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I Dressed Up As Jerome Powell For Halloween...Everyone Screamed

I Dressed Up As Jerome Powell For Halloween...Everyone Screamed

The Fed's foot is stuck on the gas pedal. Another 0.75 point rate hike announced this week as the Fed looks to curb inflation

Conner Burton
November 06, 2022

What's up Calculated Investors.

Big daddy Jerome announces another 0.75 point rate hike as the Fed continues to fight inflation. In addition, the FED announced it expects "ongoing increases will be appropriate."

Real estate assets across the board are locked in a "price discovery phase"

Buyers don't want to pay yesterday's prices.
Sellers don't want to give up cash flowing assets for "cheap"
Investors are unsure what a good deal looks like

I don't expect this to get resolved anytime soon. Because a new question is bubbling to the surface.

When will it stop? How high will this go?

"As high as needed to bring inflation down to 2%" is not really a direct answer. Buckle up, there is less room to breathe at the top of this interest mountain.

The White House continues to redefine words in the dictionary and says we are not in a recession and the economy remains strong.

JP Morgan jumps into the rent collection business, and all cash buyers are starting to make noise as debt becomes too expensive.

Let's get into it. 💲🏠💲

Calculated Market

Fed announces another 0.75 rate hike (WSJ)
White House says, "US is not in a recession." Economy remains strong (RT)
Job openings rose in September as labor market tightens (WSJ)
NMHC survey sees apartment market at "virtual standstill" (NMHC)
GDP returns to positive territory, but growth remains weak (FANNIE)
JP Morgan pilots rent collection platform for wide release in 23' (BISNOW)
Mulitfamily lending slows as buyers and sellers haggle over price (GLOBE)
Rate hikes aren't bulldozing 👷‍♂️👷‍♂️ commercial real estate....yet (FORBES)
Retail REITS report another strong quarter with building leasing momentum (GLOBE)
Record apartment construction volumes across the US (REALPAGE)
RealPage denies federal lawsuit allegations against price fixing (GLOBE)
5 Reasons REIT investors shouldn't worry about interest rates (SEEKING)
Is Florida's 🌞🌞 housing market about to get even more unaffordable (BP)
Apartment rents fall in October (GLOBE)
Investments in the Sun Belt are still a bargain (REALPAGE)
Infrastructure and Job Act may provide Multi-family opportunities (NMHC)
CoStar sharpens residential focus after strong quarter (PROP)
All cash buyers 💰💰 entering the market as debt becomes expensive (BISNOW)
Negative leverage building in new CMBS report (GLOBE)
Cap Rate anxiety bringing down multifamily market (BISNOW)
Cap Rates since 21' in multifamily averaged less than 4% (CRENEWS)
Project Managers worried rising costs will plague 23' deliveries (BISNOW)
Multifamliy building permits taking over large chunk of residential permits (REALPAGE)
Miami "supertower" breaks ground amid hurricane concerns (WSJ)
Office leasing activity for US Tech Industry at lowest levels in 5 years (WORLD)
Hotel managers optimistic about near term outlook (WEALTH)
Zillow's mortgage revenues drop 63% from previous year (REALDEAL)
The average age of US first time home buyer is 36 (USATODAY)
How property managers are tackling rental application fraud (EXEC)