We’re kicking off fall in Chicago with beautiful weather in the 70’s and the Cubs making a push for the playoffs. As for our other Chicago sports teams, it is going to be a long fall watching our Bears on Sunday afternoons.
Take a look below at some newsworthy issues we’re keeping an eye on right now:
1. Interest rates stayed the same, but are expected to remain higher going into the first half of 2024.
2. Housing Construction Starts Lowest Since June 2020 – Higher mortgage rates continue to weigh on the demand for housing.
3. Property Prices Declined Nationally in Almost All Markets – This is only the second annual decline in national prices since the second quarter of 2010. Miami and Nashville were the only markets that saw property growth but only at 0.1% and 0.5% respectively.
4. Real Estate Insurance Rates Rise 7.6% Annually Since 2017 – This static varies from market to market. The highest increase markets are Dallas, LA, and Houston. These markets are experiencing increases of 14.4%, 13%, and 12.6% this past year.
Deal flow in the multifamily market remains stagnant and we predict this to continue into 2024. With this, we remain positive and are continuing to focus on our operations and efficiencies.
Be on the lookout for our new website in the next few weeks!
Freddie Mac’s SBL Increases Rates for All Products in All Markets
Understanding the current rates for a Freddie Mac loan is very important when it comes to underwriting a property. As of September 28th, across all markets and products, rates will be increasing by 10 basis points. This is an additional raise to the 15 basis points that happened on September 25th.
With so much uncertainty in the market, finding safe investments with steady rent increases is the key to success for us. The Sunbelt region in the past 2-year experienced high demand and high rent increases. The hype has worn off and rents for the first time in two years, saw a decrease in price in some areas. This uncertainty makes it very di cult to accurately underwrite a property.
We predominantly focus on the North Central Region along with a few states in the Southeast Region. We believe these two regions show the most consistency and fit our investment criteria the best. Steady rent increases and lower competition lead to ideal investment opportunities.
The current rates of these two regions are displayed below.
Learn More About Investing With Us:
Brian Kochendorfer
[email protected]
Danny Baylis
[email protected]
We believe that a cohesive team of experienced investment real estate professionals
partnered with our clients delivers superior results to traditional investment models.
