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Hi there, ,

I so much admire Albert Einstein, not for just his genius, but for his way of looking at life. There is a story out of Princeton University at the "Institute for Advanced Study," which he stayed loyal to until his death in 1955. It seems Einstein and an assistant, having completed an important paper, search the office for a paper clip. They finally found one. But it was so severely bent it could not be used. They search around for some implement to try to reshape it back into a usable paper clip. After opening many more drawers, an entire box of paper clips were discovered. Einstein took one of the new paper clips out of the box and shaped it into a tool he could use. His assistant, puzzled, asked why he was doing this when there was an entire box of useable paper clips. "Once I am set on a goal, it becomes difficult to deflect me," replied Einstein.

After a short illness, Albert Einstein died on April 18, 1955, at 76. He held both American and Swiss citizenship.

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Just as Einstein showed great fortitude on completing a simple task, we investors must show our strong-mindedness to pursue our investment goals. It is especially tricky in the year of the Coronavirus because of its effect on investment inventory and reluctance to travel and to meet other people – the formula required for all investors. With every economic reversal comes opportunity. You must be patient, remain optimistic, and vigilant for that one good deal. It is out there; you just must stay alert. And like Einstein, once you set that goal, make it difficult for you to deflect from it.

Here are two opposite pieces of news for you to consider. The first describes the inventory shortage in the residential housing market. The second list the hottest markets in the country in 2020 for rental investment properties. The point being there is always an opportunity, you just have to find it. As they say, "if it were easy, everyone would be doing it." Another way to look at it as because of market shortages, you will find far less competition.

Shortage of Inventory

Record-low mortgage rates and shortage of inventory has kept the US housing market strong with respect to buyer demand. But, significant uncertainty remains for the housing market going into the fall, as the economy faces a long and bumpy recovery in the upcoming months. Nonetheless, real estate is still a hot seller's market and improved selling prospects are a good sign and will need to remain on that path to bring more homes into the market.

With unusually high buyer interest this late in the homebuying season, buyers are moving much faster than this time last year to beat out competition and lock in low mortgage rates. The national median listing price on Realtor.com was $350,000, up 10.1 percent year-over-year while prices rose 8.9 percent in larger markets. While rising prices are making sellers rejoice and list more & more homes, the buyers are worried as home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.

The new listings are quickly taken out of the market from heavy buyer competition. Therefore, housing units are still in short supply with unsold inventory sitting at a 3.1-month supply at the current sales pace, down from 3.9 months in June and down from the 4.2-month figure recorded in July 2019. This figure is a sign of a strong seller's real estate market. The national inventory has declined by 36.4 percent year-over-year, and inventory in large real estate markets has decreased by 38.1 percent in August.

Significant uncertainty remains for the housing market going into the fall, as the economy faces a long and bumpy recovery in the upcoming months. Nonetheless, real estate is still a hot seller's market and improved selling prospects are a good sign and will need to remain on that path to bring more homes into the market.

Do not be discouraged by the news, as there are still great investment opportunities available in the market, though not as many of them. This means you must search more rigorously and when you found the right investment you will be rewarded with a historically low mortgage rate.


The Top Hottest Rental Property Market for Investors in 2020

· Fayetteville-Springdale-Rogers, AR-MO Metro Area

· Colorado Springs, CO Metro Area

· Olympia-Tumwater, WA Metro Area

· Crestview-Fort Walton Beach-Destin, FL Metro Area

· Raleigh, NC Metro Area

· Stockton-Lodi, CA Metro Area

· Charlotte-Concord-Gastonia, NC-SC Metro Area

· Provo-Orem, UT Metro Area

· Greeley, CO Metro Area

Though these market areas are listed as the most active areas for rental property investors. It simply means that there is more inventory available. However, no matter what market you are in there are always opportunities for good deals if you are vigilant and patient. In my book 90 Days to Your First Real Estate Investment Purchase, I list a number of methods of finding opportunities in a tight market.

It would iterseting to hear from your about your experience in seraching for investment properties. We can all learn from it.

I look forward to seeing you next week with so more investment information you can use. AND I am always open to your suggestions on what topics you might want covered. Let me know. Just emal me at: robert@robertgilljr.com

Robert Gill, Jr.
Robert Gill, Jr.
robertgilljr.com

18 Bank Street Suite 1, Summit
NJ 07901 United States

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