SVN ECONOMIC UPDATE - KEY POINTS
The Federal Funds Rate has now reached its highest benchmark since early 2008 with the target lending rate range between 3.75 and 4 percent as the Fed seeks to harness inflation. Still, the US economy added 261,000 jobs in October with notable gains in health care, professional and technical services and manufacturing, thus signaling a resilient labor market despite any economic constrictions.
Here are some highlights from SVN's five-page November 4th report:
Multifamily CAP rates are holding below 4 percent, on average
Shopping mall occupancy rates are up 1.7 percent year over year
Commercial rent growth will likely slow significantly in 2023, according to Yardi Matrix
Fannie Mae is predicting a 1.5 percent decrease in home prices nationally in 2023 following increases of about 19 percent and 9 percent for the previous two years
Home mortgage rates for 30-year fixed loans are forecast to decline from 6.7 percent in Q4 of 2022 to 6.2 percent by Q4 2023
New construction was actually up about 11 percent YOY in September!
Delivery of single-family homes was down 2.7 percent, yet multifamily deliveries were up about 2 percent