With average wage rates increasing slowly (less than 2% annually), there’s no way inflation will occur in the near future. (Outside of Justin Bieber's ego or his rap sheet.) It’s one of the reasons Texas A&M Real Estate Center chief economist and research director Mark Dotzour remains bullish on Texas. We snapped him yesterday at a North Texas CCIM and CREW Dallas joint luncheon, where he tells us interest rates go up because inflation expectations go up, but he doesn't think that'll happen. Treasury rates look stable and the housing market is not going away. He’s watching for growth in conventional mortgage loan volume and applications for purchase. The big prediction: record-high prices this year for commercial real estate sales. Investors will look outside gateway markets to markets like Houston and Dallas to find value and yields.
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