“There is too much money chasing deals.”
That was a popular phrase back in the golden years of 2006 and 2007 when it was hard to find a real estate deal to invest in that had sufficient yield. Cap rates were low, prices were high and buying intensity was fierce.
If you thought there was too much money chasing real estate deals in 2007, there is even more money chasing the same deals in 2013. Since 2007, the United States, Japan, Europe and China have printed trillions of new “dollars.” New construction has been stymied by tight credit in America. So there are trillions of new dollars chasing the same U.S. real estate.
Read more...CRE Prices Still Increasing | the Blog of the Real Estate Center