Commercial real estate investors in the U.S. are feeling more confident this week after the Federal Reserves' fourth interest rate hike in 2018, according to global real estate consultant CBRE.
CBRE's Chairman, Americas Research and Senior Economic Advisor Spencer Levy explains the impact of yesterday's rise in the 10-year Treasury on commercial real estate investment activity with the following comments:
"The outlook for cap rates in 2019 remains favorable, as debt and equity markets are highly liquid and commercial real estate fundamentals are good (retail, office, multifamily) to strong (industrial). The Fed's softening outlook should give confidence to investors, despite strong but slowing rent growth.
"Notwithstanding some late cycle concerns, the volatility in the stock and bond markets makes commercial real estate even more attractive as a long-term capital strategy and we expect the spread between bonds and cap rates to further compress if this volatility persists. As investors seek yield, U.S. commercial real estate will remain an attractive place to deploy capital."
Nearly three out of four American households believe that the nation is suffering a housing affordability crisis, and a majority of respondents reported this is a problem at their local and state level as well.
A handful of metro areas that spent the past year competing for Amazon's second headquarters - including Washington, D.C., one of the winners - are expected to see their home-value growth outpace the nation in the coming year.
For the week ending November 30, 2018, U.S. mortgage applications increased 2.0 percent from one week earlier. The results for the week ending November 23, 2018, included an adjustment for the Thanksgiving holiday.
According to the National Association of Realtors, pending home sales in the U.S. declined in October 2018 in all regions but the Northeast. The Pending Home Sales Index decreased 2.6 percent to 102.1 in October.
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