• Zero Flux
  • Posts
  • Lenders Showing Greater Urgency to Close Multifamily Deals

Lenders Showing Greater Urgency to Close Multifamily Deals

Plus, Friday Weekly Housing Trends Summary, The Fastest Rising U.S. Housing Markets in 2024 and 5 more RE insights

Hey

If you have not received an email in a while, as a reminder you signed up on Zero Flux - A daily newsletter with 5-10 actionable real estate trends.

If you would like to unsubscribe, here is a quick link

A Quote

“Once you realize how amazing you are, you will find it hard to keep the company of those who do not.”

― Unknown

Macro Trends

Real Estate Trends

Weekly Housing Trends Summary link

Image

  • The housing market shows more options for buyers as new listings increased by 14.9% from last year. This marks the 22nd consecutive week of newly listed homes surpassing levels from the year before, hinting at a hopeful spring season for homebuyers seeking fresh options.

  • Home prices remained stable with the median listing price showing no year-over-year change for the second consecutive week. Despite a flat price trend, the inventory of homes seeing price reductions has increased, suggesting a potential ease in the price growth pace.

  • The active inventory of for-sale homes is 25.5% above last year's levels, yet homes are selling slightly faster, spending one day less on the market than the previous year. This indicates a dynamic market where, despite the increased inventory, demand remains strong enough to keep sales brisk.

Enjoy the newsletter? 🙏 Please forward to a friend. It only takes 10 seconds. Writing this one took 3 hours.  A referral also earns you a 3-month free trial of the pro plan 🙂 

Lenders Show Greater Urgency to Close Multifamily Deals link

  • The multifamily investment market is rebounding in 2024, with lenders increasingly eager to finalize deals. After a challenging year marked by a buyer-seller pricing gap and volatile interest rates, the market sees heightened enthusiasm from lenders to work with borrowers.

  • Interest rates and cap rates are moving towards an equilibrium, bridging the gap between buyer and seller expectations. This shift is essential for facilitating transactions, despite interest rates remaining significantly higher than pre-pandemic levels.

  • Lenders are adopting a more urgent stance to close deals, fueled by a renewed appetite and alignment between market participants. Innovative financing strategies and a clear understanding of investment objectives are crucial for borrowers to navigate this optimistic capital market landscape.

Off Topic

10 Easter Traditions Around the World

Image

Please note: I send an email most weekdays at 6:00 ET, so if you don’t see the email in your inbox in the future, please check your spam.

Something I found Interesting

How 7% Rates Are Keeping the Housing Market in Check link

  • High mortgage rates are reshaping homeowner behaviors and market dynamics. As rates remain at 7%, a significant shift is seen with the share of borrowers having rates below 6% dropping from 92% to approximately 85%, indicating a loosening of the peak lock-in effect observed in early 2022.

  • The balance between new home constructions and existing home sales is delicate, influenced by mortgage rates. Elevated new home inventories, now at 31% of all unsold single-family homes, present a risk if resale inventory increases, potentially eroding builders' market advantages.

  • Economic resilience complicates the Federal Reserve's efforts to control inflation, suggesting sustained higher interest rates. Despite strong job growth and positive consumer sentiment, the anticipation of higher inflation, evidenced by 32% of small businesses planning to raise prices, supports the Fed's stance on maintaining higher rates for an extended period.

Location Specific

Office Vacancy Rate Still Going Up in San Francisco link

  • San Francisco's office market struggles continue with a vacancy rate hitting 36.6% in Q1 2024, up from 35.6% in Q4 2023. This increase signals ongoing challenges in the 88M SF office sector, despite previous hopes for stabilization.

  • Total availability in San Francisco's office market, including occupied spaces, marginally increased to 38.7% from 38.5%. This slight uptick suggests a persistent lack of demand amidst a considerable supply of office spaces.

  • The report from CBRE indicates that the market has not yet found its bottom, with vacancy rates climbing higher than anticipated. The rise suggests that the city's office sector may face more hurdles before seeing improvement, impacting landlords and investors alike.

It would mean a lot if you could reply (even with a ‘Hi’ or any feedback) to this email - it helps with deliverability and ensures the email lands in your inbox. 🙂 

Pro Member Only Content Below

The Status of Maturing Loans in 2024 

(This content is restricted to Pro Members only. Upgrade)

The Fastest Rising U.S. Housing Markets in 2024 (Chart)

(This content is restricted to Pro Members only. Upgrade)

Coastal Construction: Outsized Multifamily Construction Compared to Single-Family 

(This content is restricted to Pro Members only. Upgrade)

Latest Proptech Funding Rounds

(This content is restricted to Pro Members only. Upgrade)

That's all, folks.

Cheers,

Vidit

P.S - Read past newsletters here

Referral Milestones

Discount

Referrals Needed

3 MONTHS FREE on the Pro Plan

1

30% off FOREVER on the Pro Plan

5

50% off FOREVER on the Pro Plan

10

75% off FOREVER on the Pro Plan

15

100% off FOREVER on the Pro Plan

25

Want to sponsor the newsletter? Details here

If you are finding value, please consider helping the newsletter by becoming a paying subscriber

A subscription gets you:

✓ More issues per week

✓ Special reports on new housing studies

✓ Exclusive insights that are usually tucked behind paywalls (which I cover the costs for)

✓ Curated Top 10 lists

✓ The latest updates on prop-tech funding rounds

Join the conversation

or to participate.