Pending Home Sales Crash - Will Commercial Follow?

Pending Home Sales Crash - Will Commercial Follow?

Author: Michael Zuber June 5, 2024 Duration: 21:57

In this episode, we discuss the surprising drop in pending home sales with Jonathan Twombly, a commercial real estate expert. Despite predictions, pending home sales have significantly declined, prompting a deeper look into both residential and commercial real estate markets. We explore the impact of rising interest rates, the behavior of cash buyers, and the significant differences between residential and commercial real estate transactions. Jonathan provides valuable insights into the current market conditions, potential future trends, and strategic advice for navigating this challenging environment.

  1. [00:00:00] Introduction to the significant drop in pending home sales: Expected -1%, actual -7.7%.
  2. [00:01:11] Impact of interest rates above 7% on residential demand and the broader market.
  3. [00:01:36] Comparison of interest rate impacts on residential versus commercial real estate.
  4. [00:03:03] Challenges in commercial real estate: Reduced buyer willingness and high seller price expectations.
  5. [00:05:05] Difference in cash transactions between residential (30%) and commercial real estate.
  6. [00:06:50] Importance of 30-year fixed-rate mortgages in residential versus short-term covenants in commercial.
  7. [00:07:42] Commercial real estate's dependency on NOI (Net Operating Income) and cap rates for valuation.
  8. [00:10:29] Current market conditions: Volume of sales at a four-year low, reflecting early COVID-19 levels.
  9. [00:14:00] Impact of new Class-A apartments on the rental market and the misconception about Class-B and C properties.
  10. [00:18:11] Discussion on the differences in market cycles between residential and commercial real estate.

Thank you for tuning into this insightful episode with Jonathan Twombly. If you enjoyed the discussion, please rate, follow, share, and leave a review. Your feedback helps us continue to provide valuable content. For more in-depth discussions and to stay updated on real estate trends, follow Jonathan on LinkedIn or visit the Apartment Investors Club. See you next time!



📖 BUY One Rental at a Time https://amzn.to/3jt3JFx 📣 Audible Version Here https://amzn.to/3jtLDTQ OR 🏆 Buy 15 Conversations with Real Estate Millionaires https://amzn.to/3JwEsVm Dion from Dion Talk is Narrator!!! NOW ON AUDIBLE https://www.audible.com/pd/B0BDPSZW3Y/?source_code=AUDFPWS0223189MWT-BK-ACX0-322007&ref=acx_bty_BK_ACX0_322007_rh_us 📸 INSTAGRAM: Please follow. Daily original content! https://www.instagram.com/onerentalatatime/ 📬 (MUST JOIN!) PRIVATE Facebook Group: One Rental at a Time Works This is a VERY private group that is only available to my students of "How to Get Started One Rental at a Time" In the group, you will be around hundreds of other students all doing the work. Please introduce yourself when you join! JOIN HERE: https://bit.ly/3tEQhRm TEACHABLE COURSES: Join the THOUSANDS of students changing their financial future with DAILY execution! 💎 How to Get Started One Rental at a Time: This course is changing lives! Investors focus and do the daily work required to learn their market and only do GOOD Deals. JOIN HERE: https://bit.ly/3uDrkHq 💸 Get Money Right: This course is about making you the CFO of your money. It shows you how choices can keep you poor or set you free. It highlights your Financial Health Score and provides a monthly budget to help you track spending. JOIN HERE: https://bit.ly/3wbN9yr 📲 MENTORING OPTION: I built my courses to run without me but some folks find themselves in interesting situations and they want to ask questions directly. So after much thought I have created this option that includes one “30 Minute Mentoring” session that can be used at students request. JOIN HERE: https://bit.ly/3hivsc5 ✍️ FREE COURSE: I put together a Free Course so people can get to know me a little more and have fun getting started with no cost. JOIN HERE: https://bit.ly/3hdMbgK 📣AUDIOBOOK: https://amzn.to/3jtLDTQ PLEASE LEAVE 5 Stars! *** Tag me on IG with a book selfie! 🧢 MERCH: I have created some fun merchandise designed by my daughter. Check out Merch Page here: https://one-rental-at-a-time.myshopify.com/


