Stoneweg US, LLC’s Post

"Fortune Favors Early Movers in America's Property Crunch: Data analysis of past real estate recessions reveals that investors willing to buy buildings when everyone else is running scared typically get the biggest rewards." Green Street data shows that #CRE prices have fallen 21% since the Fed began raising interest rates two years ago. CBRE thinks there will be an 8-month buying window before institutional investors resume their investment activity and drive prices higher. 60% of CRE transactions are being made by small, private investors, the highest since 2009, according to MSCI Real Assets's Jim Costello. On the other hand, no one I've heard from expects a rapid property value recovery. Rather, the popular sentiment is one of a slow and steady recovery. Some negative sentiment remains, with one reader commenting, "Don't try to catch a falling knife," related to his belief that values have further to fall.

Last week, the Fed dropped #interestrates for the second time in two months. In anticipation of this news, Multifamily Dive reached out to Taylor Johnson for expert insight on what this could mean for the apartment sector. In the resulting article, TJ clients Interra Realty and Marquette Companies expressed cautious optimism. As they pointed out, the yield on the 10-year Treasury rose in the weeks leading up to the election, and there are plenty of factors beyond interest rates that drive #investment and #development activity. However, if further reductions come in the months ahead, as most expect, the #multifamily sector should gain momentum. Read more in today’s #TJTALK: https://conta.cc/4fiAoZC

In the grim middle of the covid shutdown, there was a mantra in the commercial real estate community: “Stay Alive Until 2025.” I was mentioning the “Alive Until ‘25” idea to a colleague last week as we were discussing Fed rate cuts. And sure enough, I’ve seen it referenced several times in the last few days in the business press; people are naturally wondering if we’re emerging after several tough years. It seems that those of us who are still alive in ’25 might, indeed, survive and thrive. After a period of oversupply and high rates, the industrial real estate market is in the early stages of addressing what is an inevitable demand – we will need additional logistics space, and easier borrowing is a part of the solution. Perhaps this week is a sign of things to come.

This is a great video talking about the rate cut by the Fed and whether or not now is a good time to invest in multifamily properties. https://lnkd.in/gvdXkihV

The Fed just surprised everyone with a 50 basis point rate cut! But is it good news for real estate? This video dives deep into: ➡️Why the Fed cut rates (and why it might be concerning) ➡️How the housing market will react (opportunity or slowdown?) ➡️When multifamily investors should jump in (it's sooner than you think!) Don't miss this crucial information! Watch now! #multifamilyinvesting #apartmentinvesting #realestateeducation #investoreducation

Real Estate & Falling Interest Rates: A New Opportunity? 🏠 With US interest rates likely to decline after years of being high, real estate stocks may see significant gains. Historically, real estate has thrived in low-rate environments, and as Fed Chair Jay Powell signals a policy shift, we could be entering another period of growth. Read the full article by Martijn Rozemuller: https://bit.ly/3zMnJ1s #MarketingCommunication #RealEstate

The Fed just surprised everyone with a 50 basis point rate cut! But is it good news for real estate? This video dives deep into: ➡️Why the Fed cut rates (and why it might be concerning) ➡️How the housing market will react (opportunity or slowdown?) ➡️When multifamily investors should jump in (it's sooner than you think!) Don't miss this crucial information! Watch now! #multifamilyinvesting #apartmentinvesting #realestateeducation #investoreducation

A 0.5% drop in interest rates from the FED creates an opportunity for the real estate market through the end of 2024 and into 2025. Here's what this could mean: 1. Increased Buyer Activity Lower interest rates reduce borrowing costs, driving more buyers into the market. Historically, rate drops have triggered higher demand and price increases, particularly in competitive areas. This creates urgency for those looking to buy before prices climb. 2. Investor Opportunity Investors can take advantage of lower financing costs, boosting ROI on new acquisitions. Leveraged investments become more attractive, especially for those in development or rental markets, offering the potential for strong long-term returns. 3. Refinancing Surge Homeowners and investors alike will likely see an uptick in refinancing, reducing monthly payments and increasing cash flow. This shift frees up capital for reinvestment and can further stimulate economic activity. 4. Market Shifts Expect more competition as buyers rush to lock in lower rates, which could drive prices higher. Strategic investors will act quickly to secure properties and capitalize on this short-term window before potential inflation or future FED policies take effect. Understanding how to navigate these changes will be key to staying ahead in this evolving market.

• Investors believe cap rates, which rose to 7% in late 2023, are stabilizing due to declining bond yields and expected Fed rate cuts. • Cap rate spikes were most notable in Class-C office spaces and multifamily properties, especially in weaker markets. • Commercial property prices have stabilized, now aligning more closely with corporate bond values after recent declines.