The National Association of Realtors is reporting that overall pending home sales declined in April, but predicted higher sales over the next few months. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) decreased to 104.3 in April, with the Midwest being the only region to experience growth. In addition, they report that year-over-year contract signings declined 2%, marking the 16th straight month of annual decreases.
BY BRAD BECKETT ON JUNE 3, 2019
There’s a new side-hustle for the side-hustlers driving for Uber; bird-dogging for real estate investors. Realtor.com says that house flippers are paying Uber drivers(during their down time) as their eyes and ears to take pictures of potential flips. One company they cited pays up to $1,500 per referral that leads to a purchase and some are even paying for good leads.
“It’s a great way to be able to reach areas that I can’t drive around town all day,” said Scott Sekulow, who runs a HomeVestors franchise in Atlanta that has hired several drivers. “You don’t need a lot to know the house needs repairs.”
Realtor.com says that 1 in 5 metropolitan areas are now seeing decreases in home prices, compared with half as many just one year ago. So, where exactly have home prices fallen the most? To come up with that list, they looked at the median list price changes from April 2018 to April 2019 in the 250 biggest metropolitan areas.
“Some markets are seeing price drops due to overbuilding: This creates too much supply and not enough demand, so prices naturally fall. And just like in past years, in other areas, natural disasters devastated lives, communities, and local real estate.”
BY BRAD BECKETT ON MAY 30, 2019
According to the latest CoreLogic Single-Family Rental Index (SFRI), single-family rents increased 2.9% year over year in March. Their index measures rent changes among single-family rental homes, including condominiums, using a repeat-rent analysis to measure the same rental properties over time. Interestingly, CoreLogic pointed out that single-family rents climbed steadily starting in 2010, and annual rent increases have stabilized, fluctuating between 2.7% and 3.1% for the past 12 months.
- Rents for lower-priced homes increased faster than those of higher-price homes.
- Phoenix had the largest annual rent increase of the 20 analyzed metro areas in March.
- Houston and Miami had the largest deceleration in rent growth in March.
BY TED THURN ON MAY 29, 2019
Rent control is often considered by some state and local government officials as a means to create more affordable housing by limiting the amount a property owner can charge for renting out a home, apartment, or other type of real estate. As rental rates rise, demand for apartments increases and Americans see a larger portion of their income go to paying rent. As policymakers search for answers to combat this growing problem, one of the first solutions they consider is rent control.
Over the last few years, property managers and owners have addressed rent control legislation in their respective states. Rent control (also known as rent stabilization) is a government-enforced price control measure limiting the price of rents that property owners may charge for rental housing.
The theory behind rent control is to allow certain tenants to reside in an area that may otherwise be out of reach. With rent control, the rent charged to a tenant who lives in qualified housing is strictly regulated, with a maximum placed on the amount the landlord may charge the tenant. Therefore, rent control is effectively a price ceiling imposed by the governing entity.
During the 2019 legislative session, several states introduced bills to establish rent control; Oregon and Illinois are two of those states. At first glance rent control appears to be a quick fix to provide instant housing affordability. However, a closer examination shows the many negative, unintended consequences of rent control that can result in a significant reduction of affordable rental housing, along with other problems.
Ted Thurn is director of government affairs for the Institute of Real Estate ManagementRead more
BY BRAD BECKETT ON MAY 29, 2019
According to the latest S&P CoreLogic Case-Shiller Indices, covering all nine U.S. census divisions, the rate of home price increases reported a 3.7% annual gain in March, down from 3.9% in February. Their 10-City Composite annual increase came in at 2.3% and the 20-City Composite posted a 2.7% year-over-year gain. The S&P CoreLogic Case-Shiller Home Price Indices are one of the leading measures of U.S. residential real estate prices, tracking changes in the value of residential real estate both nationally as well as in 20 metropolitan regions.
BY BRAD BECKETT ON MAY 30, 2019
For the 6th year in a row, Gallup is reporting that more Americans prefer real estate over other long-term investment vehicles for growing wealth. These numbers broken down show that 35% prefer real estate, 27% prefer the stock market, 15% prefer CDs/bank accounts, and 14% prefer gold.
“Gallup has asked a version of the best investment question since 2002, and Americans’ choices have varied, largely in response to the performance of the various investment options. In 2002, as housing prices were increasing rapidly, 50% of U.S. adults said real estate was the best investment, the highest percentage choosing any investment type in a single year in Gallup’s trend. Five years later, as the real estate bubble was about to burst after values peaked, housing still ranked first but with fewer Americans, 37%, choosing it.”
BY BRAD BECKETT ON MAY 28, 2019
The U.S. Government is reporting that sales of new single-family houses in April, 2019 were at a seasonally adjusted annual rate of 673k, which is 6.9% lower than March’s revised figure. The median sales price of new houses sold in April 2019 was $342,200 and the average sales price was $393,700. There was an estimated 332k new houses for sale at the end of April representing a 5.9 months supply at the current sales rate.
According to recent data from the Mortgage Bankers Association’s National Delinquency Survey (NDS), the overall delinquency rate for all types of loans rose to 4.42%, after previously being at an 18-year low. Breaking it down, the delinquency rate for conventional loans increased 27 basis points to 3.46%, the FHA delinquency rate increased 28 basis points to 8.93%, and the VA delinquency rate increased by 66 basis points to 4.37%. The overall delinquency rate rose to 4.42 percent, after previously being at an 18-year low.