Buyers Think it's 2008 and Sellers Think it's 2021: EP 284

Blue Lake Capital's own Ryan Rasieleski joins Jeannette to examine the latest move by the Fed to raise interest rates by 25 basis points, plus the ongoing job cuts we've been seeing, especially at tech companies. He breaks down what it all means for the multifamily market. For the video interview, visit: https://youtu.be/uRjenKOpHDg With regards to seeing higher rates for longer, it will certainly impact transaction volume and we've already seen that happening in Q4 into the beginning of this year. It's causing a recalibration of underwriting, and it's further widen the bid spread that everybody was trying to. pinpoint and hoping would collapse in the first quarter of this year, and then just extend all the way through the year. But we have yet to get there. There are really two type of buyers in the market today, specifically in the real estate space. You have some of those groups that want to transact early in the year. They want to lock in their rates now and not have to worry about transacting later on in the year, whether that's due to 1031 Exchanges or whatever their reasons may be. Then you have other groups that, that might sit on the sideline because they haven't seen that terminal rate yet. We haven't seen rates peak. And they might write their business plan to transact later in the year. They're going to be be a lot more selective on the deals that they're buying. In terms of unemployment when you actually take a step back and you look at employ unemployment, we are at a two decade low. We're still at three and a half percent, which is below where we were pre-pandemic. There was a spike in unemployment during the pandemic and now you're seeing layoffs as a purely a pullback from an aggressive hiring over the last, two to three years during the pandemic as well as just over the last decade. Are you REady2Scale Your Multifamily Investments? Learn more about growing your wealth, strengthening your portfolio, and scaling to the next level and visit www.bluelake-capital.com. To connect with Jeannette & her team directly & find out how to invest alongside Blue Lake, email them at [e-mail] or just complete our potential investor form at https://www.bluelake-capital.com/new-investor-form and they'll be in touch with you. . Learn more about your ad choices. Visit megaphone.fm/adchoices