Is the Dollar Crashing Your Home Value? The Truth About Real Estate in 2025

[00:00:02] Trump's policies have created confusion in the economy, which has weakened the dollar to levels we have not seen since the pandemic. How is that going to affect the real estate market? Well, it depends on how much confidence there is in the U.S. brand as a whole. Yeah. And right now it's weakening. I know the flip flop on tariffs. And of course, the real question that everybody, the immediate is, is a lot of people are talking about a recession or talking about inflation.

[00:00:30] And don't forget, the Fed has got a hand in this as well. They do. And, you know, Trump, he likes to just say one thing and do another and say one thing and do another. And that's creating confusion in the markets. And confusion is never a good thing in the markets. People like to know what they're investing in. They like to know that it's... Although I did love when he said, hey, everybody, invest in the stock market. We've got some news coming. And that was nuts.

[00:00:59] Yeah. He said something like that. It wasn't quite that. Well, it was... I don't know. But the question everyone, you know, is on their minds is, you know, what about my stock portfolio? What about my crypto? What about real estate? Should I buy? Should I sell? And it's a little bit more complicated than, you know, just this is what's going to happen. So like if X happens, this is what Y happens. But we can look into history and kind of gauge what might happen. Yeah. Let's look at what a lot of you guys may or may not follow the DXY.

[00:01:28] I know probably some of you do, but it's the dollar index. So let's take a look at that. And we're going to jump into this real quick. Just talk about what this is all based around. So the DXY is a measure of the value of the U.S. dollar relative to the basket of foreign currencies. And if you want to dig deeper, you can see which ones. But essentially, it's looked at and used by investors and policymakers, economists, et cetera. And this is essentially what happens and why the DXY is important.

[00:01:56] So when I talk to George Gammon, he always somehow works the DXY into a conversation. He's following the DXY. And so those of you who may or may not follow George, you should. George Gammon, G-A-M-M-O-N. We also are doing a webinar with him on the 21st of April, which we'll talk about in a minute. But the rising DXY means the dollar is getting stronger compared to other currency. And a falling DXY means that it's weakening.

[00:02:25] And so the reason that it's important is because a weaker dollar makes the U.S. products more affordable abroad. And that's actually what people are talking about right now. And then also, a weaker dollar also makes imported goods more expensive, which can fuel inflation. So this could be the precursor to inflation. And so I think and then what we're going to talk about a little bit is inflation could be the reason that we see higher rates.

[00:02:55] So we don't know. There's a lot of different things that can happen. And right now, the DXY has lowered 0.4% in the last 24 hours. And why is that something important for people to keep an eye on? Well, let's take a look at the chart, Jerry. Let's put that chart up real quick because I'd like to look at that. So the DXY is at its lowest point in three years. And so obviously, let's go back. And you can see that it was clearly even a lot lower back in 2021.

[00:03:23] And so this is an indicator of things. And so I'm just going to give you a quick story. So many of you know, when Ross and I started buying a bunch of real estate in the U.S., after the real estate kind of boomed in 2008, we did so by going to Canada and raising money. Okay. So our weaker dollar made the Canadian dollar stronger.

[00:03:52] And so the foreign investment could pour in. So foreign investment particularly could pour in during this weaker dollar. So it's important to see that Trump's agenda is actually a weaker dollar. He's he said so. He's talking about it. And what what it does is it makes our products more affordable abroad. That's what it does.

[00:04:18] And and so that falls right in the line with what he's trying to do here. What it also does is it attracts foreign dollars. Yeah. But when you say that it makes our cheap, our products cheaper abroad, like not compared to like the Chinese. I mean, we have unions. We have to pay people so much now or that's not going to we're not trying to be. I hope not in his mind exporters.

