Eq: Real Estate
Someone say crystal ball?
Well, might not be a bad idea, given that, this year, according to projections from the Global “Real Estate Market" Report, the ballooning of the real estate market’s expected to hit multimillion dollars by 2029, reported marketwatch.com.
Revenue wise, the Real Estate Market will register a “magnificent” spike in CAGR over the next seven years according to the report, a detailed, comprehensive analysis for global Door and Real Estate market. Against the backdrop of a perpetually changing market, the report delves into the competition, supply and demand trends. That’s not to mention key factors abetting its evolving demands across many markets.
In September, the number of single family homes dipped while the median price – both month and over month and year over year – scooted north. And this year? Funny you should ask: it represents the highest October median month in the same period the area’s had. Varying peaks and valleys are being felt in each micro region, culminating in a landscape of inconsistency.
According to its bi-annual Investor Sentiment Report, commercial real estate data platform Lightbox found that real estate investors are increasingly concerned about a potential recession. In fact, 90 percent of the survey respondents were concerned about the potential for an upcoming recession. Survey participants included commercial real estate professionals from brokerage firms, investment firms, and other real estate segments. Approximately one-third of the survey’s respondents said they were “very concerned” about a recession, while 56 percent said they were just “concerned.” Only 10 percent said they were not concerned at all. The survey, which was taken in August and September, also reflected concerns over the impact of rising interest rates, inflation, and supply chain disruption. Looking at the rest of 2022, most respondents were not optimistic about the real estate market, but 42 percent were more optimistic about 2023. In addition, 80 percent of respondents said rising interest rates, high inflation, and other issues have impacted their hiring strategy, while forty percent said they are only hiring for high-priority needs.
Finsum: Based on the results of a recent survey, 90 percent of real estate investors are concerned about the potential for an upcoming recession.
CrowdStreet Advisors, the in-house investment manager for the real estate investing platform CrowdStreet, recently announced plans to accelerate the development of private commercial real estate solutions for financial advisors. CrowdStreet Advisors provides access to private commercial real estate investments that had previously only been available to institutional investors. As of September 30th, the firm had $431 million in assets under management across separately managed accounts and more than 25 private funds. CrowdStreet REIT I (C-REIT), the firm's flagship fund, was recently launched and offers financial advisors a low-cost entry point for clients interested in private commercial real estate projects focused on growth and capital appreciation. C-REIT, which has so far raised $37 million, is available on custody platforms such as Fidelity, Schwab, Pershing, TD Ameritrade, and 17 self-directed IRA custodians. The accelerated expansion of these solutions is due to an increased need for client portfolio diversification and inflation protection.
Finsum: Due to increased demand for portfolio diversification, CrowdStreet Advisors is accelerating the development of private real estate solutions for financial advisors and their clients.
Inflation: the omnipresent bugaboo. As it continues to hang around a 40 year high in the U.S., to offset unabated volatility In the traditional stock market, many investors are plumbing for alternative strategies, according to glovenewswire.com as sourced from yieldstreet.
Now, fortuitously, in recent years. diversity and accessibility has evolved into the name of the game in alternative investment options. Yieldstreet, among other online investment platforms, have significant ratcheted up the ease with which investors can alter direction and sprinkle critical diversification into the portfolios, the site continued.
And there’s this: given the gaggle of strategies from which to select, all investors need do is home in on the alternative investment , such as P2P Lending, real estate or crypto, best sutured to for their specific investing style and level of risk.
So, if the stock market isn’t your cup of tea, according to investables-blog.webflow.io, seven best investment alternatives include:
- Real estate
- Wine & Liquor
In the event inflation extends beyond 3%, the site added, there’s as much as a 32% uptick in art sales. When conditions hit the skids in traditional finances, investors head to the best alternative investments. That, most of the time? Bingo. Art.
In the aftermath of what had been a sweet buzz of a ride, stocks are embroiled in another unwelcome turn, according to ally.com. Last week, of course, the S&P 500, bless it, threw in the towel of what had been a four-week run. This week? You go it; the setback continues.
So, what’s up with that? Well, let’s count the uncertainties. Corporate earnings season’s winding down. Summer? Vaulting into the rear view mirror. And the news cycle will slow to a trickle. It all spells a vacuum in solid direction which, right again, puts air under the likelihood of volatility, the site continued.
In fact, taking, well, stock, of the interest rate trend lines over this summer, they’re more rocky than stable, according to money.usnews.com. The swings in the average 30 year fixed rates have been madcap, percolating and descending by as much as a quarter point per seek following a mid June peak to 5.81%.
The 30-year fixed rate went back up to well over 5% this week -- a reminder that recent volatility remains persistent, said Sam Khater, vice president, chief economist and head of Freddie Mac’s Economic and Housing Research division. “Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market.”
Many investors have moved off of REITs and they are trading well below their 200-day moving averages. This makes them a value proposition, particularly as volatility starts to rise. Uncertainty particularly around Ukraine and Russia is fueling volatility but its uncorrelated with REIT volatility which gives it a huge risk advantage on top of it all they are more robust to inflation. Two great REITs to consider with great value at the moment are Alexandria Real Estate Equities and Crown Castle International. These REITs have healthcare and telecom exposures respectively which are in a particularly attractive position as healthcare spending is a higher portion of budgets and 5G is exploding.
Finsum: It’s easy to see that alternatives should be seeing inflows given the volatility in traditional equity and bond markets.