Author: Brad Beckett

ATTOM says that even though home flipping is on the rise, the profit margins associated with those flips are at a 10-year low.  According to their Q2 2021 U.S. Home Flipping Report, 79,733 single-family homes and condominiums were flipped in the second quarter representing 4.9% of all home sales in the Q2, or one in 20 transactions – the first increase in more than a year.  The report also pointed out that flipping rates were up in almost 80% of local markets. However, the typical gross-flipping profit of $67k in Q2 2021 translated into a 33.5% return on investment compared…

This week is Fire Prevention Week (October 3-9, 2021).  Did you know that America’s fire death rate is one of the highest per capita in the industrialized world?  Fire kills around 3k and injures approximately 20k people every year.  And, believe it or not, the majority of deaths are in homes without a working smoke alarm.  As we reported last week, if you have a smoke alarm that’s over than 10 years old, that means it’s time to replace it! Kidde says understanding the best ways to protect your home and family or your business from fire should always be…

According to the latest Federal Housing Finance Agency’s (FHFA) House Price Index (HPI), U.S. house prices were up 1.4% in July and up 19.2% from July, 2020.  The FHFA produces the nation’s only public, freely available house price indexes (HPIs) that measure changes in single-family house prices based on data that cover all 50 states and over 400 American cities and extend back to the mid-1970s.  The FHFA’s HPIs are built on tens of millions of home sales and offer insights about home price fluctuations at the levels of the nation, census division, state, metro area, county, ZIP code, and…

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 19.7% annual gain for July, 2021, which they say is a record high.  Their 10-City Composite annual increase came in at 19.1% and their 20-City Composite posted a 19.9% year-over-year gain. “We have previously suggested that the strength in the U.S. housing market is being driven in part by a reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes. July’s data are consistent with this hypothesis…” Click here to read the full report at S&P Dow Jones Indices.

The National Association of Realtors is reporting that pending home sales were up 8.1% in August, 2021.  The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) fell to 119.5.  In addition, they report that year-over-year contract signings were down 8.3%. “Rising inventory and moderating price conditions are bringing buyers back to the market,” said Lawrence Yun, NAR’s chief economist. “Affordability, however, remains challenging as home price gains are roughly three times wage growth.” Click here to read the full report at the National Association of Realtors.

National Fire Prevention Week runs October 3rd – 9th, 2021 and one of the best ways to celebrate is to check all your properties’ smoke alarms for functionality and age.  If you have one that’s over than 10 years old, that means it’s time to replace it!  And when you do, National REIA recommends both ionization and photoelectric technologies be used in all your properties.  You should also have a working & tested carbon monoxide detector and fire extinguisher in each unit as well.  Remember, an ounce of prevention is worth a ton of cure…as well as saving lives!  As…

We have had several posts over the past couple years about the growing demand for second homes.  However, a recent report from Redfin says demand those homes dropped 19.3% year over year in August, marking the third-straight month of declines.  However, they do predict that interest in vacation homes will likely remain above pre-pandemic levels for the foreseeable future due to the permanent shift to remote work for many Americans. “The pandemic isn’t over, but the desire to escape isn’t as intense as it was before. People are increasingly returning to life as normal, with kids going back to school…

According to Apartment List’s October National Rent Report, only a few cities still remain cheaper than what they were pre-pandemic – and they say those are unlikely to remain much longer. In addition, they report that since January the national median rent has increased by a staggering 16.4%. They put that into context by pointing out that rent growth from January to September (2017-2019) only averaged 3.4%. “With rents rising virtually everywhere, only a few cities still remain cheaper than they were pre-pandemic, and even these remaining discounts are unlikely to persist much longer. At the other end of the…

According to the latest CoreLogic Home Price Insights (HPI) report, home prices nationwide, including distressed sales, increased 18% year-over-year in July.  CoreLogic predicts that home prices will increase on a month-over-month basis by 0.7% through August, 2022, and on a year-over-year basis by 2.7% through July, 2022. July’s annual home price growth was the most that we have ever seen in the 45-year history of the CoreLogic Home Price Index. This price gain has far exceeded income growth and eroded affordability. In the coming months this will temper demand and lead to a slowing in price growth.”  – Dr. Frank…

According to Black Knight’s “first look” report for August, 2021, The national delinquency rate on first lien mortgages fell to 4% in August, the lowest it’s been since pandemic-related impacts caused mortgage delinquencies to spike in early 2020.  However, Black Knight says August’s 7,100 foreclosure starts represented the largest such volume in eight months after foreclosure moratoria on federally backed loans were lifted at the end of July.  Indeed… Click here to read the full report at Black Knight.