Author: Brad Beckett

Director of Education & Outreach, National Real Estate Investors Association

Tarek El Moussa and his new wife Heather Rae YoungAs everyone knows, the reality TV shows make it all look so easy with every flip being a potential Vegas jackpot. However, there are some good lessons that can be gleaned every now and then from these programs. On a recent episode of Flipping 101, Tarek El Moussa (without Christina) works with one flipping couple who made what may be the biggest renovation mistake of all – they forgot the dishwasher…..a fact that was pointed out by a potential buyer. Realtor.com says it brings up an important lesson: Buyers won’t care…

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According to recent data from the U.S. Department of Commerce’s Bureau of Economic Analysis, in 2020 personal income increased in 3,040 counties, decreased in 69, and was unchanged in 3. In metropolitan areas, personal income increased 6.4% and on non-metro areas it increased 7.6%.  The BEA says personal income estimates were impacted by the response to the spread of COVID-19, as governments issued and lifted “stay-at-home” orders. Click here to read the full report at the U.S. Bureau of Economic Analysis.

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CoreLogic says rent growth across all tiers remains at record highs, with high-end rentals leading the charge.  In addition their latest Single-Family Rent Index (SFRI) also says strong demand & labor market are fueling single-family rent price increases.  Their data shows data shows national rents increased 10.2% year over year.  On year ago that number was 2.6%.  CoreLogic predicts a continued increase in rents especially across high-end rentals as renters seek more space.  Indeed… “Consumers continue to feel the push and pull between the purchase and rental markets. While desire for home ownership remains high…the competitive purchase market conditions are…

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According to a recent report from Redfin, real estate investors bought a record 18.2% of the U.S. homes purchased during Q3, 2021.  This figure is up 2.1% from Q2 and up 7% from one year ago.  As for numbers, in Q3 alone investors bought a record 90,215 homes – up 10.1% from Q2 and up 80.2% from one year ago.  Redfin says this was the second-largest year-over-year gain on record. “Increasing home prices fueled by an intense housing shortage have created opportunities for investors to reap big profits,” said Redfin Senior Economist Sheharyar Bokhari. Key takeaways: Investors purchased a record…

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The National Association of Realtors is reporting that existing home sales were up 0.8% in October to a seasonally-adjusted annual rate of 6.34 million (down 5.8% from one year ago).  Total housing inventory at the end of October was 1.25 million units, down 12% from one year ago.  Unsold inventory sits at a 2.4-month supply at the current sales pace with properties remaining on the market for around 18 days. The median existing-home price for all housing types was $353,900, up 13.1% from October, 2020.  In addition, Distressed sales (foreclosures & short sales) represented less than 1% of sales in…

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The venerable AAA says it’s time to “buckle-up” this Thanksgiving as they say over 53 million people will be traveling – up 13% from 2020.  They say travel volume will be within 5% of pre-pandemic levels and up 80% over last year. They caution that as restrictions continue to lift and with growing consumer confidence, travelers need to be proactive when making their travel plans this holiday season. “This Thanksgiving, travel will look a lot different than last year,” said Paula Twidale, senior vice president, AAA Travel. “Now that the borders are open and new health and safety guidelines are…

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The U.S. government is reporting that privately‐owned housing starts in October were at a seasonally adjusted annual rate of 1,520,000, which is 0.7% lower than September’s revised number.  However, this figure is 0.4% higher than one year ago.  October’s rate for units in buildings with five units or more was 470k.  Privately‐owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 1,650,000, which is 4% higher than September’s revised number.  Authorizations of units in buildings with five units or more were at a rate of 528k in October.Click here to read the full…

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Recently we posted new numbers form the Consumer Price Index revealing that the “all items index” rose 6.2% for the 12 months ending October – which was the largest 12-month increase since 1990.   However, with that in mind, the folks over at Statista crunched the numbers to see how bad it really is, or isn’t.  They calculated the average annual inflation rate over a moving three-year period, which yielded a curve that fluctuated around 2 percent for a long time, until it took off this summer.  They conclude that the latest spike in consumer prices is more than just a…

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The Mortgage Bankers Association points out that the October’s Employment Situation Report  said 531k jobs were added over most sectors of the economy and the unemployment rate decreased further to 4.6%. There were around 44k construction jobs were added in October with a fourth of those being residential construction and residential specialty trade contractors.  However, MBA says even though production has picked up, home builders are facing labor shortages, rising costs for building materials and low availability of these materials, limited lot availability, and more.  A recent MBA “chart of the week” examines the growth rates of single-family construction and…

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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, 2021 Most of us thought the pandemic would have a deep but temporary effect on the economy, that our medical ingenuity would allow us to control and eventually defeat the virus and then get back to normal. That didn’t happen. We now face the likelihood that the pandemic will linger at a low level for years, affecting how we work, shop and interact with each…

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