Emergency Fed rate cut coming?

Riverton 8-unit hits market - potential 6.5% CAP; Ogden duplex sells for $325k;

Author

David Robinson
August 07, 2024

This week in the Canovo Report…

  • 8-unit in Riverton hits market - potential 6.5% CAP

  • Ogden duplex sells for $325k

  • Emergency Fed rate cut coming?

  • Utah Multi-unit median sales price/square foot up 6.6% YTD.

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 Robinson

// NEW MULTI-UNIT 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 MULTI-UNIT LISTINGS

> Here's a roundup of multifamily properties sold over the past week. We've estimated their selling cap rates using our bulk analyzer.

// List Your Multi-Unit for Only $497

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Your property will be exposed to our 3000+ Utah Investor Network, as well as the Utah MLS along with dozens of other websites including Zillow.com, UtahRealEstate.com, Realtor.com, Homes.com, Crexi.com and more.

Exclusively offered to Canovo Report Subscribers who own multi-unit property.

// UTAH MARKET SNAPSHOT

> Multi-Unit (2+ Units): Total Sold and Price Per Sq Ft

  • The median sold price/sf for multi-unit property is up 6.6% year to date going from $238 last year and $254 this year to date.

  • The total listings sold for multi-unit property is up 16.93% year to date going from 254 last year and currently at 297.

> Single Family Residential Homes: Total Sold and Price Per Sq Ft

  • The median sold price/sf for single family property is up 3.49% year to date going from $224 last year and $232 this year to date.

  • The total listings sold for single family property is down 1.6% year to date going from 21,385 last year and currently at 21,727.

// INTEREST RATES & FINANCING

> Mortgage Rates as of 8/7/024

// PROPERTY MANAGEMENT

> The top 5 ways to ensure you select the right tenant.

The most important factor to your success as a landlord is tenant screening. It is also the most challenging aspect of property management and this is where problems begin for property managers. Here are the top 5 ways to ensure you select the right tenant.

  1. Detailed Rental Application - Require an application, If an applicant does not take the time to fill out an application they might not take the time to make sure you are paid every month.

  2. Contact Previous Landlords - Landlords feel an obligation to other landlords and will give an honest review of their tenant.

  3. Verify Income - 2 months of Paystubs, we recommend total household take home pay be at least 3X the rent .

  4. Background Check & Google Search - These are quick to run and help prevent PR disasters at your properties. This should include all adults that plan on living there, which you should know from the detailed application above.

  5. Meet the Tenant in Person - There is nothing like an in person interview to get a feel for applicants that will treat their neighbors and your property well.

Remember to adhere to fair housing laws during your selection process, which prohibits discrimination on the basis of race, color, religion, sex, national origin, disability, and familial status.

// TOP HEADLINES & INSIGHTS

> Featured Story

Prominent economist Jeremy Siegel has called for the Federal Reserve to implement an emergency 75-basis point rate cut immediately, followed by another in September, suggesting that the current economic indicators justify such action.

Main takeaways:

  • Siegel's Proposal: The economist suggests that based on the Federal Reserve's own targets for inflation and unemployment, current rates are unnecessarily high, recommending a substantial decrease to stimulate economic stability.

  • Counterarguments: While Siegel presses for immediate cuts, others like Nobel laureate Paul Krugman advocate for a more cautious approach, proposing a 50-basis point cut in September to avoid market panic.

  • Market Sensitivity: Emergency rate cuts, though rare, could lead to unintended consequences, potentially spurring public fear about an impending recession, which could paradoxically hasten economic downturn.

  • Federal Reserve's Stance: Officials stress the importance of maintaining economic balance rather than reacting abruptly to market fluctuations, focusing on long-term stability over immediate relief.

This debate highlights the complex balance the Fed must maintain between stimulating the economy and preventing panic, especially in a volatile global economic environment.

> Other News and Reports

CRE Lending Fraud Clampdown: Fannie Mae and Freddie Mac are tightening commercial real estate lending guidelines to combat rising mortgage fraud, requiring stricter financial verifications and property evaluations. This regulatory overhaul aims to enhance market integrity but may slow transaction pace as the industry adapts.

Evermore Park Revamped: Brandon Fugal introduces the "Hatch the Egg" quest at the former Evermore Park, promising a dynamic community event with a $20,000 grand prize, as residents explore the property's new vision.

Buying Blues: Amidst ongoing affordability issues, only 17% of consumers feel it's a good time to buy a home, according to the latest Fannie Mae Home Purchase Sentiment Index. This sentiment reflects a broader frustration with high prices and mortgage rates, with little optimism for near-term improvement.

David Robinson

Principal Broker/Managing Partner

Whenever you’re ready, there are a couple of 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 Multi-Unit Property for Only $497
List 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.