Where do you think we are in the cycle?

picklemonkey's picture
Rank: King Kong | 1,708

I would love to hear different people's opinions on this topic. I have talked with several different people recently and many seem to think we are approaching the end of this cycle (maybe less than 12 months until a pullback). The markets are flooded with capital chasing deals and yield. The availability of aggressive financing is further motivating people to do deals now as opposed to waiting until rates eventually start to rise. Cap rates are near record lows, but this is at least partially supported by low interest rates.

On the other hand, I have heard the argument around the flood of foreign capital and the "flight to safety" as our economy continues to move along at a modest pace and other countries struggle it seems there might still be some time left in this particular cycle. In many areas of the country there is still a good deal of pent up demand for several different asset classes.

What do you think?