We are nearing an inflection point in a pretty important market.
While there aren’t necessarily hordes of economists sounding the alarm and saying, “We’re in for another 2008,” there could be some similarities.
Undeniably, “a perfect storm is brewing in the real estate market due to near decade high construction levels and plummeting demand,” Interactive Brokers senior economist José Torres recently told Business Insider.
So, it stands to reason that now isn’t the best time to invest in real estate, right?
Well, yes and no.
Granted, if you’re looking to start flipping real estate investments, it could be slow moving. Even though the median price of homes hit $440,300 in the second quarter, that doesn’t address the drop in purchases. Home sales were down 14% in June year-over-year.
That said, there’s no denying that investments in the real estate industry are historically thought of as less influenced by macroeconomic downturns.
So, even if you were to start gobbling up properties, there’s a decent bet that some number of years down the road, those investments would pay off.
However, there are other ways to get a stake of the real estate industry without being subjected to the whims of these fluctuations in the short term.
We’re talking about startups in the real estate industry.
The right real estate startup investment opens the door to the profitability of the real estate industry without worrying about the price of homes or broader economic activity.
Don’t get us wrong, these companies need to be on their game and prepared to operate in this leaner economic climate. But, by bringing the right ideas and changes to the industry, startups can cement themselves as fixtures moving forward.
And we’ve got a particularly exciting startup in this industry to share with you later this month.
In a market that’s been slow to adopt technology, solutions that make the process more streamlined and convenient are capable of serious disruption.
We saw firsthand the influence that Airbnb exerted on the industry.
Well, the startup we’ll share later this month is taking things one step further with its proprietary tech.
We’ll reveal more details over the coming weeks. Stay tuned.