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Canovo Group Newsletter - April 2023

Canovo Group Newsletter - April 2023

Median Sales Price Drops 17% - Utah Multifamily Quarterly Report

April 04, 2023

Multifamily Quarterly Update: Q1 2023

Dear ,

I hope this letter finds you well. I wanted to provide you with an update on the Utah multifamily real estate market for the first quarter of 2023. We saw a significant drop in the number of sales, with only 90 multifamily properties sold, a decrease of 56% compared to the first quarter of last year. The median sold price also decreased by 17% to $546,250.

While the current environment has caused many investors to “pause and wait”, we believe that this could present an excellent buying opportunity for those who are willing to take action. As Warren Buffett famously said, "be fearful when others are greedy and greedy when others are fearful."

We will continue to closely monitor the market to understand the longer-term trends and keep you posted of further developments.

If you have any questions about buying or selling investment property, you can schedule a brief strategy call with me here.

Best regards,

David Robinson

The chart below presents quarterly duplex sales data in Utah, including the total number of duplexes sold and the median sold price. From Q1 2022 to Q1 2023, there has been a significant decrease of 52.17% in the number of duplexes sold, with only 55 units sold in Q1 2023. The median sold price also decreased by 10.81%, from $559,500 in Q1 2022 to $499,000 in Q1 2023.

The chart below presents a comparison of fourplex sales by quarter in Utah. In the first quarter of 2022, 56 fourplexes were sold at a median price of $857,500. In contrast, in 2023, only 20 fourplexes were sold at a median price of $856,450. This represents a substantial decrease of 64.29% in the number of fourplexes sold. However, there was only a slight decline of 0.12% in the median sold price between the two years. It is worth noting that the median sales price has significantly dropped since its peak of $975,000 in Q3 of 2022, representing a decrease of 12.1% from Q3 2022 to Q1 2023.

Top Headlines, Reports, and Articles

Utah Luxury Housing Market Plummets (deseret.com)

Fed May Continue With Rate Hikes Even As Inflation Cools (reuters.com)

LasVegas Apartment Operators Resort to Rent Cuts (realpage.com)

This Past Week on The Break Free Real Estate Podcast!

Episodes this week:

LISTEN TO THE NEW PODCAST NOW

Get exclusive access to the top multifamily property in Utah.

This Week on The Lead Sponsor Podcast…

Andrew Young - Managing Partner of NorthRock Companies | TLS249

21 Projects and $1.3Billion in 4 Years In this interview, Andrew Young, the founder and CEO of NorthRock Companies, shares his journey in the real estate industry, starting from his false start in the space to building a substantial portfolio of over 6,000 units and a billion dollars in acquisitions in just a few years. He talks about the challenges he faced and the grind he had to go through to build relationships and close deals. Young also discusses his future plans for NorthRock, which include branching into more institutional-type equity relationships, expanding into the self-storage/flex industrial space, and building a billion-dollar acquisition business in the smaller multi-family space. Overall, Young's story is a testament to the value of hard work, determination, and perseverance in achieving success in the real estate industry.

Show Highlights:

Andrew Young, the founder of NorthRock, shares his journey from a failed real estate venture to building a billion-dollar commercial real estate portfolio in just a few years.
Andrew emphasizes the importance of building relationships and having a data-centric approach to commercial real estate investing.
North Rock is focused on acquiring assets in the multifamily space and has a goal of reaching 30,000 units.
Despite their success, NorthRock is using this time to fine-tune their processes and prepare for the next downturn, which they believe will present a buying opportunity.
North Rock is expanding horizontally into additional verticals, including self-storage and flex industrial space, with a goal of building a billion-dollar self-storage business and another billion-dollar acquisition business in smaller multi-family space.
Andrew highlights the importance of a flat organizational structure and an open-door policy, making himself and his team readily available to answer questions and build relationships.

LISTEN TO THE EPISODE NOW