Charleston, SC · Member since 2019 · 32 posts · 6 votes
Hi all,
Boeing has already stopped hiring. Seeing what is happening in Europe and the US government unfortunately not reacting quickly, but trying to let thing be as normal as possible for as long as possible - which might make things worse in the long run.
-> Just a matter of time until real estate is affected.
Do you agree or disagree with this statement?
Market confidence seems still high with well priced houses leaving the market within 24 hours?
Would you back out of a due-diligence offer right now if you could?
Lots of cross currents pushing at the future for real estate
1) Massive deflationary forces are in play and are threatening the "everything bubble" along with the record credit in the world today. If this credit cycle unwinds(defaults) it will be very, very bad for ALL assets and r.e. might revert to trend line.
2) lots of pressure to find safety, and people all over the world are after dollars, which is why the bond etf's are way up in all this chaos. Many will choose real estate as a safe haven.
3) The liquidity crisis is forcing the sale of gold (and bitcoin) which are both going down, so for many loosing a ton of money in stocks does not really motivate one to go out and buy another asset we all watched crater 10 years ago.
4) The role of institutional money in residential r.e. is probably not well accounted for, so is black rock going to need to liquidate a couple thousand houses in your state? Or will they deploy a few billion to buy at first sign of a dip?
5) What happens to the millions of str's bought with leverage if travel is curtailed for a while? I would guess they get put on the long term rental market, so if your town has tons of str's be on the lookout for lots of new inventory in Ltr market.
Does that help? NO, sorry but this is uncharted waters to say the least. What i am sure of is we had a fragile monetary system before this started so how it survives will be interesting!
@Rene M. It certainly could be, but we'll see. As investors, it would be good for us. As long as you have liquid cash or access to it, you can do some serious damage when the market slumps. These are the kinds of times that some investors wait for. There's opportunity to be in had in any market and I bet a lot of smart people are going to make a lot of money if it dips. I've already seen a lot of people shift gears and make a killing on options with their stock portfolio in the last couple of weeks. I know many folks who created generational wealth following the last recession.
Lots of cross currents pushing at the future for real estate
1) Massive deflationary forces are in play and are threatening the "everything bubble" along with the record credit in the world today. If this credit cycle unwinds(defaults) it will be very, very bad for ALL assets and r.e. might revert to trend line.
2) lots of pressure to find safety, and people all over the world are after dollars, which is why the bond etf's are way up in all this chaos. Many will choose real estate as a safe haven.
3) The liquidity crisis is forcing the sale of gold (and bitcoin) which are both going down, so for many loosing a ton of money in stocks does not really motivate one to go out and buy another asset we all watched crater 10 years ago.
4) The role of institutional money in residential r.e. is probably not well accounted for, so is black rock going to need to liquidate a couple thousand houses in your state? Or will they deploy a few billion to buy at first sign of a dip?
5) What happens to the millions of str's bought with leverage if travel is curtailed for a while? I would guess they get put on the long term rental market, so if your town has tons of str's be on the lookout for lots of new inventory in Ltr market.
Does that help? NO, sorry but this is uncharted waters to say the least. What i am sure of is we had a fragile monetary system before this started so how it survives will be interesting!