[00:04:42] I think what he wants to do is make imports more expensive, which weakening our dollar does make the stuff we import more expensive. But I don't think he's wanting us to like export anything. Well, I that's why I brought up the Canadian example, because a lot of you guys know that Ross and I went on a buying spree in 2008, 9, 10, 11. And most of it was funded. A lot of it was funded by what was called the RSP or Retirement Savings Plan, which was a Canadian equivalent of a U.S. 401k.

[00:05:11] So when the U.S. dollar and the and the Canadian dollar hit parity, which I think was September of 2007. Parity means that that dollar was equal to the U.S. dollar. That means that the Canadian dollar was strengthening while ours was weakening. That's essentially what it means. And so from a Canadian standpoint, the U.S. is on sale. And and so we went up to Canada. We started raising capital up there. We started buying apartments.

[00:05:39] So so this could be that those are facts. That's not that that is something that actually happened when the dollar weakened. Of course, the other economies have to be strong. That means that the U.S. looks on sale. I think you're being a little bit confusing. So let's rewind a little bit and start at the beginning here. So if we have a weaker dollar, we're obviously going to have higher inflation.

[00:06:05] I mean, that's what happens with the weaker dollar, because anything that we're importing is going to be more expensive compared to our dollar. That's potentially true. Right. I mean, we can't say for sure that inflation is going to go up. But obviously, with the tariffs and everything that we're talking about, the prices are higher. And it would stand to reason that now it could be a year, 18 months, two years before we start to see the real impacts of that.

[00:06:31] So in the argument, you know, with real estate being a hedge against this inflation, it's going to cost more money to build new homes. Yeah. If it's more expensive. If you're using the inflation argument. Yeah. Correct. Yeah. I suppose. Yes. Of course, interest rates could offset that, too. So we'll chat about that. But I'm just saying, let's just look at the cost of building a home, you know, for builders. It's going to be more expensive to build a new product. It already is. Yeah. Like we're already seeing that. Right.

[00:07:00] And so the interest rates right now are what is is deciding whether people are building or not. That's what's happening today. That's what that's been my experience. That's what we're building on today. Okay. So, you know, as as construction debt went up to eight, nine percent, which is what it's at right now, people pull back. So that happened a couple of years ago. Right. Interest rates slowed down construction significantly, which slowed down supply, even though demand was there.

[00:07:28] But even OK, say a builder could build something and sell it for 400 grand and inflation goes up and now they have to sell it for 420 grand in order to make the same profit. That's that helps existing home on real estate. Right. Because if a new product for 20 and it was 400, you know, the price of existing homes could go up, too. Also, if people aren't building as much and there's less inventory because there's no new building, then that can make existing prices go up as well.

[00:07:57] Well, one thing, if tariffs hit construction like it looks like they will. There's no question that the cost of whatever you're building is going to go up. So. Right. But the one thing that can offset that. Is interest rate, because I'm not saying the cost of the home won't go up, but people they solve to the mortgage payment. But typically in times of high inflation, we see higher mortgage rates. We'll see.

[00:08:27] Yeah. I mean, typically that is what we've seen. I mean, everyone keeps saying that they're going to lower interest rates and they might. Right. But if you look at history, when inflation's been high, the Fed has hired rates to try to lower inflation. Yeah. Well, in I think it was June of 2022, inflation hit 9.1. And what did the Fed do? They started increasing rates. Right. That's a fact. Right. Now, the dollar was different then. And now, of course, you know, we hit a three year low.

[00:08:58] And I just want to make this point again. When the dollar hits a low point, traditionally, other currencies rise. So in other words, that European vacation that we're going on in May, it's going to cost us more money. Right. Right. OK. So they're looking at coming to the U.S. Hold on. But before you get into that, because I feel like you're like jumping a bunch of things before you're getting into that. So there could be. But when interest rates rise, let's just talk about not foreign investors, people that live here.

[00:09:27] Let's start with that. You know, if interest rates go up, you're going to have demand go down. And even with all this confusion in the real estate market, we're seeing that in a lot of areas. We're seeing demand for buying going down. We have a lot more inventory sitting. I'm following a bunch of inventory in Phoenix. Nothing that I'm following sold this weekend on the market. So you're going to have that because there's a there's uncertainty and people don't know what to do. And B is the interest rates are high.

