Author: Brad Beckett

The latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 7.7% annual gain for November, 2022.  Their 10-City Composite annual increase came in at 6.3% and their 20-City Composite posted a 6.8% year-over-year gain.  The increases in both measures continued to be down from previous months. “As the Federal Reserve moves interest rates higher, mortgage financing continues to be a headwind for home prices. Economic weakness, including the possibility of a recession, would also constrain potential buyers. Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken.”  Said Craig J. Lazzara, Managing…

The U.S. government is reporting that the national vacancy rates for Q4, 2022 were 5.8% for rental housing and 0.8% for homeowner housing.  The national homeownership rate for Q4, 2022 was 65.9%.  In addition, approximately 89.9% of the housing units in the United States in Q4 were occupied and 10.1% were vacant. Owner-occupied housing units made up 59.2% of total housing units, while renter-occupied units made up 30.7% of the inventory.  Vacant year-round units comprised 7.6% of total housing units, while 2.5% were vacant for seasonal use. Click here to read the full release at the U.S. Census Bureau.

Today’s infographic from the Visual Capitalist took a look at data from the National that shows America annually needs more than 39,000 pounds of minerals and fossil fuels to maintain our standard of living.  They point out the obvious when they say every building around us and every sidewalk we walk on is made of sand, steel, and cement.  Indeed…. Stay safe and have a Happy Friday! “The construction industry is a major contributor to the U.S. economy…Crushed stone, sand, gravel, and other construction aggregates represent half of the industrial minerals produced in the country, resulting in $29 billion in…

On a recent episode of the AZREIA Show, Marcus Maloney & Michael Del Prete talk with guest Patrick Allen about the nuances of House Hacking as well as his new book, House Hacking: The Most Affordable Way to Get Started Investing in Real Estate.  Whether you are an experienced investor with a large portfolio, or just getting started and looking to secure income and wealth through real estate investing the AZREIA Show is here for you. Click here to listen on Spotify.

A recent analysis from the Associated General Contractors said construction employment climbed in 30 states (and D.C.) from November to December with 42 states adding construction jobs over the past 12 months.  In addition, the AGC says demand for many types of commercial construction projects remain strong and that firms would likely have added more people if they could find workers.  Be sure to look at their complete list of where the jobs were added. “…most nonresidential contractors continue to report strong demand and that they would like to add more workers than are available.”  Said Ken Simonson, the association’s…

The NAHB’s Eye on Housing says the share of adults planning a home purchase in the next 12 months dropped to 13% in Q4 2022, down from 15% in the Q3. The data came from the NAHB’s quarterly Housing Trends Report (HTR) which measures prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets. “The drop is not surprising, given that housing affordability worsened during this period, as mortgage interest rates surpassed 7.0% and reached levels not seen in nearly 20 years.” Click here to read the full report at the NAHB’s Eye on Housing.…

According to ATTOM data, the average three-bedroom rent is more affordable than owning a comparably sized median-priced home in 95% of U.S. counties analyzed in their 2023 Rental Affordability Report.  In addition, the report says that average rents for three-bedroom homes are increasing more than median prices for single-family homes in 46% of the analyzed counties.  Indeed… What a difference a year makes…Last year our study concluded that it was more affordable to own than to rent in 60 percent of the markets analyzed. But with mortgage rates doubling, monthly payments for new homeowners rose by 45-50 percent compared to…

Rental information site Zumper recently released their latest monthly National Rent Report showing that their median national rent for 1-bedroom apartments in January, 2023 was $1,492 (down 0.3% from December) and the median two-bedroom rent was $1,822 (flat since December).  Zumper says rent prices continue to decline gradually across much of the country Be sure to check out their list of the top 100 metro areas. “Rental demand is still relatively high, thanks to chronic undersupply in most markets plus many people opting out of the buying process…” Said Zumper CEO Anthemos Georgiades. Click here to read the full report…

The U.S. Government is reporting that sales of new single-family houses in December, 2022 were at a seasonally adjusted annual rate of 616k, which is 2.3% higher than November’s revised rate but is 26.6% lower than one year ago.  The median sales price of new houses sold in December was $442,100 with an average sales price of $528,400.  There were an estimated 461k new houses for sale at the end of December representing a 9-month supply at the current sales rate. Click here to read the full report at the U.S. Census Bureau.

The National Association of Realtors is reporting that pending home sales were up 2.5% in December, 2022 – the first time since May that the index has improved.  The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) increased to 76.9 in December.  The NAR says mortgage rates are the dominate factor driving sales.  Indeed… “This recent low point in home sales activity is likely over…Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market….The new normal for mortgage rates will likely be in the 5.5%…