El Paso Investors Club

BY BRAD BECKETT ON NOVEMBER 15, 2019

The National Association of Realtors say with rising housing costs showing no signs of a deceleration the percentage of first-time buyers remain at historic lows.  Today’s infographic takes a snapshot of today’s homebuyers using data from their recently released 2019 Profile of Home Buyers & Sellers.  Happy Friday!!!

Hat tip to the National Association of Realtors.

BY BRAD BECKETT ON NOVEMBER 13, 2019

Kathy Fettke points out that we’ve seen a lot of volatility in the global economy these past few months with headlines are warning us about all sorts of economic uncertainties.  While it might be enough to upset the stock market, should real estate investors be concerned?  In a recent a recent episode of Real Estate News for Investors Kathy says it is important to understand that the real estate market is very different today than it was last decade and that the theme of 2020 will most likely be a “Slowing but Growing Economy.”

Click here to read the transcript at Realwealthnetwork.com.

BY BRAD BECKETT ON NOVEMBER 11, 2019

According to the NAR’s 2018 Profile of Home Buyers & Sellers, the share of first-time buyers remained at 33% for 2019, which they say is a historic low.  In addition they report that a third of first-time home buyers used down payment help from family and friends.  The NAR also reports that that while tight inventory has caused steeper housing prices, home sellers in many parts of the country have been able to take advantage of the situation and have received a median of 99% of their asking price and sold their within about three weeks.

“Low inventory conditions hurt would-be first-time buyers most..Their homeownership dream and the opportunity to build wealth gets delayed until more inventory choices reach the market.”  Said Lawrence Yun , the NAR’s chief economist.

Some characteristics of 2019’s first-buyers:

• First-time buyers made up 33% of all home buyers (same as 2018)
• The typical buyer was 47 years old this year
• The median household income for 2018 was $93,200.
• 12% of home buyers purchased a multi-generational home, to take care of aging parents, because of children over the age of 18 moving back home, and for cost-saving.
• 20% of recent home buyers were veterans and 3% were active-duty service members.

Click here to read the full release at the National Association of Realtors.

BY BRAD BECKETT ON NOVEMBER 11, 2019

Using data from the U.S. Census Bureau, a recent “chart of the week” from the Mortgage Bankers Association highlights the estimated and forecasted average annual change in U.S. population, by age group.  Among their findings, they say that while homeownership levels are strong among older groups, “even the relatively small renter share of the overall growth among older populations can mean significant demand for the apartment market.”  Indeed…

“Housing demand in the U.S. is expected to grow considerably over the next decade, as the large Baby Boomer cohort grows into age groups formerly held by the Silent Generation, and Millennials mature into age ranges formerly populated by the smaller Generation X. In each of the last two years, these trends have helped add a net 1.6 million households.”

Click here to read the full report.

BY BRAD BECKETT ON NOVEMBER 14, 2019

At their recent national meeting in San Francisco, the National Board of Realtors passed a resolution that bans “pocket listings” for realtors participating in its Multiple Listing Service (MLS).  The NAR’s board of directors took the step in a resolution entitled MLS Statement 8.0 (also known as the Clear Cooperation policy) which requires listing brokers to submit their listing to the MLS within one business day of marketing the property to the public, effectively ending the practice of “pocket listings.”  Local MLSs will have until May 1, 2020 to implement this new policy.

“Within one (1) business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS participants. Public marketing includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public facing websites, brokerage website displays (including IDX and VOW), digital communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the general public.  [updated 11/11/19]”

Click here to read the NAR’s Clear Cooperation policy.

BY BRAD BECKETT ON NOVEMBER 20, 2019

According to the latest U.S. Home Equity and Underwater Report from ATTOM Data, homeowners were found to be more likely equity rich than seriously underwater.  In other words, the combined estimated amount of loans secured by those properties was 50% or less of their estimated market value.  ATTOM says the number of equity rich properties in Q3, 2019 represented 26.7% of 54 million homes with mortgages.  But, their report does reveal the places with the highest number of properties that are seriously underwater.  Indeed…

“There are notable equity gaps between regions and market segments. But as home values keep climbing, homeowners are seeing their equity building more and more, while those with properties still worth a lot less than their mortgages represent just a small segment of the market.”  Said Todd Teta, ATTOM’s Chief Product Officer.

