There’s no denying that U.S. consumer debt is high. But despite headlines about a pending mortgage crisis not unlike the one that preceded the Great Recession, data shows that the U.S. economy is not yet ready for a “back to the future” scenario, writes RSM Senior Real Estate Analyst and Partner Troy Merkel. … READ MORE >
Real estate
Low treasury rate is a boost for home builders, neutral for commercial real estate
Bonds have been declining in recent weeks following a 25-basis-point rate cut from the Federal Reserve and expectations of further cuts amid rising concerns over an impending recession. Recession concerns were escalated by the inversion of the U.S. and U.K. two- and 10-year yield curves and the fall of 30-year Treasury yields to 2.07%, a record low. While this trend in the bond market will likely drive down the 30-year fixed mortgage rate and translate to more purchasing power for home buyers, it will do little to juice the market for commercial real estate. … READ MORE >
Real estate investors hope for the best, prepare for the worst—KAYO conference
“Economic cycles and real estate cycles don’t die of old age,” writes Laura Dietzel, RSM senior real estate analyst. “Most of the top industry investors, executives and advisors at the (Kayo) conference agreed that the industry currently finds itself in a mature part of the cycle, as property values throughout the country and across asset classes remain richly priced.” … READ MORE >