Most Sectors Near Peak, But Crash Unlikely: RCLCO
ByThough the report doesn’t use this term, the Q2 2017 State of the Real Estate Market Chartbook from RCLCO seems to indicate that the current CRE cycle might be heading for a soft landing.
In the report’s words, “Multiple metrics and indicators suggest that we are in or nearing a ‘late stable’ stage of the market cycle for most property types in most geographies.” Multiple property types in some metro areas (for example, Washington, D.C., and Houston), as well as multifamily nationwide, “appear to have surpassed ‘peak’ conditions at this point, though we have no reason to expect a sharp downturn.”
“On balance, we anticipate moderating, though still generally positive, operating and investment performance for the duration of 2017 and into 2018, resulting largely from a strong economy and healthy property market fundamentals,” concludes RCLCO, of Los Angeles…
