Author: Brad Beckett

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…

The U.S. Bureau of Labor Statistics is reporting that the Consumer Price Index for All Urban Consumers (CPI-U) was 0.8% in April, 2021.  Over the last 12 months, the all items index increased 4.2% before seasonal adjustment.  Up, up, up…. Click here to read the full release at the Bureau of Labor Statistics.

Saturday, May 15th was Armed Forces Day in America.  It was established by President Harry S. Truman in 1949 to celebrate Americans serving in the six military branches – the U.S. Army, U.S. Navy, U.S. Marine Corps, U.S. Air Force, U.S. Coast Guard and the U.S. Space Force (the newest branch).  Previously each branch of the armed forces had its own day.  Indeed…..Stay safe and have a Happy Friday! Hat tip to the U.S. Census Bureau.

Redfin says new construction is taking up a bigger piece of the pie as low mortgage rates and surging homebuyer demand made homebuilding more attractive during the coronavirus pandemic.  In fact, they report that newly built homes make up 26% of all single-family homes for sale – which they say is a record high.   In addition, in Q1 2021, 25.7% of single-family homes for sale in America during were new-construction homes – up from 20.4% in the first quarter of last year. “Building homes has become more attractive and profitable during the pandemic due to record-low mortgage rates and red-hot…

According to the latest Yardi Matrix Multifamily Report, the average U.S. multifamily rents in April increased $10 to $1,417.  In addition, Yardi says multifamily rents had the largest increase that they have seen since the beginning of the pandemic.  Indeed… “Nationally, the multifamily market continues to strengthen, with record-breaking year-over-year growth in April. All top 30 markets had positive month-over-month rent growth last month, the first time that has occurred since March 2020. But the real sign of recovery was the improved performance in many gateway markets.” Click here to read the full report at Yardimatrix.com.

A new report from Apartment List says remote workers moved more than on-site workers over the past year, but most moves were local.  In addition, they found that “more space” was the top motivator for pandemic moves, regardless of remote work status.  They found their data from a recent survey of 5k employed adults across the country.  Interestingly they say an unprecedented change in how workplaces are organized is weakening the link between job choice and housing choice, and they point out that remote workers are already taking advantage of this newfound freedom to move at higher rates.  Indeed… “Our…

We’ve had several reports about skyrocketing lumber prices, well, here’s an indicator worth noting;  A recent report on FoxNews says a sharp drop in the supply of new vehicles due to the ongoing chip shortage combined with a strong demand for cars has led to an increase in the prices of used pickup trucks.  They report that the average wholesale price for a pickup hit $30,093 in mid-April, up from $28,121 in March.  Putting this into better  perspective, in April, 2020 it was $17,201. “This is fundamentally the most extreme demand and supply imbalance that you can envision happening,”  Said…