On The Market The First Domino? Investors Pull Billions as Real Estate Bank Runs Return
11 snips
Mar 24, 2026 Investors are withdrawing billions from real estate funds in bank-run style redemptions. Mortgage rates jump back to around 6.5%, reshaping buyer leverage and deal opportunities. Corporate headquarters conversions into housing emerge as a new supply solution. A proposed millionaire tax threatens to alter where high-return investors operate.
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Rates Rebound Could Improve Deal Quality
- Mortgage rates rose back to ~6.4–6.5%, likely slowing buyer demand and increasing inventory this spring.
- Dave and panel note this can create better long‑term deal quality for investors despite short‑term pain for sellers and flippers.
Use Market Lulls To Negotiate Concessions
- Negotiate more aggressively when rate‑driven lull hits: ask for rate buy‑downs or seller concessions.
- Henry and James stress using strong buyer representation to convert slower markets into better terms.
Cities May Fast‑Track Office‑To‑Housing Conversions
- Cities are proposing converting vacant corporate HQs into housing to preserve tax revenue and add supply.
- Duracell HQ in Bethel (43 acres, workforce down to ~20) is a test case where the city offers to remove roadblocks.
