{"id":6546,"date":"2022-11-05T14:44:13","date_gmt":"2022-11-05T18:44:13","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=6546"},"modified":"2022-12-13T10:14:59","modified_gmt":"2022-12-13T15:14:59","slug":"outperforming-the-housing-market","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2022\/11\/05\/outperforming-the-housing-market\/","title":{"rendered":"Outperforming the housing market"},"content":{"rendered":"\n

In 2011 I wrote an article <\/a>exploring the question of outperforming the housing market by attempting to time real estate transactions. The question was then aimed at home buyers and sellers. New research published in the Journal of Real Estate Research reveals more interesting data as it relates to real estate investors.<\/p>\n\n\n\n

\"outperforming
markets are cyclical<\/figcaption><\/figure><\/div>\n\n\n\n

In my 2011 analysis of research and data, I discussed why\nattempting to \u201ctime the market\u201d as an owner occupant wasn\u2019t very favorable. It\nappeared as if attempting to time a purchase or sale didn\u2019t yield the desired\nresult. The conclusion was that long term home ownership was probably better\nthan speculating on buying and selling homes on the exact bottom or top of the\nhousing market. <\/p>\n\n\n\n

Likewise, home sellers waiting for the housing market to rebound before making a move probably missed an opportunity as well. So, who is outperforming the housing market?<\/p>\n\n\n\n

A recent article published by Wong, Deng, and Chau in the Journal of Real Estate Research (Do Short-Term Real Estate Investors Outperform the Market?;<\/em> 2022, Vol. 44 Issue 2, p287-309) reveals an interesting conclusion. <\/p>\n\n\n\n

The study attempted to further look into the incentives of short-term real estate investors, specifically how various market conditions affect short-term real estate investor performance. The study analyzed real estate transaction data from Hong Kong and found that three economic conditions were favorable to the investor\u2019s performance that seem to mimic the current low-inventory market we are experiencing here. The three items that help the investor performance are: 1) having few sale comparables; 2) having sale prices of the comparables dispersed; and 3) market prices go down. The study\u2019s conclusion is that buying and reselling withing three months generates a gross return that is 6 percent above market appreciation. The authors caution that their study is limited such that there are multiple investor strategies that need to be studied as to the effects on short-term real estate investor performance. They describe short-term real estate investors as engaging in arbitrage, which by definition is basically \u201chome flipping.\u201d <\/p>\n\n\n\n

By Dan Krell
Copyright \u00a9 2022 <\/p>\n\n\n\n

\"Protected<\/a><\/figure>\n\n\n\n

Disclaimer<\/a>.\n This article is not intended to provide nor should it be relied upon \nfor legal and financial advice. Readers should not rely solely on the \ninformation contained herein, as it does not purport to be comprehensive\n or render specific advice. Readers should consult with an attorney \nregarding local real estate laws and customs as they vary by state and \njurisdiction. Using this article without permission is a violation of \ncopyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

In 2011 I wrote an article exploring the question of outperforming the housing market by attempting to time real estate transactions. The question was then aimed at home buyers and sellers. New research published in the Journal of Real Estate Research reveals more interesting data as it relates to real estate investors. In my 2011 … <\/p>\n

Continue reading “Outperforming the housing market”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[288,13,1192,26],"tags":[466,445,797,1193,593],"class_list":["post-6546","post","type-post","status-publish","format-standard","hentry","category-housing-market","category-real-estate","category-real-estate-investor","category-real-estate-market","tag-housing-market-2","tag-housing-market-trends","tag-real-estate","tag-real-estate-investor","tag-real-estate-market-2"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-1HA","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=6546"}],"version-history":[{"count":4,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6546\/revisions"}],"predecessor-version":[{"id":6594,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6546\/revisions\/6594"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=6546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=6546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=6546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}