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The housing market has been especially topsy-turvy over the last few years. This might leave you wondering whether to take the plunge and invest in real estate or hold off. Housing prices have dropped across the nation recently–will they bounce back or continue to decline? 

Is Real Estate Investment the Right Move?

The short answer is yes, now may very well be a great time to invest in real estate. At Portage Bank, we are all about helping you invest and build wealth. In light of that, consider the following factors before you sign a mortgage. 


Historically, housing prices steadily climb over time, providing a slow but solid investment. This means that real estate is an excellent choice for financial investments in almost every climate, with a few exceptions. Every so often, the market experiences housing bubbles, during which time the price of houses soar and then rapidly drop again. 

Experts believe that this recently happened in the national real estate market. Even purchasing real estate when prices are high is often not a total loss if you play the long game. Now that the bubble is popping, however, it makes investment circumstances even more favorable. 


As mentioned above, real estate prices have recently dropped. This is partly due to the influx of listings flooding the market. As inventory increases, sellers are forced to lower prices. Whereas only a few months ago there were often multiple bidders on one property, now you might be in a position to make a lowball offer if they are desperate enough to sell. 

It’s always wise to invest when prices are low. 


On the other hand, interest rates are higher, which can offset the investment benefit of the lower price of houses. You may be thinking: what good are lower prices when there are higher interest rates? Payments are high either way, and that’s the critical point. 

That is true, and if purchasing a house will place you in a financially compromising situation, you should certainly avoid it. 

However, if you can make it work, it still might be worth the risk. Savvy investors know that sometimes you just need to act. A low housing price always beats low-interest rates. Why? Because interest rates eventually drop again, whereas you can never change the purchase price of your house. You can always refinance your loan when rates fall, then you will be sitting pretty with a low-interest rate, and a low housing cost: the best of all possible scenarios. As the saying goes: “Marry the house, date the rate.”


While rates are not expected to drop anytime soon, housing prices may likely continue on their downward trend. It may be wise to start applying for a loan now

At Portage, it’s even easier to get prequalified. Once you start the loan process, you are poised to pounce if the perfect home at the right price becomes available. The savviest investors are ready to jump on the right house when it shows up. 

Portage Can Help

New to the real estate market game? Whether you are just starting or are an experienced investor, Portage can help you throughout every stage of the process. We want to see you succeed, build wealth, and fulfill your dreams. Contact us today, and let’s start a conversation.

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