The U.S. apartment market continued to see robust growth in 2013, but investors are keeping a wary eye on looming changes going into 2014, including the impact from rising supply, rising interest rates and the prospects of restructuring the nation’s two biggest government-sponsored enterprises (GSE’s) Fannie Mae and Freddie Mac.
via CRE Industry Faces Dramatic Changes in Multifamily Supply, Financing Environment – CoStar Group.
When supply increases; demand decreases. Buyers should remain sensitive to overpaying for multifamily properties in low cap markets, as the market continues to turn.
Three sluggish markets that Witten advises to be careful of include Virginia Beach, Va., which has demand challenges; Metro D.C., where developers are building for a demand that isn’t there; and Raleigh/Durham, N.C., which is also demand challenged. But Witten made sure to mention that developers and investors shouldn’t write off these metros completely.
via Special Report: The Leading and Lagging Apartment Markets Around the Country | Multi-Housing News Online.