Weekly Real Estate News
Source: Scotsman Guide —
The COVID-19 pandemic has altered many aspects of life. A multitude of work-from-home jobs emerged when offices closed down. As these positions appear to be sticking around, some people are growing unsatisfied with their home and work environments. As a result, fix-and-flip investors (who purchase properties with the goal of quickly upgrading and reselling them for a profit) should adapt their remodeling strategies to fit these new lifestyle trends.
Keeping up to date on popular home-renovation trends is not only useful for owner-occupants who are looking to update their home offices or kitchens — it’s also essential for short-term investor success. It’s safe to say that U.S. home prices will continue to appreciate in 2022, with conservative year-over-year growth estimates in the 5% to 10% range, even as rising interest rates are likely to calm the buyer frenzy. Some sources forecast that more inventory will slowly enter the market, which may mean more prospective fix-and-flip projects available to borrowers.
There is no guarantee of a fix-and-flip surge, but mortgage originators should be aware of these market forecasts. Clients who are looking to be first-time investors may have an opportunity to buy a property through a traditional sales transaction rather than at a foreclosure auction, where professional fix-and-flippers have an advantage. This is beneficial for the originator and presents a new revenue opportunity as traditional refinances dry up due to rising rates.
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