0 likes | 11 Views
Itu2019s no secret u2014 thereu2019s uncertainty in the current market. Interest rates are at an all-time high, completely affecting multifamily real estate. Multifamily properties have dropped in value, and people are concerned about how to proceed.
E N D
Rising Interest Rates, Differing Views, Challenges in Demand/Supply…Oh My! It’s no secret — there’s uncertainty in the current market.Interest rates are at an all- time high, completely affecting multifamily real estate. Multifamily properties havedroppedin value, and people areconcernedabout how to proceed. High interest rates have resulted in: •Increasedcapital costs •Alackof funding •Negative effects onshort-termestimates Differing views on the current climate highlight theoverwhelming sense of chaos and unknowing.Some anticipated a pause, while others believed that strong economic indicators, such as the 10-year Treasury yields, could lead to a rate increase. So much uncertainty feels like you’re beingled through the dark.How can youfeel safe? How can you trustanything about today’s market? How should younavigate the multifamily landscapemoving forward? Geopolitical factorsare also impacting the multifamily sector. Overall economic insecurity is throwing the real estate market for a loop. Inflation affects the costs of properties and energy costs to maintain those properties. With recent policy and regulation changes,many factorsin this sector are being reworked. I’m sure, like many, you may feeloverwhelmed and unsafeat such a time. But despite how it looks right now, multifamily is a sector you can place your trust in.