Onward, a Fundrise Production
32: Buying the bottom
Dec 30, 2023
The hosts discuss the view that the real estate market has hit bottom and now is a good time to buy with decreasing inflation and the possibility of the Fed cutting rates. They explore the relationship between asset valuation and interest rates, analyze the relationship between recessions, interest rates, and real estate prices, and discuss labor hoarding strategies in the construction and mortgage industries. They also explore hidden subsidies in the market, delays in the market, and potential impacts on real estate prices.
47:26
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Quick takeaways
- The real estate market has hit bottom and it is a great time for investors to be opportunistic about buying along the bottom.
- Various institutions in the real estate market are employing temporary strategies to delay the recognition of current market conditions and maintain higher prices, which is not sustainable in the long run.
Deep dives
Real Estate Prices Bottomed and Opportunity to Buy
The speaker believes that real estate prices have hit bottom and that now is a great opportunity to buy. They point out that interest rates are a major driver of real estate prices, and with rates topping out and the Federal Reserve suggesting rate cuts in the future, the speaker is optimistic about the direction of real estate prices. They also mention the oversupply of certain assets and the potential for normalization in supply and demand in the future. The speaker provides specific examples of discounted buying opportunities in industrial, build-for-rent communities, and residential properties. They emphasize the significance of the current disequilibrium and urge investors to consider long-term gains.
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