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Fairbury, NE (Southeast) | It looks like a much softer landing than 40 years ago.
-As stated, insurance stucture.
-More equity required for purchase.
-More existing equity even considering a future 30% real estate correction. Many, not all of those buying are nowhere near as leveraged.
-Locked rates on land
-Fed is not near as hawkish, still more concerned with economy rolling along. Supposed rate cuts later in the year?
-Balance sheet on most is vastly stronger from mid 80's. Sure there is a high flyer segment of the industry that will have their ears pinned back, but it is a smaller percentage than the 80's.
-Anything is possible in 24-36 months. If the fed pivots and resumes rate hikes, corn continues its descent, or some world black swan deal hits, the S could truly HTF.
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1986?
