Sell now or hold steady? 🤔

Hi there - TGI.. ffff… never mind, it’s Monday! Grab your coffee, and let's dive into the day's top stories:

•  Sell or Hold? - Deciphering the best time to sell your house in the current market.

• Blackstone Bounces Back: The real estate giant predicts a market rebound with real estate values bottoming out.

• REITs on a Roll: Real estate investment trusts rake in 13.5% more capital in 2023, showing market resilience.

• 🔥 Deal of the Day! 🔥: 9 bd | 11 ba | Racine, WI

To sell or not to sell: that is the question

First off, let's talk timing. Traditionally, late spring to early summer has been the hot ticket for sellers. Why? It's when buyers are out in force, looking to close the deal before the new school year. But, as with all good things, there are caveats.

Now, let's talk mortgage rates. They're like a rollercoaster that's been only going up lately. We're talking about rates hitting their 20-year peak. Bankrate tells us the average 30-year fixed mortgage rate was hovering around 6.93% as of late January. High rates mean higher monthly payments, which can scare off some buyers. But here's the twist: inventory is still as scarce as a unicorn in most markets. This scarcity keeps sellers in the driver's seat.

Home prices? They're sky-high. The median sale price nationally was $382,600 in December 2023, up 4.4% year-over-year. Good news if you're selling, but remember, you need buyers who can afford these prices, especially with high interest rates.

2023 saw a bit of a slowdown in price hikes, the slowest in over a decade, per ATTOM Data Solutions. This brings us to the million-dollar question: to sell or not to sell? According to Fannie Mae's Home Purchase Sentiment Index, 57% think it's a good time to sell. But remember, real estate is local. What works in Palm Beach might not fly in Seattle.

Now, when to sell? Beyond the spring-summer window, consider these factors:

1. Low rates? Not currently, but they draw buyers.

2. Short supply? Definitely a plus for sellers.

3. Downsizing? Could be a smart move financially and physically.

4. Relocating? Selling might be your best bet.

But what about waiting? Here's when you might hit the pause button:

1. Rising rates shrinking your buyer pool.

2. Recent refinancing? Check those numbers.

3. Upsizing? Make sure it's financially feasible.

4. Home needs TLC? Fix it up first.

5. No plan post-sale? Better to have a strategy.

Recession on the horizon? Some experts peg it at a 45% chance by end of 2024. Selling before a recession could be smarter, as a tighter market follows economic downturns.

Ready to sell? Here are some quick tips:

• Find a stellar local agent.

• Make necessary repairs.

• Declutter and possibly stage your home.

• Boost that curb appeal.

In a hurry? iBuyers and cash homebuying companies are options, but beware, they usually pay less than market value.

So, there you have it. Selling your house is a big decision. Weigh your personal and financial situation against the market dynamics. And when in doubt, a knowledgeable realtor can be your best ally in navigating these waters. Happy selling (or waiting)! (source)

Blackstone sees the light at the end of the tunnel

Blackstone, the heavyweight champion of commercial property ownership. They're calling it: real estate values are hitting rock bottom. But hold your horses; this isn't doom and gloom. It's actually a sign of a potential upswing. With inflation taking a chill pill and the Federal Reserve likely to cut rates this year, things are looking up.

For the past couple of years, Blackstone's real estate segment, which is usually their star player, has been underperforming. We're talking about a segment decline of 3.8% in their riskier investments and 4.6% in the more stable ones. But there's a silver lining here. Jonathan Gray, Blackstone's big kahuna (President and COO), believes we're on the cusp of better days. He's talking about a market rebound and increasing deal activity. And with about $200 billion in reserve, Blackstone is ready to play ball.

However, Gray's not putting on rose-colored glasses just yet. He acknowledges that the road to recovery might have a few speed bumps, especially in sectors like office space. But this uncertainty, he argues, is where the golden opportunities lie. It's like finding a diamond in the rough, and Blackstone is all about that treasure hunt.

In Q4 alone, Blackstone went on a shopping spree, spending $31 billion on major deals, including a $3.5 billion venture into the world of single-family rentals. They're also dabbling in data centers and snagging a slice of a $17 billion mortgage portfolio. Talk about diversifying!

But it's not just about buying up properties. Gray's keeping an eye on the long game. Even in sectors like life science and multifamily, where rent growth has slowed, he sees a positive future. It's all about playing the waiting game and letting the new supply settle in.

Now, here's something interesting. As banks tighten their belts on real estate lending, Blackstone sees an opening. They're like, "Hey, it's a great time to be a mortgage lender," and their credit business's positive returns back that up.

And for those of you watching Blackstone's Real Estate Income Trust, there's hope on the horizon. They're thinking of lifting the cap on shareholder redemptions this quarter, which is a big thumbs up for the trust's outlook.

Blackstone's overall vibe is cautiously optimistic. They're seeing signs of an economic "soft landing" and believe the best investments are made when the market's a bit shaky. So, for all you real estate buffs and investors out there, keep your eyes peeled and your strategies nimble. The market's evolving, and opportunities are brewing! (source)

REITs breaking records: more cash, more opportunities

In 2023, REITs flexed their financial muscles big time, pulling in a whopping 13.5% more capital than the previous year. That's right, they raked in a hefty $58.27 billion, compared to $51.36 billion in 2022. Now, if that doesn't scream confidence in the real estate sector, I don't know what does!

Here's where it gets even more interesting. The bulk of this capital came from debt offerings, which amounted to a cool $44.87 billion. That's a significant leap from the $27.94 billion raised in 2022. However, equity offerings, while still significant, took a bit of a backseat, contributing $12.66 billion, down from $22.47 billion a year earlier.

But it's not all about piling up the cash. The real story here is the confidence these numbers represent. Despite the rollercoaster ride of the real estate market in recent years, these figures show a robust and thriving sector, ready to take on the challenges and opportunities of the future.

In a nutshell, REITs are not just surviving; they're thriving. They're adapting, evolving, and showing that in the world of real estate, resilience and innovation are key. So, for all you investors and real estate enthusiasts out there, keep your eyes on these REITs. They're not just moving properties; they're moving mountains! (source)

🔥 Deal of the Day! 🔥

Address: 1121 Lake AVENUE, Racine, WI 53403

Monster home. The property at 1121 Lake Ave, Racine, WI, with its exquisite panoramic views of Lake Michigan, historic charm blended with modern amenities, and versatile spaces including seven private suites and ample outdoor areas, presents a unique and luxurious vacation rental opportunity.

Airdna data:

Estimated monthly payment: $10,397/month

Estimated monthly revenue: $11,316/month

Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.

Don't forget, the real estate market waits for no one. Keep your investment strategy sharp and informed with our daily insights. Remember, in the world of real estate, being well-informed is key to unlocking success. Catch you tomorrow with more market wisdom!