Second-Home Hotspots See Prices Surge In April

Second-home destinations saw YOY price surges in April, with four of the five most popular areas seeing more than 25% growth, Redin reported. While average rental prices increased 10% in areas not considered second-home destinations by Redfin, prices rose by 17.1% in vacation hotspots to $1,893. Redfin found a similar trend in the for-sale market, with the typical home in second-home markets selling for $516,423 in April, up 19.9% YOY and a new record. Prices in non-second-home markets increased by 14.8%. Phoenix, Cape Coral, FL, Naples, FL, Myrtle Beach, SC, and Las Vegas– the top five destinations for second homes– saw significant increases in both rental and home-sale prices. All but Myrtle Beach experienced rent growth above 25% YOY, and…

Metaverse Not Just A Trendy Word After $5 Million Commercial Real Estate Deal

By KIMBERLEY HAAS and TYRONE TOWNSEND TCG World has announced a strategic partnership with Curzio Research, which has spent $5 million to acquire 19 commercial real estate properties inside the Metaverse. The acquisition is one of the largest real estate purchases for virtual property inside the Metaverse, and Curzio plans on building its headquarters in the Asia region of TCG World, near WallStreetBets. By being part of this region, company leaders expect to have access to traders. VIP members can meet with other investors, attend live events, host conferences, listen to exclusive podcasts, and hold special education courses, according to a video posted online. Curzio is expected to complete its headquarters before September. More celebrities and companies are putting money…

Applications Drop Another 6.5%

Mortgage loan application volume dropped by 6.5%, the fifth decrease in six weeks, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, fell by 6.5%. The adjusted purchase index fell 7%, while the unadjusted purchase index fell by 18% and was 21% lower YOY. The refinance index fell 6% and was down 75% YOY, though refinances made up a higher share of total applications (32.2%, up from 31.5%) as purchase applications dwindle. ARM activity fell to 8.2% of total applications.  “Weakness in both purchase and refinance applications pushed the market index down to its lowest level in 22 years. The 30-year fixed-rate increased to 5.4% after three consecutive declines.…

Single-Family Constructions Down In Suburban Markets

Construction of single-family homes fell across several market types in Q1 2022, with an especially large dip in large suburban markets, according to the National Association of Home Builder’s (NAHB) Home Building Geography Index (HBGI). Four-quarter moving average single-family growth rates in large metro suburban counties fell from 18.7% in Q1 2021 to 5.2% in Q1 2022. At the same time, multifamily construction in large metros has jumped after falling during the pandemic. Large metro core counties recovered from a negative 3.6% growth rate to a 17.4% rate. Multifamily construction was largely centered in large metro core areas (36.9% of development), followed by large metro suburbs (25.8%), small metro core areas (23.5%), and other submarkets (13.7%). “Single-family growth rates have…

Opendoor Launches New Financing App

Opendoor has rolled out a new financing app in California that the company claims allows consumers to get pre-approved for a mortgage in under two minutes. The company announced the roll-out on its website, and the app went live Thursday, June 2. It is part of the company’s suit of products including Buy with Opendoor, Opendoor Backed Offers, and Opendoor Complete. “With this new financing app, Californians can better understand their loan options and the down payment they need to buy a home. They simply download the app and answer four short questions,” the release reads. “Our technology then identifies loan options that are available from over 1,000 programs based on the customer’s needs and criteria, such as the mortgage…

Only 17% Of Consumers Think It’s A Good Time To Buy A Home

Only 17% of consumers believe it’s a good time to purchase a home as rising interest rates and high home prices push many buyers out of the market, according to Fannie Mae’s Home Purchase Sentiment Index. The May HPSI fell by 0.3 points, remaining relatively steady, but continues to move closer to its 10-year low of 63, recorded in April 2020. The full index is down 11.8 points YOY. Affordability was the main concern of the consumers surveyed. The “Good Time to Buy” indicator dropped to a new low, with 79% of respondents saying it’s a bad time to buy a home. The majority of respondents also said they expect mortgage rates to continue rising in the next twelve months. A…

The 40-Year Mortgage Is Looking More Inviting

By SCOTT KIMBLER The 40-year mortgage is popular again but financial experts warn they come with a lot of risks and potentially no payoffs. Needham Bank, with 14 locations in Massachusetts, promotes 40-year mortgages. “Owning a home has never been so easy,” is the term they use on their website. Before the crash of 2008, 40-year mortgages were a popular option. Today, the expenses of getting into a home are driving buyers to consider signing up for loans they won’t pay off until after they are 65 years old. Roy Black is an Economics Professor at the Emory University Goizueta School of Business and has been examining real estate finance for decades. It is his opinion that negotiating a 40-year…

Home Equity Reaches Another All-Time High

Home prices have risen 42% since the beginning of the pandemic and have gained 9% in value since the first of the year, with equity reaching another all-time high, according to Black Knight’s latest Mortgage Monitor Report. Black Knight reported that the annual rate of appreciation dropped slightly to 19.9% in April, down from an upwardly revised 20.4% for March. Despite this, rising prices and interest rates have brought about the worst affordability since July 2006. “While a downward shift from 20.4% to 19.9% annual growth is hardly cause for concern, it’s also likely we’ve not yet seen the full impact of recent rate increases. Rather, April’s decline is more likely a sign of deceleration caused by the modest rate…

Work From Home Debate Heats Up Again In Mortgage Industry

By KIMBERLEY HAAS The president of a reverse mortgage company is claiming that Elon Musk’s message to Tesla employees unfairly bashes the benefits of remote work and that since going fully remote in 2020 his company has been voted by its employees as a top place to work. Musk is demanding that Tesla office workers return to in-person work or leave the company. “Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla. This is less than we ask of factory workers,” Musk wrote in leaked emails. Although Tesla is an automotive and clean energy company, news of Musk’s demands sparked a new…

Inventory Rose In May For The First Time Since June 2019

Inventory increased for the first time since June 2019, with active listings up 8% YOY, according to Realtor.com’s May housing data. An inventory increase is a good sign for the market, which is facing pressure as rising rates and soaring home prices are causing potential buyers to back off. The national median listing price in May was $447,000, up 17.6% YOY and 35.4% from May 2020. Purchase loan applications are down 14% YOY, reaching their lowest level since December 2018. However, active listings were still down 48.5% from May 2020, meaning inventory is still half of what it once was. And while active listings grew, the total inventory of unsold homes, including pending listings, fell by 3.9% thanks to a…