Real estate is supposed to be a great inflation hedge, and it can be, so long as cash flow from rentals can increase fast enough to keep up with cap rate compression.
Gross domestic product fell by an annualized rate of 1.4 percent in the opening quarter of 2022. The reduction was driven predominantly by a widening trade deficit, as import volumes climbed rapidly while exports declined.
According to recent research from Stan Johnson Company, the STNL market reported activity at around $21.7 billion. Over the last three months, the sector saw “negligible” movement in the overall cap rate, which moved down 3 bps to 5.84%.
Pending home sales reveal the impact of mortgage rate surge. Upward pressure on mortgage rates from lofty inflation and the Fed’s plan to hike interest rates multiple times this year influence home buying.
Emergency rental aid has helped keep millions of people in their homes during the pandemic. But that federal program will start winding down this summer when it expects to have allocated all of the $46 billion from Congress.
The Consumer Price Index increased by another multidecade high margin in March as multiple factors drive ongoing upward price movements. The widespread economic shutdown in 2020 led to unprecedented levels of fiscal stimulus, engorging the money supply, while the Federal Reserve also boosted liquidity by cutting lending rates and offering new programs.