Club Capital’s Post

The U.S. housing market faces ongoing challenges, driving many potential buyers to rent instead. According to Marcus & Millichap's July report, existing home sales dropped to a six-month low in June, hindered by high costs and a limited supply of entry-level homes. Despite slight decreases in median home prices and mortgage rates stabilizing near 7%, affordability remains a significant issue. Renting has become $1,290 cheaper per month than owning, making it a more attractive option, especially for high-income households. The constrained housing supply and homeowners' reluctance to sell further complicate the market, particularly for first-time buyers. The shortage of entry-level homes continues to be a significant barrier, exacerbating the affordability crisis. Consequently, the rental market is experiencing increased demand and rising prices, trends that are likely to persist until more affordable housing solutions are developed. The report highlights the growing affordability gap between renting and buying, driven by high homeownership costs, including mortgage rates, property taxes, and maintenance expenses. As more households opt to rent, the rental market's demand increases, driving up prices. This situation underscores the need for addressing the affordability crisis in the housing market to create a more balanced and accessible homeownership landscape. https://hubs.li/Q02JFHz90 #Multifamily #NavigatingMarkets #Apartments #Investment

The U.S. housing market faces ongoing challenges, driving many potential buyers to rent instead. According to Marcus & Millichap's July report, existing home sales dropped to a six-month low in June, hindered by high costs and a limited supply of entry-level homes. Despite slight decreases in median home prices and mortgage rates stabilizing near 7%, affordability remains a significant issue. Renting has become $1,290 cheaper per month than owning, making it a more attractive option, especially for high-income households. The constrained housing supply and homeowners' reluctance to sell further complicate the market, particularly for first-time buyers. The shortage of entry-level homes continues to be a significant barrier, exacerbating the affordability crisis. Consequently, the rental market is experiencing increased demand and rising prices, trends that are likely to persist until more affordable housing solutions are developed. The report highlights the growing affordability gap between renting and buying, driven by high homeownership costs, including mortgage rates, property taxes, and maintenance expenses. As more households opt to rent, the rental market's demand increases, driving up prices. This situation underscores the need for addressing the affordability crisis in the housing market to create a more balanced and accessible homeownership landscape. https://hubs.li/Q02JFzZy0 #Multifamily #NavigatingMarkets #Apartments #Investment

Overview: For home builders, the first several months of 2024 have brought a return to more historic seasonal norms, with January and February sales levels in line with expectations. Many builders have projected a “good, but not blockbuster,” 2024, according to Zonda chief economist Ali Wolf. To help parse through the myriad trends, developments, and data points, economists from Zonda, the NAHB, the National Association of Realtors (NAR), Fannie Mae, and the Mortgage Bankers Association (MBA) spoke with BUILDER to share the most important factors impacting housing and the overall economy as well as developments to track as the spring months arrive. #homebuilding #homebuilders #newhomeconstruction #residentialconstruction #residentialdevelopment #newhomes #newbuilds #homesupplyanddemand #underbuilt #newhomesales #newhomeinventory #homeprices #housing #housingprices #housingnews #housingshortage #housingforecast #homeownership #householdformation #americandream #homeaffordability #homeattainability #movinghouse #mortgagerates #mortgageinterestrates #mortgageapplications #springsellingseason #economy #inflation #consumerconfidence #builderconfidence #homebuyers #jobs

Here’s how bad housing affordability is now Home prices set another record in April, even as mortgage rates rose and the supply of homes for sale increased. Usually, under those circumstances, prices would weaken, but today’s housing market is unlike any other in recent history. Prices in April rose 6.3% compared with the year-earlier month, according to the S&P CoreLogic Case-Shiller National Home Price Index. It marks the second straight month that the national index jumped at least 1% over its previous all-time high. Home prices are now 47% higher than they were in early 2020, with the median sale price now five times the median household income, according to the study. For renters, even though rent growth is slowing due to a big increase in new apartment units this year, prices are still 26% higher than they were in 2020 and rising in three out of every five markets. Half of all renter households — more than 22 million — spent more than 30% of their income on housing, which is considered “cost burdened” by HJCH. Twelve million of those households spend more than half their income on rent. For homeowners, 20 million are considered cost burdened by their monthly payments. All of those cost-burdened levels represent records. - CNBC #affordability #kenasolutions

In this article you will see San Diego is still holding and predictions are to keep steady gain in 2025. It is a wonderful place to live as far as the weather goes. I guide my first time buyer's to not wait if they can and get in now. Most inclined to wait for the rates to drop but once that starts happening you are up against multiple offers and bidding wars. If you get in now you can always refinance down the road. Just food for thought. Most are paying high rents which is like throwing money out the door. Rents for single family homes are about the same as a mortgage payment. Why not not start building equity, best savings account out there!!!! I say do it now🏡 #GemRealEstate #GREsandiego #northsandiegocounty #realtor #newhome #buyers #helpfulagent #houseexpert #investment

🏡 Exciting news in the housing market! February saw a significant rise in both existing and new home sales, hinting at a potential turnaround. However, while sales are up, affordability remains a challenge. Housing prices have surged faster than incomes, making homes 44% less affordable than just two years ago. The key culprit? Limited housing supply. Although there's a slight improvement from last year, it's not enough. Lower mortgage rates are encouraging more supply, but it's not a silver bullet. Builders are offering incentives, but we still have a long way to go. Let's keep an eye on these developments! #HousingMarket #AffordabilityChallenge 📈🏠 Read more here: https://lnkd.in/g3Ddh5uv

