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Still Less Than One Month of Inventory
Here are the September stats for our 7-county metro area courtesy of REColorado and SMDARA. · Buyers and sellers closed on 5,206 properties last month, down 12.7% from last year; but up 12.4% from 2019. · Solds this September were easily the 2nd highest ever seen in September. Only last year’s Covid influenced numbers were…
When Will Mortgage Rates Get Over 4%
Logan Mohtashami from Housing Wire is one of my favorite economists to read weekly and this last week he wrote an article titled, “When will mortgage rates get over 4%?” Logan believes that for days on market and home price growth to cool we need mortgage rates over 3.75% and this would be a good…
Housing Costs in Denver Are Soaring Too
Here in metro Denver the Case-Shiller Home Price Index showed appreciation of 21.3% from July 2020 to July 2021, the highest appreciation rate ever recorded in Denver! ApartmentList reported that September rents in metro Denver rose 2.7% in September from August to September and that rents are up 16.5% from a year ago. Statewide rents…
Housing Costs Are Soaring Nationally
The Case-Shiller Home Price Index which is considered the “gold standard” for home appreciation showed that home prices appreciated nationally by 1.6% in July from June and that home values increased 20% over the last 12 months! Phoenix reported the highest appreciation rate at 32%. FHFA, who oversees Fannie and Freddie, also released their July…
Showings Nearly 50% Higher Than in 2019
I had a Realtor tell me last week that their office says the number of showings is increasing per listing. Is this true? I received First Alliance Title’s September Showings Cart for the 11 county metro Denver area and their showings chart shows that homes are receiving 11.5 showings per home before under contract in…
Could Some People Get a Mortgage Rate of 0%?
There’s a new bill titled “LIFT-the Low-Income First Time-Homebuyer Act” that would create a new 20 year fixed rate loan through HUD/FHA. This bill requires the buyers to be first-generation home buyers and to have income < 120% of an area’s median income. According to the bill, Ginnie Mae, HUD, and the Treasury would subsidize…
National Real Estate Data
· Housing starts rose 4% in August to an annualized pace of 1.6 million; but single family starts were down 3% to a pace of 1.1 million new SFRs. · Permits rose 6% in August from July and are up 13.5% year over year. But, single family permits only rose 0.6%. · New home sales which measures signed…
5 Drivers of Build-For-Rent
Real estate investors small and big are turning to building new rental properties such as single-family homes and townhomes across the country, including in metro Denver. According to HunterHousingEconomics.com who tracks this business model closely Build-For-Rent or BFR starts this year will be close to 100k and will increase to about 180k by 2025 and…
Mortgage Rates Rise After Chairman Powell Speaks
Fed Chairman Powell rocked the bond world last Wednesday when he said in his eyes the employment situation is all but met and he doesn’t need to see an extremely strong jobs report to begin tapering and the Fed only needs to see a “decent” employment report for September. Thus, it’s now expected that the…
Is China Repeating the U.S. in 2008?
China’s government is trying to reduce speculation in their real estate market. This has caused real estate sales to slow this year, which is taking a HUGE bite out of Evergrande’s income and assets as they are the biggest real estate developer and constructor in China. Thus, their warning of potential default on their $300…
The HUGE Impact of Covid on Our Economy
John Mauldin had an excellent article Labor Day weekend with 3 reasons why the Job Market is potentially forever changed by Covid. · Let’s estimate, I think conservatively, that long-lasting COVIDs symptoms afflicts 10 million working-age Americans over the next year or two. Some will be fully disabled, others mildly annoyed, most somewhere in between,…
The Reasons Renters Want to Buy a Home Will Surprise You
Lending Tree recently surveyed 2500 renters in early August and they found that 88% of renters would rather own a home, but for some surprising reasons. Yet, 48% of renters say they worry about whether they’ll ever be able to buy. Here are the top obstacles reported by renters- · Can’t afford a down payment say…
