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- The Canovo Report - January 23, 2024
The Canovo Report - January 23, 2024
🗞️ The Canovo Report: New Multifamily Listings
This week in the Canovo Report…
New multifamily listings, sold multifamily properties are up while median sales price is down, and …
…Utah ranked 13th among top growth markets in 2023.
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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 buy top-performing multifamily, click here.
$499,900
3016 W 1050 N West Point Utah , 84084
Type: Mother In Law
Est Proforma Cap: 6.10%
Total Monthly Expenses: $821.29
Gross Monthly Income: $3,468.00
$465,000
5174 W Silvertip Dr Salt Lake City Utah , 84118
Type: 2
Est Proforma Cap: 8.02%
Total Monthly Expenses: $889.41
Gross Monthly Income: $4,122.00
$6,500,000
4570 S 200 St Salt Lake City Utah , 84107
Type: 24
Est Proforma Cap: 4.73%
Total Monthly Expenses: $9,419.27
Gross Monthly Income: $36,096.00
$350,000
572 N 100 W Logan Utah , 84321
Type: 2
Est Proforma Cap: 4.50%
Total Monthly Expenses: $496.04
Gross Monthly Income: $1,864.00
$1,590,000
2060 E 3035 S Salt Lake City Utah , 84109
Type: 4
Est Proforma Cap: 4.36%
Total Monthly Expenses: $2,222.11
Gross Monthly Income: $8,244.00
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
> A Quick Look at the First Three Weeks of 2024
As we push through the first three weeks of the new year, we are taking a quick look at the number of sold units and median sales price for multifamily property in Utah. While multifamily sold units are up 33% compared to 2023, the Median Sold Price for Multifamily is down 2.48% from $618,000 in 2023 to $602,650 this year. This is obviously a very small sample size of data but we’ll keep an eye on this trend to see if it continues.
Source: wfrmls
Interest Rates and Financing
Sponsored: Spencer Allen | Trillion Mortgage NMLS #2296408
> Mortgage Rates Decrease to Lowest Level Since May of 2023
Mortgage rates decreased this past week, reaching their lowest level since May of 2023. This is an encouraging development for the housing market and in particular first-time homebuyers who are sensitive to changes in housing affordability. However, as purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale. (more)
Source: freddiemac.com
Other Top News, Reports and Insights
> Mortgage Rates Expected to Dip Below 6 Percent in 2024, Boosting Home Sales
The ESR Group predicts a gradual return to normalcy in the housing market for 2024, expecting mortgage rates to drop below 6 percent and bolster home sales and refinancing activities. Despite these positive trends, challenges like stretched housing affordability, supply shortages, and a slow economic growth forecast suggest a cautious outlook.
Key Takeaways:
Mortgage rates are projected to fall below 6 percent by the end of 2024, potentially doubling refinance volumes and increasing the annualized pace of existing home sales to 4.5 million units.
The housing market is anticipated to make a slow recovery, with new single-family home starts and sales expected to exceed 2023 levels, but overall home price growth is predicted to slow to 3.2 percent.
The economic forecast for 2024 indicates positive but below-trend growth, replacing previous predictions of a modest recession, yet highlights ongoing risks including a higher-than-normal chance of a recession. (more)
> Treasurys Don't Always Fall When the Fed Cuts
While there's a cautious optimism about inflation rates reaching the Fed's target, the uncertainty about the direction of Treasury yields persists, especially considering historical trends and the current economic context.
Key Takeaways:
Economists forecast a decrease in Core PCE to 3.0%, the lowest since March 2021, indicating progress towards the Fed's inflation target, with the potential to reach 2.4% by the end of Q1.
The market anticipates rate cuts by the Fed, with a 50% chance of a cut in March and a 99.4% chance by June, aiming for a Fed Funds rate between 4%-4.25% by year-end.
Historical trends suggest that the 10-year Treasury yield may drop by about 1.5% from its peak during easing cycles, yet there's caution against assuming a significant decrease in yields in 2024 unless the market foresees the Fed cutting rates more than currently priced in. (More)
> Utah Ranks 13th Among Top 2023 Growth States (U-Haul)
The U-Haul Growth Index for 2023 highlights Texas and Florida as the top growth states, with Southeastern and Southwestern states showing strong appeal, while California and some Northeastern and Midwestern states experienced significant outflows. Utah is also noteworthy, maintaining a robust position in the growth rankings.
Key Takeaways:
Texas and Florida dominate the growth index, with Texas leading for the third consecutive year and Florida closely following, indicating their sustained desirability among movers.
California recorded the largest net loss of movers, with other states like Michigan, New Jersey, Illinois, and Massachusetts also experiencing significant declines.
The U-Haul Growth Index reflects prominent migration trends, with Utah ranking 13th and showing its attractiveness as a destination, while the Southeast and Southwest generally exhibit strong growth, and the Northeast, Midwest, and West Coast see notable reductions in one-way U-Haul equipment transactions. (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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