Fundamental Cap Rate Question
I am graduating with a Real Estate Degree and am trying to keep up with real estate news and the market, so I'm still young have some trouble with general concepts. We are seeing record low cap rates and record high property prices, but at the same time I keep checking the 10 year treasury rate and because of inflation the number is increasing every day. Went from 1.5 to 1.8 this month and I was taught that the cap rate-10 year treasury spread stays consistent, so doesn't that mean that cap rates are due to increase and therefore prices need to drop and properties are overvalued. Would love some clarification, Thanks!