Is the Real Estate Market About to Change?

With major shifts happening in the U.S. economy, the real estate market is at a turning point. Interest rates remain high, inflation is still a factor, and different sectors of the market are reacting in unpredictable ways.

A recent survey of financial and real estate professionals reflects mixed expectations for the market’s future:

34% (Grade B) believe the market will see some improvements but warn of potential risks.

24% (Grade A) are optimistic, seeing positive trends in specific sectors.

24% (Grade D) expect conditions to worsen or stagnate, citing challenges like sustained high interest rates and inflationary pressure.

17% (Grade C) believe the market will stay the same, meaning most experts foresee some level of change ahead—good or bad.

This signals an inflection point. Some investors see opportunity in undervalued assets, while others are bracing for turbulence. Commercial real estate, in particular, is facing uncertainty in office demand, shifting cap rates, and tightening capital markets.

Predicting the market’s next move is difficult, but understanding how to position yourself within it isn’t. Whether it’s time to buy, sell, or hold, real strategy matters. If you need a valuation or want to stress test your property’s position in today’s market, let’s talk.

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I’d say Grade C, I’m not expecting a lot, but also not panicking. I’ve shifted to “buy and hold longer” strategy, focusing on assets that can sustain decent cash flow even at today’s rates.

I’m also refinancing less and holding more liquidity. This market favors patient capital and strong fundamentals. The frothy days of 2021 are gone, but that’s not a bad thing.

Absolutely at an inflection point. I’m holding multifamily and seeing steady rents, but my friend with heavy office exposure is struggling to refi anything without taking a haircut.
Retail and industrial? Totally different story. Some local strip centers near me have waiting lists for tenants.