Over the past 12 months we have seen a slowdown in real estate. Rates are hovering around 6%+ with fewer lenders offering financing options. Construction and material costs remain high. Rental growth has slowed or become stagnant in most markets. All of these factors have made it more difficult to own and operate real estate, which has forced buyers to drop their valuations on purchases. Most owners who are looking to exit are not reducing their pricing expectations unless they have to. This has led to a discrepancy between buyers and sellers that has caused a reduction in transaction volume.Â
TGG remains very optimistic on multifamily real estate in LA over the long term and will continue to seek out opportunities in good locations that are price adjusted to today’s market.
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