Home Prices will Level Off
Those interviewed for the article vary in 2023 housing pricing movement from a slight decline of 4% to staying level for the year. The lack of a large, predicted decrease is favorable for the fund as fix and flip borrowers can have greater confidence in achieving their planned sale price upon rehab completion.
Inventory will Remain Tight
Experts project an increase in housing inventory in 2023 as rates eventually lower, however even with that increase, inventory will remain historically low. This provides opportunity for fix and flip borrowers to continue selling within a shorter than typical timeframe if priced correctly.
Overall, with experts predicting the 2023 housing market to remain fairly level with lower mortgage rates, fix and flip investors will have opportunities to successfully execute without worry of a major crash. This market comfort and stability should lead to further demand for short term lending, like that provided by the ZINC Income Fund, to take advantage of the market conditions.