October 22, 2013
In September, the National Association of Realtors reported that existing single-family home sales continued their streak of 27 consecutive months of annual increases. The 5.3 million homes sold declined 2% month-over-month but rose 11% year-over-year.
In addition, single-family home prices also increased year-over-year, with the median price appreciating 12% annually to $199,200. With prices and mortgage rates rising, home affordability has hit a five-year-low, meaning the demand for multifamily is expected to rise in the coming months.
Read more at Austin Business Journal.
September 16, 2013
Continued recovery in the housing market is benefiting just about everyone – especially seniors, who throughout the country are selling their homes to move into multifamily housing facilities. As reported by CoStar, senior multifamily properties (including assisted living facilities) have seen a 35% annual increase in sales volume, from $1.18 billion last year to $1.59 billion in 2013. Per-unit sales prices, meanwhile, have seen dramatic decreases, falling from $88,000 in 2011 to $58,000 now.
So what does this all mean? Demand for senior housing facilities has seldom been higher, and investment companies are jumping on the trend. If multifamily demand in the 65+ demographic can keep up with growth forecasts, investment companies across the country stand to profit.
Read more at CoStar.com.
September 12, 2013
Economists expect the U.S. to continue its recovery, forecasting a healthy growth of 3% by the second quarter of 2013, highlighted by increases in employment and low levels of inflation. As reported by the National Association of Business Economics, the improving economy will provide incentive for the Federal Reserve to reduce its purchases of treasury bills and mortgage bonds, which currently total $85 billion every month. According to a NABE survey of 43 top economists, 80% believe this cutback will occur by next year and 43% think it could happen as soon as this year.
The economists surveyed forecast year-over-year GDP growth of 2.3% in the third quarter of 2013 and 2.6% in the fourth quarter, both down slightly from earlier expectations. Second quarter annual GDP growth came in at 2.5%. The U.S. economy hasn’t seen year-over-year growth hit 3% since 2005.
Read more at USAToday.com.
September 6, 2013
Overall confidence in the apartment market, as measured by the National Association of Home Builders (NAHB), rose to an all-time high in the second quarter. The NAHB index came in at 61, its highest level since the agency began tracking confidence among builders and developers in 2003. A rating of 50 is considered neutral. NAHB Chief Economist David Crowe explains: ”Much of the consumer demand that we are now seeing is coming from a large generation of young people who are able to find jobs and establish their own households as the economy continues to improve.”
Read more at RealtorMag.org.
August 22, 2013
U.S. single-family home values appreciated 6% in July from a year earlier to $161,000. That’s the highest annual home price jump since 2006 and the 14th consecutive month of year-over-year increases—further indication that the national real estate market is looking rosier. “After three straight months of annual home value appreciation above 5%, the U.S. housing market recovery has proven it is on very sound footing,” said Zillow Chief Economist Stan Humphries.
Zillow reported that 289 of the 393 metros (or 73.5%) posted price increases in July over the previous month and 303 (77.1%) registered an increase over the prior year. Over the next 12 months, home prices are expected to appreciate another 4.8% to $170,000, with the highest increases in Sacramento, Riverside, and San Francisco.
Read more at Yahoo! Homes.
August 8, 2013
Market: Las Vegas, NV
In July, the median price for single-family homes, as measured by the Greater Las Vegas Association of Realtors, jumped 35.5% year-over-year to $180,000. Since home prices fell to $118,000 in January 2012, they have increased faster than anywhere else in the country. Still, the city’s housing market has some ground to cover before reaching its pre-recession peak of $315,000. The median price for a condo also increased 37.6% year-over-year to $91,500, driven by several high-rise condo sales in the expensive Las Vegas Strip.
New home sales for the first half of 2013 totaled 3,570, an 80% increase year-over-year. Supply picked up as well, as 616 units were completed in June, representing a 65.1% increase year-over-year.
Read the full article at Las Vegas Review Journal.
July 30, 2013
Reuters reports that millions of Americans are turning to renting, and this trend shows no indication of slowing as homeownership fell to 65.1% in Q2 2013. The decline was most pronounced in the 55-63 year old demographic, which saw ownership dip 0.3% in Q2 2013.
Related to this decline in homeownership, the apartment vacancy rate fell to a 12-year low of 8.2%, with national median rents rising to an unprecedented $735. This increase in renting is primarily due to a shortage of supply for single-family homes, coupled with stricter lending standards and high unemployment. Rising mortgage rates could push even more people to renting in the coming months.
Read the full article at Reuters.com.