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Hot CPI Report May Tamper Fed Cuts
+5.46% - Multi-Unit Values Stay Elevated; Springville 8-unit listed for $2M; Ogden 15-unit sells for $138k per unit
David Robinson
September 11, 2024
This week in the Canovo Report…
Hot CPI Report May Tamper Fed Cuts
+5.46% - Multi-Unit Values Stay Elevated
Springville 8-unit listed for $2M
Ogden 15-unit sells for $138k per unit
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
New 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.
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 Listings
> Here's a roundup of multifamily properties sold over the past week. We've estimated their selling cap rates using our bulk analyzer.
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Utah Market Snapshot
Sold Listings | Multi-Unit (2+) | Single Family |
|---|---|---|
YTD Med Sold $/SqFt | + 5.46% | + 3.46% |
YTD Listings Sold | + 18.54% | + 1.61% |
Active Listings | Multi-Unit (2+) | Single Family |
|---|---|---|
Med Asking $/SqFt | +.18% | +1.58% |
Total Active Listings | +39.15% | +21.81% |
> Multi-Unit (2+ Units): Total Sold and Price Per Sq Ft
> Multi-Unit (2+ Units): Active Listings and Price Per Sq Ft
> Single Family Homes: Total Sold and Price Per Sq Ft
> Single Family Homes: Active Listings and Price Per Sq Ft
Rates & Financing
> Mortgage Rates as of 9/11/024
Source: Mortgage News Daily
Property Management
> How Soon Do I Need To Make A Repair?
Owners often have this question when repairs come up and the answer is...it depends.
In Utah, landlords generally have 24 hours to begin repairing emergency or dangerous conditions. This includes issues that pose a significant health or safety risk, such as:
Lack of heat or water
Roof leaks
Dangerous electrical wiring
Structural damage
For non-emergency repairs, the specific timeframe can vary depending on the nature of the repair and your lease agreement. However, the repairs should generally be completed within a reasonable amount of time. Failing to BEGIN a repair could give the tenant the right to hire someone to repair it and send you the invoice or break the lease and find a new place to live.
We find it best to make repairs promptly or even preemptively to maintain the value of the property and ensure a pleasant experience for our tenants as they are the customer. If you need help coordinating repairs feel free to contact us today.
Get professional property management for only $39/unit. Learn more.
Headlines & Insights
Featured Story
Following a hotter-than-expected CPI report for August, the Federal Reserve is leaning toward a 25 basis point rate cut at its upcoming meeting, though larger cuts remain possible as the Fed navigates economic challenges.
Main takeaways:
August's core CPI rose by 0.3%, slightly above expectations, largely due to rising housing costs, with year-over-year inflation settling at 3.2%. However, these housing data points are seen as outdated, with current rent levels remaining flat according to market data.
The labor market remains stable, giving the Fed room to implement a smaller 25 bps rate cut, but they may signal larger cuts later this year to prevent further economic slowdown and satisfy market expectations for deeper reductions.
While a 25 bps cut is most likely, the Fed has kept the door open for a potential 50 bps cut, though this would be a bold move as it risks surprising markets just ahead of the upcoming election.
Other News and Reports
CRE Rate Cut Realities: The anticipated Federal Reserve rate cuts may not bring immediate relief to the commercial real estate (CRE) sector. Despite the likely decrease in interest rates, the effect on CRE financing and asset values remains uncertain. Lenders may not reduce rates in line with Fed cuts, and any impact on cap rates and asset values could take months to materialize. Industry experts caution that while lower borrowing costs might eventually improve investment conditions and valuations, the market's response will likely be gradual and nuanced, especially across different property types.
Utah's Construction Crunch: Utah's real estate market is grappling with a labor shortage that threatens to hinder housing production and escalate accessibility issues for prospective homebuyers. Despite a surge in housing development from 2020 to 2022, the lack of skilled construction workers is slowing down the ability to meet the ongoing high demand. Experts suggest that innovative solutions like factory-built homes could help, but these require new regulations and training programs to be effective. The current labor gap underscores the critical need for more skilled tradespeople in Utah's booming housing market.
What did you think of today's report? |
David Robinson
Principal Broker/Managing Partner
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