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Ogden Triplex Sells at ~9+ Cap Rate; 2 Quality Fourplexes Listed In Midvale

Author

David Robinson
July 10, 2024

This week in the Canovo Report…

👉  Ogden Triplex Sells for Estimated 9+ Cap Rate!

👉  Two Quality Fourplexes Listed In Midvale

👉  Multi-unit properties sold is up 16.37% YTD

👉  Are Rate Cuts Around the Corner?

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Happy Investing,

David

// NEW MULTI-UNIT 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.

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 MULTI-UNIT 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.

// 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.

// UTAH MARKET SNAPSHOT

> Utah Multi-Unit (2+ units): Median Sales Price - June 2024

  • The median sold price per square foot for multi-unit property is up 9.72% year to date going from $231 to $254.

  • The total number of multi-unit properties sold is up 16.37% year to date going from 226 in YTD 2023 to 263 YTD 2024.

Source: wfrmls

// INTEREST RATES & FINANCING

> Mortgage Rates as of 7/10/2024

Sponsored by: Spencer Allen | Trillion Mortgage NMLS #2296408

// TOP HEADLINES, REPORTS, & INSIGHTS

Federal Reserve Chair Jerome Powell hints at a possible reduction in the federal funds rate, citing risks of maintaining high rates for an extended period.

Main takeaways:

  • Powell notes mixed data on inflation, with recent progress suggesting a move towards the Fed's 2% target, but emphasizes the need for more consistent data.

  • The current strong job market supports the possibility of easing rates without overheating the economy.

  • Investors are increasingly expecting a rate cut by September, reflecting concerns about the long-term impact of high interest rates on economic growth and employment.

Despite the Federal Reserve's cautious approach, Citi Research predicts a substantial total of 200 basis points in rate cuts over the next several meetings.

Main takeaways:

  • Citi's forecast is based on recent economic indicators showing a slowdown, including softer inflation data and a rise in unemployment to 4.1%.

  • The Fed remains hesitant, stating a need for greater confidence that inflation is sustainably moving toward their 2% target before considering rate reductions.

  • Citi's aggressive rate cut prediction hinges on either a scenario of economic recovery without a recession or an impending economic downturn severe enough that even rate cuts may not avert a hard landing.

A new Redfin report highlights a nearly 30% reduction in permits for multifamily housing across the U.S., signaling a shift in the housing construction market.

Main takeaways:

  • Builders obtained 13 permits per 10,000 people in 2024, a sharp decrease from the 18 permits during the peak pandemic years of 2021-2023.

  • In Salt Lake City, there has been a significant decline in permits for multifamily housing units, dropping from 19 permits per 10,000 people during the pandemic years to 7 in 2024.

  • The slowdown in permitting is attributed to higher borrowing costs and an oversupply of units from previous construction booms, which has capped rent increases.

  • While most regions are seeing declines, certain areas like Cape Coral, FL, and Austin, TX, continue to experience relatively high permitting activity, driven by ongoing demand and recovery efforts from natural disasters.

I hope you found this weeks report valuable. If you have any questions, feedback, or if I can serve you in any way, don’t hesitate to reach out!

David Robinson

Principal Broker/Managing Partner

> Whenever you’re ready there are a few ways I can help you:

1. Buy Off-Market Multifamily Properties:Skip the competition and discover exclusive off-market multifamily properties tailored to your investment goals.

2. List Your Property for Only $497List your multi-unit property on the Utah MLS and dozens of other websites through our brokerage and save thousands with our flat fee MLS listing.

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