Impact of stock market crash on real estate?
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Anonymous
| Will money flow into real estate raising prices even higher? |
Anonymous
| No. When people's net worth falls they are not going to go buy a house. |
Anonymous
This. Studies have shown that the state of the economy (and not interest rates) is the biggest driver of housing prices. That's why housing prices have gone up so dramatically until now, even as interest rates have been relatively high. So if this stock market plunge is sustained, there will be a decline in real estate prices. |
Anonymous
| We are in lower NW. There are so many houses for sale. For the past 10 years you would be lucky to see 2-3 houses a year for sale. Now you see that on one block. |
Anonymous
| OP must be using real estate agent logic -- when people are getting richer, prices go up, and when people have lost a lot of their wealth, prices go up also!!! |
Anonymous
| I don’t think OP is wrong. Most people won’t touch their money right now, but for those who were unsure of what to do, they might prefer real estate over stock market right now. |
Anonymous
This. Many people will just ride out the stock market and see what happens. But some people who pulled out their money before this downturn or are concerned about further dips might diversify by purchasing real estate. Then there are some people who actually did well with investments and want to get out now as further stock market plunges are predicted. We're considering an investment property. We put a good chunk in interest bearing accounts (before this downturn) with the idea that we would eventually buy stocks on the dip. But now we're reconsidering. It feels like our hunch paid off and we saved a good bit of our assets. We also lost a bit of our assets in the stock market. Do we want to risk it all by putting everything (except our CDs) in the stock market? I don't have a great answer. It just seems like we might be throwing good money after bad if we buy stocks now. At least with an investment home we can wait for a real estate upswing to sell it. Historically, real estate is a good investment if you have ~10 years to ride out any downturns to sell when the upturn happens. |
Anonymous
| We're probably at the end of a historic bull run cycle, except this time the U.S. government won't ride to the rescue because it needs treasuries down or its finances will implode. This isn't bullish for assets, let alone real estate assets. |
Anonymous
| Experts are recommending to invest in real estate and rates will come down as the Fed will need to adjust or get fired and someone else will adjust the rates down |
Anonymous
The delusional homeowners who want up up up up up in home values forever need a really check. Hopefully this will further increase inventory once prices actually go down as opposed to relentlessly going upm as of now we are only seeing a slowdown in growth of home prices. For people on the sidelines to be able to afford a house in this market home values and prices actually need to go down. But then these buyers will only take advantage if they are still employed because during a bad recession one needs to worry about keeping their job first. If interest rates go down to 5.9% without points by Dec that will be amazing. The 10 year yield is moving downward. And that's the rate that matters most for mortgage rates. And ironically that's the rate the administration desperately wants to see substantially down. |
Anonymous
| We are probably holding on to a house we had planned to sell and will be renting it out. We were going to sell and invest the proceeds, but now we are thinking we’d rather be diversified and have some of our money in this real property. |
Anonymous
I am not at all convinced the Fed is going to reduce interest rates. What is happening to the economy is not a cyclical event. It is a political choice. And these political choices are going to have profound inflationary impacts. If Powell tries to bail out Trump and the GOP for their choices that will further undermine the credibility of the United States. And Powell is not a Trump employee. I'm not sure why you think Trump can fire and hire Fed board employees at will. If the Fed is turned over to MAGA goons you can kiss everything goodbye. I don't think real estate will be a good investment in the aggregate. There will be some flight to safety moves, but I don't think it can overcome the cascading repercussions of the wealth effect. When people become poorer, they don't buy historically inflated houses, particularly when the cost of borrowing remains high. Looking at the effects of Trump's moves and its impact on the overall economy, I don't think there's anywhere to run. He's destroying the entire global trading and financial system that has stood for 80 years. And replacing it with nothing at all. Even gold and crypto are getting hit. |
Anonymous
| Nothing is risk free. Our investment advisors are saying diversification and tangible assets, real estate obviously being part of a healthy portfolio. |
Anonymous
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I think some of us are still stuck thinking about real estate as something along the lines of the American white picket fence dream. One house per family, the middle class family. Maybe 2 houses if you're a bit more well off, a vacation home, a rental investment property.
Meanwhile, the wealth gap has grown to the point where America's richest 1% can buy 99% of America's homes: https://www.redfin.com/news/wealthy-aggregate-value-2025/ Maybe that doesn't mean anything to DCUrbanMoms, the coastal elite. In that same analysis, the article states taht the wealthiest 0.1% of America could buy every single home in the top 25 most populous metros in the US. Yes, I think housing prices will go up. Those with active financial advising already pulled money out of the market ahead of last week's stock market sharp decline. They can afford to buy real estate in cash (to park it for years while we're going through all this economic uncertainty), so they're not worried about your 6-7% interest rates. |
Anonymous
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Housing is going to tank. We are on the verge of a full fledged depression. Job losses, foreclosures, business failures, and suicides are all going to go through the roof. Read about the late 1920s if you want to pretend otherwise.
Trump is a Russian asset who has destroyed not just the American economy, but America itself. |