Big Banks And Funds Split On The Direction Of The Market
Bank banks, fund CEOs, and even the Fed are all responding to the changing economy in different ways.
What are they saying and predicting? How are they reacting? What does it mean for real estate investors?
JPMorgan Tries To Go Back To The Office
JPMorgan’s Jamie Dimon has been ordering workers back to the office. Even as other multi-billion dollar companies and new startups are finding that remote work is far more productive and profitable, if not an advantage and essential in today’s economy.
Especially in real estate, experienced pros know that you don’t make money being in the office.
At the same time it has been revealed that the company is working on finishing a $3B office building in NYC. This and any other investments they have in retail and office real estate may explain why they are so desperate to sell this return to old workplaces.
Goldman Says Housing Market Will Flatline In 2023
Goldman Sachs forecasts that US house prices will flatline line with 0% growth in 2023.
Black Knight reports that house prices have already fallen into negative territory according to its data.
Meanwhile Michael Burry of the ‘Big Short’ predicts the stock market is headed for the ‘mother of all crashes’.
Bank Of America Goes For Broke With No Down Payment Mortgages
At least on the surface, Bank of America appears to be the most bullish on the US real estate market. They just announced that they will be offering 100% financing, no down payment home loans for buying in predominantly minority markets.
They must believe that the market is going to keep on going up, or they would be immediately losing their investors’ money.
Of course, they also made similar moves right before 2008, and then lined up for big bailouts from the very investors they hurt, as well as the homeowners they put in such perilous positions.
For Real Estate Investors
If you are tuned into the market, doing deals daily, then you already know the state of the market, even without having to listen to these pundits casting their vision and trying to manipulate it in the press. Though it is always interesting to see both what others are saying, and how they are reacting, while watching their motivations behind the scenes.
There is always money to be made in real estate. Perhaps far more in the current conditions we are in.
More than ever, succeeding in this market appears to be about pricing deals right on both the buy and sell side, and moving quickly in and out of deals before you are caught by changes.
