Fisher Investments’ Founder, Ken Fisher, Explains How Interest Rates Can Impact Real Estate
Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher shares his thoughts on how interest rate changes may be affecting the US real estate market. First, Ken says while short-term interest rates have continued to climb, long-term rates—which typically have a bigger influence on real estate activity—have fallen since October 2022. Ken also mentions other factors influencing the supply and demand of both commercial and residential real estate markets likely play an important role. Ken points out that residential and commercial real estate markets have stabilized compared to the previous year. Prices for single-family homes have held up because homeowners who locked in low mortgage rates over the last several years are reluctant to sell now, constraining supply. Ken acknowledges that while work-from-home policies spurred by the COVID-era may have lowered demand for office buildings in city centers, offices only comprise a small portion of the commercial real estate market. Demand for multi-family residential properties, the largest component of commercial real estate, remains strong. While interest rates changes can affect sentiment, Ken says the other major supply and demand factors have a greater influence on real estate markets. For more of Ken Fisher’s thoughts on the markets, visit us at https://www.fisherinvestments.com. Connect with Fisher Investments on: • Facebook - / fisherinvestments • Twitter - / fisherinvest • LinkedIn - / fisher-investments • Instagram - / fisher.investments You can also follow Ken Fisher here: • Facebook - / kenfisher.fisherinvestments • Twitter - / kennethlfisher • LinkedIn - / ken-fisher • Instagram - / kenfisher_fisherinvestments • TikTok - / fisher_investments Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. The foregoing constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice.
