMarket #RealEstateInvesting #EconomicTrends

https://twitter.com/nelsonepega/status/1664844026544115714

2/15
US added 339,000 jobs in May '23, surpassing predictions of 190,000. Unemployment rate is at a near 50-year low despite being up to 3.7%, above the 3.5% forecast. A robust labor market is fundamental to a thriving housing market.
#JobsReport #Unemployment

3/15 Interest rates are rising fast, yet the labor market is holding strong. The strong labor market translates into steady demand for housing, maintaining a positive outlook for property investors.
#InterestRates #LaborMarket

4/15 Through Q1 '23, U.S. home prices are up 0.96%. Even with softer market conditions predicted for H2, there's significant room for prices to slide before a negative year occurs.
#HomePrices #InvestmentInsights

5/15 Why the optimism? "Unregistered gains" - increases in home prices this spring yet to be reported. These could potentially offset any downward movement later in the year.
#RealEstateGrowth #MarketForecasts

6/15 Regional swings show us some interesting trends: Detroit, NYC, and San Diego lead with significant growth from Feb. to Mar. '23. Market dynamics vary widely, emphasizing the importance of location in real estate investment.
#RegionalRealEstate

7/15 Nationally, seasonally adjusted, U.S. home prices are down 2.3% from the 2022 peak. Despite this, the resilience shown in the face of rapid interest rate hikes bodes well for future stability and growth.
#RealEstateTrends

8/15 With student loan payments potentially returning, discretionary spending may be impacted. This could affect short-term rental markets (e.g., Airbnbs), presenting potential investment opportunities.
#Airbnb #InvestmentOpportunity

9/15 At present, 90% of Americans hold a mortgage rate below 5%. The prospect of a 7% rate for a new house discourages many from selling, reducing supply in the resale housing market, & consequently pushing prices up.
#MortgageRates

10/15 New homes now constitute 35% of sales, up from the historical norm of 15%. This shift in market dynamics, combined with the lowest active listing counts in recent history, further tightens the supply side.
#HousingInventory #NewHomes

11/15 Despite a housing crunch, the construction of new homes has been lagging behind demand. April saw only 70,000 new units, far from bridging the shortfall of 6.5M single-family homes.
#HousingCrunch #Construction

12/15 Low inventory has lifted the median sales price for new homes to $420,800 in April '23, according to Fed data. With supply chain issues limiting new construction, prices are likely to continue this upward trajectory.
#HomePrices #FedData

13/15 Why are prices still climbing? Zillow expects a 4.8% rise in US home prices between Apr '23 and Apr '24. A tight supply and strong demographics are key drivers behind this growth.
#Zillow #HomePriceForecast

14/15 Affordability remains a challenge. Median mortgage payments exceed rents significantly in many cities. Still, this creates opportunities for landlords and rental property investors.
#Affordability #RentalMarket

15/15 Wrap up: Despite rising interest rates, the US housing market is buoyed by strong labor market and constrained supply. This presents a promising outlook for investors looking twitter.com/i/spaces/1MYxN…

For accredited investors looking to take advantage of the housing market in this current cycle with a diversified, real estate backed fund.

Visit themillionmarathonfund.com/fund2023 and schedule a call with our team to take a deep dive into our investment strategy