The volatility in financial markets, combined with higher inflation data and interest rate increases, has led investors in search of relative safety.
What’s happening in the market?
The Fed keeps raising interest rates and mortgage rates have followed suit. There’s a lot of discussion about how these adjustments will impact the consumer and broader financial markets. The stock market is in Bear Market territory for the year, inflation continues to rage on, and it remains to be seen whether the Fed can finesse a “soft” landing.
While growth is slowing across most asset classes (and negative in many), the below chart indicates that real estate earnings growth is still positive. There are many reasons for that, including real estate’s ability to combat inflation by adjusting rent upwards.
So, what might these conditions mean for real estate and our portfolio?
The real estate market has turned on its head recently. With credit markets out of whack, the real estate buyer pool has contracted considerably, leading to some interesting acquisition opportunities.
We have our eyes and ears to the ground in search of low hanging fruit and believe now is a good time to further fortify the portfolio with more high quality real estate.
Mr. Karsh is CEO and Co-Founder of Streitwise and Tryperion Holdings.
Prior to forming Streitwise, Mr. Karsh was an Acquisitions Analyst for Canyon Capital Realty Advisors and the Canyon-Johnson Urban Funds, where he was responsible for underwriting, structuring and executing value-add and opportunistic transactions. He holds a Bachelor of Arts degree in Political Science from the University of Pennsylvania. Mr. Karsh is a member of ULI and is also a Real Estate & Construction member of the Jewish Federation of Greater Los Angeles.