Two points, 1) I am assuming by big companies you mean blackstone who buy real estate, so they do not get cheap credit. At 2.5% mortgage, Apple was the only company to get 2.25% at that time. Coinbase and Sq were getting 3%+ at that time. You can check HYG and LQD corporate bond ETFs. 2) These big companies do not bid in Bay Area as rent to mortgage ratio does not offer any rewards. Open door is SF based company and does not do business here.
That's a Jason Chan listing. He's the real estate mafia of houses in the sunset. Lowballs listing price by 30% at least to attract more bidders. 1.4-1.5 is the fair value for it in current market since 1-2 years back. What's your point?
OP youβre misunderstanding monetary policy. Interest rates are strongly correlated with demandβ it becomes more expensive to take on debt so fewer buyers enter the market.
Most real estate markets are already cooling down and will continue to do so. As the stock market cools down further to where it should be, there wonβt be as many rich tech bros who are able to bid 30% over listing on every 900sqft house in the Bay Area at current rates
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I mustβve missed that lesson in Econ 101.
1) I am assuming by big companies you mean blackstone who buy real estate, so they do not get cheap credit. At 2.5% mortgage, Apple was the only company to get 2.25% at that time. Coinbase and Sq were getting 3%+ at that time. You can check HYG and LQD corporate bond ETFs.
2) These big companies do not bid in Bay Area as rent to mortgage ratio does not offer any rewards. Open door is SF based company and does not do business here.
The Fed probably went to a different Econ101 than you
Most real estate markets are already cooling down and will continue to do so. As the stock market cools down further to where it should be, there wonβt be as many rich tech bros who are able to bid 30% over listing on every 900sqft house in the Bay Area at current rates