SoCal Multifamily Sales Pulse - September 11, 2022 - September 17, 2022

• 19 September 2022
• Mike Lembeck

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Here's What's Happening In The Market, Here’s What This Means For You

Rate of Inflation Makes Impact on Corporations’ Real Estate Decisions. 54% are consolidating locations, while 42% are reducing the size of the leases they’re signing, 41% are looking for more cost-effective buildings and lower rents.

Inflation rose 0.1% in August even with sharp drop in gas prices.

Stubborn inflation pressures will likely force the Fed to turn up the heat on its tightening campaign, which puts the broader economy at further risk of a material downturn/recession within the next year.

We're seeing a complete reversal of rental market conditions in just 12 months, going from demand significantly outstripping available units to now new deliveries outpacing lackluster demand.

Homebuyer mortgage demand falls 29% since last year, as rates surge past 6%.

The Labor Department’s measure of rent prices rose 6.7% on an annual basis in August, the biggest rise since the mid-1980s.

There are now 210 U.S. housing markets at risk of 15% to 20% home price declines, says Moody’s.

Revolving consumer credit rose at an annual rate of 11.6% in July, according to a report last week from the Federal Reserve, to almost $1.137 trillion in outstanding debt, another record high.

Mortgage holders tappable equity grew 25% last year to hit yet another record high — but that equity growth peaked in May and began to pull back in June.

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