Are we nearing a recession? What do you think?
The U.S. gross domestic product contracted in the first quarter by 1.5%. The stock market has been tumbling.
Demand for warehouse space has surged as retailers look to avoid supply-chain disruptions. The retail Inflation is stubbornly high. The Federal Reserve plans to continue raising interest rates. Pending home sales have fallen for six straight months and are now trending slightly below 2019 levels. The economy, in short, is on the verge of a recession.Yet, it will not be a straightforward recession.
The bigger problem for the economy is not a lack of jobs but rather a shortage of workers; Statistically, there are two job openings for each unemployed person. However, inflation is gobbling the increase up with an 8% rise in the cost of living. A recession typically means bad news for com-mercial real estate. But this time, the condition of thecommercial market may be an indicator about thedirection of the overall economy. Demand for apartments and single-family rentals is booming because of consistent job gains and affordability challenges in the For Sale market. Low vacancy rates, though, have pushed up average rents significantly this year.
Demand for homes are still outpacing supply and homes were on the market for on average about 17 days. Where exactly is our economy headed and what can we expect?