Two big C’s are expected to drive the economy and markets, and create the opportunities for investors in 2022.
Keep reading to find out what they are, and what opportunities they may present to real estate investors now and in the months ahead.
There appear to be record amounts of capital available and seeking new investments where it can be put to work.
M&A activity, corporate profits of pandemic-benefiting companies, and big shifts in what investors want their money in are all adding to this.
Billionaires and CEOs alone have been selling billions of dollars of stock in companies like Tesla and Amazon. As institutions get out of the office space, they have billions to put into new types of assets.
Globe St. estimates that $50B is currently seeking to be invested in the single-family real estate space alone.
A terrible January for the stock market is also likely to add to this pool of capital. According to Yahoo Finance, it was the worst performance for the S&P since the stay-at-home orders broke for COVID, and almost the worst ever for the NASDAQ.
At the same time Bloomberg says that Americans of all income levels have financially recovered from their pandemic losses. That means more money floating around in the economy. Money which can be used to pay higher rental rates and for more expensive homes.
There has simply been too much money and value created to expect the biggest beneficiaries to simply let the crises fade away. Real crises are tragic for those negatively impacted. Yet, as we’ve seen with COVID, and the recessions before that, it is these times that also create the most wealth for those that choose to see the opportunities, and to create solutions instead of fear.
Whether manipulated, fabricated or real, we shouldn’t be surprised if there are more crises in the media this year. It could be another strain of COVID, a stock market meltdown, the Ukraine situation, domestic political or social issues, or something else.
Whatever it is, there will be opportunities. There will be distressed sellers and motivated buyers. Along with large amounts of liquid capital, many real estate sectors and niches could benefit from that.
These two Cs could prove to be the most significant influencers of markets and opportunities in 2022.
Know them, expect them, anticipate the opportunities they are likely to create in real estate over the coming months. Then decide how you will act and participate to benefit from them.