Expectations and Market Realities in Real Estate
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Investors are traveling into uncharted territory as the US economy’s expansion surpasses its 10-year anniversary in July 2019, which would break the record for the longest economic expansion since the government started collecting records in the 1850s. Unemployment fell below 4% – which would have been almost unthinkable a decade ago – without sparking inflation to rise much above 2%. While it is certainly good news that the economy has been growing for a decade in the wake of the worst downturn since the Great Depression, many fear that another downturn could be on the horizon. Investors are worried because they know nothing good lasts forever, and they see potential disruption in the economy – perhaps caused by political turmoil around the world, the potential for continued raising of interest rates, or uncertainty caused by global trade discussions. In 2018, the stock market rode a roller coaster and ended down for the year.
So we enter 2019 asking the question: What will the year bring for the US and global economies and the commercial real estate market?