Author: Brad Beckett

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…

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…

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…

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…

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…

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…

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…

A recent Wall Street Journal story (reposted on Realtor.com) says single-family homes that were built to rent are emerging as the hottest corner of the U.S. property market.  The report suggests that steep down payment requirements are causing people to stay on as renters, even as those rents are rising at a break-neck pace.  In addition, they say a land-grab is being driven by growing investor interest in building homes for rent – especially in the south. “Close to 100,000 built-to-rent homes will have started construction this year, according to estimates from Brad Hunter, founder of the Hunter Housing Economics…

According to ATTOM Data’s Q3 2021 U.S. Home Sales Report, profit margins on median-priced single-family home and condo sales jumped to 47.6 percent – which they say is the highest level in 10 years.  The report says that the typical home sale across the country during Q3 ’21 generated a profit of $100,178, with the national median home price hitting a record of $310,500. “The third quarter of this year marked another period in a banner year for a housing market boom that’s steaming ahead through its 10th year. Prices and seller profits again hit new highs since the market…

No surprises here;  A recent report from Redfin says Crime & Cost of Living were the most commonly cited factors for homeowners and renters when it came time to move.  Interestingly, homeowners and renters differed the most on the issue of taxes.  Redfin says nearly three times as many homeowners cited taxes as an important factor in deciding where to move. “There are plenty of positive reasons to make a move, but sometimes people move to flee a place where they felt unsafe…Concerns with crime, especially among homeowners, contributed to a recent increase in migration out of cities and into…