Upside potential for housing market in 2023

Rising mortgage interest rates clobbered the single family housing market in 2022, leading to transaction volumes falling sharply and small declines in prices. The market in 2023 will most likely weaken, but some upward potential must be considered—even by those of us who remain pessimistic.

The problems are well known. First, home prices rose to nearly unscalable heights. In the years just before the pandemic, prices (adjusted for house quality) had risen by about six percent per year. In 2020 the gain accelerated to 12%, then 18% in 2021. By the middle of 2022, home prices were roughly 25% higher than the pre-pandemic trend line. That priced many first-time home buyers out of the market.

Real Estate Credit Investments Limited (LON:RECI) is a closed-ended investment company which originates and invests in real estate debt secured by commercial or residential properties in Western Europe, focusing primarily on the United Kingdom, France and Germany.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn

More articles like this

Real Estate Credit Investments: Resilience and Growth

The real estate credit sector has been demonstrating strong resilience and adaptability amidst recent global economic fluctuations, with lending trends reflecting a continued demand for property financing. Despite interest rate hikes in major markets, the appetite

Mark Thompson joins board of Real Estate Credit Investments as a NED

In line with the Board’s succession planning and following the appointment of an independent recruitment firm and a comprehensive search process, Real Estate Credit Investments Limited (LON:RECI) has announced that Mark Thompson has been appointed, with effect from

The appeal of Real Estate Credit in today’s investment market

On October 24, 2024, Benefits and Pension Monitor, in collaboration with Fiera Capital, hosted a webinar featuring industry experts to discuss the rising appeal of private real estate credit as an alternative to traditional fixed-income investments.

Understanding Real Estate Credit

Through the years, the advantages of investing in Private Real Estate Credit (high-yield debt) have essentially remained the same: Attractive relative value, equity cushion to absorb asset stress due to unexpected events, real asset collateral to

Private real estate credit emerges as a strong investment alternative

Investors are increasingly favouring private real estate credit over traditional fixed-income investments, and it’s easy to see why. Offering higher yields, greater portfolio diversification, and enhanced resilience compared to fixed-income products, this emerging asset class is

Opportunity in the Commercial Real Estate market

The uncertainty surrounding the future of commercial real estate is reflected in the frequent announcements of wind-ups or mergers related to UK commercial property investment trusts. The sale of iconic buildings at prices that offer a

Real estate investment trends for 2024

The real estate investment industry is in a state of constant flux, and 2024 presents both challenges and opportunities for investors. The traditional real estate model has significantly changed, shaped by shifts in user behaviour and

How global megatrends are shaping the future of Commercial Real Estate

The evolving landscape of commercial real estate (CRE) requires long-term investment strategies that take into account significant global forces that can reshape economies and property markets. These forces, often referred to as megatrends, drive technological innovations,