But isn't it a bad time to start investing in real estate?

[Andrew Benton]

I have been a construction lender for years and now I am considering doing a new spec SFR myself. It is a 3/2, 1,500 SF starter home in DFW. Assuming I can get a well priced infill lot, it's a pretty straightforward process and if I do my due diligence there won't be too many surprises. The risk I am most worried about is market timing.

It seems like we are in the 9th inning here with interest rates doubling in a year, home affordability issues looming and yet building and land costs remain elevated.   Does it make sense to get started in June, 2023?  Love to hear where you see opportunity right now (doesn't have to be new builds) and why you think the timing is right.

Thank you!

[Theresa Harris]

What are you planning to do with the home?  Sell it, rent it?  If you are building to sell, that is always a risk as you don't know what the prices will be like a year from now.  IF you are building it to rent out, not that much of a risk.  You can control when you sell it and if the market goes down, hold on to it for a while until prices go back up.