Is Wholesale Real Estate a Saturated Market?


For aspiring investors, wholesaling can be the ideal way to start investing, especially if you have limited access to capital. However, some investors are concerned about the housing market’s current state. Although we aren’t in a housing bubble akin to the 2008 Housing Market Crash, the market conditions are unlike anything that investors and economists have ever seen. 

These current market conditions, combined with an influx of new wholesalers, have investors wondering if the market is simply too saturated for them to make a sizable profit. However, there is still an opportunity for success in the wholesaling industry. In fact, the increased demand for housing has created the perfect environment for investors to get started. Read on to learn more about the current state of the wholesaling industry and how you can profit in this evolving market!

What Is the Current State of the Housing Market?

Many investors worry that the wholesale market is saturated, but ultimately, the competition you face depends on the state in which you choose to operate your business. Real estate market conditions constantly fluctuate in reaction to the metrics that dictate market value, including the availability of financing, supply, demand, and the market’s strength. Consider the following factors when determining a market’s potential as a real estate wholesaler.

Rising Property Values

When evaluating the growth potential for wholesaling real estate in a specific area, consider whether or not the market is experiencing price appreciation. Recent price appreciation is a sign that the market is strong and ensures that wholesalers will turn a profit.

When real estate wholesalers find and execute a wholesale contract within a rising market, they are likely to assign the property to a qualified lead at a greater price than they would in a shrinking market. Although rising markets can make it challenging to find inexpensive properties, the market’s overall growth ensures high profitability.

Keep in mind that seasonal price fluctuations impact the average pricing and demand, so you may want to monitor the market over time or check back in every few months.

Population Growth and the Employment Market

Wholesalers should choose areas with a growing population base for the best investment opportunities. As the population in a particular area increases, so does the local demand for housing. For example, states including Idaho, Arizona, Nevada, Utah, and Texas are currently experiencing the highest population growth. Before choosing where to wholesale real estate, perform adequate research to discern whether or not the population is growing at a sufficient rate to support your success.

Along with population growth, an area’s employment market is also essential when choosing the best market for your wholesaling business. Although the entire economy tanked due to the pandemic, over 6 million jobs have been created since 2020. Currently, claims for unemployment insurance are at their lowest level in more than 50 years, the demand for workers is high, and the job market is the best it’s been in decades for the entire country. Choose states with the highest employment rates for extra success in the real estate wholesaling industry.

Rental Vacancy Rates

Experts define the vacancy rate as the percentage of rental income property owners lose when their rentals are not occupied throughout the year. As an investor, you can use the real estate vacancy rate to determine the demand for investment properties. Real estate wholesalers should search for areas with low vacancy rates, indicating an increased demand for housing.

The average vacancy rate in America is about 7%, so anything below 4% is considered low. When rental vacancy rates are low, people are more likely to purchase a property than rent, which is ideal for real estate investors. Other factors that influence the vacancy rate include the desirability of location, the amount of new construction in an area, and rising population rates.

Right Now Is the Perfect Time to Start Wholesaling

As a real estate investor, it’s crucial that you remain aware of current market conditions and the direction in which the market is going. Mortgage rates continue to tick upwards, but the rate at which these rates are increasing will gradually slow down. Although we are still amid a housing shortage, inventory is expected to grow, and housing prices currently remain high.

So, what does all this mean for investors? Ultimately, there has never been a better time to begin wholesaling real estate. As inflation continues to rise and wages remain stagnant, wholesalers are much more likely to find motivated sellers eager to sell their homes or get rid of their unwanted properties.

Earn a Profit in Any Market with Call Motivated Sellers

With the right resources and strategy, your wholesaling business can thrive in any real estate market. The best way to get your business off the ground and stand out amongst the competition is by contacting buyers and sellers directly, so why not work with a team of professional cold callers who will support your efforts?

To start building your network, acquiring properties for your portfolio, and turning a profit, enlist the assistance of Call Motivated Sellers. Our team of professional cold callers saves you time and effort by vetting leads for your team. Informing interested buyers and sellers about the benefits of your wholesaling services, we’ll use our expertise to warm up leads, find the best prospects, and set your sales team up for success. With cold callers on your side, you can leave the hard work of lead generation to us and focus on other aspects of your business.

Call Motivated Sellers is an American-based real estate cold calling service that can help raise your sales and provide hot leads in any market. We have years of experience cold calling in the real estate industry, along with access to the best information for buyers, sellers, and agents to help you close more deals.

If you’re ready to leverage the power of cold calling for wholesaling, Call Motivated Sellers is here to help. To learn more about the services we offer, just contact our team today!