2022 Market Report
As good stewards of our industry, Temple View Capital, LP (“Temple View”) collected feedback and data from industry experts over the past year and expectations headed into 2023. Temple View hopes this report helps real estate investors know what to expect going into the 2023 housing market and how to accomplish their goals. As always, the key to successful real estate investing is relying on trustworthy data, using the best tools, and having a reliable lender by your side. Here’s an overview of what we learned from the feedback we obtained in our survey.
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In 2022, interest rates more than doubled over the course of the year while housing prices only continued to climb. However, real estate investment continued to prove itself a great investment. Due to house prices tending to rise over the long term - investors were still making money. With higher interest rates, Temple View was interested in looking at the correlation between average marketing times. In the data collected, we saw that most of our clients saw that their marketing time was less than 3 months. Surprisingly, with interest rates as high as they were, there was no significant correlation with average marketing times.
Housing experts expect 2023 to bring many profitable opportunities to real estate investors. The biggest opportunity for investors will be that rental rates will continue their upward path. Since the beginning of 2022, rental rates have gone up by 6.8%. This is good news for investors – increased rental demand and high rental rates are a great combination for maximizing return. However, the US housing market does predict that the market should cool down, without heading for a recession or a crash. The anticipated switch towards a buyer’s market with more inventory and home prices growing more slowly will open new opportunities for investors. As always, the key to success in real estate investing is finding the right location, selecting a profitable property, relying on trustworthy data, and using the best tools.
With the above information in mind, we asked our clients if, based on current market conditions has their previous strategy changed? It was surprising that multiple people stated that their strategies have not changed. This leads us to believe that we have clients that have been through similar market conditions before, and they’ve prepared themselves to weather the storm of the market. Our clients believe they will see less competition in buying into real estate investment properties and take advantage of housing prices decreasing.
As we adjust to changes in the markets, we will continue to modify our programs accordingly to ensure the long-term sustainability of our clients’ projects and portfolios. Customer focus is a core value of Temple View and our borrowers’ needs are top of mind when developing creative and effective real estate investment funding strategies. We have designed our process to be fast, reliable, and flexible because we know these are the process features that our borrowers need.
Our team has decades of combined experience in the investment space to stay at the forefront of innovative product development and empower real estate investors, correspondent lenders, and brokers nationwide to optimize financing efficiency on projects and rental properties of all shapes and sizes. If you’re interested in connecting with a private lender to discuss investment opportunities, contact us today.