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Canovo Group Newsletter - January 4th

Canovo Group Newsletter - January 4th

Utah duplex and fourplex market trends, 16 unit in Ogden, and

January 09, 2023

Utah Small Multifamily Market Update: Extreme drop in Duplex and Fourplex sales

Hello ,

We hope this newsletter finds you well and that you had a great start to the year. As you know, we are in unprecedented times as we head into 2023, and we want to keep you informed about the current state of the small multifamily markets in Utah.

So, let's start with duplexes. The median sold price reached a peak in Q3 of 2022 at $575,000, but since then it has dropped slightly by 5.3% to $545,000 in Q4 of 2022. The total number of duplex sales also hit a three-year low of only 71 in Q4 of 2022, which is a significant decrease of 60.6% from the 180 sales seen in Q3 of 2021. With the drop in sales activity we expect to see a significant drop in sales prices to follow in the first quarter of 2023.

Utah Single Family - Monthly Median Sales Price

Now let's talk about fourplexes. The median sales price reached a peak of $975,000 in Q3 of 2022, but it has since decreased by 10% to $875,000 in Q4 of 2022. The total number of fourplex sales saw a dramatic drop in Q3 of 2022, with only 23 sales compared to the previous quarter's 55 sales, a decrease of 58.2%. However, there was a slight uptick in Q4 of 2022, with a total of 27 sales, an increase of 4.5% from the previous quarter. Just like with duplexes, we expect prices for fourplexes to continue to decline further in the first quarter of 2023.

Looking at inventory levels on January 1, 2023 compared to 2022, you see a stark contrast. On January 1, 2023, there were 145 total active status multifamily listings on the market in Utah, with only 54 under contract. The previous year saw 77 active status listings and 112 under contract.

Despite a slight decrease in interest rates from their peak in October, we expect to see them remain elevated through the first and second quarters of 2023. This is likely to continue to dampen demand for multifamily properties, leading to an increase in inventory levels and a decrease in the median sales price.

If you have any questions about your specific buying or selling needs, don’t hesitate to reach out to discuss. You can grab a quick phone call here.

Recent Utah Multifamily Activity

West Valley Duplex

Built in 1972, 7 Beds, ~3300 SqFt in West Valley City. Sold for $545,000 cash. sold by: Canovo Group

16 Unit in Ogden

Built in 1924, 16 beds, 16 baths, sold for $2,500,000 with cash. sold by: Bluemountain Realty

Midway Duplex

Built in 2022, 6 Beds, 3700 SqFt in Midway Ut. Asking $1,590,000. Request More Info Listed by: Mountainland Realty

Turn-Key Fourplex

Built in 2019, 12 Beds, 12 baths, ~6700 SqFt in Eagle Mountain. Asking $1,350,000. Access Details Here. Listed by: Canovo Group

Considering selling your multifamily property? Request a free brokers opinion of value.

Top Headlines, Reports, and Articles

U-Haul Report Shows Top States for In-Migration in 2022 (U-Haul)

Housing market trends to watch for in 2023 (Realtrends.com)

Salt Lake City may require new apartments to be EV-ready (sltrib.com)

Welcome to the team!

We are extremely excited to introduce Jocelyn Kaufman as the newest member of our team! Jocelyn has a background in collegiate and professional athletics and earned a masters degree before becoming a highschool teacher. She has since gone on to build a portfolio of 52 rental units and brings a wealth of investment property knowledge to our team.

This Week on The Lead Sponsor Podcast…

Buying 1 Billion in 5 Years; Navigating the 2008 Recession; Explosive Growth Strategies - with Gideon Pfeffer | TLS237

Show Highlights:

His business structure - 3 partners, 25 employees, 7400 units under management
His buying criteria
His journey from mortgage broker, to fix and flip, to buying thousands of foreclosure homes for institutional buyers, and his transition to multifamily.
How he navigated the previous recession.
How he built his business and acquired 1 Billion in multifamily in 5 years.
Predictions for the multifamily market in the next 12 months.
Advice for up-and-coming sponsors.

Guest Bio:

Gideon Pfeffer serves as the CEO and Managing Partner for The GSH Group, a full-service real estate investment firm focusing on existing residential multi-family apartment communities. Gideon is responsible for strategic partnership initiatives and ventures, equity and debt opportunities, overseeing investment performance, and approving decisions on investments and acquisitions. He also oversees daily operations. Under Gideon's leadership and direction, the GSH Group has raised and placed over $300 million of equity and assembled a portfolio of over 7400 apartment units in five states, worth over a billion dollars.

LISTEN TO THE EPISODE NOW