The Canovo Report - January 31, 2024

🗞️ The Canovo Report: The Fed holds interest rates steady.

January 31, 2024

This week in the Canovo Report…

 

New multifamily listings are up 8.72%, a 10-unit hits the market in Heber and…

…the Fed holds interest rates steady with cuts still expected this year.

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Happy Investing,

David Robinson

// TOP INVESTOR NEWS

> Fed Reserve Holds Interest Rates Steady - Cuts still expected this year.

The Federal Reserve press release indicates that economic activity is growing and unemployment remains low. Inflation is still a concern, leading to the decision to maintain the federal funds rate at 5-1/4 to 5-1/2 percent. The Fed emphasizes its commitment to achieving a 2 percent inflation rate and will adjust monetary policy as needed based on incoming data and evolving economic outlooks.  (more)

// NEW MULTIFAMILY 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.

$510,000.00

3160 S 700 E Salt Lake City Utah , 84106

Type: Duplex

Est Proforma Cap: 5.00%

Total Monthly Expenses: $793.75

Gross Monthly Income: $3,008.00

$525,000.00

61 W 7065 S Midvale Utah , 84047

Type: Duplex

Est Proforma Cap: 4.83%

Total Monthly Expenses: $803.83

Gross Monthly Income: $3,008.00

$800,000.00

146 S 300 W American Fork Utah , 84003

Type: Duplex

Est Proforma Cap: 4.04%

Total Monthly Expenses: $1,128.03

Gross Monthly Income: $3,938.00

$5,200,000.00

1378 S Sawmill Blvd #7-703 Heber City Utah , 84032

Type: 10-Unit

Est Proforma Cap: 2.56%

Total Monthly Expenses: $6,162.67

Gross Monthly Income: $17,800.00

$700,000.00

604 N 1280 E Spanish Fork Utah , 84660

Type: Duplex

Est Proforma Cap: 3.81%

Total Monthly Expenses: $963.07

Gross Monthly Income: $3,286.00

$949,900.00

609 E 300 S Salt Lake City Utah , 84102

Type: Triplex

Est Proforma Cap: 3.87%

Total Monthly Expenses: $1,314.82

Gross Monthly Income: $4,512.00

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 REAL ESTATE MARKET UPDATE

> Multifamily Snapshot

Active multifamily listings are up 8.72% today compared to last year with listings that are under contract down 9.43%.

> Single Family Snapshot

Single family active listings are trending right in line with last year while under contract listings are down almost 12%.

Source: wfrmls

// INTEREST RATES & FINANCING

Sponsored: Spencer Allen | Trillion Mortgage NMLS #2296408

 > Mortgage Rates Inch Up but Remain in the Mid-Six Percent Range

The 30-year fixed-rate has remained within a very narrow range over the last month, settling in at 6.69% this week. Given this stabilization in rates, potential homebuyers with affordability concerns have jumped off the fence back into the market. Despite persistent inventory challenges, we anticipate a busier spring homebuying season than 2023, with home prices continuing to increase at a steady pace. (more)

// OTHER TOP NEWS, REPORTS, & INSIGHTS

> Freddie Mac forecasts 2.5% rent growth for multifamily in 2024.

FreddieMac forecasts a moderate economic outlook for 2024 with expectations of a soft landing, projecting slow but positive growth in jobs, wages, and GDP, and a continued decline in inflation. It also predicts a sluggish multifamily market due to a high supply of new units, leading to below-average rent growth (2.5%) and higher vacancy rates, though the market is supported by housing shortages and demographic trends. (more)

> FannieMae projects modest rent growth for multifamily in 2024

FannieMae reports that multifamily rental growth turned negative in the last quarter of 2023, with varying trends across different metro areas, and anticipates continued challenges in 2024 due to high supply and potential economic slowdown. It predicts modest rent growth of 1.0% to 1.5% for 2024, with a national vacancy rate increase to 6.25%, and emphasizes the role of economic factors and new unit deliveries in shaping the multifamily market's performance. (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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