Author: Brad Beckett

The U.S. government is reporting that privately‐owned housing starts in September were at a seasonally adjusted annual rate of 1,555,000, which is 1.6% lower than August’s revised number.  However, this figure is 7.4% higher than one year ago.  September’s rate for units in buildings with five units or more was 467k.  Privately‐owned housing units authorized by building permits in September were at a seasonally adjusted annual rate of 1,589,000, which was 7.7% lower than August’’s revised number.  Authorizations of units in buildings with five units or more were at a rate of 498k in September. Click here to read the…

CNBC’s Diana Olick says artificial intelligence might be taking over the real estate industry .  She discusses the overall impact artificial intelligence (AI) is having on real estate with companies like Zillow now using machine-learning in their Zestimates. “In the case of the Zestimate algorithm, the neural network model correlates home facts, location, housing market trends and home values. As a result of this update, the Zestimate can now react more quickly to dynamic market conditions, providing homeowners with a more accurate estimate [prediction] of a home’s current value….” Click here to watch on CNBC.com.

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 October, 2021 The economy continues to improve, although at such a slow rate that we’ll be lucky to just get back to zero by the end of the year – the number of jobs that existed before the pandemic began. This is partly because of the large number of people who have not been vaccinated and partly because some of the jobs that were lost will…

Flipping houses is a hot topic that we cover quite a bit.  A recent article on Realtor.com says high home prices, combined with a record-low number of homes for sale and rising construction and appliances costs, are burrowing into flippers’ bottom lines.  They say that for flippers, it is really is the best of times and the worst of times.  However, they did crunch the numbers and talk with experts to come up with the 5 best and worst places to flip a home. There is opportunity, but you’ve really got to be smart in where you purchase and know…

The U.S. Bureau of Labor Statistics is reporting that the Consumer Price Index for All Urban Consumers (CPI-U) was 0.4% in September, 2021.  Over the last 12 months, the all items index increased 5.4% before seasonal adjustment. Click here to read the full release at the Bureau of Labor Statistics.

Here in America, we still have about another month of Hurricane season – let’s hope it’s quiet.  However, with that in mind, the folks over at Statista recently put together a graphic illustrating the 10 costliest disasters to the insurance industry (1970-2020).  Not surprising, they’re mostly hurricanes…  Stay safe and have a Happy Friday!!! “…events like Hurricane Katrina, show that the effects of such catastrophes can be exacerbated by lack of preparation and inappropriate response to natural disaster…” Hat tip to Statista.

A recent article in the Wall Street Journal (reposted on Realtor.com) says soaring home prices are “roiling appraisals and upending sales.”  They report that more & more properties are being valued below their agreed-upon sales price, causing some deals to collapse.  The reason is because home buyers are frequently paying above asking price in bidding wars, and the subsequent appraisals not keeping up with the rapid sales price increases.  According to CoreLogic, around 13% of appraisals came in below the contract price in August.  CoreLogic says January’s figure of 7.4% was more typical for the housing market. “I don’t remember…

According to recent data from the U.S. Census Bureau’s 2020 Survey of Construction (crunched by the NAHB’s Eye on Housing), says that the number of bedrooms in new single-family homes showed a sharp upswing in the percentage of new homes started with 4 or more bedrooms.   Across the nation, the share of single-family homes started with 4+ bedrooms  increased from 42.6% in 2019 to 45.2% in 2020.  The NAHB says these developments are linked to a combination of factors, such as;  changes in the makeup of homebuyers, the detrimental economic effects of the pandemic, a low-interest rate environment in the…

The Tax Foundation says property taxes are the primary tool for financing local government as well as generating revenue in some states.  In fact, they point out that, in 2019 alone, property taxes generated 31% of total state and local tax collections – more than any other source of tax revenue. Also, in 2019, property taxes accounted for 72% of local tax collections and 27% of overall local government revenue.  So, where do people pay the most in property taxes?  See below… Click here to read the full report at the Tax Foundation.

A recent report by the Wall Street Journal (reposted on Realtor.com) says shortages of key construction materials are forcing some builders & contractors to seek out substitutes and look for alternative suppliers as they attempt to meet the high demand for new housing.   The WSJ says firms are looking for items ranging from from wood paneling to ceiling joists and even pipes.  In addition, plastic roofing membranes that create watertight barriers that protect building interiors are also in short supply.  Indeed… “More than 90% of builders reported shortages of appliances, framing lumber and a type of engineered wood known as…