Author: Brad Beckett

According to the latest Federal Housing Finance Agency’s (FHFA) House Price Index (HPI), U.S. house prices rose 17.5% from Q4 2020 to Q4 2021.  In addiiton,  the FHFA’s seasonally adjusted monthly index for December was up 1.2% from November, 2021.  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. “Housing trends over the past year have created challenges. The quick house price gains may be counterbalanced as mortgage rates increase.…

According to the latest CoreLogic Loan Performance Insights Report, in November 2021, 3.6% of mortgages were delinquent by at least 30 days or more including those in foreclosure.  This figure represents a 2.3-percentage point decrease in the overall delinquency rate compared with November 2020.  CoreLogic says measuring early-stage delinquency rates is important for analyzing the health of the mortgage market.  Their monthly report coverage at the national, state and Core Based Statistical Area (CBSA)/Metro level and includes transition rates between states of delinquency and separate breakouts for 120+ day delinquency. “Nonfarm employment rose 6.45 million during 2021, helping to rebuild…

Storagecafe says self storage has seen tremendous growth recently.  In fact, according to their recent analysis roughly 38% of Americans use self storage, with General X and Baby Boomers leading the way.   The most common reason for using self storage is downsizing and the most common item being put in those units is furniture.   Go figure??? “2021 was a year that saw the incidence of many of these events shoot up. Whether it was decamping to the suburbs, adding an office or a study room to the home, or moving in with mom and dad, self storage lent a helping…

The National Association of Realtors is reporting that existing home sales were up 6.7% in January to a seasonally-adjusted annual rate of 6.50 million (down 2.3% from one year ago).  Total housing inventory at the end of January was 860k units, down 16.5% from one year ago.  Unsold inventory sits at a 1.6-month supply at the current sales rate with properties remaining on the market for around 19 days.  The median existing-home price for all housing types in January was $350,300, which was up 15.4% from one year ago.  The NAR says this marks 119 consecutive months of year-over-year increases,…

We continue to post about rising lumber prices and their impact on the housing industry.  In a recent report, CNBC’s Diana Olick says the price of lumber has been on a roller coaster since the start of the pandemic, and it’s disrupting the housing market.  As we have seen, not only are soaring costs increasing the price of a new home, they are also adding nearly $7,300 to the average cost of a new multifamily home, translating into an additional $67/month to the rent. Click here to read the full story at CNBC.com.

The U.S. government is reporting that privately‐owned housing starts in January were at a seasonally adjusted annual rate of 1,638,000, which is 4.1% lower than December’s revised number and 0.8% higher than one year ago.  January’s rate for units in buildings with five units or more was 510k.  Privately‐owned housing units authorized by building permits in January were at a seasonally adjusted annual rate of 1,899,000, which is 0.7% higher than December’s revised number.  Authorizations of units in buildings with five units or more were at a rate of 629k in December. Click here to read the full report at…

What are the metro areas seeing the largest percent gain in single-family home prices?  Today’s graphic from the NAR shows identifies the top 10 cities with the biggest gains.  Stay safe and have a Happy Friday!!! The top 10 metro areas with the largest gains in existing single-family home prices in Q4, 2021: Punta Gorda, FL Ocala, FL Austin/Round Rock, TX Phoenix/Mesa/Scottsdale, AZ Sherman/Denison, TX Tucson, AZ Las Vegas/Henderson/Paradise, NV Ogden/Clearfield, UT Salt Lake City, UT 10. Boise City/Nampa, ID Hat tip to the National Association of Realtors.

According to Auction.com’s Daren Blomquist, most REO auction buyers in 2021 were owner-occupants or local community developers.   Of those buyers, 99% purchased five or fewer properties with 74% of those properties being located within 100 miles of where they live.  The U.S. states with the highest share of owner-occupant REO auction buyers in 2021 were Idaho (43%), Hawaii (25%), Maine (23%), New Mexico (22%), and Washington (21%). The top three states in terms of sold REO auction volume in 2021 all posted owner-occupancy rates above the national average: Illinois (15%), New York (17%), and Florida (17%). Interestingly, Blomquist said bank-owned…

Apartment List says rent growth has cooled substantially from last year’s peak with year-over-year rent growth currently standing at a record-setting 17.8%.  However, over the past four months, rents only increased by a total of just 0.9%.  In February, 41 of the nation’s 100 largest cities saw rents fall with just five cities seeing an increase by more than 1%.  Apartment List says it remains to be seen if rapid rent growth will return as moving activity picks back up in the spring and summer.  Indeed… “After the first and only national rent decline of 2021, January brought a return…

According to the latest CoreLogic Home Price Index, price appreciation averaged 15% for 2021, up from 2020’s full year average of 6%.  They point that home price growth started off 2021 at 10% in Q1, steadily increasing and ending the year with an increase of 18% by Q4.  CoreLogic says that homeownership demand ran up against persistently low supply of for-sale homes, which in turn created one of the hottest housing markets in decades.  However, they do predict that in 2022, price gains will start above 10%, but slow to 3.5% by the end of the year.  Indeed… “Much of…