[00:09:54] And if they jack them higher, that means your monthly payment is higher unless the prices come down. Well, first of all, interest rates have been high for a while. Yeah. They started jacking them a couple of years ago. They're high already. They are. Period. Yep. Then they've come down a little bit. Right. With the Fed has come down a quarter here, quarter there. Right. So they're already high. Yeah. The 10 years been all over the map. Right. That's the one that that that that we're financing through.

[00:10:23] Those days are here. Yep. What you're saying is you think it's going to go higher. I think it could. I think that what is new the last 30 days, let's call it, is Trump has added a lot of confusion to the market. So now people they're sitting. I mean, I have buyers right now. They're sitting on the sidelines. They're waiting because now they think there has there is all these turbulence in the stock market and the crypto market. Real estate is slower to adjust. And they're kind of unsure of what to do. Right.

[00:10:52] So there this added element is going to create less buyers. And then sellers are thinking with the confusion, I better sell now if I want to sell. I mean, there's definitely been a bunch of new listings that have come to market in the last 30 days. So this is a new element on top of the high rates and everyone's waiting for rates to go down. But traditionally, these tariffs are going to make inflation go up.

[00:11:16] And if they do make inflation go up, then the Fed is either going to keep interest rates where they are or higher them. I don't know. We can't see them lowering them with inflation high. Let's just take a look. Let me go back to 2008, even though you don't want to. In 2008, $1. Today, that same dollar 17 years ago is $1.49 due to inflation.

[00:11:42] 17 years later, that exact same dollar is $1.49. That's what inflation did over the last 17 years. OK, so inflation is here for sure. Inflation is coming for sure. It's been here. You know, the question is, is how much more are these tariffs going to bring? Right. So we are going to have inflation. And even the Fed on their own website says that their target is 2 percent.

[00:12:11] So we know that even the Fed believes 2 percent inflation is the right number. So we are going to have inflation. The question is how much. Right. Right. So is it 2? Is it 4? Is it 5? Is it, you know, 9 like it was in June of 2022? Who knows? Right. Even though that was a snapshot. You know, and then, you know, let's don't forget that what's what's the real inflation. Right.

[00:12:37] There's all kinds of really, really good websites out there that talk about what the real inflation number is. And some people think it's even double. So but let's let's get back to real estate. A weak dollar attracts foreign investment. So that's what I was going to say. So I was going to say.

[00:12:57] So if it was if the market was left to just the basic principles of people here buying and selling real estate, then the weakening of our dollar and inflation and increased rates and less buyers because of the confusion would create lower house prices because of the demand. However, now to bring in your point of the foreign investment, that is where it can shake up the housing market and it might not go that way. So right. So you're looking at it from a single family standpoint and I'm not.

[00:13:27] I'm looking at it from a multifamily commercial investment. I'm looking at it from a foreign investment standpoint. And the foreign foreign money is not going to buy a home in Scottsdale. Right. OK, so but they might invest in BlackRock or something that's by a bunch of single family. That's right. It could be a fund that's that's coordinated because a lot of those big groups definitely have foreign capital. And from that standpoint, yes. You're right.

[00:13:55] And even though everybody is like that, the big institutions jumping into the single family home market. So, you know, so I think we're talking we're going down two separate lanes here. Like, yes, do I think single family homes are going to be more expensive? They already are. Just look, even six months ago, one year ago, that's already happening. Even though we're starting to see some relief in some individual markets.

[00:14:20] What's going to make that change, what will really drive consumption in the single family market are lower interest rates. Not as much inflation, because if interest rates are down in the five, four percent range like they were not very long ago, people are going to refinance. They're going to buy stuff regardless if it goes to four twenty, four fifty, whatever. Like there I know that you're going to have a price run at the same time. There may be locking in at these lower rates.

