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…
Author: Brad Beckett
Brad Beckett
Director of Education & Outreach, National Real Estate Investors Association
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…
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.
