By BEX Staff | AZBEX
Optimists and pessimists can both find reinforcement of their worldviews in the recently released Capital Markets Q3 2022 U.S. Market Snapshot from Colliers International.
From the beginning of the introductory overview, the report says the current market is “abnormal,” with liquidity challenges stemming not from a banking crisis or eroding fundaments, but arising instead from inflation, geopolitical crises, a strong dollar and fears of a looming recession.
“…real estate investors are facing higher borrowing costs,” the authors state, “creating a wide bid-ask spread on deals in the market. In addition, many buyers are ‘pencils down’ right now, waiting for interest rate stability.”
U.S. Capital Markets and Northeast Region President David Amsterdam and U.S. Capital Markets Research Director Aaron Jodka reported that investment sales set records in the first half of 2022, but that benchmarking in comparison to 2021 is a challenge because of that year’s pent-up post-pandemic demand, low-interest rates and “a risk-on mindset.” Even though Q3 2022 activity finished ahead of the 2014-2019 average, they report the surge in sales has stopped and that “future year-over-year comparisons will look harsh.”