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- The Canovo Report - January 2, 2024
The Canovo Report - January 2, 2024
🗞️ The Canovo Report: Utah 2-4 unit property finishes 2023 down 3.5%, Layton fourplex sells for a 6.4 cap rate, ...
Happy Tuesday and Happy New Year! Wishing you all an incredibly happy, healthy and prosperous 2024.
This week in the Canovo Report…
Mortgage rates continue to fall, Layton fourplex sells for a 6.4 cap rate, Multifamily loan delinquencies skyrocket, and…
…Utah 2-4 unit property finishes 2023 down 3.5%.
If you find value in our weekly report, please consider forwarding it to a friend! If this is your first time here, you can subscribe here.
Happy Investing,
David Robinson
Featured Multifamily Listings This Week
> Our team has analyzed these deals 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 learn how we help exclusive investor clients find and acquire top-performing multifamily, click here.
$825,000.00
445 E 535 S Springville Utah , 84663
Type: 4
Est Proforma Cap: 4.71%
Total Monthly Expenses: $1,247.73
Gross Monthly Income: $4,624.00
$749,900.00
1103 25th St Ogden Utah , 84401
Type: 4
Est Proforma Cap: 5.81%
Total Monthly Expenses: $1,260.28
Gross Monthly Income: $5,044.00
$920,000.00
2007 E Nevada Cir Provo Utah , 84606
Type: 4
Est Proforma Cap: 4.14%
Total Monthly Expenses: $1,311.53
Gross Monthly Income: $4,624.00
$650000
2745 S Sierra Park Cir Salt Lake City Utah , 84106
Type: 2
Est Proforma Cap: 5.43%
Total Monthly Expenses: $1054.88
Gross Monthly Income: $4122
$569,900.00
1105 W 10550 S South Jordan Utah
Type: SFR+
Est Proforma Cap: 6.31%
Total Monthly Expenses: $1,001.08
Gross Monthly Income: $4,122.00
$475,000.00
1017 W 230 N Orem Utah
Type: SFR+
Est Proforma Cap: 6.00%
Total Monthly Expenses: $811.94
Gross Monthly Income: $3,286.00
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.
Sold Multifamily 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. Curious about your property's value? Request a complimentary broker's opinion of value.
What is Your Property Worth? Request a Free Valuation.
Utah Market Data
> Utah's 2-4 Unit Property Finishes 2023 Down 3.5%
2023 small multifamily property values defied what many investors expected coming into the year. The Federal Reserve's aggressive interest rate hikes did not cause a significant decrease in residential real estate values, including those for 2-4 unit properties. Although values did decline, the drop was less severe than anticipated. Both buyer and seller activity decreased dramatically from previous years, resulting in historically low transaction volumes and a modest 3.5% reduction in the value of 2-4 unit properties.
With interest rates closing out the year more than 100 basis points below the peak in late October and with multiple rate cuts projected in 2024 it’s likely that 2-4 unit property values will increase in 2024.
> 2-4 Unit Multifamily - Median Sold Price
Source: wfrmls
Interest Rates and Financing
Sponsored: Spencer Allen | Trillion Mortgage NMLS #2296408
> Heading into the New Year, Mortgage Rates Remain on a Downward Trend
The rapid descent of mortgage rates over the last two months stabilized a bit this past week, but rates continue to trend down. Heading into the new year, the economy remains on firm ground with solid growth, a tight labor market, decelerating inflation, and a nascent rebound in the housing market. (more)
Source: freddiemac.com
Other Top News, Reports and Insights
> Housing Market in 2024: Not Enough Supply for Homebuyers
Summary: Heading into 2024, the U.S. housing market is marked by high home prices, elevated mortgage rates, and a tight inventory, creating a challenging landscape for both buyers and sellers. Expert guidance is essential in this complex and unpredictable market.
Key Takeaways:
High Home Prices and Mortgage Rates: The median home sale price remains high, and mortgage rates have increased significantly, influencing buyer and seller decisions.
Tight Housing Inventory: The housing inventory is low, maintaining a seller's market, but there's a possibility of some increase in inventory in 2024.
Market Uncertainty and Need for Expert Advice: The housing market in 2024 is expected to be challenging with uncertainties, underlining the importance of seeking advice from experienced real estate professionals. (More)
> Key Markets That are Most At Risk of Housing Downturns
Summary: ATTOM's Q3 2023 Housing Impact Report highlights the varying degrees of risk in the U.S. housing market, with areas in California, New Jersey, and Illinois being most vulnerable to downturns. The report identifies counties around New York City, Chicago, and parts of California as particularly at risk due to factors like foreclosures, underwater mortgages, and unemployment. In contrast, less vulnerable markets are mainly located in the South, Midwest, and New England, with Salt Lake County in Utah noted as one of the least at-risk areas.
Key takeaways:
High Risk in Certain States: California, New Jersey, and Illinois have the highest concentration of housing markets at risk of downturns.
Factors Leading to Vulnerability: The most vulnerable markets are characterized by higher levels of foreclosures, underwater mortgages, and unemployment.
Utah's Stable Market: Salt Lake County in Utah is highlighted as one of the least vulnerable markets, indicating more stability in the housing market there. (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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