How are interest rates impacting developers?

As we all know, interest rates have risen dramatically in the last year, and the overall effect has been a reduction of homes on the market. But is there a scenario where higher interest rates actually adds to the number of homes on the market?

Well, What if an institutional investor could get more money in the bank than from the homes it owned?

Invitation homes, with around 83,000 homes under its belt, has been offloading properties that have gone up so much in value that they’re now making less than 4% returns. Then Invitation Homes stashes that cash in the bank where it’s pulling in over 5%.  

I’ll be watching this this becomes a trend.   I’d love to know what you’re hearing. Please contact me or give me a call me if you want to talk shop.