MARKET UPDATE - DECEMBER 2022As volatile interest rates and inflation continues to affect housing affordability, buyers and sellers are becoming creative in their efforts to buy and sell real estate.

Yeah, we’re entering into a softer RE market for sure - in some markets especially, but I run an agency that does real estate PPC and SEO in a few dozen markets, and we haven’t seen huge declines in lead volume across the board although certain markets seem to be more volatile than others.

Also when you put your money in an index stock, you can get high volatility (like -30% some years).

To add to this, publicly traded REITs can be fairly volatile, and there's nothing that investors can do to add value to their investment.

You need to make sure you have a healthy margin for volatility in the market and also potential for increased holding costs if you are using short term leverage.

I think the only "safe" bet is gold, even with how volatile it has been over the last couple weeks as people panic.

So I am curious if a lot of mom and pop investors have moved away from notes due to lack of inventorySide note: I would be very weery if land notes in the coming year as we see housing soften land typically has highest delinquency because of its illiquidity and volatile pricing compared to other forms of real estate

As of this writing, the S&P 500 was down a little over 17% year to date, and in the same period, my passive investments have been kicking off 5-7% monthly distributions, one of my passive investments went full cycle in just 14 months producing 80% returns, and I sold my long-term rentals that produced about 20% returns annualized over the past 2-3 years.Bottom line: I’m very glad that I invested heavily over the past 10+ years in the real estate space, and I believe that everyone should have at least a portion of their net worth in the hard, physical assets like real estate.I’m not suggesting that everyone should have over 50% of their net worth tied up in real estate investments like my wife and I, but real estate investments can and should part of your diversification strategy to make sure 100% of your investments are not subject to the volatility of the stock market.I’ve recently started tracking my investment allocations across the following categories: stock market in retirement accounts, personal residence real estate, passive real estate investments, cash and autos (anything with an engine – Yes, that’s a Dave Ramsey’ism).

Why settle for 10% returns in a volatile stock market when I can make 15-20% all day long with real estate along with a LOT less risk inside of my Self Directed Accounts?

@Kyle BuckWe are mainly multifamily investors and I do feel that the more units you have, the less volatility you will experience.