[00:14:49] If rates go down. If rates go down. Right. Right. So but I think one of the one of the things to watch is is the foreign investment coming into the U.S. I think that's a big, big thing. And a lot of people think that this could be the precursor to potential recession. Right. As people are starting to pull back. So we're talking about consumers. Right. When you when you're talking about a single family, you're talking about a consumer. Right. Right.

[00:15:18] But I don't think you're doing a very good job of explaining why the foreign investment would come in. Like like explain that. Explain why the for I'm not. I understand. Let me let me just talk about the exact story that I brought up already. In 2008. When the Canadian dollar reached parity in September of 2007 with the U.S. dollar, it meant that the U.S. was on sale. That's what it meant.

[00:15:47] That meant because it hadn't reached parity till since 1976. What does that mean reaching parity? That means is that the Canadian dollar is equal to the U.S. dollar. OK. OK. So if you look at the way the U.S. dollar shows up with two foreign currencies, it's important.

[00:16:07] So as a kid, I used to take five, ten dollars and go across to Vancouver, Washington and come back with twelve to thirteen to fourteen dollars with a change. OK.

[00:16:50] That's why we went there. And that's exactly why we put together all these funds to buy these apartments all over Texas. And the reason it worked is because from a Canadian standpoint, from a foreign standpoint, the U.S. looks more affordable. That is the point. Yeah. And that can attract foreign money. And that foreign money can then, you know, increase purchasing here in the U.S.

[00:17:17] And that did that a lot in 2008 after everything crashed out. Yeah. So but the question is, will prices start to go down before this foreign investment comes in? And then secondly, is that if Trump creates so much confusion in the U.S. markets, people might start buying in Europe.

[00:17:37] Like they've said this is very good for Europe and the euro because they have more stability and could still be a good investment because the euro is not as strong as the U.S. dollar. It could be as the U.S. dollar weakens. Foreign currencies get stronger. Right. That's the point. So it really depends on as far as if the market's going to correct on where people invest their money.

[00:18:00] If the foreign investors choose to invest in the U.S., that could mean prices won't go down. Right. But if they if they choose to invest in Europe instead and we don't have that foreign investment and we're just left to domestic investments on deals that don't cash flow and people that can't afford it with high interest rates, then we could see a big correction in the market. If all of those things work per you, then you're right. Right. Right.

[00:18:29] But if they don't, then you're not. Well, that's what I'm saying. Is it correct? We don't know. You know, there's no crystal ball. But these are all the different scenarios that could happen. Traditionally, when the dollar has weakened, real estate prices have went up because of foreign investment. If foreign investment feels like it's too confusing, they don't know what Trump's going to do. They can't predict anything. Then they might not invest here. But I do want to be clear that real estate prices are going up already. Yeah, but we are seeing some softening in prices. Yeah.

[00:18:58] But, you know, what you go from one week on the market to 45 days, that's not really weakening. That's just going back towards stability. It is. But our inventory, at least in this part of town, is higher than it was in 2019. And things are sitting much longer. And we're getting a lot of additional inventory the last two weeks. But if you measure, the right thing to measure is price. Prices have gone up. Since when? Year over year. Yeah, they have gone up year over year.

[00:19:27] Looking at all the different stats. So now, maybe not in the specific sub market that you're looking at. But nationally, prices have gone up. Right? Right. For single family homes. Yeah. But I don't think that that trend is not going to continue into this year. We're definitely seeing softening in not every market, but most markets. Well, but if the weakening dollar happens and high inflation happens, then you will see them go up again. Mm-hmm. Right? It just depends.

[00:19:57] It depends on, you know, the recession. I mean, that's the thing. It just depends. It's impossible to predict. But I'm trying to just show everybody the different scenarios that could happen. Yeah. I know. I'm just saying, I think the big one to watch is that, first of all, a weaker dollar helps the consumer. Mm-hmm. Period. It just does. An inflating economy helps debt. Mm-hmm.

