Market Perspectives

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May 2024 - The Dynamic World of Residential Real Estate

Throughout time, shelter has been seen as one of the most fundamental human needs. According to the Smithsonian Institute, the earliest known human shelters were created almost 400,000 years ago of simple materials. Over time, shelters have evolved and today owning a home has become a key milestone in pursuit of the so-called “American Dream.” This strategy of real estate ownership has also been seen as methodology for building wealth over time. Since the Great Financial Crisis (GFC) of 2008, home equity values have more than doubled, rising from $20.8 trillion to $44 trillion more recently (Source: Federal Reserve). There are many reasons for this growth, such as a low cost of capital (i.e., low interest rates) and a mismatch of supply and demand, among other reasons.


Inflation Matters

March Madness, the cultural phenomenon surrounding the NCAA college basketball tournaments (both men and women), has come and gone once again, with the typical surprises, storylines, thrilling games and ultimately crowning a champion (congrats to the men's champion, UCONN, and women's champion South Carolina. What makes March Madness so compelling is the unpredictability and excitement, where any team, regardless of its seeding or regular-season performance, can rise to the occasion and pull off stunning upsets. The tournaments can serve as a metaphor for the outlook of the economy and financial markets.