In their most recent U.S. Home Flipping Report, ATTOM Data Solutions is reporting that homes flipped in the second quarter of 2018 yielded an average gross return on investment of 44.3%, down from 47.8% in the first quarter and down from 50% in Q2 2017. The second quarter number also represents the lowest average gross flipping ROI since Q3 2014. As for the overall numbers, there were 48,768 U.S. single family homes & condos flipped in the second quarter of 2018, representing 5.2% of all sales. In addition, 32% of flips were distressed sales, down from a peak of 68% in Q1 2010.
“Fewer distressed sales are limiting the ability of home flippers to find deep discounts even while rising interest rates are shrinking the pool of potential buyers for flipped homes,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.
This is a hot topic that we’ve covered and lately we’ve seen several “rent vs. buy” stories from various media outlets. The bottom line; it’s all about the market conditions of any particular location. To that end, the folks over at howmuch.net took a look at data from Zillow and GoBankingRates to provide and intuitive look at the geography of renting vs. owning. Their conclusion? Renting is more expensive on average in 40 out of 50 states…Indeed…but there are a lot of moving parts involved in making that decision. Be sure to look at all the data.
Here are the ten states where it makes the least sense to rent a home (figure shown is the difference):
1. New York: -$1,471
2. Maine: -$675
3. Rhode Island: -$656
4. Massachusetts: -$586
5. Illinois: -$471
6. New Jersey: -$437
7. Florida: -$404
8. Vermont: -$379
9. Pennsylvania: -$368
10. Ohio: -$296
The NAHB’s Eye on Housing is reporting that the shortage of labor and subcontractors reached a critical point in July with the shortage of rough carpentry contractors being experienced by 90% of builders surveyed. According to the results, “shortages of labor directly employed by builders were at least fairly widespread for each of the 15 occupations, ranging from a low of 47 percent for building maintenance managers to a high of 83 percent for rough carpenters.” The survey was conducted in July for the NAHB/Well Fargo Housing Market Index.
FortuneBuilders nailed it when they said that distressed properties serve as the source of some of the best deals to be had on the market, and can be found in many different forms. Indeed….Today’s infographic from FB illustrates eight unique ways to find distressed properties….Happy Friday!!!
The U.S. government is reporting that total construction spending in July was estimated at $1,315.4 billion,which is 0.1% higher than June’s revised estimate and 5.8% higher than July, 2017. Residential construction was at a seasonally adjusted annual rate of $560.1 billion in July, 0.6% higher than June’s revised estimate.
Click here to read the full report on Census.gov.
National apartment listing site ABODO recently reported that the median nationwide rent price for one-bedroom units in September slightly rose 0.86% to $1,022 (still down year to date) with two-bedroom units coming in at $1,294 (up 3.19% year to date). ABODO uses over 1 million listings across the United States to calculate the median 1-bedroom rent price by city, state, and nation and then track the month-over-month percentage change. To avoid small sample sizes, they restrict their analysis to cities meeting minimum population and property count thresholds.
“…As the Fed continues to raise interest rates, however, and the economy continues to heat up; while unemployment is low, and the single-family home shortage shows no signs of abatement, it follows that both one and two-bedroom unit prices will continue, on average, to rise.”
We’ve had a lot of posts about the lucrative student housing market and its “evergreen” potential. To that end, a recent report from Homes.com looked at 150 college towns from across the nation to come up with their “2018’s Best College Towns & Cities in America.” In it, they examined data about the average purchase price and monthly rent of a 3-bedroom home in each location, sourced from listings on Homes.com. Then, they revealed the college towns and cities they think you should consider as a landlord to ensure the highest yield and return on your investment. If you already own or are thinking about entering this segment of the market, this report is worth a look.
Rental information site Zumper recently released their National Rent Report for September showing that the median national rent for 1-bedroom apartment came in at $1,209 and the median two-bedroom rent was $1,447. Year over year, both one and two bedroom prices are up 2.2% and 3.2%, respectively. Zumper analyzes rental data from over 1 million active listings across the United States. Data is aggregated on a monthly basis to calculate median asking rents for the top 100 metro areas by population, providing a comprehensive view of the current state of the market. The report is based on all data available in the month prior to publication…..be sure to check out their entire list of 100 cities.
New data from the U.S. Department of Commerce’s Bureau of Economic Analysis report that personal income increased 0.3% in July. In addition, wages & salaries, the largest component of personal income, increased 0.4% in July, the same increase as in June.
“The increase in personal income in July primarily reflected increases in wages and salaries, personal dividend income, and rental income”
Click here to read the full report at the U.S. Bureau of Economic Analysis.
According to the latest CoreLogic MarketPulse Report; The foreclosure rate is back to its “pre-crisis” Level with judicial states continuing to have higher foreclosure & serious delinquency rates, refinancing among rising rates shows homeowners are more likely to choose cash-out and longer term and highlights from their Home Price Index. CoreLogic’s MarketPulse provides monthly insight into the current and future health of the U.S. economic climate with particular focus on housing and mortgage metrics.
Click here to read the full report at CoreLogic.com.