[00:20:24] A weaker dollar helps the consumer. And, you know, for those things that we're selling abroad, it's cheaper for foreign companies to buy them with our weaker dollar. Right. Like, and you're not talking about exports because we don't really export very much, but you're talking about, like, hard assets, like real estate. Yeah. Yeah.

[00:20:48] You know, and so I think, you know, if we break it down and make it really simple, I think we both agree there's inflation. And I think we both agree that prices on single-family holes have gone up. Mm-hmm. And I think we both agree that interest rates have gone up. Mm-hmm. All those things have happened. Mm-hmm. Now we have the tariffs and we have the weakening dollar, right? Mm-hmm. So where will this go from here? Right. Right.

[00:21:17] And from my standpoint, what we saw in 2007, 2008, and the dollar was actually weaker prior to that. It was a precursor. The dollar started getting weak in, like, 2003, 2004. Mm-hmm. And, you know, it just kind of ticked away. I think you're going to start to see foreign investment. So, you know, what does that mean? Who knows, right?

[00:21:43] Back in 2008, 2009, 2010, what it meant was that we had companies outside of the U.S. and people outside of the U.S. investing in the U.S. Right. That's what it meant. Right. And as long as there's confidence in the U.S., I think that's what's going to happen as well. And that's a good point. And hopefully Trump can maintain that. Well, there's no question that he has disrupted our trading partners. We're at a very, very different scenario today. People are not happy.

[00:22:13] The U.S. brand has been tarnished as a result of the push and the pullbacks and all those kinds of things. I don't think anyone's happy with that. Well, and I do want to discuss rents, though, because I think rents are interesting. So if you look at 2008, rents did not go down in 2008 when home prices went down. But you know why? Because people couldn't afford a home. And they moved into apartments and created rent growth. Correct. Right.

[00:22:38] All it did was at the time, if you remember, we were at a 69.2% homeownership at that point, which means 31% renter. Okay. Then it started going to 32% renter, 33% renter, 34% renter. And when you have that many people moving from homeownership to renters without new supply being added because nobody's building during that time, you know, what you're doing is you've driven demand on a limited number of supply.

[00:23:07] And that's what created rent growth. And that's, you know, it's interesting because a lot of these syndicators got in, you know, around 2010, like 2011, 12, 13, 14 or something, you know, and all these people were raising capital on all this stuff. And they thought it was, you know, all it was, was people getting displaced out of homeownership back into the renter side. Right. So it's important to watch that. Yeah. And it's interesting, right?

[00:23:34] Like even with all of this hedging, you know, I'm in the middle of buying something right now, right? Because I don't believe rents are going to go down. Okay. So if it cash flows now, it's going to cash flow, you know, in a few years from now. I just want to lock in with the debt and everything else. But, you know, those that are trying to time the market, it's too confusing to try to time the market. I mean, prices may go down, prices may go up, prices may go down and interest rates may go up and your payment will be exactly the same.

[00:24:00] You know, so you really shouldn't be trying to time anything, but there's definitely a lot going on right now. Well, we're buying a property right now in Scottsdale. It's 280 units. We rate locked at 5.14%. Fannie Mae 35-year amortization. Now, we also did a rate buy-down.

[00:24:25] So, in other words, I was at like 5.4% and we ended up getting it 5.1% after a rate buy-down, which we had to pay for. But it's fixed. And that's why I wanted to know what my mortgage payment was. And the reason for just telling you guys that, that's something I'm in the middle of. That's something we're going to close in May next month.

[00:24:47] When you know what your debt's going to be this year, next year, the year after, and then the rest of the stuff is easier to manage. You know, the occupancy, the rents, the expenses, all that kind of stuff. So, I have a general idea of what this thing's going to cash flow. So, that is a cash-flowing asset that I bought during the middle of all this. Now, is it possible that, you know, this disruption is just going to make more and more people move into rentals?

