Mark Zandi, chief economist at Moody’s Analytics, gives some insight on what he predicts will occur in 2020 in the real estate economy. Views on job growth, trade wars, presidential election and its impact on the economy. Interest rates are projected to remain relevantly stable with neither an increase nor decrease expected in 2020 and the next anticipated move by the Fed is probably to raise rates in approx. 12 months (2021) in order to stay within long run equilibrium. Viewpoints on all property sectors retail, office, multifamily and industrial.
The outlook for 2020 remains bright, especially as we proceed forward in this election year. Our projection is that we will witness consistent cap rates from the beginning of this year up until the election, with a solid flow of buyer demand for the first two quarters and a bit of a slow period during the summer until the election as buyers tend to historically have a “wait and see” mentality.
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