Author: Brad Beckett

According to the latest U.S. Home Flipping Report from ATTOM, 114,706 single-family houses and condominiums were flipped in Q1, 2022.  That figure represents 9.6% of all home sales in Q1 or one in 10 transactions – the highest level since at least 2000.  In addition, ATTOM says that as home sales by investors spiked, typical raw profits on those deals remained below where they were one year ago, with profit margins dipped to their lowest point since 2009. “The good news for fix-and-flip investors is that demand remains strong from prospective homebuyers, as evidenced by this quarter’s report, which shows…

According to Black Knight’s “first look” report for May, 2022, the national delinquency rate on first lien mortgages fell slightly to 2.75% in May, continuing the downward trend in overall delinquencies and marking yet another new low.  However, Black Knight says serious delinquencies remain 45% above pre-pandemic levels. Click here to read the full report at Black Knight.

The Bureau of Economic Analysis says the U.S. current-account deficit, (reflecting the combined balances on trade in goods & services and income flows between U.S. residents and residents of other countries) widened by $66.6 billion, or 29.6%, to $291.4 billion in Q1, 2022.  The BEA says this widening mostly reflected an increased deficit on goods. Click here to read the full report at the Bureau of Economic Analysis.

The National Association of Realtors is reporting that pending home sales were up 0.7% in May, 2022.  The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) climbed to 99.9.  The NAR says pending home sales broke a six-month skid with this slight rise. “Despite the small gain in pending sales from the prior month, the housing market is clearly undergoing a transition…Contract signings are down sizably from a year ago because of much higher mortgage rates.”  Said Lawrence Yun, NAR’s chief economist. Click here to read the full report at the National Association of Realtors.

On a recent episode of Real Estate News for Investors, Kathy Fettke discusses the Fed’s biggest rate hike in three decades, mortgage rate sticker shock, inflation hitting an annual rate of 8.6%, and the home equity bonanza. Click here to listen on Spotify.com.

The U.S. Government is reporting that sales of new single-family houses in May, 2022 were at a seasonally adjusted annual rate of 696k, which is 10.7% higher than April’s revised rate and is 5.9% lower than one year ago.  The median sales price of new houses sold in September was $449k with an average sales price of $511,400.  There were an estimated 444k new houses for sale at the end of March representing a 7.7-month supply at the current sales rate. Click here to read the full report at the U.S. Census Bureau.

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 June, 2022 There’s good news and bad news. On the one hand, the economy has been adding jobs at a good rate in recent months. On the other hand, a number of forces stand in the way of growth in the future. One is the fact that the US population didn’t increase at all in 2021. This has never happened before, even during the 1930s depression.…

The National Association of Realtors is reporting that existing home sales were down 3.4% in May to a seasonally-adjusted annual rate of 5.41 million (down 8.6% year over year).  Total housing inventory at the end of May was 1,160,000 units, down 4.1% from one year ago.  Unsold inventory sits at a 2.6-month supply at the current sales rate with properties remaining on the market for around 16 days.  The median existing-home price for all housing types in May was $407,600 (surpassing the $400k mark for the first time) and was up 14.8% from one year ago.  The NAR says this…

Today’s graphic from Accruit reminds us that the ability to defer taxes through a 1031 like-kind exchange is a valuable taxpayer benefit, but to receive it, the rules pertaining to identification and acquisition of replacement property must be strictly followed. They have outlined the 5 requirements for identificationod replacement property in a 1031 Exchange.  Indeed…..Stay safe and have a Happy Friday!!! Hat tip to Accruit.

According to recent data from the Associated General Contractors of America, while nearly every state added construction jobs during the past twelve months, that momentum slowed considerably in May with only 22 states adding jobs.  The AGC says monthly employment gains lagged as contractors coped with labor shortages and supply chain challenges. “Demand for construction appears to be outpacing the availability of workers and materials in many parts of the country…Contractors need people and products to build projects, and the supply of both is very constrained right now,”  Said Stephen E. Sandherr, the association’s chief executive officer. Click here to…