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Showing posts from June, 2024

Florida's Housing Markets Experience Cooling Trends

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Redfin analysis reveals slowdown in Florida real estate Florida, once a red-hot destination during the pandemic, now faces cooling housing markets. Six of the nation's fastest-cooling markets are in the Sunshine State. Here's what's happening: 1. Increased Supply: Western Florida cities like North Port, Tampa, and Cape Coral have seen inventory surge by over 60% in the past year. Houses take longer to sell, prompting roughly 40% of sellers to reduce asking prices. 2. Natural Disasters Impact: Intensifying storms and rising home insurance costs discourage buyers. Coastal properties face risks due to climate change and sea-level rise. 3. New Construction: Florida is building more homes than any state except Texas. Increased supply helps moderate prices, but elevated mortgage rates challenge sellers. 4. Regional Differences: While Florida cools down, markets in the Northeast remain hot. Rochester, Buffalo (New York), and several New Jersey cities see rising prices and redu...

Multifamily Market Insights: Record Leasing Demand and Investment Trends

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Newmark’s Q1 Report: Multifamily Sector Insights Leasing Demand Surges In the first quarter, leasing demand for multifamily units reached impressive levels. A total of 103,826 units were absorbed, marking the largest first-quarter total since 2000. This figure significantly outpaced the long-term average of 38,005 units for the same period. Moreover, the rolling four-quarter demand soared to 317,241 units—the highest since Q2 2022. Southern Markets Lead the Way The South remains a powerhouse for multifamily leasing demand. In Q1, this region accounted for 58.2% of all leasing activity. Notably, the top five markets driving demand included Dallas, Phoenix, Austin (Texas), Atlanta, and Houston. On a trailing 12-month basis, three Texas markets—Houston, Dallas, and Austin—occupied the top four spots. Record-High Deliveries Q1 witnessed an all-time high in multifamily unit deliveries, with 135,652 units completed. Anticipate continued high delivery rates in Q2 and Q3, followed by a deceler...

Retail Sales Decline Again, Strengthening Argument for Rate Cut

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Booming Consumer Fades: Retail Sales Data Shows a Spending Slowdown May witnessed yet another lackluster month for consumer spending, as softening economic conditions took their toll on American households. The retail sales report for the month reveals a modest 0.1% increase, following a 0.2% decline in April. However, beneath this seemingly minor shift lie important trends that warrant attention. Key Insights from the Retail Report 1. Mixed Results: Among the 13 tracked categories, five experienced declines. Factors such as cheaper gasoline and Memorial Day discounts at furniture outlets contributed to this mixed performance. The data underscores a broader slowdown in consumer spending—a trend economists attribute to persistent inflation, a cooling job market, and signs of financial stress. 2. A Tale of Two Consumers : Paul Ashworth of Capital Economics points out that slowing services consumption and plummeting consumer confidence suggest households are more affected by higher inter...

Housing Market Predictions for 2024: When Will Home Prices Be Affordable Again?

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What many had hoped would be a rosy spring home-buying season has turned into a thorny challenge for home shoppers already demoralized by a challenging market. Stagnant Home Sale Activity and Upward Trajectory In the past month, home sale activity remained stagnant as mortgage rates and home prices continued their upward trajectory. However, there’s a silver lining: more resale inventory has entered the market, which should help rein in home price growth, albeit only to some extent. Experts agree that true momentum will return once mortgage rates drop low enough to make homes more affordable and incentivize homeowners locked in at cheap rates to move. The Impact of Mortgage Rate Cuts While experts don’t expect an immediate rate drop, even a modest reduction—say, from 6.8% to 6%—could significantly increase buyers’ purchasing power. A recent study by Realtor.com and the National Association of Realtors (NAR) highlights this potential. But the question remains: when will rates ease? Unaf...

More Renters Are Staying Put Longer: A Shift in Housing Trends

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  Trending: A recent study by Redfin reveals a significant shift in the rental market. One in six renters (16.6%) now stays in their home for ten years or more, up from 13.9% a decade ago. Additionally, 16.4% live in their homes for five to nine years, showing increased stability. Decline in Short-Term Rentals (STRs): The only category experiencing a decrease is renters staying for 12 months or less (25.2% in 2022 compared to 32.2% in 2012). This points to a preference for more stable rental arrangements. Cost Savings and Landlord Benefits: Staying longer in the same unit allows renters to save on moving expenses and application fees. Landlords also benefit from long-term tenants, reducing costs related to cleaning and marketing vacant units. Rising Rental Prices: Soaring rental prices (over 20% since 2019) discourage frequent moves. Meanwhile, the median U.S. home-sale price has doubled since 2012, making homeownership less attainable and keeping renters in place. Geographic Varia...