Wall Street thinks today’s home prices are riding the real-estate high horse, claiming they’re up to 35% too expensive. Big landlords (like Invitation Homes) are basically on a house-buying strike, since their math doesn’t work when mortgage rates are sky-high. Meanwhile, regular buyers just want a place to live and seem happy to ignore investor-friendly “cap rates.” Institutional investors are making ends meet by building new houses or snapping up fixer-uppers instead. Bottom line? Unless borrowing costs fall or prices drop around 10%-15%, the “smart money” is staying on the sidelines—leaving current buyers to foot the bill. https://lnkd.in/etKuyr2j