Impact of stock market crash on real estate?

[Anonymous]

Anonymous wrote:No. When people's net worth falls they are not going to go buy a house.

In some years like 2000/2001 the stock market crash real estate started to blow up as viewed as safer asset, Same happened in 2020 stock crash.

Often stock market crashes cause real estate melt ups.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No. When people's net worth falls they are not going to go buy a house.

In some years like 2000/2001 the stock market crash real estate started to blow up as viewed as safer asset, Same happened in 2020 stock crash.

Often stock market crashes cause real estate melt ups.

It’s funny that you think you’re dealing with something similar to Covid. Trump is fundamentally destabilizing the USA as a legitimate country so there is ongoing massive flight from US capital markets that in turn will destroy the net worths of American home buyers. Wake up.

[Anonymous]

Inventory will fall even lower. People will sit on low interest rates and ride it out.

[Anonymous]

We are looking to buy and hope things soften up a bit. Like many, our stock portfolio has taken a hit but we have cash reserves for RE purchases. We have a handful of properties and not looking to cash out and RE is very stable vs stock market. RE has been our meal ticket and will remain, 100% failproof long term. The lunatics in the WH can’t stay forever.

[Anonymous]

Depends on how much loose cash is out there looking for investment as some people are certainly going to be pulling out of the market as their only safe harbor.

[Anonymous]

People I know are dumping stock (they’ve made plenty even with the recent correction) and moving into hard RE assets (not reits). People need food, medicine, and a roof.

[Anonymous]

I could have bought but now I will rather buy stocks. Houses are not cheaper by 20% but stocks are surely cheaper.

Stocks can get lower from here then I will buy more. I am going to buy stocks incrementally from here.

House can wait.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. When people's net worth falls they are not going to go buy a house.

In some years like 2000/2001 the stock market crash real estate started to blow up as viewed as safer asset, Same happened in 2020 stock crash.

Often stock market crashes cause real estate melt ups.

It’s funny that you think you’re dealing with something similar to Covid. Trump is fundamentally destabilizing the USA as a legitimate country so there is ongoing massive flight from US capital markets that in turn will destroy the net worths of American home buyers. Wake up.

Trump is destabilizing the global economy. The US will likely suffer less than our trading partners. Prime real estate, especially along the coast, in the mountains, and in big cities like NYC or SF, is a relatively safe place to park money when the market is tanking and confidence is low. I predict some sectors of real estate will rise.

[Anonymous]

Fed needs too

[Anonymous]

Anonymous wrote:I could have bought but now I will rather buy stocks. Houses are not cheaper by 20% but stocks are surely cheaper.

Stocks can get lower from here then I will buy more. I am going to buy stocks incrementally from here.

House can wait.

+1. Stock market is dropping, layoffs are coming to the private sector, people aren't getting raises -- the housing market will drop, whether people want to believe it. And DC real estate will never be the same. I cashed out 60% of my stock portfolio 3-6 months ago but will prob get back in soon.

[Anonymous]

Anonymous wrote:People I know are dumping stock (they’ve made plenty even with the recent correction) and moving into hard RE assets (not reits). People need food, medicine, and a roof.

This isn’t a good time for the average person to sell. Unless you need the cash, you’re locking in big losses and RE markets are stronger, especially around DC, than they will be in 2-4 months. RIFs and FORKs and consumer sentiment have a long way to fall, unfortunately. As my kids would say, “ummm, hello” we are in the middle of month three of a four year term.

[Anonymous]

It's interesting that when stocks are now on sale, people are considering investing in real estate. But when US stock valuations were at an all time high, people thought they were getting a great deal. I mean, they couldn't buy enough stocks and constantly talked about AI, NVIDIA, account balance, etc.

[Anonymous]

Anonymous wrote: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.

You had me until this.

[Anonymous]

I was talking to a RE this agent who has had two buyers pull out of contracts in the last week.

[Anonymous]

Anonymous wrote:It's interesting that when stocks are now on sale, people are considering investing in real estate. But when US stock valuations were at an all time high, people thought they were getting a great deal. I mean, they couldn't buy enough stocks and constantly talked about AI, NVIDIA, account balance, etc.

This is always how it works -- when everyone is bragging about how well they're doing in an asset class and speculating about continued growth, that is a contrarian signal (though it's not perfect because, as we saw during the Biden years, the stock market can sustain its upward momentum for a while). But really, it didn't take any work of genius to see that when Biden left, the stock market was at a historically high valuation, and even with a stable president, it couldn't sustain the rally much longer. Throw in an unstable president, and all bets were off. I think people seem to be ignoring the same warning signs with the housing market, but maybe I'm wrong.