Usually, and that how it was historically, the high supply of houses could slow down the seller's market. When there are more houses available for sale, it can increase competition among sellers, leading to potential price reductions as buyers have more options to choose from.
However, various factors can influence the real estate market, such as economic conditions, interest rates, and buyer demand, so it really impossible to state that this formula will always work.
The best way it to consult with a real estate professional in your specific area (because the situation differs per state, per county and often is even per specific sort basis) for a more accurate assessment based on the current market conditions and how potential future scenarios will impact your specific area.
I strongly recommend to work with the following 5 types of professionals to ensure that you have successful 1031 exchange:
1. Qualified Intermediary (QI): A QI is a third-party facilitator who assists in managing the process and ensures compliance with IRS regulations.
2. Real Estate Agent/Broker: An experienced real estate agent or broker can help you identify suitable replacement properties and negotiate purchase agreements.
3. Tax Advisor/CPA: A tax advisor or certified public accountant can provide guidance on the tax implications of a 1031 exchange and help you navigate the complex rules.
4. Real Estate Attorney: A real estate attorney can review contracts, ensure legal compliance, and provide overall guidance throughout the exchange process.
5. Financial Advisor: If you're considering reinvesting your exchange proceeds, a financial advisor can help you make informed investment decisions based on your financial goals and risk tolerance.
Feel free to reach out to me if you have more questions in this, I’m here and always happy to help.
