Multi Unit Market: Coming Out of Hibernation?
Published On: March 4, 2024 Posted by: Jeremy Peterson
The relatively recent rise in interest rates created an ice storm over the multi-unit real estate market here in Weber County. Our latest chart shows just how significant the impact has been on sales volume over the past year.
The last time Weber County saw multi-unit sales this low was during the dysfunctional mortgage lender meltdown of the Great Financial Crisis. But unlike last time, when mortgage companies performed hari-kari and disappeared into the scrapbooks of banking history, the current drought in business is strictly related to pricing. With interest rates (and prices) so high, buyers said “no thank you” to sellers’ invitations to purchase their income property.
If history is a guide, 2024 may be a transition year as buyers and sellers work to bridge the affordability gap for investment real estate. After the 2009 mortgage market gave up the ghost, buyers and sellers began transacting in seller financing in earnest. Cash buyers also became bigger players in the market. Time will tell, but creativity may have to make a reappearance after sitting backstage.
If you are thinking of buying or selling rental property, give me a call. 801-390-1480
