January 31, 2019
Multifamily remains the top asset choice for investors, despite rising interest rates and talk about overall investment momentum tapering, according to Real Capital Markets’ (RCM) 2019 National Investor Sentiment Report. Investors remain in a buy mode across multiple sectors, but there is talk of activity slowing at this point in the cycle.
Real Capital Markets’ Tina Lichens says, “With words like ‘plateau’ and ‘flattening’ now entering the lexicon, it’s important to note how far the market has come and that in these good times, plateaus are part of a healthy cycle.”
The report notes fundamentals remain strong In the multifamily sector, but investors are watching rental rates and other factors. Many multifamily investors continue to focus on secondary markets in search of higher yield.
As 2019 moves into full swing, RCM notes, there is a strong sentiment among investors that the shift many have been anticipating is here. Investors surveyed by RCM remain optimistic, though with a cautionary tone. The theme is that there are still investment opportunities available, as long as investors adjust their strategies, look a little harder and dig a little deeper.
More than 60% of survey participants were in the middle of the spectrum when asked to characterize the current market as either in a boom or bust investment cycle. Still, others suggested the 2019 market will continue “gliding along” as it has, but that in 2020, an election year, things may slow until the results and a clearer direction are known.
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