The housing market has recently experienced higher rate hikes on top of increasing new construction home sales prices and higher, but stabilizing, resale home prices. Although home buyers have still been pursuing home purchases in an inclining market, one thing that I have seen is the need for an increased amount of funds needed in down payment and closing costs, as well as higher monthly mortgage payments. Relocating homebuyers and out-of-state investors coming from other traditionally high-selling and higher cost-of-living metro areas across the country to the Southern Coastal region to purchase real estate are strong competitors in these markets. However, for long term residents who live and work in the area, the exponential increase in both up front costs and monthly payments have either stalled or drastically changed their real estate goals and purchasing power.
Some are waiting for the market to decline... and sadly, explaining the concept of supply and demand economics to hopeful homebuyers who can be influenced by sources outside of our local market or by friends or family who purchased in much different time periods or economies can be challenging and disappointing when they either give up or accept contrary opinions opposed to great advice from their trusted professionals servicing the local real estate industry on a daily basis. Many are waiting for prices to drop, only to find by the same time next year, they are even higher. Nevertheless, for those who will listen, I always say in the practice of real estate: "Problems we may have; however, I'm here to focus on the solutions!
So, how can you solve the problem of needing more funds to close and carry home payments in an increasing, high-interest market? Earn more income! Research, create, or model ways to monetize gifts, meet needs, and capitalize on local opportunities that are readily available when the economy of a local market is strong in order to earn multiple streams of income and potentially evolve an entirely new way of life for yourself and your family. What is your evidence of a strong market? Development! New businesses entering your area; new construction communities on the rise; new schools being built or re-built to house more students; huge industrial outfits moving in and partnering with local community partners; and of course... demand outweighing supply.
There is hope for the Sellers, Buyers, and Investors in our market who are wondering where will they get the capital to fund their real estate purchases and/or moves, and how they can comfortably maintain payments on their mortgages long after closing day! Here are 8 ways that you can earn one or more streams of income as a side hustle or to launch a new business or service in your community:
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Start a budgeting or financial coaching business to help others manage their finances if you have mastered these disciplines and benefited from them yourself.
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Look for part-time or contract work in industries that are always in high demand (such as healthcare, education, or technology).
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Start a business selling essential items, such as groceries or cleaning supplies. Utilize online platforms like Amazon or Facebook Marketplace to get started.
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Invest in stocks or companies that have historically performed well in aggressive or recessive markets, such as utilities or consumer staples.
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Offer services that people may need or generally outsource, such as house cleaning, yard work, or home repair.
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Freelance in areas that are in high demand, such as writing, graphic design, or social media management if you are talented in these areas.
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Sell items online, especially if they are in high demand in a tight market (such as DIY project ideas and materials or home entertainment items).
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Consider starting a consulting service in a niche field where you have expertise and offer cost-effective solutions to businesses.
High demand has pushed through the ceiling of high prices and interest rates several times. We can either complain and watch the train go by, or pivot and get on board by using our natural talents, abilities, resources, and network to monetize what we already have within our capability to do in order to create multiple sources of income for our households and families, and increase our options by taking some limitations off the table when searching for that next home or investment. With thousands of tools at your fingertips and hundreds of ideas to choose from, there is a blank canvas of opportunity to create your own income-producing generator, and still be able to achieve your real estate goals in any season and in any market.
- Akia Stone White, Broker/Owner of Fourth Stone Realty Consultants LLC