Title: SFR Market Surge: Developers Bet Big on Rental Homes Amid High Home Prices and Mortgage Rates As home prices soar and mortgage rates climb, developers are rapidly expanding the single-family rental (SFR) market, offering new opportunities for real estate investors. Here’s a detailed look at the current trends and projections: Record Construction: In 2023, developers completed 93,000 new single-family homes for rent, a 39% increase from 2022. This surge marks the highest annual total ever recorded, with the trend expected to continue into 2024 before easing by 2025. Diverse Options: These new rental homes range from one-bedroom cottages to five-bedroom houses, including townhomes and detached houses, particularly flourishing in the outer-ring suburbs of fast-growing cities in Arizona, Texas, and Florida. Resilient Demand: Despite a slowdown in rent growth from pandemic peaks, single-family rental occupancy rates remain robust. This sector shows greater resilience compared to multifamily buildings, reflecting sustained demand. Affordability Challenges: With home affordability at its lowest since the 1980s, many Americans, even the relatively affluent, are opting to rent. High home prices, mortgage rates above 7%, and increasing home-related costs are driving this trend. Strategic Developments: Developers like STG Capital Partners and Quinn Residences are capitalizing on this demand by building hundreds of new rental units, often in markets with limited recent large-scale projects. Investment Activity: Major investors remain bullish on the SFR sector. For instance, Heitman’s $235 million partnership with Crescent Communities aims to build new rental homes across the Sunbelt, targeting older millennials and retirees who are priced out of homeownership. Economic Dynamics: Nationally, the median American renter now spends 31% of their income on housing, while rising home sales prices and mortgage costs have outpaced rent increases, with average monthly mortgage payments significantly higher than apartment rents. Market Adjustments: Some areas experiencing a boom in new supply are seeing increased vacancy rates and slower rent growth. However, tenant retention is improving, with more renters renewing leases rather than moving. The SFR market's growth reflects a broader shift in housing preferences and economic realities. As builders and investors navigate this evolving landscape, the focus on creating rental communities that meet demand remains strong. #wsj #sfr #cre

Here’s how bad housing affordability is now Home prices set another record in April, even as mortgage rates rose and the supply of homes for sale increased. Usually, under those circumstances, prices would weaken, but today’s housing market is unlike any other in recent history. Prices in April rose 6.3% compared with the year-earlier month, according to the S&P CoreLogic Case-Shiller National Home Price Index. It marks the second straight month that the national index jumped at least 1% over its previous all-time high. Home prices are now 47% higher than they were in early 2020, with the median sale price now five times the median household income, according to the study. For renters, even though rent growth is slowing due to a big increase in new apartment units this year, prices are still 26% higher than they were in 2020 and rising in three out of every five markets. Half of all renter households — more than 22 million — spent more than 30% of their income on housing, which is considered “cost burdened” by HJCH. Twelve million of those households spend more than half their income on rent. For homeowners, 20 million are considered cost burdened by their monthly payments. All of those cost-burdened levels represent records. - CNBC Alexandra Esquivel-Murphy Joseph Esquivel-Murphy Don Ullmann #affordability #kenasolutions

The US housing market just saw its worst year of sales in nearly 3 decades.📉 The National Association of REALTORS® said Friday that home sales were the weakest in 2023 since 1995. For the full 12 months, total existing home sales hit 4.09 million units, and sales were lower across all regions in the US year-over-year. Total existing-home sales came in at 3.78 million in December on a seasonally adjusted basis, falling 1.0% from November, the real estate group said. Sales dropped 6.2% from the prior year. "The latest month's sales look to be the bottom before inevitably turning higher in the new year," NAR economist Lawrence Yun said. "Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months." Full story on Business Insider: https://lnkd.in/gUx_9Twc #economy #markets #housingmarket #realestate #homes

📊 Austin Housing Market Update: September 2024 Insights 📉🏡 The latest report is in, and Austin’s housing market is continuing to shift! If you’ve been thinking about buying or selling, now might be the time to take a closer look. Here’s what you need to know: ➡️ Median home price dropped by 6.6% to $425K, making homes more affordable than they were last year! ➡️ Pending sales surged by 20.2%, showing that buyers are ready to capitalize on the recent mortgage rate cuts. ➡️ Inventory is at 5.9 months, meaning the market is becoming more balanced between buyers and sellers. While mortgage rates have dipped, affordability is still a challenge for many. Sellers are adjusting their expectations, but with active listings growing more slowly, the market remains competitive. 🏡 Key takeaways for buyers: Lower home prices and falling mortgage rates could give you more buying power. Now’s the time to act before the competition heats up even more! 🏡 Key takeaways for sellers: The market is balancing, but with buyers gaining leverage, setting the right price is crucial to attract serious offers. The Austin market is dynamic—if you’re looking for guidance on how to navigate it, let’s chat! I’m here to help you make informed, confident decisions. 🙌 #AustinRealEstate #MarketUpdate #Homebuyers #SellersMarket #AustinHousing #RealEstateTrends #AustinRealtor #HousingAffordability #MortgageRates #BuyersMarket #InvestmentOpportunity https://lnkd.in/gANnvC9g