[00:25:16] Oh, I've already told you my view on that. And I think that the answer to that is yes. I actually think we're heading more toward a rent-ernation, unless there's some big policy that gets people into single-family homes, which I actually think we need. So, Clinton did that. Bush did that. You know, those are policies that, you know, people, homes are unaffordable right now. Let's don't forget about that. And so, people are forced into rentals, which is not good. That's not necessarily a balanced housing market.

[00:25:42] And the only thing disrupting the housing market right now from the multifamily side is the amount of construction that got started two or three years ago. That's all hitting right now. So, we're seeing these one month, two months free, even worse in some markets. And that is actually going to absorb its way out. And then there's no new supply coming. And all of a sudden, you're going to see rent growth again. So, what people really need is they need a step.

[00:26:11] They need something that gets them into that home. And hopefully, I sure hope that this administration does that because that would impact renters. That would impact the multifamily side of the business. But we do need a balanced housing policy that gets people into housing on the ownership side and gets people into the rental. Because the rentals are supposed to be a step toward home ownership. They're not supposed to be a lifestyle. Wow.

[00:26:41] And, you know, and that's where I believe the multifamily should sit. That's where I believe renters. That's what I believe rentals should be. Yeah. It's going to be interesting, you know, as things move forward. The other thing is Trump could just reverse all these policies like he has for the next 90 days. And this could be a great time to buy because this could be the uncertainty that if he decides to not go through with this or he makes it clear what he wants to do and things get certain again, then everyone's going to jump back into the buying pool. Right.

[00:27:08] So this could be a nice law for people looking to buy. And by the way, guys, like, you know, I'm trying to read what you guys are trying to read. I'm trying to figure this out, too. And so is Daniil. So that's why we got George Gammon on. Jerry, you want to put that up? So on the 21st, we're going to actually have George Gammon on this issue. By the way, I know that's only a week. This is going to, you know, this is going to be even worse.

[00:27:36] And so I'm going to come, guys. It's free, obviously. Like, you need to pound George and find out what's happening because he's digging even deeper. And then, of course, we got Jeff Snyder as well that hopefully we can maybe even get into this. So those two guys, if you're not following those two guys, you should. But every time I talk to George, he's always talking about the DXY. So you're going to want to see us on the 21st of this month.

[00:28:06] Yeah, exactly. And so in 2008, because I like to go back to 2008. So you said we had a weakening dollar. Do you know it took time before foreign investors came in? And that's why the real estate market did crash, essentially. Yeah. So I guess a way to say it is right now, everybody's talking about the weak dollar, right? What do you think they're talking about in Canada? A strong dollar. Yeah. Or, you know, their currency being strong. Right.

[00:28:36] Of course. That's what a Canadian would do, right? So that's exactly what's happening. They're looking at us differently than we're looking at them, right? So when they have a strong dollar and we have a weak dollar, that's why. So, you know, people, we already know there's a tremendous amount of investment, foreign investment into the United States.

[00:29:02] And so if you are investing in the United States for any reason, you're looking for these kinds of opportunities. Right? Absolutely. And that's the point. Just like you guys are looking at whatever you're looking at, if you're sitting in some kind of foreign currency and it all of a sudden becomes in a better position as it relates to the U.S. dollar being weak, then you're now looking at moving your positions. Well, it's no different than people when they try to invest abroad and things are cheaper, right?

[00:29:30] So it's the same kind of thing. It's the exact same thing, right? Right. And you want to do that when our dollar is really strong, right? But I do want to get into the fundamentals of a crash, though, because everyone's probably sitting there saying, OK, so, you know, listings are up, the dollar's weak, like everything. I'm just waiting for my next 2008. But you still can't discount the fact that what made people desperate in 2008 was predominantly their adjustable rate mortgages.