Michael Zuber’s One Rental At A Time is for anyone who’s ever looked at real estate investing from a distance, intrigued by the possibility of financial independence but convinced their current schedule makes it impossible. This podcast dismantles that assumption by focusing on the steady, incremental approach that its title suggests. Instead of complex theories or get-rich-quick schemes, you’ll hear practical conversations about the tangible steps involved in acquiring and managing rental properties. The discussions stem from Michael’s own journey and the experiences of many others who have built a meaningful second income stream through this method. Each episode feels like a straightforward talk about turning a sidelined idea into a actionable plan, addressing the real balancing act between work, family, and building something for the future. Tuning into this podcast, you’ll find a grounded resource in the business and investing space, one that emphasizes how long-term holding and thoughtful acquisition can quietly reshape your financial landscape without demanding you upend your existing life overnight.
Author: Language: en-us Episodes: 100

One Rental At A Time
Podcast Episodes
Top ECONOMIST Exposes the DARK TRUTH About the MIDDLE CLASS [not-audio_url] [/not-audio_url]

Duration: 57:31
Is the middle class on the verge of collapse? In this eye-opening episode, a top economist reveals the harsh realities facing the middle class and why their financial future may be in more danger than ever before. Links…
What Could Go Wrong? 10% CAP on Credit Card Rates!!! [not-audio_url] [/not-audio_url]

Duration: 17:39
A 10% cap on credit card interest rates sounds like a win for consumers—but is it really? In this episode, we explore the potential fallout from capping rates and what it could mean for banks, credit markets, and the eco…
The Shocking Truth About the Fed's Inflation Strategy [not-audio_url] [/not-audio_url]

Duration: 55:50
Is the Federal Reserve’s approach to tackling inflation hiding some surprising truths? In this episode, we uncover the shocking reality behind the Fed's strategy and what it means for your wallet, the markets, and the fu…
Youth Unemployment at 18.8% [not-audio_url] [/not-audio_url]

Duration: 16:50
With youth unemployment soaring to a staggering 18.8%, the economic future of an entire generation is at risk. What’s driving this spike, and what does it mean for the broader economy? In this episode, we break down the…
IS DUMB MONEY BACK? [not-audio_url] [/not-audio_url]

Duration: 13:44
Is "dumb money" flooding the market again, driving risky bets and questionable investments? In this episode, we dive into the signs that inexperienced investors are making a comeback and what that could mean for the stoc…
Home Prices Must Collapse as Demand Crashes [not-audio_url] [/not-audio_url]

Duration: 21:49
The housing market is on the edge, and demand is plummeting fast! Are home prices about to collapse? In this episode, we break down why the market is facing serious trouble, what’s causing the demand crash, and how it co…
THE FED IS SCARED!!! What Happens to Stocks??? [not-audio_url] [/not-audio_url]

Duration: 25:51
The Federal Reserve is on edge, and their fear could shake the stock market to its core. What’s driving their anxiety, and how will it impact your investments? In this episode, we dive deep into the Fed’s latest moves an…
Return to Office Mandate EXPOSES HUGE Housing Market Risk [not-audio_url] [/not-audio_url]

Duration: 56:16
As companies enforce return-to-office mandates, a hidden threat to the housing market is emerging. Could this shift spark a new housing crisis? In this eye-opening episode, we uncover the risks that no one is talking abo…
FED IS SCARED: How to Prevent Hundreds of Bank Failures [not-audio_url] [/not-audio_url]

Duration: 19:13
The Federal Reserve is scrambling to prevent a potential wave of bank failures. In this critical episode, we dive into why the Fed is so alarmed and what steps they might take to stop the bleeding. Could their actions be…
The Fed is Terrified!!! What Comes Next? [not-audio_url] [/not-audio_url]

Duration: 23:48
In this urgent episode, we discuss why the Federal Reserve is in panic mode and what their next move might be. With the economy on edge and markets reacting, what’s the Fed really afraid of, and how will it impact you? F…