Author: Brad Beckett

On a recent episode of the AZREIA Show, Marcus Maloney & Michael Del Prete talk with architectural expert Nicholas Tsontakis about architectural design and the growing trend of additional dwelling units (ADUs) in Phoenix – and how they can increase cash flow for investors.  In addition, the conversation delves into the importance of architectural design and the influence of major architects on your projects. Click here to listen on Spotify.

The NAHB says persistently high mortgage rates continue to erode builder confidence, as sentiment levels have dropped below the key break-even measure of 50 for the first time in five months.  As such, builder confidence in the market for newly built single-family homes in September fell five points to 45, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). “…a growing number of buyers are electing to defer a home purchase until long-term rates move lower…” “…Shelter inflation posted a 7.3% year-over-year gain in August, compared to an overall 3.7% consumer inflation reading.”   Said the…

According to the ATTOM Data’s August 2023 U.S. Foreclosure Market Report, there were 33,952 U.S. properties with foreclosure filings in August – up 7% from July but down 2% from one year ago.  In addition, ATTOM says nationwide one in every 4,113 housing units had a foreclosure filing in August, 2023.  States with the highest foreclosure rates were Nevada (one in every 2,224 housing units with a foreclosure filing); Illinois (one in every 2,433 housing units); South Carolina (one in every 2,506 housing units); New Jersey (one in every 2,585 housing units); and Delaware (one in every 2,618 housing units).…

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 September, 2023 The rate at which the economy is adding jobs slipped to 2.1 percent in July, a strong showing in normal times but now just an indicator that normal times are not yet here and a warning that once we get to a sustainable level, it will be very modest. Data from last year show that some markets had a decent increase in population, fueling…

Recent data from the Bureau of Economic Analysis (BEA), analyzed by the NAHB’s Eye on Housing, say private fixed investment in student dormitories rose 1% to a seasonally adjusted annual rate of $3.6 billion in Q2 2022, after a 6.4% increase in Q1 2022.  They point out that while investment in private dorms was 8.7% higher than a year ago, it is still below the pre-pandemic level. Student housing private investment is on the road to the recovery as the pandemic is officially over. In-person learning requires college students to return to campuses, booting the student housing sector. Click here…

The U.S. Bureau of Labor Statistics is reporting that the Consumer Price Index for All Urban Consumers (CPI-U) was up 0.6% in August, 2023.  The all items index was up 3.7% for the 12 months ending in August.  The CPI’s index for gasoline was the largest contributor to the monthly all items increase. Click here to read the full release at the Bureau of Labor Statistics.

Short-term rentals are hot – as many of our members know.  Today’s graphic from Statista breaks down which U.S. cities have the highest density of Airbnb rentals.  They point out that Hawaii, with 32,597 Airbnb listings for an estimated 1.4 million inhabitants, has the highest Airbnb density out of all U.S. cities and regions analyzed by InsideAirbnb as of June 2023.  Indeed….Stay safe and have a Happy Friday!!! Hat tip to Statista.

Recently we saw where HELOC activity hit a 15-year high in 2022 (the highest level since mid-2007), but has since slowed – to a pace with pre-pandemic levels.  A recent “Chart of the Week” from the Mortgage Bankers Association breaks down how these HELOC’s were utilized over the past several years.  Not surprising, home renovation/remodeling continues to be the primary reason, followed by debt consolidation, emergencies and other big ticket financing.  Data was pulled from the MBA’s 2023 Home Equity Lending Study. Given borrowers’ trillions of untapped equity in real estate, lenders anticipate the home equity market to grow in…

Having peaked in 2009 at 26%, the number of U.S. homeowners with a mortgage that are underwater with their mortgage was 2% in Q2, 2023.  In addition, CoreLogic is reporting that as home prices have risen, 6.3% fewer owners (about 75k borrowers) were underwater in Q2 compared with the previous quarter.  Interestingly, state in the Northeast posted the nation’s largest annual equity gains while those in the West continued to see losses. “…while more borrowers are underwater compared with one year ago,” Hepp continued, “they are not necessarily concentrated in markets that have seen the largest price declines, as negative…

Realtor.com says these 10 cities are “real estate bonanzas” where short-term rental hosts can get a good ROI.  However, they do say that before running out and buying an investment property it helps to fully understand the real estate market you’re targeting – with items such as how much you can charge per night, and how much you can expect to make.  To get their list, they zeroed in on the markets they found where short-term rentals have the greatest earning potential. They analyzed home price data in each metropolitan and micropolitan areas with an average of at least 25…