Contributed by Adaptive Analysis.
Real estate has always been a coveted commodity worldwide. While other asset classes like stocks, bonds, commodities, precious metals, and crypto are attractive to certain demographics at certain times, they don’t have the same universal appeal as real estate.
For the average consumer, home ownership is the goal. For the wealthy and business savvy, expanding the real estate portfolio and identifying profitable opportunities are the primary goals. Regardless of where a person falls on the spectrum, real estate has always been a hallmark of the global wealth market.
But the dynamics of home ownership are changing. It’s more expensive than ever for people to make their dream of home buying a reality. Rampant inflation, interest rate hikes and global supply chain constraints are driving prices higher. The rise in US home prices has outpaced the run-up to the 2008 housing crisis.
Source: fred.stlouisfed.org
The prospect of home ownership could become unattainable for a growing proportion of the US population. But for bitcoin holders, it can be a different story. While the median property price in the US is currently around 16 BTCAnalyst Tuur Demeester expects this to drop to 4 BTC by the end of 2024.
An average home in the US currently costs around $428,000 which would be around 20 BTC at the current trading price of $21,000. Demeester’s forecast obviously hinges on a strong recovery in Bitcoin’s price, which is roughly 70% below its November 2021 high.
However, with a series of higher highs and higher lows forming since mid-June, the market could already be bottoming out. There will also be another block subsidy halving in March 2024, with such events usually coinciding with broadly optimistic anticipation.
The evidence paints a promising picture for Bitcoin holders. Those who have invested heavily can see their patience paying off in the form of affordable housing. However, as with any market, there may be unforeseen developments that alter forecasts.
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