Short-term rental (STR) properties like Airbnbs have two key sources of value: the property value itself and the business value created by operating it successfully. Understanding how these are assessed is crucial for STR owners looking to sell or refinance. Here’s a clear breakdown of how STR properties are valued under traditional appraisals and DSCR loans, compared to … [Read more...] about How to Value a Short-Term Rental Property: DSCR Loans, Commercial Appraisals, and Business Value
Macro Market Minute: September’s Top 10 Price Cut Hotspots | Inventory Trends
In September 2024, several major U.S. metropolitan areas showed significant increases in the percentage of home listings with price reductions, often accompanied by notable inventory growth:Source Realtor.com These trends reveal a cooling in key housing markets, with sellers adjusting prices and inventory levels to attract buyers, creating potential opportunities for real … [Read more...] about Macro Market Minute: September’s Top 10 Price Cut Hotspots | Inventory Trends
Navigating Today’s Real Estate Market: Using Inventory, DOM, and Absorption Rates to Make Smarter Investments
The real estate landscape is marked by unique challenges: rising interest rates, economic uncertainty, and fluctuating property values across many regions. For investors and buyers alike, the ability to interpret real estate metrics—particularly sale inventory trends, days on market (DOM), and absorption rates—can provide a critical edge in a shifting market. Understanding and … [Read more...] about Navigating Today’s Real Estate Market: Using Inventory, DOM, and Absorption Rates to Make Smarter Investments
Absorption Rate: The Key Metric for Making Smarter Real Estate Investment Decisions
For real estate investors, whether focused on long-term rentals, short-term rentals (STR), or looking to strategically time your next buy or sell, understanding market trends is essential. One of the most valuable metrics for gauging these trends is the absorption rate. This powerful tool reveals how quickly properties are moving in a market, helping you make informed, … [Read more...] about Absorption Rate: The Key Metric for Making Smarter Real Estate Investment Decisions
Home Price-to-Income Ratio Bubble Is About to Pop – Are You Ready?
We don’t have a real estate bubble, we have a home price-to-wage growth bubble. The chart highlighting the home price-to-income ratios in major U.S. cities reveals just how drastically home prices have outpaced wage growth. This disconnect has created a significant affordability gap, making it harder for average earners to buy homes. For real estate investors, this … [Read more...] about Home Price-to-Income Ratio Bubble Is About to Pop – Are You Ready?