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Economy

Frasier Balzov

(4,294 posts)

7. Biggest takeaway for me is the risk-adjusted return.

Reply to roamer65 (Original post)

Sat Feb 22, 2025, 08:15 PM

Feb 22

With the 10-year Treasury rate as high as it is, it no longer makes sense to tie up capital and incur carrying costs in exchange for the income stream an investor receives from residential rents.

Until recently, when the Federal Reserve was still keeping interest rates low, the potential return from rents made the trouble of owning housing worth holding this kind of investment. Now the same return can come from U.S. Treasury securities without the hassle.

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Wall Street firms are exiting the housing market. Big time. [View all] roamer65 Feb 22 OP

Good. I hope that they get whiplash. They distorted the housing market for their own benefit and now, they're SWBTATTReg Feb 22 #1

Please provide a text summary Bluetus Feb 22 #2

Duly noted. roamer65 Feb 22 #3

Interesting. I'm in GA. Similar houses in my neck of the woods are still over 300K. tulipsandroses Feb 22 #4

Builders at least in my area of Florida have over built there's FloridaBlues Feb 22 #5

In Orlando/Central Florida there is a lot of inventory (slow sales) but prices are reached an all time high last month. OrlandoDem2 Feb 22 #6

Biggest takeaway for me is the risk-adjusted return. Frasier Balzov Feb 22 #7

Bingo. roamer65 Feb 22 #8