A self-directed IRA real estate gives you all of the benefits of a regular IRA but it focuses on investing in real estate with your IRA. The great thing about this is that you are investing into something that is outside of the stock market. This gives you less dependence on the stock markets all while diversifying your retirement nest egg more effectively.
So how is the the housing market for self-directed IRA real estate accounts? Existing home sale slowed in April vs March but we are still on the upward trend vs year over year. One thing to note is that all major regions except for the Midwest experienced these sales declines. That may be an interesting market to be aware of when looking for an investment inside your self directed IRA real estate account.
While exsisting home sales were down in April vs March existing home sales in April 2015 vs April 2014 are still up 6.1 percent. That is good news because it shows that we are still on the upward trend.
The median existing home price for all housing types in April was $219,400 which is 8.9% above April 2014. Another sign that the housing market is improving but the thing to be aware of is that you may want to look at buying sooner than later because if the trend continues it will be less of a buyers market.
The market saw a lowering of inventory compared to a year ago. Because of the there are faster price growth and properties selling at a faster pace. It is definitely turning to a sellers market because roughly 40 percent of properties sold at or above asking price. That is the highest percent since December 2012.
The market in April saw 24 percent of sales as cash sales which is down compared to a year ago that had 32 percent of sales as cash sales. Again, it is becoming more of a sellers market and that is more than likely why we are seeing less cash sales. Which means less investors are purchasing properties compared to a year ago.
Of homes sold in April 10 percent were foreclosures or short sales which is down from 2014 which was at 15 percent.
What does all of this mean for a self-directed IRA real estate investment? It means that the current market is improving. Typically, improving markets aren’t a buyers market. But will this year be more of a buyers market than next year? It could very well be. Does that mean that you may want to try buying sooner than later? Nobody knows that answer but my guess would be that signs point to a better market in the near future. There are many things that can affect that though.
All things considered, if you have found a great property and want to invest for the future a great option is with a self-directed IRA real estate account. It gives you all the same tax benefits of a regular IRA but the ability to invest in the real estate properties of your choice.
There are some rules that you need to be aware but that is where we come in. Let us help you invest in real estate with your IRA all while helping you abide by the rules that the IRS has put in place for IRA investing.
Author: Nick Barker