Author: Brad Beckett

The NAHB’s Eye on Housing says Single-family built-for-rent (SFBFR) construction surged during Q2, 2022 as higher mortgage rates caused homebuying affordability to decline.  According to analyzed Census data, there were approximately 21k single-family built-for-rent (SFBFR) starts during the second quarter of 2022 –  a 91% gain over Q2, 2021. “The SFBFR market is a means to add inventory amid challenges over housing affordability and downpayment requirements in the for-sale market, particularly during a period when a growing number of people want more space and a single-family structure. Single-family built-for-rent construction differs in terms of structural characteristics compared to other newly-built…

A recent article on Bankrate says while the concept of investing might make you think of buying and selling stocks & bonds,  you can also invest by purchasing an investment property to rent out or fix it up to sell for a quick profit.  They point out that Census data show about 70% of rental properties are owned by individual investors, according to Census estimates.  Indeed… “While plenty of headlines have focused on corporations buying houses, the vast majority of real estate investors are much smaller operations, says Charles Tassell, chief operating officer of the National Real Estate Investors Association.…

Local Market Monitor, a National REIA preferred vendor, recently released their monthly National Economic Outlook where they share their thoughts on developments taking place in the U.S. economy. National Economic Outlook By Ingo Winzer August, 2022 In July the US economy finally regained the same level of jobs that existed before the pandemic. It’s in this modest context that we have to view recent economic gains. Sure, things are better, but… Gross domestic product, adjusted for inflation, is now three percent higher than before the pandemic. But it decreased in the last two quarters, even if only slightly. Population…

The National Association of Realtors is reporting that existing home sales were down 5.9% in July to a seasonally-adjusted annual rate of 4.81 million (down 20.2% year over year).  Total housing inventory at the end of July was 1,310,000 units, up 4.8% from June and unchanged from one year ago.  Unsold inventory sits at a 3.3-month supply at the current sales rate with properties remaining on the market for around 14 days.  The median existing-home price for all housing types in July was $403,800, up 10.8% from one year ago.  Once again, the NAR says this marks 125 consecutive months…

The U.S. government is reporting that privately‐owned housing starts in July were at a seasonally adjusted annual rate of 1,446,000, which is 9.6% lower than June’s revised number and 8.1% lower than one year ago.  July’s rate for units in buildings with five units or more was 514k.  Privately‐owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 1,674,000, which is 1.3% lower than June’s revised number.  Authorizations of units in buildings with five units or more were at a rate of 693k in June. Click here to read the full report at…

The Daily Infographic reminds us that windows are one of the most important parts of a home and that’s why it is essential to choose the right ones for your house, flip or rehab project.  However there are many different types of windows and styles to choose from….who knew?  As always, stay safe and have a Happy Friday!!! Hat tip to the Daily Infographic.

The Mortgage Bankers Association is reporting that mortgage delinquency rates have dropped to their lowest level since 1979 (their survey’s inception).  Their data show that the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 3.64% of all loans outstanding at the end of Q2, 2022.  The data, from their National Delinquency Survey, says the delinquency rate was down 47 basis points from Q1, 2022 and down 183 basis points from one year ago. “Foreclosure inventory levels and foreclosure starts remain well below historical averages for the survey – a strong indication that…

The National Apartment Association recently shared their takeaways from the  White House summit on evictions, which took place last month.  The Biden Administration invited federal, state and local policymakers, as well as community advocates, to share feedback on strategies for limiting evictions in the U.S. rental housing market.  The NAA also said discussion formed around building consensus on how excess American Rescue Plan Act (ARPA) funds, including emergency rental assistance (ERA) dollars, can further efforts in eviction prevention. Notably missing from the summit’s panelists were representatives from the housing industry.  Indeed… “…It is critical to remember that housing providers, working…

CoreLogic says potential homebuyers are being discouraged by rapidly climbing and higher mortgage rates – which, in turn, means tumbling mortgage originations.  However, they point that adjustable-rate mortgages (ARMs) are up significantly amid rising interest rates and they say homebuyers & investors are flocking to ARMs for better affordability and yields. “The adjustable-rate mortgage is typically not most homebuyers’ go-to means for financing their homes due largely to uncertainty in future interest rates. ARM’s loan volume never exceeded 10% in the past 10 years, even as ARM products have become safe, sound and transparent in the post financial crisis era.”…

According to the latest Yardi Matrix Multifamily Report, the average U.S. multifamily rents in July increased $10 to another all-time high of $1,717 (up 12.6% year-over-year).  However, while Yardi says performance remains strong, economic growth is slowing, and consumer confidence is waning.  Indeed… “The moderating rent growth may be a product of an inevitable return to the mean, coincidental to the suddenly slowing economy, or some combination of the two.” Click here to read the full report at Yardimatrix.com.