Your Financial Pharmacist YFP REI 135: How Volatile Is Real Estate Investing?
Jul 17, 2025
Pharmacists delve into the shifting real estate market, discussing current trends like inconsistent pricing and changing buyer behaviors. They compare the volatility of real estate investing to the stock market, highlighting the importance of negotiation and marketing strategies. The conversation stresses risk management and diversification, with a focus on long-term strategies that utilize real estate for retirement income. Key takeaways offer valuable insights for both novice and seasoned investors navigating this unpredictable landscape.
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Local Market Volatility Varies
- In some markets, listing prices can still attract multiple offers over asking price within days. - However, in others, sellers price too high with conditions like "as is" and face hesitation, showing local market differences.
Historical Real Estate Stability
- Real estate prices show less volatility historically compared to stocks, except for events like the 2007-2009 crash. - The pandemic caused unusual sharp fluctuations, but a long-term steady growth trend prevails.
Risks of Flipping in Volatile Markets
- Flipping a house bought at a market peak can lead to losses if the market drops soon after. - Conversely, buying during a spike may inflate apparent profits that reflect market trends, not skill.