Real estate investors expect to buy and sell more property this year, but Fed actions could alter plans

Real estate investors are preparing to buy and sell more commercial property this year than they did in 2023, but most are waiting to see what the Federal Reserve decides to do with interest rates at its meetings later this year.
The recently released 2024 U.S. Investor Intentions Survey by CBRE Group Inc. (NYSE: CBRE) found more than 60% of respondents expect to purchase more real estate in 2024 than they did last year. That’s up from 16% of investors who responded similarly in last year’s survey.
Still, it’s unlikely there will be a massive buying spree in the coming months, or perhaps even at any point in 2024. The concern cited by most investors in the report — 87% of respondents — was higher-for-longer interest rates, a persistent worry as the U.S. labor market remains strong and inflation continues to hover around 3%. The Federal Reserve has a stated goal of reaching 2% inflation, and it’s signaled rate cuts are coming later this year.
“We’re trying to get comfortable and gain confidence that inflation is on a sustainable path down toward 2%,” Fed Chair Jerome Powell said following the bank’s meeting last week.
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