Let's start off by stating the obvious. No one knows what the end of the year will look like in terms of any of the drivers of market dynamics, and by that I mean the 10-Year Treasury, interest rates or cap rates.
We can make educated guesses about the outlook, but the truth is that there are some powerful–and potentially contradictory–macro forces swirling around the real estate market right now. First is the continued good health of the overall economy and employment. On the flip side, the back and forth taking place inside the Beltway and the worrisome fact of trade wars that threaten that solvency in coming weeks and months. These opposing forces are strong and clear enough to reduce accurate predictions to guesswork.
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