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Market Insights: The Road Ahead During Market Volatility

Our team has had an incredible few months filled with conferences and getting the pulse of the industry’s thoughts and concerns about the market volatility and its impacts. All data indicates that the housing shortage will remain – if not be exacerbated – as the market continues to change. Rising interest rates will not curb the nation’s housing shortage of 4-5 million units. Now is the time to ramp up fix-and-flip activity…as the pace of home purchases slows, investors now have greater opportunity to source more product for rehab projects.

Here are key insights we suggest for the road ahead:

Where is the fix-and-flip market going?
The Federal Reserve’s recent major rate hikes that are driving market cooling will lead to more opportunity for investors to source distressed properties, as the pool of owner-occupied buyers decreases significantly.

How can we support clients as the market changes?
As we reach the end of a historic seller’s market, we’re entering a buyer’s market cycle. This is the prime opportunity to refocus on the fundamentals and strengthen relationships with our clients. More than ever, Archwest can guide our clients through the process – from helping evaluate fix-and-flip lending options, to considering which markets and properties are still prime options to flip, and re-evaluating a project exit.

What markets will be most impacted by these shifts?
As a lender who operates nationwide, we get a close-range view into a wide variety of markets. This is a standard part of the real estate cycle, but it will touch every region across the nation, even the top-performing markets who may not be feeling the impacts yet. We can’t underscore enough the importance of preparing, adjusting, and speaking with your financial partner to prosper through this cycle.

The recent market volatility is not slowing down our lending strategy at Archwest Capital. Our leadership has two decades of proven results navigating through all market cycles, and we’re here to help investors do the same.

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