Like a song by The Raconteurs: “Steady, As She Goes,” the Federal Reserve continues to issue declarations that it will not change short-term interest rates until at least 2023.
Even so, nervous investors are unsure of inflation and the impact of trillions of dollars running through an economy in withdrawal mode.
Perhaps the biggest indicators of inflation are assets like stock markets, residential real estate, and commercial real estate.
Despite a significant decline in investment sales in the first quarter of 2021 compared to the first quarter of 2020, prices for certain commercial properties continue to set records.
According to a recent release from Real Capital Analytics, a New York-based real estate research firm, the volume of commercial real estate sales declined 28% in the first three months of 2021 compared to the same period last year.
However, last March was a turning point as sales volume exceeded March 2020 by 11%.
Industrial property prices rose 9.1% yoy in March, the fastest growth among property sectors, while house prices rose 7.1% according to data.
Housing projects continue to enjoy some of the lowest interest rates in history, and the demand for home loan-backed bonds is higher than ever.