Elon Musk’s prediction that the U.S. residential real estate market is on the cusp of a collapse received a sharp rebuke from Glenn Kelman, CEO of the brokerage Redfin (NASDAQ:RDFN).
On Monday afternoon, the Tesla (NASDAQ:TSLA) chieftain offered a doom-and-gloom prophecy on Twitter in response to comments made by David Sacks, the Craft Ventures founder, regarding the state of the commercial real estate market.
“Commercial real estate is melting down fast. Home values next,” Musk tweeted.
While Musk’s comments did not generate an immediate reaction from the housing sector, Kelman responded with his own tweet aimed at Musk.
“But the loss in demand for commercial real estate is what’s driving demand for residential real estate,” Kelman tweeted. “People who work from home need more space at home. Sales volume is down because inventory is down. Today, home prices increased for a second straight month.”
Kelman added, “Inventory is at roughly two thirds the levels it was pre-pandemic, from 2016 – 2019, during a strong seller’s market.”
Musk did not respond to Kellman. Unlike Musk, Kellman is an occasional participant on Twitter – his most in-depth Twitter input recently was an April 27 thread that detailed how Walt Whitman earned the funds to publish “Leaves of Grass” by working as a real estate broker.
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Couldn’t agree more with Redfin CEO. At least in SOFLO the demand is much higher than the supply, despite increasing significantly since Covid. If supply wasn’t an issue, we Realtors and lenders would have a FIELD DAY!!! Land is hard to find for builders down south, but FLORIDA as a whole is opening up more “up and coming” areas that have been kind of ignored.
Same in the NW Mountains of NC. Where actually, lots of FL folks buy second homes.
Our inventory os so low, everything worthwhile is snapped up in days of listing. And demand here is growing.
Elon Musk is often correct on issues but you cannot really compare commercial to residential real estate. Commercial is just that,totally a business investment. Residential is where you live first then an investment. Investments that were once. As for a similar assets and now becoming liabilities are a problem for the banking sector. This may spill over into higher interest rates for residential and further slow the housing market. As for a looming housing crash though,very unlikely.
Yeah, Musk, like his “auto-pilot” cars, should learn to stay in their lane!
The plan from the start when 6 bankers secretly met on Jekyll Island in 1911 to draw up plans for the currently bankers cartel called the Federal Reserve System, which is controlled by the NY Branch of the closely-held, private corporation called theFederal Reserve Bank, was to artificially create inflation to quietly steal away the wealth of America and then to one day crash and burn all the other banks to secure a monopoly on banking.
The plan is almost to fruition and that day is almost here. Everyone must choose whether they will accept this new form of slavery, or whether to reject it and remain free men. There is no middle ground.
Miguel M is ferociously snarling and baring his teeth in defense of his “bone”, but the bone is already lost. Musk is only being kind & gracious enough to offer a pearl of wisdom by pointing this out to him. But Christ said “Do NOT cast pearls before swine for they will trample the pearls and then attack you”. Musk just experienced this, and nw he is silent because he is determined not to cast and waste another pearl. He is content to let the crash of the commercial market proceed, followed by the crash of the residential market, all while watching the frantic and violent denials of reality by those who depend on the industry for their living, but who are unable to grasp what is happening because they “don’t believe in conspiracy”.
Mr. Moll, I don’t know where you learned about the banking system, but I would certainly like to see your sources for the above statement so that I can study and learn from them as well.
Really! We’re going to listen to Redfin. The only thing this company knows how to do is lose money. They, like Zillow, are learning that real estate is LOCAL! Trust your local professionals. Their ibuying technology cost both companies millions of dollars in losses and have not stopped laying off people. I would certainly listen with caution to what Elon has to say regarding real estate but I would avoid anything that comes from Redfin or Zillow or the like.