Real Estate Market Update: Housing Market Shakeup & Your CRITICAL Action Plan

The market has changed. The days of dirt-cheap money, sky-high prices, and buyers scrambling to grab whatever they could find are behind us. But don’t pack it in just yet! 

The housing market shakeup that’s happening right now is an opportunity if you know how to play your cards right. And with the right moves, you can still make solid gains in real estate in 2024 and even beyond. 

If you’re like a lot of people, you might be feeling a bit of whiplash trying to keep up with all the changes. But don’t worry—I’ve got your back! In this real estate market update, we’ll break down what’s happening, what it means for you, and, most importantly, what you should do next.

What’s Happening in the Real Estate Market?

First off, let's talk about the elephant in the room - the Fed's recent moves. They just dropped rates by a half point, from 5.5% to 5%. Now, you might be thinking, "Matt, that doesn't sound like much." But trust me, in the world of finance, that's like going from a whisper to a shout.

So, what does this mean for you and me? Well, it's time for a little guide to real estate investing 101. This rate cut is like the Fed waving a big ol' flag saying, "Hey, we think inflation's under control, and we're worried about a recession." It's their way of trying to keep the economy chugging along without overheating.

Now, let's break down some numbers. The median home price has jumped a whopping 46% over the last 5 years. That's not chump change, folks. We're seeing a 3.1% year-over-year increase. But here's where it gets interesting - there's been a slight dip in prices from July to August.

Some doom-and-gloomers out there are crying "market collapse!" but let's not get ahead of ourselves. This kind of seasonal dip? We've seen it before in 2021, 2022, and 2023. It's like clockwork.

Now, let's talk inflation because it's cooler than the other side of the pillow right now. Consumer prices only rose by 2% in August, the lowest we've seen since February 2021. The 12-month inflation rate? A modest 2.5%. 

Energy prices are down 4%, used cars and trucks have taken a 10% nosedive, and even new vehicles are 1.2% cheaper. Oil? Down 12.1% over a year. It's like prices are doing the limbo - how low can they go?

Your Critical Action Plan for Today’s Real Estate Market

Alright, now that we know what’s going on, let’s talk about how you can capitalize on the trends in real estate 2024 and set yourself up for success. Here are my top tips for real estate investors in today’s market.

• Refinancing:Time to play the Fed's game wih rates dropping. If you've been on the fence about refinancing, it's time to jump off and make a move. Lower rates could mean extra cash in your pocket every month. And hey, maybe you can use that cash to snag another property before the market gets its inevitable boost.

• Selling? Maybe Dip Your Toe In: If you've been thinking about selling, now might be the time to test the waters. With rates dropping, buyers might suddenly find your property irresistible. But keep your eyes peeled - if prices start climbing faster than expected, it could be a sign of that undercover bailout at work. You might want to ride that wave a bit longer.

• Go Big or Go Home: If you do sell, consider leveling up. Trade those single-family homes for nicer ones, better-performing ones, or ones with more upside potential. Remember, if you're taking cash out of your properties, make sure you've got a plan for that money to work harder for you than it is right now.

• Fix and Flips: Lower rates could make fix and flips hot again. Historically speaking, this is the perfect time to start planning flips. Whether you're doing it yourself or wholesaling to other flippers, if this stealth bailout plays out, property values are going to jump. This could be the beginning of a very profitable wave.

• Think Outside the Box: With the housing market still a bit frosty, don't abandon your creative side. Seller financing and subject-to acquisitions could be your secret weapons. Each Fed decision opens up new opportunities, so stay flexible and ready to pounce.

Trends in Real Estate 2024: What’s Next?

We're not expecting the sky to fall tomorrow, and I'm not talking about 2025 hyperinflation or anything wild like that. But here's the thing - they're turning the money printer back on and cutting rates. That spells inflation. 

• Are they making things worse? You bet they are. The real question is how much worse and how fast. We're in for a wild ride, whether you're looking to refinance, buy, or just trying to make sense of this circus.

• Owners of essential businesses and real estate typically come out on top when everything bursts. They might experience the same little speed bump that everybody else does, but in the end, they're the ones still standing.

• So, what is the outlook for real estate funds? It's a mixed bag. With all this economic shuffling, real estate funds could see some interesting times ahead. Some might struggle with the market's ups and downs, while others could capitalize on the new opportunities these rate cuts bring.

Housing market predictions are all over the place, but here's my take: we're likely to see a period of adjustment. Buyers might face the choice of buying at higher rates with less competition now or waiting for lower rates but potentially facing more competition later.

Now, if you're wondering about the best places to invest in real estate, that's going to depend on how these market shifts play out in different regions. Keep an eye on areas with strong job markets and growing populations - they tend to weather economic storms better.

Your Action Plan

Alright, so what's your game plan in all this? Here's a quick guide to real estate investing in these choppy waters:

1. Stay informed: Keep your finger on the pulse of these housing market trends. Knowledge is power.

2. Be ready to move: Opportunities in this market might come and go real fast. Be prepared to act when you spot a good deal.

3. Diversify: Don't put all your eggs in one basket. Mix up your real estate portfolio to spread out risk.

4. Network: Connect with other investors, real estate agents, and market experts. Sometimes, the best deals come through word of mouth.

5. Keep learning: The market's changing, so your strategies should too. Be willing to unlearn what you think you know and learn what you don't know that you don't know.

Is Real Estate a Good Investment in 2024?

I'm not one to make blanket statements, but I will say this - real estate has historically been a solid long-term investment. Yes, this real estate market update shows us that the game is changing, and you want to be ahead of the curve But even with the fluctuations, property values tend to appreciate over time. 

Plus, with these rate cuts, we might see a surge in buyer activity, which could drive prices up.

Remember, real estate investing isn't just about buying and hoping for appreciation. It's about smart strategies and knowing your market. That's why I always recommend getting some expert eyes on your strategy before making any big moves.

And hey, if you want to dive deeper into this, check out my Escape Book. It's packed with strategies to help you break free from financial constraints and start building real wealth, even if you're new to real estate.

And if you're ready to take your investing to the next level, consider joining us at Epic Apprentice. We're getting a small group of aspiring investors together this month to take advantage of this market timing. We'll kick off your marketing, help you field leads, take calls, and even get you some funding to launch your business.