Maybe it was because Spring is around the corner, but the mood at the NIC in Dallas was relatively better, especially compared with the mood of the last three conferences when rising interest rates soured things in Fall 2022, the banking crisis of early 2023 affected last Spring and last Fall most were resigned to the reality of high rates and low values. That acceptance of the present market conditions means that almost no one is happy, but that they are more ready and willing to do deals again. And we heard of more performing, Class-A properties and portfolios hitting the market and receiving interest from buyers. More than in the previous year. On the lending side, banks are not totally back, even though many local and regional banks have come through on deals, and Freddie Mac is still active and ready to do deals, even as Fannie Mae takes a step back. But cash buyers are still largely necessary for the non-performing properties.
However, we have to imagine that if the latest higher-than-expected-inflation news came out before the conference, the NIC could have been more somber. Most that we talked to agreed that we were in for maybe one rate cut this summer, but we may be waiting a little longer now. A cynic would believe that in an election year, the Fed will not be able to withstand the pressure to lower rates sooner. But the Fed is independent, right?
