Warren Buffett said:“When everyone else is greedy, be afraid. When everyone else is afraid, be greedy.”
I can tell you that in Austin, the fear is diminishing and greed is rising. Which means our window of opportunity is closing. Our ace-in-the-hole is that our interest rates are tied to national conditions which are lagging our Austin recovery.
But when the rest of the nation catches up and interest rates begin to rise, these amazing cash flow opportunities will start to dry up as monthly payments increase and rents stabilize. Opportunities will always exist, but returns are already being squeezed.
Some quick data: 6 months of inventory in any real estate market is considered equilibrium. If you have more than 6 months, it’s a buyer’s market and less than 6 months, it’s a sellers market.
As of today, there are 2438 single family homes for sale in Austin. Last month 777 sold. That’s 3.2 months of inventory. That is one strong seller’s market. The deals are definitely getting harder to find. On the positive side, the resale/flip opportunities have never been better.
Don’t wait until everyone you know thinks buying investment property is a great idea. As Warren Buffett said…..”be afraid when everyone is greedy”