Author: Brad Beckett

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 November, 2022 Recent data about more jobs and an improving Gross Domestic Product suggest an economy that’s doing well and that will do even better once inflation comes down. But a closer look at other statistics gives a less upbeat picture. Productivity, the output per worker, which reached a high level during the pandemic when many people worked from home, fell sharply as offices and businesses…

According to the latest Yardi Matrix Multifamily Report, the average U.S. multifamily rents were $1,727 in October, up $3 from September.  Yardi says The Fed’s recent actions have roiled the housing market, which is sure to impact multifamily demand, property values and investment strategies. Indeed… “…much of the attention in the industry has been taken over by the rapid growth in interest rates and the impact on demand and property values. The Federal Reserve last week increased short-term borrowing rates another 75 basis points, bringing the target range from 3.75% to 4%, the highest level since 2008. Just as important,…

The National Association of Realtors say an overwhelming majority of metro markets (98%) saw home price gains in Q3 2022 despite rising mortgage and declining sales.   In fact, they report that 46% of the tracked metro areas saw double-digit price increases, which was down from 80% in Q2, 2022.  The national median single-family existing-home price was $398,500, up 8.6% from one year ago. “Much lower buying capacity has slowed home price growth and the trend will continue until mortgage rates stop rising…The median income needed to buy a typical home has risen to $88,300 – that’s almost $40,000 more than…

The CEO of Real estate mega-portal Redfin announced in early November that it was tightening its focus and laying off 13% of its workforce – including closing their home-flipping business, RedfinNOW.  The announcement was made through a company-wide email entitled “All-Hands Email on November Layoff” sent out by CEO Glenn Kelman. RedfinNOW offered potential homesellers a “hassle-free way” to sell their homes.  They were given an all-cash offer within days that that promised “no repairs, staging, or open houses so you can stick to your work and life schedules.”  Apparently the promotion became a too much of a financial burden…

According to Black Knight’s Mortgage Monitor Report for September, 2022, median home prices fell 0.52%, continuing a three-month streak of declines.  They say that despite price corrections, home values in the nation’s 50 largest markets remain elevated by anywhere from 19% to 66% since the start of the pandemic.  However, they point out that $1.3 trillion in recently added equity vanished from the market in Q3, the largest quarterly dollar decline on record, and the largest on a percentage basis since 2009.  Likewise, the number of underwater homeowners has climbed nearly 275K over the past four months (more than doubling…

The U.S. Bureau of Labor Statistics is reporting that the Consumer Price Index for All Urban Consumers (CPI-U) was up 0.4% in October, 2022.  However, the all items index was up 7.7% for the 12 months ending in October.  Of note;  The index for shelter contributed over half of the monthly all items increase, with the indexes for gasoline and food also seeing increases. Click here to read the full release at the Bureau of Labor Statistics.

Today, Friday, November 11th is Veterans Day… Here’s a little history about this important day;  In 1918, the armistice of the First World War officially took effect on the 11th day, of the 11th month, at the 11th hour.  The following year President Woodrow Wilson declared November 11th as Armistice Day.   It would later become a holiday to honor veterans of World War I and then in 1954, following World War II & the Korean War, it was renamed “Veterans Day” to honor all American veterans who served in times of war and peace. Stay safe and Happy Friday!!…..And, be…

A new report from Redfin says surging mortgage rates and persistently high home prices are motivating many home buyers to relocate to more affordable areas, but they say migration may slow as the economy continues to soften.  According to their research, 24.2% of homebuyers nationwide looked to move to a different metro area in Q3 – which they say is a record high.  That figure is up from 23.3% in Q2 and 21.6% from one year ago.  Before the pandemic, that number was 18%. “With a recession looming and household expenses high, many people can’t afford to buy a home…

As we’re rounding third and heading for home to close out this year, Realtor.com says “forget simple curb appeal” there are affordable real estate markets that offer some much-needed relief from soaring prices and punishing inflation that are attracting homebuyers.  To get their magic list, Realtor.com analyzed the 300 largest metropolitan areas seeking to identify which might be strong in the coming months, looking at items such as a thriving local economy, low unemployment, competitive wages, short commutes, and easy access to recreational activities.  Indeed…So, where are these red-hot real estate destinations? “Compared to a year ago, home prices are…

On a recent episode of the Rental Property Owner & Real Estate Investor Podcast, Brian Hamrick talks with Jeff Davis, managing partner of Bridgestone Capital, who solves complex supply chain issues for clients all over the globe. Jeff shares his bold predictions on when material and construction costs will come back down to Earth, whether we’ll ever see pre-Covid prices, and whether interest rates really make a difference in real estate investing.  Jeff will also share the one metric that he’s looking at that allows him to see the future of prices from six to nine months out. “If you’ve…