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by yucky 1439 days ago
A TON of investment properties were purchased over the last few years, so those may be sold as investors need to balance out the huge losses they took on stocks, crypto, etc.

With rising rates, the counter pressure on prices from buyers may not exist in large enough supply to prevent the investors selling from driving prices down.

2 comments

Just anecdotally, a friend who took an enormous shellacking in crypto told me the other day he's glad he'd bought two rental houses before getting into DeFi. He seems totally disinclined at this point to make any high risk moves with what remains of his savings. I suppose if he had to sell that would be another thing, but I don't think most even-marginally-sane people in that position are going to sell property and chase higher returns in the market.
Rents aren’t dropping - so the investment properties are likely going to be better off held as inflation helps push down the cost of those mortgages vs rental income.