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Rates, Refi’s & Lifestyle Renters: Q&A with Newmark’s Chris Canter
On April 18th, Newmark’s Chris Canter will moderate the Financing in an Uncertain Environment discussion at Connect Phoenix Multifamily & Single-Family Build-to-Rent in Scottsdale, AZ. A 13+ year veteran of the commercial real estate industry, Chris has been involved in the acquisition and disposition of over $2 billion in multifamily transactions, totaling more than 10,000 units. In advance of the event, we asked Chris some questions about what he’s seeing in the space today.
With interest rates settling, and maybe even dropping in the future, does the threat of widespread defaults to the degree some may have predicted go down? Will we see more refi’s now that rates may be coming down?
Yes, I would say that the threat of widespread default does begin to go down a bit. Mainly, because most lenders do not want to take the properties back and operate them. For the most part the lenders have been working with their borrowers and extending their loans as long as the borrowers have been acting in good faith. I believe we will see more refi’s and sales relatively soon.
Is BTR or multifamily more sensitive to interest rates?
BTR and multifamily are both sensitive to interest rates. Although, BTR is known for being a separate asset class, there is not much distinction between conventional multifamily and BTR when it comes to the investment sales space, both are very sensitive to interest rates.
When rates settle – do you think more will move towards home buying and away from SFR?
Now more than ever before, we are seeing a shift into lifestyle renters, those who do not wish to own a home anytime soon, and live more for experiences over ownership. The gap between the average mortgage compared to the average rent is an over $1300 difference. Those individuals who wish to own homes will still need to come up with a significant deposit which may be difficult for some.
Industry leaders and power players are connecting at Connect Phoenix Multifamily & Single-Family Build-to-Rent on April 18 at the Westin Kierland Resort & Spa. Don’t miss the expert’s take on where the market is headed, and what changes are on the horizon. Register Now!
