This is Forrest Jacobs with the fourth coming of our bi-weekly TREG newsletter. We hope you are fully recovered from the Mardi Gras festivities and back into all things real estate! With that being said, we have a full calendar coming up…
- 2/26 Irwin Barkan, CEO of IJB Group, DevelopmentFrom NYC brokerage, where he oversaw some of the world's largest deals, to New Orleans, where he currently manages the Charity Hospital redevelopment. Irwin has overseen developments across a wide range of asset types and geographies, and he is taking time out of his day to provide real-world advice beyond real estate. We hope to see you all there! ? Read more about Irwin here: https://www.ijbcorp.com/portfolio
→ In-Person Meeting. Monday, February 26, GWBC 300 @ 6 pm.
2. 2/29 Gen Bod Meeting, Topic: DCF Modeling Pt.2Come join us as Isaac leads the group in an example discounted cash flow modeling session.?
→ In-Person Meeting. Thursday, February 29, GWBC 300 @ 6 pm.
3. 3/4 Joe Gorman, CEO of Audubon CRE, Brokerage (Barracuda Tacos provided)
→ In-Person Meeting. March 5, GWBC 300 @ 6 pm.
4. 3/11 David Poline, CEO of Poline Search Partners, Central City BBQ Hopefully)
→ Virtual Meeting. March 11, 6 pm?
- Mortgage rates are better now than in the fall, but home affordability challenges persist due to high mortgage rates and home prices amid low housing stock.
- 2024 could be a better year to purchase a home, but some experts forecast tepid market activity due to homeowners locked in at low rates, which keeps a stranglehold on inventory and home prices.
- The Federal Reserve is expected to keep the federal funds rate unchanged for 2024, and rate cuts are in store.
- Home affordability challenges will persist due to pent-up demand and low inventory, even with potential rate cuts.
- The housing market may not fully recover in 2024, but several conditions must unfold, including higher inventories, cooling mortgage rates, and a return to normal rates.
- Foreclosure activity is trending up, but the likelihood of a housing market crash remains low, with experts pointing to a strong economy and loan quality as reasons.
With Housing Market Index totals ranging up to 74.8 versus the lowest scores under 55.0 for MSAs in Hawaii and California, the following MSAs are the hottest housing markets ranked from first to fifth:
Top 5 hottest housing markets:
- Denver – 74.8
- Raleigh, North Carolina – 73.7
- Virginia Beach, Virginia – 73.2
- Durham, North Carolina – 72.8
- Charlotte, North Carolina – 72.0
- Office sector: The national office vacancy rate reached 19.2% in Q3 2023, approaching a historic peak of 19.3%. Flight to quality may lead to the obsolescence of older, less-desirable Class B and C offices.
- Industrial sector: Continues to perform well, especially cold-storage properties. Post-pandemic demand for more inventory may decrease, but reshoring and nearshoring efforts in manufacturing may boost the sector.
- Retail sector: Neighborhood shopping centers in densely populated urban and suburban areas are expected to perform well, with steady performance and moderately positive rent growth.
- Multifamily sector: Continues to perform well, with a roughly 5% vacancy rate throughout 2023. High interest rates may sustain multifamily demand, but the lack of demand for luxury apartments is a notable concern.
- Industry challenges: Interest rates and rising costs are among the top concerns, with high inflation raising the costs of construction materials and labor and commercial real estate property coverage becoming more expensive and less comprehensive.
- Opportunities ahead: Cash optimization, affordable housing, proptech, and energy-efficient upgrades are some of the opportunities for commercial real estate investors in 2024.
Job Board/Other Opportunities
Glad you bounced back! ?? The market's always shifting, reminds me of Warren Buffet - adapt & thrive! ???? #realestatewisdom