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- The Canovo Report - March 20, 2024 - SUBS
The Canovo Report - March 20, 2024 - SUBS
🗞️ Canovo Report: Ogden triplex sells with over 8% CAP rate, REALTOR settlement could end 6% commissions.
This week in the Canovo Report…
Ogden triplex sells with over 8% CAP rate
Major REALTOR lawsuit settlement could eliminate 6% commissions
Utah multifamily properties see a 9.5% increase in average sold price per square foot
Eyes on today's Fed meeting: Will interest rates drop?
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Happy Investing,
David
// 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.
$790,000
646 E Acoma Rd Midvale Utah , 84047
Type: 2
Est Proforma Cap: 4.94%
Total Monthly Expenses: $1,223.02
Gross Monthly Income: $4,616.00
$525,000
821 W 700 S Salt Lake City Utah , 84104
Type: 2
Est Proforma Cap: 4.83%
Total Monthly Expenses: $803.83
Gross Monthly Income: $3,008.00
$420,000
904 E 21 St Ogden Utah , 84401
Type: 2
Est Proforma Cap: 5.10%
Total Monthly Expenses: $660.40
Gross Monthly Income: $2,522.00
$445,000
5129 S 1900 W Roy Utah , 84067
Type: 2
Est Proforma Cap: 4.77%
Total Monthly Expenses: $677.19
Gross Monthly Income: $2,522.00
$699,900
4735 S Xanadu Cir Taylorsville Utah , 84123
Type: 2
Est Proforma Cap: 4.99%
Total Monthly Expenses: $1,088.40
Gross Monthly Income: $4,122.00
$250,000
244 N 800 W Cedar City Utah , 84721
Type: 2
Est Proforma Cap: 5.55%
Total Monthly Expenses: $410.02
Gross Monthly Income: $1,614.00
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.
Buy Off-Market Multifamily Property in Utah.
// FAIR MARKET RENT RATES
> Below you will find the current Fair Market Rents for each Metropolitan Area in Utah as published by HUD.
Fair Market Rents, as defined in 24 CFR 888.113 are estimates of 40th percentile gross rents for standard quality units within a metropolitan area or nonmetropolitan county.
// 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.
Is it time to sell? Request a Free Brokers Valuation.
// UTAH MARKET SNAPSHOT
> Utah Multifamily (2+ Units): Sold Listings and Price/SqFt
The sold listing count is up 7.59% year-to-date coming in at 85 compared to 79 last year.
The average sold price per square foot is up 9.57% year-to-date coming in at $243, compared to $222 last year.
> Utah Single Family Residential : Sold Listings and Price/SqFt
The sold listing count is down 2.44% year-to-date coming in at 6,278, compared to 6,435 last year.
The average sold price per square foot is up 4.52% year-to-date coming in at $255, compared to $244 last year.
Source: wfrmls
// INTEREST RATES & FINANCING
> Mortgage Rates as of 3/20/2024
Source: mortgagenewsdaily.com
The mortgage market braces for potential volatility today, with the Federal Reserve's announcement poised to influence direction, as rates have recently approached their 2024 high.
Main takeaways:
After a losing streak, average 30-year fixed mortgage rates have nudged back into the low 7s, flirting with the highest levels seen in 2024.
The Federal Reserve's upcoming "Fed day" includes a policy statement, a press conference with the Fed Chair, and the highly anticipated summary of economic projections (SEP), which could either uphold the current rate ceiling or shatter it.
While the Fed Funds Rate doesn't directly set mortgage rates, anticipated changes in the rate's outlook—whether more or less aggressive than expected—will significantly influence mortgage rate movements.
Sponsored by: Spencer Allen | Trillion Mortgage NMLS #2296408
// TOP HEADLINES, REPORTS, & INSIGHTS
Recent data have led to an upward revision of mortgage rate forecasts by the Fannie Mae Economic and Strategic Research Group, casting a shadow over home sales and mortgage originations in 2024.
Main takeaways:
Revised forecasts now predict the 30-year fixed mortgage rate to end the year at 6.4%, an increase from previous estimates, driven by stronger-than-expected jobs numbers and inflation data.
Despite mixed labor market indicators and potential for resumed disinflation, recent data may not assure the Federal Reserve enough confidence to ease monetary policy soon, keeping mortgage rates "higher for longer."
The housing market is expected to face challenges from high prices and elevated interest rates, but an uptrend in existing home sales is anticipated, thanks to life event-driven housing demand and a slight increase in new home listings.
A recent settlement with the National Association of Realtors may lead to significant changes in how real estate agents are compensated, potentially ending the era of 6% commissions on home sales.
Main takeaways:
The settlement challenges the traditional model where sellers determine the commission for both the buyer’s and seller’s agents, a practice that critics argue inflates commission rates unnecessarily.
Changes introduced by the settlement will allow for more negotiation over agent commissions, possibly lowering the costs associated with buying and selling homes and impacting the real estate agent profession.
Despite the National Association of Realtors facing a hefty $1.8 billion jury verdict and agreeing to a $418 million payout over four years without admitting wrongdoing, these reforms, pending judicial approval, aim to transform commission structures starting July.
Recent trends suggest that capitalization rates, influenced by bond yield movements, might have reached their zenith, indicating a possible easing in real estate investment pressures.
Key takeaways:
Survey responses from industry professionals indicate a belief that bond yields have peaked, suggesting a relieving pressure on capitalization rates.
The fluctuation in bond yields, particularly the 10-year Treasury bond, and its subsequent stabilization offers a cautiously optimistic outlook for real estate investments.
Despite a general expectation of stabilization, specific real estate segments, such as Class C urban office properties, may continue to experience pressure, reflecting the nuanced impact of broader economic trends.
// PASSIVE INVESTOR INSIGHTS
This free investor guide will answer the following questions:
What is a real estate syndication?
Who are the players involved?
How are syndications structured?
What are the steps involved in successful syndication?
What are the pro's and con's of investing in syndications?
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! [email protected]
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