Click here to read the full report at AttomData.com.

BY WHITNEY NICELY ON NOVEMBER 19, 2019

Recently, my company held its annual gathering of motivated women who are breaking into real estate investing, and I had some time to chat with one of the women in the group.  This young woman is very active in my area around Knoxville, and she has such a heart to see her real estate investing as an opportunity to do good for the area.  Truly, I was inspired, as I always am when I talk with her.

Now, don’t get me wrong.  Real estate investing is such an incredibly lucrative opportunity and there is nothing wrong with making money, but my time with this young woman got me thinking.  As real estate investors, we have a great opportunity to benefit our areas of investment incredibly.  We are agents of change, either positive or not, depending on our ethical code and commitment to providing quality living situations for others.  That is not something to take lightly.

A lot of people are hurting in our current economy and that is likely not going away any time soon.  Yes, we still need to hold boundaries when needed if our tenants are not paying, or if a contract is being compromised, but first and foremost we each need to check our intention with investing.  Is it only for the money, or do you realize your place of responsibility to provide safe and clean living conditions in your area?  For so many people, this is everything.  They want to feel safe, and to know that their families can grow and live in a house or apartment that will not constantly need repairs.  They want to know that their money is well spent and that they have a trustworthy person on the other side of their housing situation.  That is you.

Have you thought much about this yet?  Spend some time this holiday season to reflect on whether or not you are treating other people the way you would want to be treated if the roles were reversed.  I believe that when we put honor for others and integrity first that our finances will follow abundantly.  There is power in treating our fellow man with respect and courtesy, even when we have to hold hard lines.  It may not always be easy, but it surely is something to think about and continue to grow in.

Investors are influencers, whether we like it or not.  Our choices for investment and how we choose to use our resources will steer an area accordingly, whether with positive economic potential, or not.  This is why it is so important for us to be intentional as investors, to have great teams by our sides, and to always look for new ways to benefit the economy so that growth and upward movement can happen.  A wise investment can carry an economy for decades to come, so take your role seriously.  It certainly has the potential to affect dozens, or more, lives.

As we round the new year and enjoy the savoring or holiday pleasures, consider how much you have benefited and helped your fellow man with your investments.  It is a privileged, honorable responsibility to carry, but for those who are willing to accept the call, it holds great potential for positive change.  One choice at a time, one investment at a time; you are changing lives all around you.  Are you changing them for the better?

Whitney Nicely rejected the southern girl path of working at her family’s trucking business and embraced the life of an investor.  Her first nine months made her over $140,000 setting her on the path to empowering other women to break into the real estate “good ole boys club” and break down barriers while making some serious cash.  Her courses and more can be found at WhitneyNicely.com.

BY BRAD BECKETT ON NOVEMBER 18, 2019

According to the latest Yardi Matrix, U.S. multifamily rent growth inched upward in October, with the average rent coming in at $1,476, which they say is an all-time high.  In addition, they report year-over-year rent growth remained at 3.2%.  Yardi says that “although subject to some seasonality by metro, the multifamily market continues to consistently produce strong rent growth.”

Click here to read the full report at YardiMatrix.com.

BY BRAD BECKETT ON OCTOBER 28, 2019

The U.S. government is reporting that sales of new single-family houses in September, 2019 were at a seasonally adjusted annual rate of 701,000.  This figure is 0.7% below revised August’s revised rate but is 15.5% higher than September 2018 estimate of 607,000.  The median sales price of new houses sold in September 2019 was $299,400 and the average sales price was $362,700.  There were new 321k new houses for sale at the end of September was 321,000 representing a 5.5 months supply at the current sales rate.

Click here to read the full release at the U.S. Census Bureau.

BY BRAD BECKETT ON OCTOBER 28, 2019

The National Association of Realtors is reporting that existing home sales were down in September following two consecutive months of increases.  Total existing-home sales fell 2.2% from August to a seasonally adjusted annual rate of 5.38 million in September.  The Realtors say that despite the decline, overall sales are up 3.9% from a year ago  However, once again, low inventory is the primary culprit:

“We must continue to beat the drum for more inventory…Home prices are rising too rapidly because of the housing shortage, and this lack of inventory is preventing home sales growth potential.”  Said Lawrence Yun, the NAR’s chief economist.

Click here to read the full post at the National Association of Realtors.