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The U.S. economic expansion is now almost six years old, already making it longer than the average expansion since WWII; however, all signs indicate that growth will continue for at least several more years. Job gains are very strong and are now spanning across all regions, all pay grades and all industries (excluding energy). Official GDP growth numbers could end up disappointing in the first quarter, but economic growth should rebound in the spring and this year will trend at a respectable 3% pace.
Most importantly, the labor market is not yet at maximum employment, businesses are not operating beyond capacity, inflation pressures have not yet developed, interest rates remain low and banks/businesses/households have not overextended themselves. All of which means that the U.S. economy is far from overheating. And, of perhaps greater importance to our readers, the U.S. real estate cycle remains in expansion mode and property market fundamentals are continuing to improve. Nevertheless, property investors would be wise to keep their eyes wide open and remain mindful that even the longest of economic expansions will not last forever.
Source : CBRE Global Investors
