All Forum Posts by: Justin Kurpius

If this was a crisis that happened because of risky investments I would agree. That being said, this is a crisis that was created because the bank chose the safest asset on earth (US treasury bonds) to put their depositors money into and the Fed kept rates low too long and then raised rates too fast, and focused on lagging indicators all the while knowing they risked collapsing the banking system. If the Fed does not step in, it is likely that there will be a rush on the banks, and these banks will not be able to liquidate assets fast enough to handle the pressure and collapse. As RE investors we like buying opportunities, but we should not like government created banking system failures. 

I think we will have low inventory for at least two more years as supply chain kinks effecting home builders get worked out. We can't even get molding for the new floor we just put in our rental property. There are so many owners/investors that will hold on to their 2.25-2.75 rates for dear life and are not going to be selling, thus contributing to the low supply problem. Mortgage interest rates rising will cause some buyers to back off, but there are still plenty of investors with a lot of cash on hand or needing to do a 1031 exchange that will benefit from less competition. I think home prices will stabilize, but not fall off a cliff or anything. As it stands there are still motivated buyers who would rather attempt a home purchase this year than keep renting and have their rents go up annually.

The stupidity of this is to talk about a bubble with no mention of supply. No mention of the record low supply. I only took two economics classes in college but I distinctly remember learning that supply was a driver of price.