[00:29:57] Most of them also put or a lot of them put zero percent down onto their home. Right. So they could easily walk away. So now you're not dealing with that. You're dealing with a lot of people that put money down on their home. They're in a low interest rate. Even if they got their loan the last few years and they're in a, you know, 6%, 6.5% interest rate, they can still, they're qualified to afford the payments. Like nothing's moving. They're not, most people are not in any kind of balloon situation.

[00:30:25] So that's going to affect how much inventory goes on sale because a lot of these homes that you're seeing listed, they may not have to sell. They may be able to just, if they haven't bought anything else, they may be able to just take it off the market. I think that's exactly what's happening. Yeah. This is not 2008. In 2008, people, their loans were more than their homes. Period. There was lots of defaults, lots of foreclosure in the millions. This is not that scenario.

[00:30:55] A lot of people are locked into these sub 4% rates even. You know, let's say they're not moving. You know, they're fixed. Why would they, you know, they can't even afford to move in the exact same neighborhood because their rate is going to be several points higher. So, you know, so they're going to sit and they have lots of equity. You know, these folks today have a tremendous amount of equity in the home and they've got this run if they're, if they participated.

[00:31:23] But let's even talk about the people that don't have a lot of equity. Let's talk about the people that bought in 23, 24. Like a flipper. And no, not even a flipper. Just a person. Right. And say in their home value, let's say has went down a little bit. Maybe. OK. Depends on the market. But they're in a fixed rate that they've been paying the same amount for two years. And so they can obviously afford it. But the other thing is, is they had to put money down. Right.

[00:31:48] So if the average home, let's say, was 500 grand and they had to put down 5%, but usually people have to put down more than that. You know, they put down $25,000 to live in this home. Right. So before in 2008, if you had 0% down and you had just been paying your monthly payments like rent and you could just hand back the keys and nothing was lost. I mean, you just, you know. That's a heck of a point.

[00:32:14] These people have $25,000 plus that they saved into this home. Who would have thought the banks required a down payment? Right. Like that's the difference. By the way, that's a really, really meaningful difference. It's a meaningful difference because say I'm in this house and I paid $500 for it and now it's worth $475 or $450.

[00:32:37] I'm not going to just walk away from it because that means I'm walking away from all this hard-earned money that I put down on this home plus any improvements I did, etc. And rent is going to probably be more expensive than my house payment. Or even if it's a little less, I'm still losing my house. So it's a bigger decision. So I just, you have to consider that when all you guys are out there saying it's going to be 2008 again. I'm going to get everything for half price.

[00:33:02] That means all these people are going to walk away from their homes where they're in low interest rates or they've put a bunch of money down to go rent. And you have to ask yourself, why would they do that unless they have to move for a job, going through a divorce, something like that. And there's no reason to do it. There is no reason to do it if you're in the single family space. On the commercial side, we're routinely putting down over 40% down.

[00:33:27] So the lenders learned, well, most of them learned. However, there's been a huge correction on the commercial side with cap rates actually going up when interest rates actually went up because cash flow went down. When interest rates go up, the mortgage payment goes up and the cash flow goes down. And therefore, that translated into higher capitalization rates or cap rates. And so we've already seen that adjustment.

[00:33:56] And that's kind of working through the system now. The single family market operates extremely different to your point. The banks are now requiring down payments. And most of these people do have equity. They do. Because generally, depending on the market, generally home prices have gone up.

[00:34:15] The ones that we're seeing are the ones that were based on some other model like Airbnb or they're trying to, you know, like cash flow it somehow through, you know, nightly and weekly rentals. But if you're just a normal individual living in a home and you bought it two or three years ago, you're in the money. You're in the money from what you put down and you're in the money for your equity that you probably have made. And you probably have a better interest rate than you do today. Yeah, absolutely.

[00:34:45] So there's no reason to sell anytime soon unless you have to, right? Maybe there's a relocation or something. There could be lots of reasons that people move. But right now, you're not going to do it for a lifestyle change. And we'll see you guys next week. All right, guys. See ya. See ya. See ya. See ya.