Don Peebles, the founder and CEO of Peebles Corporation, on stage during a segment on CNBC’s ‘Power Lunch.’ He wasn’t afraid to take on controversial topics within the real estate business. His last visit was only 22 minutes ago. His emphasis was on the big problems that investors are sifting through now, particularly with regard to interest rates.
Later on in the segment, Peebles drove home the point that increasing interest rates have emerged as one of the biggest migraines for real estate developers and investors. He continued to explain how these rates affect whether or not to invest in real estate and the predictive health of the real estate market. He considers higher borrowing costs a deterrent to new homebuyers. As you can imagine, this slowdown in market growth has a huge ripple effect throughout the industry.
Peebles further elaborated on how various income groups have fared in the current market. He pointed out that even as some parts of Kansas are in an economic swoon, other parts of the income ladder are doing just fine. This concerning observation further emphasizes the inequitable recovery of the real estate industry. Part of what’s driving this is that all investors are not equally feeling the financial squeeze.
His observations couldn’t come at a more opportune time. For many investors today are looking at whole new ways to know what’s going on with a changing economy. Peebles comes to the position with considerable industry experience. He’s weathered many recessions and expansion market cycles over his career so far, making his guidance on these dynamics indispensable.
As the discussion continued on ‘Power Lunch’, Peebles offered his insight on how investors should reposition themselves in light of these threats. He highlighted the importance of strategic planning and staying informed about economic indicators that may influence the real estate landscape.