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- The Canovo Report - February 14, 2024 - SUBS
The Canovo Report - February 14, 2024 - SUBS
🗞️ Canovo Report: Mortgage rates get crushed by inflation report,
This week in the Canovo Report…
Mortgage rates get crushed by inflation report,
Multifamily price-per-unit up 16% YTD…
and…
Utah Brokerages Targeted in Class Action Lawsuit
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Happy Investing,
David
// NEW LISTINGS THIS WEEK
> Our team has analyzed these properties using our custom bulk property analyzer. If you’d like more detail regarding any of these listings, click the links below.
If you’d like to work directly with our team to find, analyze, and buy top-performing multifamily property in Utah, click here to schedule a Free Strategy Call.
$634,900
3332 Mockingbird Way West Valley City Utah , 84119
Type: 2
Est Proforma Cap: 5.58%
Total Monthly Expenses: $1,044.74
Gross Monthly Income: $4,122.00
$3,950,000
410 N Main St Brigham City Utah , 84302
Type: 37
Est Proforma Cap: 8.07%
Total Monthly Expenses: $7,997.73
Gross Monthly Income: $35,631.00
$999,000
508 27th St Ogden Utah , 84403
Type: 4
Est Proforma Cap: 4.16%
Total Monthly Expenses: $1,427.60
Gross Monthly Income: $5,044.00
$990,000
1470 S Edison St Salt Lake City Utah , 84115
Type: 4
Est Proforma Cap: 5.17%
Total Monthly Expenses: $1,567.35
Gross Monthly Income: $6,016.00
$384,900
944 Kiesel Ave Ogden Utah , 84404
Type: 2
Est Proforma Cap: 5.64%
Total Monthly Expenses: $636.82
Gross Monthly Income: $2,522.00
$425,000
2205 Madison Ave Ogden Utah , 84401
Type: 2
Est Proforma Cap: 5.03%
Total Monthly Expenses: $663.76
Gross Monthly Income: $2,522.00
Canovo Group may not be the listing brokerage for the above properties. The information provided is not guaranteed and should not be relied upon to make investment decisions. Buyers should complete their own analysis and due diligence before making any investment.
Work with our team to find, analyze, & buy top-performing multifamily property in Utah.
// SOLD LISTINGS LAST WEEK
> Here's a roundup of multifamily properties sold over the past week. We've estimated their selling cap rates using our bulk analyzer.
What is Your Investment Property Worth? Request a Free Brokers Valuation.
// MULTIFAMILY (2+ UNITS) YTD MARKET UPDATE
> Year to date (through February 13, 2024), compared to the same period in 2023, Utah's real estate market is exhibiting signs of recovery, both in sales activity and property value growth. There is a noticeable increase in the number of properties sold, and a consistent rise in prices across various metrics – including the overall price, price per square foot, and price per unit. Despite the challenges posed by elevated interest rates and the prevailing uncertainty regarding potential rate cuts, the market is showing resilience. We are witnessing historically lower sales activity, yet it shows an improvement from 2023, alongside a slight uptick in property values. This trend is expected to persist in the near future.
(source: WFRMLS)
YTD Number of Properties Sold
YTD Median Sales Price
YTD Median Price Per Square Foot
YTD Median Price Per Unit
Source: wfrmls
// INTEREST RATES & FINANCING
Sponsored by: Spencer Allen | Trillion Mortgage NMLS #2296408
Mortgage Rates as of 2/13/2024
Source: mortgagenewsdaily.com
> Mortgage Rates Just Got Smoked by Barn Burner Inflation Report
A higher-than-expected increase in core month-over-month inflation, as indicated by the January Consumer Price Index (CPI) report, prompted a significant reaction in the bond market, leading to a spike in mortgage rates.
Main takeaways:
The January CPI report revealed a 0.4% increase in core month-over-month inflation, surpassing market expectations and suggesting a potential resurgence in inflationary pressures.
The bond market reacted swiftly and forcefully to the CPI data, causing mortgage rates to rise sharply, with the average 30-year fixed rate moving from the high 6s to well into the 7s within a day.
This reaction underscores the sensitivity of mortgage rates to economic data releases, particularly those related to inflation, and highlights the ongoing concerns about inflation's impact on interest rates and borrowing costs.…(more)
// TOP NEWS, REPORTS, & INSIGHTS
> Utah Brokerages Targeted in Class Action Commission Lawsuit
Utah has become the latest state to be embroiled in buyer agent commission lawsuits, as a home seller filed a complaint in the U.S. District Court against the National Association of Realtors and several brokerages, marking the first major case of its kind in the state.
Main takeaways:
Dalton Jensen, a Utah home seller, filed a complaint in the U.S. District Court of Utah alleging unlawful conduct and conspiracy to maintain high commission fees, similar to other cases filed across the country following the Sitzer/Burnett verdict.
The lawsuit targets NAR and various national and local brokerages, including Anywhere Real Estate, HomeServices of America, RE/MAX, Keller Williams, Equity Real Estate, Century 21 Everest, Realtypath LLC, and Windermere Real Estate, among others.
This class action lawsuit seeks to represent individuals who have paid a buyer agent commission and used one of the named defendants to sell a house over the past four years through several MLS platforms in Utah, potentially impacting a significant number of sellers and buyers in the state's real estate market.
… (more)
> Here’s the inflation breakdown for January 2024 — in one chart.
The January CPI report shows a 3.1% increase in the Consumer Price Index from a year earlier, marking a decrease from December's 3.4%, reflecting an overall downward trend in inflation, despite slight increases in categories like shelter, food, electricity, and airline fares, suggesting a brief deviation from the broader disinflation trend.… (more)
> New Spike in Single Family Home Listings: Will Seller Re-entry Spread to Multifamily? (Realtor.com)
The housing market experienced a significant uptick in new listings, with a 12.8% increase compared to the previous year, marking the largest jump in nearly three years, according to data from Realtor.com®… (More)
> 32% of Homes for Sale in the Fourth Quarter Were Newly Built—Just Shy of the Record High
In the fourth quarter of 2023, 31.8% of U.S. single-family homes for sale were newly constructed, just shy of the record high seen in the same period a year earlier, attributed to increased homebuilding activity and a decline in the number of individual homeowners selling their homes.… (More)
We hope you found this weeks report valuable. If you have any questions, feedback, or if we can serve you in any way, don’t hesitate to reach out!
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