California's Shambolic Housing Policies
BY BRAD BECKETT ON SEPTEMBER 24, 2019
If you’ve been following the Rent Control issue, you will undoubtedly be familiar with current epidemic of “do-something-ism” regarding the issue. Just recently, California’s governor signed landmark Rent Control legislation (even after voters rejected rent control at the polls last year) that limits (among other things) rent increases to 5% per year. The Manhattan Institute’s City Journal recently posted a short essay called “A Conspiracy of Entitled Incumbents, California’s new rent control law will please homeowners while setting back housing construction and affordability” that quite succinctly sums it all up. Indeed…
“…shambolic housing policies such as California’s latest version of rent control will only make everything harder. It will likely take a crisis—perhaps an exodus of businesses and residents—to force change.”
Click here to read the full article at the City Journal.
California enacts statewide rent control – HousingWire (10/8/19)
Existing Home Sales Inched up 1.3% in August
BY BRAD BECKETT ON SEPTEMBER 23, 2019
The National Association of Realtors is reporting that existing home sales inched up in August, marking two consecutive months of growth. The NAR largely attributed the rise to falling mortgage rates, among other factors, however tight inventory continues to squeeze home prices. Total housing inventory at the end of August was 1.86 million. Unsold inventory was at a 4.1-month supply at the current sales pace with homes remaining on the market for an average of 31 days.
“Sales are up, but inventory numbers remain low and are thereby pushing up home prices…Homebuilders need to ramp up new housing, as the failure to increase construction will put home prices in danger of increasing at a faster pace than income.” Said Lawrence Yun, the NAR’s chief economist.
Click here to read the full release at the National Association of Realtors.
Choosing the Proper Water Heater
BY BRAD BECKETT ON JANUARY 4, 2019
Water heaters…those potential time-bombs in that flip you just bought or an aging old trustworthy friend in your basement. However, if you ever need to replace one, what kind do you replace it with? And, depending the age, they can consume an inordinate amount of energy! So which one is best for your property? The folks at The Home Depot put together this handy graphic to help comprehend and discover the best solution for your situation…..Happy Friday!!!
Pending Home Sales Down Slightly
BY BRAD BECKETT ON JANUARY 2, 2019
The National Association of Realtors is reporting that overall pending home sales declined 0.7% in November. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) declined to 101.4 in November. However, year-over-year contract signings dropped 7.7%, making this the eleventh straight month of annual decreases.
“The latest decline in contract signings implies more short-term pullback in the housing sector and does not yet capture the impact of recent favorable conditions of mortgage rates,” Said Lawrence Yun, the NAR’s chief economist.
Click here to read the full report at the National Association of Realtors.
Ten Hottest Housing Markets of 2019
BY BRAD BECKETT ON JANUARY 2, 2019
Where are the hottest housing markets going to be in 2019? The folks over at Realtor.com have it covered for you. Using data from the 100 largest markets they looked existing home sales & prices and the amount of new home construction. Then they analyzed each area’s local economy along with population trends, unemployment rates, median incomes, and several other factors. Nationally, they predict that the number of overall home sales to decrease 2%, after years of steady climbs. However they point out that these 10 cities have the potential to be overachievers in 2019. Indeed…
“The diversity of these top markets suggests that real estate can thrive anywhere there is a strong local economy,” says Danielle Hale, chief economist of realtor.com. “While attracting younger individuals and families who are likely to be first-time buyers can be important, real estate can also thrive in sunny retirement communities.”
Their top 10 hottest cities are:
- Lakeland, FL
- Grand Rapids, MI
- El Paso, TX
- Chattanooga, TN
- Phoenix, AZ
- Bridgeport, CT
- Las Vegas, NV
- Boise, ID
- Miami, FL
- Boston, MA
Redfin Says Housing Market will Continue to Cool in 2019
BY BRAD BECKETT ON DECEMBER 31, 2018
The chief economist for Redfin, Daryl Fairweather, recently discussed what she saw in the housing market for 2019 on CNBC’s “Power Lunch.” Among her observations, the housing market will continue to “cool,” there will be higher rates of homeownership, less new construction and fewer real estate agents & lenders. Indeed…
Yardi Says Rent Growth Remaining Exceptionally Consistent
BY BRAD BECKETT ON SEPTEMBER 19, 2019
According to the latest Yardi Matrix, U.S. multifamily rents increased in August, coming in at $1,472 with year-over-year growth coming in at 3.3%. Yardi says multifamily rent growth has remained exceptionally consistent and has been at least 2.7% since the beginning of 2018.
Foreclosure Activity Down
BY BRAD BECKETT ON SEPTEMBER 18, 2019
According to the latest market trends, ATTOM Data Solutions says there were 53,007 U.S. properties with foreclosure filings in August 2019, up 4% from July but down 24% from one year ago. Their data show that nationwide, one in every 2,554 U.S. properties received a foreclosure filing during the month of August. In addition, banks repossessed 11,493 properties in August (REO), which was up 4% from the previous month but down 47% from a year ago.
Click anywhere on the above map to make it interactive
New-Home Price Data Reveals Affordability Problems
BY BRAD BECKETT ON SEPTEMBER 17, 2019
The NAHB’s Eye on Housing is reporting that there is a mismatch between the actual prices of new homes and the prices buyers expect to pay, which they say is further evidence of the growing problem of housing affordability. Using data from the Census Bureau and HUD, the NAHB says that while the median sales price of single-family homes started in 2018 was under $322k their data (from the 2019 edition of What Home Buyers Really Want) show that the median price buyers expect to pay is around $254k. Indeed…
“The reasons for this mismatch at the low end are not mysterious. Factors such as the ongoing shortages of labor and lots, and escalating regulatory costs have made it difficult to impossible to produce a new home at these lower price ranges. This obviously is forcing a significant share of buyers into the market for existing homes only”
Click here to read the full report at the NAHB’s Eye on Housing.
Workers Fleeing Big Cities for Smaller Ones and Taking Jobs with Them
BY BRAD BECKETT ON SEPTEMBER 17, 2019
We have seen this data pop up before. People are moving away from expensive, high-tax, over-regulated states to places with overall better climates. However, a recent story in the Wall Street Journal (reposted on Realtor.com) takes a look at a trend among more-mobile workers who are moving to smaller cities and taking their jobs with them.
“One of the bummers is that they are not necessarily joining the workforce,” said Sheila Smith, a real-estate agent in Boise. Many of the out-of-town arrivals she sells to work from home or commute to jobs in distant cities, she said.
“People who do their jobs from home, freelance or constantly travel for work are migrating away from expensive urban centers such as Los Angeles and San Francisco toward cheaper cities including Boise; Denver; Austin, Texas; and Portland, Ore…”
WSJ.com
Click here to read the full story at Realtor.com.
Click here to read the full story at the Wall Street Journal.
