Author: Brad Beckett

Local Market Monitor, a National REIA preferred vendor, recently released their National Economic Outlook for August, 2018 where they share their thoughts on developments taking place in the U.S. economy.  Interestingly, they find “the high level of consumer spending a bit disturbing” and suspect it might have been built on borrowed money & credit cards. National Economic Outlook – August 2018 August 14, 2018 By Ingo Winzer I normally don’t pay much attention to the Gross Domestic Product. I’m not an economist and how you can accurately estimate the output of as large and complicated an economy as the US to…

Every area has them…..empty “big box” stores.  Whether they were a Walmart or a Kroger’s there’s usually one thing for certain;  they generally sit empty for a long time and are often eyesores to the community.  A recent article in Texas’ San Antonio Express-News discusses an unlikely use for these shuttered spaces (that has also generated some controversy) as detention centers for illegals. While this is certainly one way to repurpose a nonproducing asset, it was completely unforeseen: “According to a special warranty deed, Walmart placed restrictions on the property forbidding the space from being used as a grocery store,…

The American Society of Civil Engineers recently released their 2017 Infrastructure Report Card where they give an overall grade of D+ to America’s infrastructure.  The quadrennial report provides a comprehensive assessment of the nation’s 16 major infrastructure categories from the ASCE’s Infrastructure Report Card.  They use simple A-F grades (like a school report card) that examine current infrastructure conditions and needs, assigning grades and making recommendations to raise them.  As could be expected from a professional group of civil engineers, there is a whole lot of room for improvement.  Indeed… “Our nation is at a crossroads. Deteriorating infrastructure is impeding…

We have had several posts about rent control and its harmful unintended consequences, and now this:  The Wall Street Journal (as reposted by Realtor.com) is reporting that Freddie Mac (in a new twist in controlling rent increases) is launching a new program that will offer lower-cost financing to owners who agree to cap rent increases for the life of their loans.  While similar to “rent control” it differs dramatically in that it is a voluntary arrangement between the private owner and the lender.  The program launched in early August and is available nationwide.   Eligible properties start with at least 50% of…

According to a recent report from the NAHB’s Eye on Housing, the median age of owner-occupied homes was 37 years, which is 6 years more than it was just a few short years ago.  The NAHB attributes this to modest gains in residential construction over the past ten years.  We see it as an opportunity to fix-n-flip, especially in this tight market with low inventory driving up prices. “This aging housing stock signals a growing remodeling market, as old structures normally need to add new amenities, or repair/replace old components. Rising home prices also encourage home owners to spend more…

A new report from Trulia says that, nationwide, buying a home is 26.3% cheaper than renting.  Of course this all depends on the particular area, however their study also shows that for the first time in five years renting has come out best in two West Coast metros: San Jose and San Francisco, CA.  Both of these locales have soaring home values and flattened rents.  They also point out that in a few other areas (like Honolulu and Seattle) the savings from buying a home has dissipated, leaving home buying with a slight advantage. “To be sure, in most places,…

According to the National Association of Realtor’s latest quarterly Metropolitan Median Area Prices and Affordability report, Single-family home prices increased in 90% of measured markets, with 161 out of 178 metropolitan statistical areas (MSAs) showing sales price gains in Q2 compared to one year ago. Twenty-four metro areas (13%) experienced double-digit increases, down from 30% in Q1, 2018.  The NAR’s report provides a breakdown of condo and co-op prices by metro market. The five most expensive housing markets for single-families in Q2 were San Jose, California ($1,405,000); San Francisco-Oakland-Hayward, California ($1,070,000); Anaheim-Santa Ana-Irvine, California ($830,000); urban Honolulu ($795,200); and San…

Did you know 30% of those with vacation properties and 32% of those with investment properties planned to rent them in 2018 as a short-term rental? Today’s infographic from the National Association of Realtors takes a look at vacation and investment property owners’ short-term rental plans.  Happy Friday!!! Hat tip to the NAR.

What are the best neighborhoods for buying and investing?  ATTOM Data Solutions helps answer that question with their 2018 Neighborhood Housing Index where they ranked rank over than 10k neighborhood housing markets nationwide based on six factors impacting the hyperlocal housing market: affordability, home price appreciation, school scores, crime rates, unemployment rates and property taxes.  Their top 5 markets were:  Pine Ridge neighborhood in the Naples, Florida, metro ($632,871 median price); Westlake neighborhood in the Mobile, Alabama, metro ($196,179); Union neighborhood in the San Jose, California, metro ($795,000); Westmoreland neighborhood in the Charlotte, North Carolina metro ($326,000); and Hunters Hill…

According to the latest Yardi Matrix, U.S. multifamily rents rose $3 in July to $1,409 – which they report is yet another all-time high.  Year-over-year in July, rents were up 2.8%.  Yardi says the multifamily market continues to demonstrate steadiness and that growth continues to be led by secondary markets being driven by strong late-cycle economic performance. “Economic conditions remain favorable for the multifamily industry, especially in secondary markets that are leading the nation in employment growth. Domestic migratory patterns are also driving demand in key markets in Florida and the Desert Southwest. Households received an income boost via the…