Real Estate Investing Soars 400% In 2022 Fueled by Crypto and Stocks Payments
Jordan Major FinBold
Real estate investing soars 400% in 2022 fueled by crypto and stocks payments
Data from the Spanish real estate market shows that interest in the sector has increased 400% since November as it has become a safe haven for investors amid the macroeconomic instability, inflation, and price rises aggravated by Russia’s ongoing invasion of Ukraine.
When one considers the short-term impact that inflation and the war in Ukraine have on other segments of the global economy, such as the stock market, real estate becomes an attractive place to invest as it is currently a very solvent refuge value in the face of uncertainty, according to data gathered by Inviertis a firm that allows clients to invest in rented properties reports Europa Press.
Some investors have even moved funds from other, potentially riskier investments, such as stocks and cryptocurrencies, in order to seek safety in the real estate market.
Rebeca Pérez, CEO and founder of Inviertis, explained:
“Investors are withdrawing everything they had on the stock exchange and are investing in real estate to preserve their assets, a situation that has been accentuated since the Russian military invasion of Ukraine.”
Crypto gains prominence in the sector
Something big is happening in the U.S. housing market—here’s where 27 leading research firms think it’ll take home prices in 2023
Something big is happening in the U.S. housing market—here’s where 27 leading research firms think it’ll take home prices in 2023 Do you like this Article ? Sign up HERE for your FREE M&M Account to receive more Real Estate related information and news and THIS...
California Buyers Still Can’t Afford Homes
The issue for California residential real estate remains the same. Poor affordability means that despite latent demand, buyers can’t afford the prices of homes in the Golden State. For that reason, many have left to find much cheaper homes in other states. Unemployment will likely be on the rise along with lower business profitability (tech sector continues to lay off workers) which means fewer buyers are likely for 3 to 6 months.
The stronger consumer optimism is running against sticky inflation and a likelihood the FED can’t lower interest rates. But will that discourage buyers in California? Demand is always intense in CA. No other place offers what California has, and buyers today do seem to put lifestyle at the top of their list.
The luxury housing market, like most other real estate sectors, is adjusting to a slowdown. Affordability and home size are every bit as much on wealthy buyers’ minds as other consumers. “The reality is we are coming out of one of the best real estate markets in history,” Gary Gold, a luxury property specialist with Coldwell Banker Realty in Beverly Hills, Calif., notes in the latest Coldwell Banker Global Luxury Trends Report. “But that level of demand and price appreciation wasn’t sustainable.”
Nearly 90% of respondents to the Coldwell Banker survey say they believe the real estate market will be better than or the same as 2022 for property investment. The following emerging trends were noted in the report.