By: Evan Freeman
If you’re looking to buy a home, the current housing market presents a unique and perplexing landscape, defying the clear-cut trends of past decades. According to Jose Berlanga, co-owner of Tricon Homes and author of The Business of Home Building, these times are particularly unique. While the situation is indeed complex, there are also significant opportunities available. Berlanga offers three essential tips for new home buyers during our recent conversation:
What is your take on the current housing market?
After being in this industry for nearly 30 years, these are some of the most interesting times I have encountered. Experience is everything right now because information, both good and bad, is flowing at an unprecedented speed, confusing us all as to whether it’s best to buy or rent. You must master the art of interpreting factual economic data versus emotional economic data. Normally, the market is either getting better or beginning to deteriorate. This is currently a difficult subject because some markets are better, some markets are worse, and it takes true experts to determine how and where to find those deals. There are mixed emotions across the board because there are promising signs regarding where this market is heading, but there is also more uncertainty than ever between wars abroad, elections, high interest rates, and a lack of economic and political transparency.
What will the housing market do for the rest of 2024? 2025?
It will remain stable for the remainder of 2024, but things will be tough for builders and developers because buyers are not showing any sense of urgency. On the other hand, there are great opportunities. Higher-end properties show no signs of slowing down as the rich are getting richer and not being as affected by interest rates, but the lower price points are taking longer to bounce back.
What advice do you give those looking to buy a home in the current market?
Do your homework, understand the market you are looking at, but do not wait! I haven’t seen builders offer the kind of discounts and concessions that are currently being offered. When interest rates drop, there will be a buying frenzy like we’ve never seen before, especially in areas with a growing population and strong job markets. Large corporations are attempting to corner the single-family home industry by turning homeownership into home rental subdivisions. There is a huge movement going on where many large funds are absorbing a lot of the inventory, turning housing developments into rental developments. It will become harder for the average consumer to own a home in the future, so now is the time to buy.
Final Thoughts
Navigating the current housing market requires patience, research, and strategic action. While the landscape is undoubtedly complex and fraught with uncertainty, there are also significant opportunities for well-prepared and informed people. As Berlanga emphasizes, the key is to stay ahead of the curve by understanding the true economic indicators and acting decisively when the moment is right. Whether you are considering buying or renting, the insights from experienced industry professionals like Berlanga can provide the guidance needed to make sound decisions in these unprecedented times.
Photo Courtesy: Jose Berlanga
Jose M. Berlanga, an entrepreneur from Mexico City with over 35 years of experience, has made a significant mark in Houston’s real estate industry, notably through co-founding Tricon Homes. His diverse background, including degrees in Business Administration, Economics, and Philosophy, has fueled his success in various sectors, making him a source of inspiration and mentorship in the business community. He is the author of The Business of Home Building: How to Start and Operate a Residential Construction Company.
Published By: Aize Perez
