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 July 21, 2020 – The slowing of consumer spending (which accounts for 70 percent of the economy) is usually a leading indicator for a recession. For this recession there was no lead time at all; spending plunged when businesses shut down and employees were let go. Back in the 2008 recession, retail sales eventually dropped 10 percent, this time they bottomed out at 20 percent. But…

Just when you thought you might have seen it all with the sharing economy, a new start-up lets you enjoy the luxury of a private pool whenever you feel like it.  How?  By renting one by the hour, of course.  Swimply lets you escape the heat by finding a pool near you to rent out, just like you would for a VRBO or Airbnb vacation rental.  As reported by CNBC’s Diana Olick, prices range from $15 to $300 per hour, depending on the type of pool, location and amenities.  The site lists pools in 39 U.S. states as well as…

As of mid-July, mortgage interest rates dropped to historic levels.  In fact, the average 30-fixed-rate mortgage settled below the 3% mark!  As Kathy Fettke points out in a recent episode of Real Estate News for Investors, low rates are great for buyers, but are also the results of the current pandemic-induced crisis.  Indeed… “Mortgage rates tend to drop when investors pour money into the 10-year U.S. Treasury bond. When there’s more demand from investors buying up Treasurys, bond prices rise as yields go down (just like in real estate, when prices rise and cash flows decline). Investors who typically buy…

Redfin is reporting that national median home prices were up 2.8% (year-over-year) in June to a record high of $311k, which they say is being powered by record-low mortgage rates.  In addition, they report that median prices increased in all but four of the 85 largest metro areas that Redfin tracks. “The coronavirus hasn’t dragged home prices down; in fact we’ve seen just the opposite—prices are rising in spite of the pandemic,” said Brian Walsh, a Redfin agent in Tampa, where the median home price was up 8% year over year in June. “Every house that is the slightest bit…

According to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), builder confidence in the market for newly-built single-family homes jumped 14 points to 72 in July – which the NAHB says is back to pre-pandemic levels.  However, while the market is rebounding, the NAHB says higher building material prices and labor shortages continue to weigh on the industry. But, shifting demand is playing a key role: “…the important story of the changing geography of housing demand is benefiting new construction. New home demand is improving in lower density markets, including small metro areas, rural markets and…

The U.S. government is reporting that privately‐owned housing starts in June were at a seasonally adjusted annual rate of 1,186,000, which is 17.3% higher than May’s revised number.  June’s rate for units in buildings with five units or more was 350k.  Privately‐owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,241,000, which was 2.1% higher than May’s revised number.  Authorizations of units in buildings with five units or more were at a rate of 368k in June. Click here to read the full report at the U.S. Census Bureau.

As an avid reader of this site, you have undoubtedly seen any one of our many posts about cyber security.  Today’s infographic from Statista shares the most common passwords in use, as revealed by leaks from hackers.  Password security is one of the most basic and fundamental things you can do to keep from being a victim of cyber-crime.  In fact, as Statista rightly points out, “using an easy to remember password doesn’t seem like a big deal until finding out that a popular hacking method actually uses a bot to try out a number of common passwords until one…

According to a recent survey from RentCafé, the Coronavirus pandemic has dashed the plans of those renters planning to transition to homeownership this year.  They report that in early 2020, 11% of renters said they were ready and planning to buy a home this year.  However, the path to homeownership for 43% of those renters ready to buy has now changed due to the pandemic.  Breaking down that group, most changed their plans because of economic uncertainty, followed by loss of income.  The survey, which ran at the end of May, asked 7k renters about their housing plans before and…

The U.S. Bureau of Labor Statistics is reporting that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6% in June.  In addition, the gasoline index’s rise accounted for over half of the monthly increase in the seasonally adjusted all items index. “The all items index increased 0.6 percent for the 12 months ending June; this compares to a 0.1-percent increase for the 12 months ending May. The index for all items less food and energy increased 1.2 percent over the last 12 months. The food index increased 4.5 percent over the last 12 months, with the index for…

Is American becoming a renter nation?  A recent article by the Wall Street Journal (reposted on Realtor.com) takes an deep-dive into the empire created by billionaire B. Wayne Hughes and how his American Homes 4 Rent has altered the landscape of homeownership in America.  According to the article, during the previous housing crisis, Hughes went to Las Vegas & Phoenix to begin his plan of buying foreclosed homes to fix up and rent.  Now fast-forward to the present and the WSJ says his “land grab” has paid off as the “economic downturn, the rising unaffordability of homeownership and a global…