Inexperienced investors are more likely to rely on their own sense of logic and reason instead of following tried-and-true financial advice. After all, certain investment strategies seem strange and counterintuitive to the uninitiated. But make no mistake – our instincts are prone to lead us astray regarding financial wisdom.

With the 2024 Paris Olympic Games underway, we’re enamored with the Olympian spirit. Truly, fewer people are more resilient and dedicated on the planet! But as hard as these athletes train with blood, sweat, and tears, not everyone will win the gold. There will be failure and heartbreak.

For real estate investors, it’s relatively easy to look at all the news coming out about the real estate market and lament. You might feel like there’s no place for you anymore, and investing is too hard. Believe us, that’s not the case! Part of the problem is that many of these reports and analyses look at overall medians and averages. 

While these are concise ways to talk about overall trends in the country, investors need to zoom in. The real estate market is not uniform. It varies, and investors must take advantage of it. We found these maps by ResiClub (courtesy of Fast Company) helpful in illustrating this point.

These maps effectively represent median home prices within individual markets across the country. While the $380,000+ median price sounds scary, we must recognize that that number doesn’t reflect every market.

So, what do these maps tell us about the real estate market…and investing?

You’ve undoubtedly poured over the details when looking for a real estate investment market. You’ve analyzed rental rates, median income, sales prices, local economics, and more…but have you asked about the weather?

Location matters, not just because of the economics, housing affordability, or rental demand but because of the climate. 

Both run-of-the-mill weather risks and natural disasters could jeopardize your investment property. If anything, it could be costing you a pretty penny in maintenance and insurance costs! Here’s what you need to consider about the climate as you choose an investment market:

In real estate, location is everything. Whether you’re determining where to invest for the first time, where to expand your portfolio, or whether or not your current markets are still best suited for investment growth, you need a set of clear guidelines and metrics to follow.

The question of location is the biggest in real estate. We know just how important the “where” is in purchasing properties! While you want to invest in a robust and growing market, you also want to be wary of overhyped areas. Finding that sweet spot is tricky.

The real estate market as we know it seems to be settling into a “new normal,” where sellers recognize their need to make concessions and price adjustments and buyers have reluctantly accepted higher mortgage rates. That’s not to say that things won’t change – the market will continue to correct, albeit slowly.

Every stage of the real estate cycle – even recessions – provides opportunities for investors who know where to look. Your success in this business isn’t up to fate or the turning tides of the market. Ultimately, success comes down to how much you’re willing to work for what you want – and whether you take hold of the opportunities in front of you.

You may have noticed that the real estate industry seems to have taken on a tone of pessimism. Between tight inventory, rising interest rates, and the return of a buyer’s market, there has been no shortage of dismal and doomsaying headlines.

At REI Nation, we’re always on the lookout for new, exciting markets that best fit into our investor’s portfolios. Over the past few years, we’ve expanded our reach to include the likes of San Antonio, Texas, and three Alabama markets: Tuscaloosa, Birmingham, and Huntsville.