A Real Estate “Doom Loop” Could Push Prices to The Floor

A Real Estate “Doom Loop” Could Push Prices to The Floor

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Commercial real estate is facing a deadly “Doom Loop.” This type of scenario only happens during a shaky real estate market, where prices are falling, banks lock up their lending, owners are forced to sell, and prices crash. Once this cycle starts, it’s very hard to get it to stop, and the last time we saw a “Doom Loop,” America’s residential real estate market fell off a cliff. So, is the same in store for 2023?

There are promising signs that a “Doom Loop,” even on a small scale, could impact the commercial real estate market. Small banks, which are HIGHLY concentrated in commercial real estate lending, have a very bleak outlook with rates rising and short-term loans coming due. The good news? This could FINALLY force commercial real estate sellers to wake up to reality and offer their properties at a price the market agrees on. What’s going to happen next? Stick around and find out!

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0:00 The “Doom Loop”
2:02 The Commercial Real Estate Crash
3:41 Banks Buckle Under Pressure
7:58 Prices Crash, Defaults Spike
10:13 What Happens Next
13:01 Is Residential Real Estate Safe?
14:19 What to Do NOW

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