There are a number of reasons it is very difficult to find good quality properties on the market now. There are a number of reasons for it.
1. Price uncertainty. There is a disconnect between what sellers want and what buyers are willing to pay in a Covid world. Buyers are concerned about the stability of collections now that there isn’t a government subsidy to support rent payments, along with the inability to evict those that are unable to pay.
2. Sellers that want to sell are unable to find a suitable replacement property to execute a 1031 Exchange.
3. Lenders have tightened lending criteria and are concerned about rent collections going forward.
4. There are properties on the market now with assumable mortgages substantially higher than current rates. Sellers aren’t willing/able to reduce their price to accommodate the difference in the lower rates.
5. General market uncertainty. Employers are starting to determine how many employees are actually needed in the current recessionary market and are starting to permanently layoff staff now that the PPP programs have ended. The current projections are for the unemployment numbers to crest around Q1-2 of 2021.