Author: Brad Beckett

Winning…..For the 8th year in a row, Gallup is reporting that more Americans prefer real estate over other long-term investment vehicles for growing wealth.  When broken down, the numbers show that 41% prefer real estate (up 6 points from 2020), 26% prefer the stock market, 18% prefer gold, 9% prefer CDs/bank accounts, and 3% prefer bonds. Click here to read the full report at Gallup.com.

The National Association of Realtors is reporting that existing home sales were down 2.7% in April to a seasonally-adjusted annual rate of 5.851 million (up 33.9% from one year ago).  Total housing inventory at the end of April was 1.16 million units, down 20.5% 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 17 days. The median existing-home price for all housing types was $341,600, up 19.1% from April, 2020.  Once again, there just aren’t enough homes for sale out there to meet demand. “Home…

Today’s image from infographicsarchive.com, quite frankly, nails it.  America is a rich country because we are free.  They point out that the average American has more than one car, air conditioning, and eats out several times a week (pandemic aside).  Take a look at the necessary building blocks mentioned below….And, as always, stay safe (the light at the end of the tunnel is getting nearer by the day) and have a Happy Friday!!! “Today, the average American has more than one car, has air conditioning, and eats out several times a week.  There’s no doubt that, on average, Americans are…

Redfin says the rise in demand for second homes is more than twice the increase for primary homes, with the number of buyers who locked in mortgage rates for primary homes rising a whopping 178% from one year ago.  They say that these second-home buyers are “out in full force” as many so-called wealthy Americans work remotely from vacation destinations.  Indeed… “Demand for vacation homes remains elevated as wealthy Americans continue to have the freedom to work remotely and earn money from robust stock portfolios and rising home values. Even as some offices start to reopen, many Americans plan to…

According to their recent Q1 2021 U.S. Sales Report, ATTOM Data Solutions says nationwide homeseller profit margins increased to 34.2% in Q1 2021, up from 30.8% in Q1 2020. The typical home-sale profit in Q1 2021 increased 26% to $70,050 from $55,750 in Q1 2020.  Interestingly, the report also dug into homeownership tenure data which revealed the top 10 U.S. counties with the greatest year-over-year increases in average homeownership tenure. “Homeowners who sold in the first quarter of 2021 had owned their homes an average of 7.94 years, down from the high for this century of 8.17 years in the…

Oh what a difference a month can make.  The U.S. government is reporting that privately‐owned housing starts in April were at a seasonally adjusted annual rate of 1,569,000, which is 9.5% lower than March’s revised number.  However, this figure is 67.3% higher than one year ago.  April’s rate for units in buildings with five units or more was 470k.  Privately‐owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,760,000, which was 0.3% higher than March’s revised number.  Authorizations of units in buildings with five units or more were at a rate of…

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 May, 2021 As more and more people are vaccinated and as more states allow businesses to open, it’s a good time to think about the longer-term fall-out from the pandemic, both nationally and for individual markets. But first, let’s remember that the pandemic is still here and could upset the optimistic outlook. If large numbers of people refuse vaccination or deadlier variants of the virus circulate…

According to Mortgage Bankers Association’s First quarter of 2021 National Delinquency Survey, the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 6.38% of all loans outstanding.  In addition, the MBA reports that the delinquency rate was down 35 basis points from Q4 2020, and up 202 basis points from one year ago.  Note the historical corollary in the chart below between the delinquency rate and unemployment rate. “Mortgage delinquency rates continued to decrease in the first quarter of 2021, as a rebounding job market and stimulus checks helped borrowers stay current on…

On a recent episode of the Rent Perfect Podcast, David Pickron says being a successful landlord is more about managing your tenants than it is about managing your property. He and Scot Aubrey talk fly fishing and how it applies to finding a tenant that will love your property as much as you do. Click here to listen on Spotify.com. Rent Perfect is the solution rental property owners & managers have been crying out for! Their Online Lease Agreement allows you to send your tenant(s) a customized lease agreement, electronically & securely. They offer the most accurate & thorough…

Just when you thought lumber prices were jacking up home prices, along comes a new study from the NAHB that says government regulations (imposed by all levels of gov’t) account for $93,870, or 23.8% of the current average sales price of a new single-family home (currently ($397,300).  The NAHB says that of this $93,870 figure, just over $41k is attributable to regulation during development, and nearly $53k is due to regulation during actual construction.  Holy big-government Batman! “This study illustrates how overregulation is exacerbating the nation’s housing affordability crisis and that policymakers need to take bold steps to reduce or…