Another Expert Votes for a Soft Landing
Economic data have improved incrementally in recent months, signaling perhaps that the economy is headed for a soft landing and commercial real estate could have a strong year overall, according to John Chang, senior vice president of research services, Marcus & Millichap.
In 2022, the outlook in January was for 2.6% growth but then it steadily moved downward through October, when the forecast hit its trough at 0.2%. In 2023, it’s now forecasted for 0.7% growth.
“That sounds like a soft landing to me,” Chang said in a recent economic update video Marcus & Millichap produced.
“Strong jobs creation and consumer spending data early this year make it even brighter. Indications are that data this year will be stronger than expected.”
However, that could trigger higher inflation “and the Fed will feel obligated to raise rates more in March and May,” he said.