In the commercial space, government intervention also ensured recalcitrant tenants could not be moved on easily, however the new money created flowed into the hands of institutional investors and ensured that capital values remained high despite poor income performance from retail, office and hotel assets in particular. Similarly, homeowners around the world confirmed their investing genius with yet another year of double-digit price growth despite everything that had taken place. When mortgage repayment holidays started to wind down towards the end of the year a minority of stretched borrowers were forced sellers, but luckily sold into an incredibly strong market with prices ensuring they mostly sold at profit. Institutions and middle/upper-class households with secure jobs were equally flush with cash and began to put it to work in the second half of 2020. However, after the northern hemisphere summer and complete recovery of equity markets, the real estate sector followed suit and “got on with it” despite some of the practical transactional hurdles still remaining.
The ability to travel, see, touch and feel real estate and the economic uncertainty created by the government’s response to the pandemic was a perfect storm. For a while, the real estate market completely stopped transacting. Banks “did their part” by allowing holidays for mortgage repayments. Before we examine what the real estate market looks like under hyperbitcoinization we’ll recap what happened during the transition, starting in 2020 …Īs part of their COVID-19 pandemic response, many governments introduced moratoriums on evicting tenants from residential rental properties – after all, jobs had been lost and livelihoods destroyed by their lockdowns. The real estate market functions rationally again. In a world now operating on a Bitcoin standard, those that create actual value are rewarded and the parasites that once fed off the money printer are scratching their heads as to how it all happened. The world – and the real estate market – have changed forever. Part 2 will explore what the real estate market could look like on a Bitcoin standard. Naturally there are elements of fun and fantasy to this exercise. This article attempts to predict what the transition to hyperbitcoinization will look like through the lens of the real estate market.
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