- The Canovo Report
- Posts
- The Canovo Report - October 31, 2023
The Canovo Report - October 31, 2023
🗞️ This Weeks Top Multifamily Listings; FannieMae Slashes DownPayment Requirement for 2-4 Unit; Salt Lake To Break 20 Year Supply Level
Happy Tuesday!
Check out this week's Top New Multifamily Listings, last weeks Sold Listings, and our Multifamily Market Snapshot and News Headlines.
If you have any questions about buying or selling multifamily property in Utah, you can schedule a brief strategy call with me here.
Happy Investing,
David Robinson
💰 Sold Multifamily Listings Last Week
Here are the multifamily properties that have sold this past week. We have estimated their selling cap rate using our bulk analyzer. If you’d like an estimate of your properties value, you can request a free brokers opinion of value here.
What is Your Property Worth? Request a Free Valuation.
🔥 New Multifamily Listings
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 clients find and acquire off-market multifamily, click here.
469800
4354 S 3600 W West Valley City Utah
Type: SFR+
Est Proforma Cap: 7.83%
Total Monthly Expenses: 933.85
Gross Monthly Income: 4122
$450,000.00
1359 36th St Ogden Utah
Type: SFR+
Est Proforma Cap: 6.78%
Total Monthly Expenses: $822.45
Gross Monthly Income: $3,468.00
$639,900.00
1220 W 500 S Salt Lake City Utah , 84104
Type: 3
Est Proforma Cap: 6.13%
Total Monthly Expenses: $1,106.60
Gross Monthly Income: $4,512.00
$1,060,000.00
1713 N Main Sunset Utah , 84015
Type: 6
Est Proforma Cap: 6.22%
Total Monthly Expenses: $1,846.87
Gross Monthly Income: $7,566.00
$469,900.00
953 E 1225 N Ogden Utah , 84404
Type: 2
Est Proforma Cap: 6.46%
Total Monthly Expenses: $835.82
Gross Monthly Income: $3,468.00
$340,000.00
1750 W 750 S Vernal Utah , 84078
Type: 5
Est Proforma Cap: 11.16%
Total Monthly Expenses: $848.62
Gross Monthly Income: $4,135.00
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.
📊 Utah Market Snapshot
📰 Top News, Reports & Insights
Fannie Mae Slashes Down Payment Requirements For 2-4 Unit Multifamily Homes to 5%
Summary: Fannie Mae's recent policy change reduces down payment requirements for owner-occupied multifamily homes to 5%, a move lauded by industry experts for its potential to enhance affordability and stimulate growth in real estate investments.
key points:
Significant Down Payment Reduction: Starting from the weekend following Nov. 18, 2023, Fannie Mae's down payment requirements for owner-occupied 2-, 3-, and 4-unit homes will drop to 5%, a notable decrease from the previous 15-25% requirement.
Industry Reception and Impact: The change is seen positively by many industry experts, such as Thrive Mortgage's COO, Donielle Geiser, who emphasizes its potential for increased affordability, especially for younger homeowners seeking to combine equity building with an additional revenue stream.
Comparison with FHA Program: The reduced down payment requirement could position Fannie Mae favorably against FHA's program, which mandates a 15%-20% down payment, potentially making it a more attractive option for potential homebuyers and investors.
Salt Lake City To Break 20+ Year Multifamily Supply Levels
Summary: The article evaluates how current peaks of apartment construction in different markets compare to their historical peaks, categorizing them into five tiers based on the volume of new supply relative to their historical absorption capacities.
Key Points:
Tier 1: Big Supply - Markets like Austin, Raleigh, Salt Lake City, and Nashville are adding significant supply and surpassing their previous peaks; although historically adept at absorbing large supplies, they might face short-term leasing challenges.
Direct relationship between supply levels and rent - As supply increases, especially in high-supply areas, rents are declining and are expected to continue to do so in 2024.
Salt Lake City's surge in construction - Salt Lake City is among the cities in Tier 1, signifying that it is surpassing its previous construction peaks and, while it has historically been able to absorb new properties, it may face challenges in the short-term due to the increased supply.
Mortgage Rates Keep Rising Because the Economy Keeps Growing
Summary: Rising mortgage rates are linked to an unexpectedly robust economy, with factors like a resilient job market and high consumer spending driving up treasury yields, which in turn increase mortgage rates.
key points:
Connection between the treasury yield and mortgage rates: The 10-year treasury yield, which has seen a sharp increase since summer, is the main driver behind rising mortgage rates; typically, mortgage rates are about three percentage points higher than the treasury yield.
Economic indicators supporting higher rates: The U.S. economy displayed strength with a 4.9% GDP growth in the third quarter, influenced by consumer spending on entertainment and dining; however, external factors like worker strikes and global events might slow this growth in the upcoming quarter.
Labor market resilience: Despite expectations, the labor market has been robust, with September's jobs report showing the U.S. adding more jobs than anticipated and October's early indicators hinting at continued strength.
Copyright (C) " target="_blank">unsubscribe