Yeah I know most people in here are interested in equity markets. I am also primarily interested in equities. But just for discussion I wanted to bring this up and see what people think…
I was just listening to the Bigger Pockets podcast (a podcast for real estate investors) and everyone on there seemed so optimistic with little acknowledgement of the true situation we are in. I heard comments like:
– “Maybe we will see a small dip in prices over the summer”
– “I’m only seeing rents dropping 3-4% in my area and I don’t think we’ll see it go much lower for now”
So banks are tightening lending requirements, we have mass unemployment (maybe 20% ?) , we have situations where you literally cannot evict non-paying tenants and by some counts I read we have 30% of US tenants not paying rent. I would be surprised if Airbnb hosts are getting even 10% of the bookings they were getting last year.
Are real estate people out of touch with reality right now? I don’t think enough people are preparing for the possibility that this goes on much past June.