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"The Federal Reserve will cut interest rates 6 times in 2024 as the economy shows clear signs of cooling down," ING says
"An economy that is showing clear signs of decelerating means the Federal Reserve will cut interest rates at least six times in 2024, according to a Thursday note from ING Economics. Moderating inflation, a cooling jobs market, and a deteriorating outlook for consumer spending mean the Fed may need to cut interest rates more than the market expects."
12/04/2023
"Economists Say Interest Rates Likely To Drop In 2024, But Probably No Time Soon"
"Amidst elevated interest rates, economists predict a peak but unlikely decline until late 2024 or 2025, affecting commercial real estate transactions. The Federal Reserve is expected to maintain the base rate at 5.25% to 5.5%. Recent data shows progress toward the 2% inflation target, with a 3.2% annualized rate. The labor market remains tight, influencing decisions on interest rates. Moody's anticipates steady rates through 2023, foreseeing potential cuts in 2024. Analysts suggest commercial real estate prices may fall if rates don't decrease, creating winners and losers. This environment is compared to the 1980s savings and loan crisis."
11/29/2023
"October Brings Houston’s Highest Industrial Leasing Activity This Year"
"Houston experienced a surge in industrial leasing activity in October, reaching 3.4 million square feet, surpassing the previous high in June. The month saw four deals exceeding 300,000 square feet, contributing to a year-to-date transaction volume of 27.5 million square feet, surpassing 2020's total. Despite the strong leasing momentum in 2022, analysts anticipate a rise in Houston's industrial vacancy, as leasing was down 25% in Q3 compared to the previous year, while supply deliveries decreased by only 10%. The industrial market, both locally and nationally, is facing challenges with rising vacancies amid substantial supply additions."
11/14/2023
"Buffett's Warning: The Looming Storm in the US Real Estate Market"
"Warren Buffett is warning of a looming crisis in the US real estate market, driven by a massive $1.4 trillion debt load. The problem stems from 15 years of low interest rates, which encouraged heavy borrowing and inflated property values. Buffett is concerned that as interest rates rise, there may be a significant correction in the market, with the impact already starting to show. Investors and homeowners should brace for potential turbulence in the real estate sector."
9/22/2023
"Brokerages Increase Cuts, Lower Forecasts For Rest Of 2023" (BISNOW)
"US commercial real estate brokerages are facing financial hardships due to rising interest rates and stalled transaction markets. Companies like Cushman & Wakefield, Newmark, JLL, CBRE, Colliers, and Marcus & Millichap reported revenue declines and dwindling profits in Q2 2023. This is attributed to increased interest rates, higher capital costs, and limited transaction volumes. While some anticipate a market rebound by late 2024, challenges persist, including uncertainty surrounding the future of office space and a sluggish sales market, notably in cities like New York."