Small multifamily investors are still seeking and finding opportunities for investment properties even as potential tenants are again going into the home buyer market. Particularly investors in major East and West coast markets are finding apartment properties at prices that they could not purchase a nice single family home in the San Francisco and Seattle markets.
Brad Dillman, Cortland’s Chief Economist, sees the American economy entering a place that it hasn’t been for a while.
“We’re in a situation, for the first time in seven years, that average hourly earnings growth and the savings rates are higher than the rate of home price appreciation,” Dillman tells GlobeSt.com. With that data in hand, Dillman is bullish on the prospects of for-sale housing in 2020. “I wouldn’t be surprised if the homeownership rate ticked up next year,” he says.
Dillman doesn’t see a massive shift of people buying homes but thinks there will be some changes on the margins.
“Some of these people who are seven years into their need to save for eight years to buy a home may suddenly find buying conditions to be better,” he says. “Home price appreciation, while still positive, has slowed since 2018, and that is allowing people to catch up.”
If sales increase in 2020 and builders start constructing homes again, Dillman thinks it could boost the overall economy. “I see total private residential construction spending as being an engine of growth in 2020, at least based on what I can see,” he says. Read entire article here. at Globe St.
Financing for smaller apartment properties even as low as $250,000 is available through Liberty Realty Capital Group, a commercial mortgage broker specializing in financing smaller commercial properties.
Find out more about commercial financing with Liberty, check out there website here.
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