Following is a 7 minute video that was aired the 24th of August on CNBC with Hessam Nadji of Marcus & Millichap Advisory Services, and Alex Goldfarb of Sandler O’Neaill & Partners.
The subject of the interview is how to make money in the housing sector right now
Here are some key points.
* Apartments leading recovery by demand, followed by industrial properties
* The Commercial Real Estate sector usually trails the economy by 6 months and Multi-Family is usually the first to recover (which is starting to happen) due to there short terms leases. The meaning is that since the apartment leases are usually a year or less they can be adjusted upward as the market or that segment improves.
* Starting to see multi-family REITS doing better. Raising there rents on average of 5% over the last 12 months.
* Home ownership is going down which is good for rentals.
* Some people are realizing that owning homes is very expensive and only having to write one check for their rent is attractive.
