Sellers Feel The Pain Of Price Drops

By CHUCK GREEN Next time you run into someone in the local Starbucks who happens to have their home on the market, be a sport and plop an extra scone into their bag, huh? A little butter and jam, too? After all, sellers probably aren’t riding the wave of a sugar high induced by whatever they will pocket in their real estate transactions as experts say the price of an average home in the United States is decreasing. The cities expected to be the most heavily hit include: San Francisco: -10.36% Seattle: -9.55% San Diego: -7.24% Los Angeles: -5.61% Denver: -5.60% Dallas: -4.34% Portland: -4.25% Las Vegas: -3.69% What is contributing to the drop in housing prices? B. George Ratiu,…

Multifamily’s Stunning 2022 Reversal Leaves Pandemic Hotspots In The Red

Multifamily saw a stunning reversal in the fourth quarter of 2022 as apartment supply finally surpassed demand, creating a “swift and unprecedented” downturn. A new report from Apartments.com found that multifamily fundamentals declined in Q4, driven largely by limited absorption and supply/demand imbalances. “We ended the year with absorption barely remaining positive and vacancy rates trending upwards. As 2022 progressed, economic uncertainty suppressed household formations which limited multifamily demand,” said Jay Lybik, National Director of Multifamily Analytics at CoStar Group, which owns Apartments.com. “With 2023’s national forecast predicting the highest new supply totals since the 1980s, expect vacancy to rise above 7% and rent growth to push much lower.” More than 95,000 new units were delivered last quarter but many…

Sun Belt Deals Called Off As Housing Market Slumps

By CHUCK GREEN During the pandemic homebuyers fled to southern states for warmer weather but now would-be purchasers are bailing out of deals at a faster clip than anywhere in the country. According to analysts at Redfin, 60,000 deals were called off nationally in September. That’s 17% of the homes that went under contract that month. In Florida, Jacksonville had 745 home-purchase agreements fall through, equal to 30.3% of homes that went under contract. That was the highest percentage among the metros Redfin analyzed. They were followed by San Antonio, TX (25.3%), Atlanta, GA (25%), Orlando, FL (24.6%), and Tampa, FL (24.5%). In August, about 800 home purchase agreements were tabled in Jacksonville. That’s 26.1% of homes that went under contract…

Bidding Wars Fall To Lowest Level Since Feb 2021

Bidding wars dropped to their lowest level since February 2021 as the housing market begins to cool, with only 57.8% of home offers facing competition in May, according to Redfin. Though more than half of prospective buyers are still facing competition when bidding on a home, that number is down from 60.9% the month prior and a pandemic peak of 68.8% a year earlier. A typical home received 5.3 offers in May, down from 6.8 in April and 7.4 in YOY. This is the fourth straight month of declines. The unadjusted bidding war rate was 60.8%, down from 67.8% month-over-month and 71.8% YOY. “Homes are now getting one to three offers, compared with five to 10 two months ago and…

Bidding Wars For Rentals Seen As Prices Rise

By KIMBERLEY HAAS As prices for rental housing continue to climb in many parts of the country, bidding wars are becoming more common. According to a report released last week by Joel Berner and Danielle Hale for Realtor.com, rent has reached another high in the company’s data history, averaging $1,827 in the 50 largest US metropolitan areas. Rental increases are most pronounced in Sun Belt metros, Berner and Hale wrote. That is because as more people have the opportunity to work remotely they are choosing warmer climates to live in. Three Florida metros are particularly affected. They include Miami, where rent was up 51.6% from April 2021; Orlando, 32.9%; and Tampa, 27.8%. Overall median rent in the Miami, Fort Lauderdale,…

Home Prices Grew 18.5% In 2021, Should Cool In 2022

Home prices rose year-over-year (YOY) by 18.5% across the nation in December 2021, and by 1.3% from November, CoreLogic’s latest Home Price Index reported. Home price growth averaged 15% for 2021, which saw one of the hottest housing markets in decades. Q1 2021 started off with 10% appreciation but continued to grow, reaching 18% in Q4. By comparison, price appreciation for the full year of 2020 averaged only 6%. The states with the highest increases YOY were Arizona (28.4%), Florida (27.1%), and Utah (25.2%). The cities with the biggest gains were Phoenix (30.2%), Las Vegas (24.4%), and San Diego (22.4%). CoreLogic predicts that home prices will remain flat this month and rise by only 3.5% by next December. Comparing annual…

CoreLogic: Double-Digit Rent Growth In September

Strong demand and the labor market are fueling single-family rent price increases which remain at record highs. September data from CoreLogic’s Single-Family Rent Index shows rents increased 10.2% year-over-year (YOY), compared to a 2.6% YOY increase in September 2020. Rents increased across all four tiers of rental prices used by CoreLogic. Lower-priced rentals (less than 75% of the regional median) saw an increase of 8.3% YOY, while rents in the lower-middle price range (75%-100% of the regional median) rose 9.3% YOY, both more than doubling their growth from the same time in 2020. Rents for higher-priced properties broke 10%, with higher-middle priced (100%-125%) rents climbing 10.5%, compared to 2.4% in September 2020. Higher-priced rentals (125% or more of the regional…