Author: Brad Beckett

The U.S. government is reporting that privately‐owned housing starts in May were at a seasonally adjusted annual rate of 1,631,000, which is 21.7% higher than April’s revised number and is 5.7% higher than one year ago.  May’s rate for units in buildings with five units or more was 624k.  Privately‐owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 1,491,000, which is 5.2% higher than April’s revised number, but is 12.7% lower than one year ago.  Authorizations of units in buildings with five units or more were at a rate of 542k in…

The National Association of Realtors is reporting that existing home sales were up 0.2% in May to a seasonally-adjusted annual rate of 4.30 million (down 20.4% year over year).  Total housing inventory at the end of May was 1.08 million units, up 3.8% from April but down 6.1% from one year ago.  Unsold inventory sits at a 3-month supply at the current sales rate with properties remaining on the market for around 18 days.  The median existing-home price for all housing types in May was $396,100, down 3.1% from one year ago.  The NAR said sales were mixed among the…

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 June, 2023 Data from the first quarter confirm that the surge in home prices is over in most places and that we will see lower prices during the next year. Some markets are an exception – mainly in the Southeast and especially Florida – but in Western markets like Austin, Denver, Phoenix, Seattle, Portland, Las Vegas, Salt Lake City, Boise, and most places in California, home…

Statista says there are big changes on the horizon for several occupations over the next 10 years.  Many jobs will be eliminated outright thanks to rapid changes in technology and other advancements that have altered the way people work, making some occupations disappear, while others emerged. Interestingly, cashiers, who are at risk of being replaced by self-checkouts, are projected to see the biggest drop in employment, with 335k,fewer jobs in 2031 than in 2021. Other jobs high on the list are secretaries, office clerks and customer service representatives, with each of these occupations expected to see employment decline by more…

A recent article by DS News says only 36% of property managers who are aware of the practice of reporting rent payments to the three major credit agencies are actually doing it.  The cited data comes from a TransUnion Tenant & Employment business department report.  Interestingly, they add that the 36% of property managers who are reporting this information has increased 37% year-over-year.   The top reasons cited for reporting rent payments were to help residents build their credit scores (86%), followed by encouraging residents to pay on time (52%).  “Our residents deserve opportunities to build their credit from on-time…

With the recent discussion about a lack of for-sale inventory, a new report from Redfin remind us that more than nine of every 10 (91.8%) U.S. homeowners with mortgages have an interest rate below 6%.  That figure is down slightly from the record high of 92.9% hit in mid-2022.  However, they say with rates currently around 7% many homeowners simply aren’t moving, which is intensifying a shortage of homes for sale. “…well over 92% of homeowners with mortgages have mortgage rates below the current weekly average of 6.71%, which is near the highest level in over 20 years. Homeowners holding…

We continue to see reports about people moving away from high-tax, high regulation states to more friendly states.  A recent report from the U.S. Census Bureau says more people moved across state lines in 2021 than in 2019.  Their data show that nearly 7.9 million people moved between states in 2021, up from almost 7.4 million in 2019.  These between state movers made up 18.8% of all movers in 2021, compared to 16.7% of all movers in 2019.  Indeed… Highly populated states, including California, Texas and Florida, experienced some of the largest state-to-state flows. People leaving these states tended to…

According to the latest CoreLogic Home Price Insights (HPI) report, home prices nationwide, including distressed sales, increased year over year by 2% in April 2023. On a month-over-month basis, home prices declined by 1.2% in April compared with March 2023.  CoreLogic predicts that home prices will increase on a month-over-month basis by 0.9% from April 2023 to May 2023 and on a year-over-year basis by 4.6% from April 2023 to April 2024. “While mortgage rate volatility continues to cause buyer hesitation, the lack of for-sale homes is putting firm pressure on prices this spring, leading to above-average seasonal monthly gains…

A recent report from the NAHB’s Eye on Housing says the market value of owner-occupied real estate has fallen for the 3rd consecutive quarter.  According to their data, the level of households’ real estate assets decreased by $0.61 trillion from $41.79 trillion in Q4 of 2022 to $41.18 trillion in the Q1 of 2023.  Interestingly, real estate secured liabilities of households’ balance sheets (mortgages, home equity loans, and HELOCs) increased over Q1 from $12.47 trillion to $12.52 trillion, a 0.36% quarterly increase. Click here to read the full report at the NAHB’s Eye on Housing.

The U.S. Bureau of Labor Statistics is reporting that the Consumer Price Index for All Urban Consumers (CPI-U) was up 0.1% in May, 2023.  The all items index was up 4% for the 12 months ending in May.  Once again, the BLS says the index for shelter (housing costs) was the largest contributor to the monthly all items increase, followed by an increases in used cars & trucks. Click here to read the full report at the Bureau of Labor Statistics.