Should CRE Investors Be Celebrating?
Unemployment Rises To 4.3% in July
- The BLS released data this month showing a 20-basis point rise in the unemployment rate to 4.3%
- As a result, media outlets and investors began discussing the potential for an upcoming recession
Precision Alters Crucial Recession Indicator
- The Sahm Indicator rose to recessionary levels on a rounded basis, sparking heightened uncertainty in the media
- However; on an unrounded basis the Sahm Indicator sits at 49, suggesting we are not entering a recession entering August
Why This Could Be A Turning Point For CRE Investors
- While cooling economic data is usually a bad sign for the economy, this time it could boost the outlook for investors
- CRE Investors have near record levels of capital waiting to enter the market, and deal flow is poised to rise quickly if the Federal Reserve responds to economic softening swiftly
*Through July
Sources: Marcus & Millichap Research Services, BLS
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