Morgan Stanley - Bullish Housing Market Showing Signs of Weakness

According to analysts at Morgan Stanley, The commercial real estate market is showing signs of cracks and weakness that will peak this year.

As commercial real estate is leaning towards a bearish market, the bullish trend for residential housing continues. Many experts believe that the demand for housing will surge in the coming years, especially with commercial real estate on a downtrend.

"We expect 2017 to mark the end of the bull cycle for US CRE," they said in a note on Wednesday. 

The possibility for slow decay, in the growth of net operating income, could be a primary risk factor that would contribute to the decline in the commercial real estate market.