Choose your path
The pace of economic growth is expected to moderate through 2020, the American Bankers Association reported Jan. 9, citing data from its Economic Advisory Committee. The forecast shows economic growth at 2.1 percent this year and 1.7 percent in 2020, which would make the current expansion the longest in U.S. history.
Investors interested in New York City commercial real estate can purchase the 1.26-million-square-foot Chrysler Building, Reuters reported Jan. 9. The current owners purchased the Art Deco icon in 2008 for $800 million, and hope to recoup their costs. The building’s occupancy rate is around 80 percent, below the city average.
Vacancy rates in the office sector held steady during the fourth quarter while asking rents increased and absorption was strong, according to analytics firm Reis, MBA NewsLink reported Jan. 10. Construction also was strong, with inventory growing by 10.4 million square feet, up from 8.9 million square feet during the third quarter.
Demand for multifamily properties is expected to remain steady, but occupancy should decrease this year as 320,000 new units reached the market last year and another 300,000 or so are still in the pipeline, according to property management data firm RealPage, National Real Estate Investor reported Jan. 8.
As home prices continue to outpace rent growth, renting a three-bedroom property is cheaper than buying a median-priced home in 59 percent of U.S. housing markets, analytics firm ATTOM Data Solutions reported Jan. 8 in its Rental Affordability Report.
The number of consumers who believe now is a good time to buy a home fell 12 percent in December, as home price growth outpaced income growth, Fannie Mae reported Jan. 7 in its Home Purchase Sentiment Index. The number who believe now is a good time to sell a home increased 1 percent.
A $1,000 increase in the cost of a median-priced new home forces 127,560 potential buyers out of the market, according to a study released Jan. 8 by the National Association of Home Builders. The study also revealed that a quarter-point increase in the 30-year fixed-rate mortgage would price out approximately 1 million households.
Homebuyers could benefit from an anticipated slowdown in the housing market this year, allowing inventory to catch up, according to a report from online mortgage marketplace LendingTree, HousingWire reported Jan. 8. The report indicates some markets will experience home price declines, but a national decline is not anticipated.
Orlando, Florida, was ranked as the best market in the nation for real estate investment, according to a report from home forecast firm Local Market Monitor, Forbes reported Jan. 7. Rounding out the top five markets: Raleigh, North Carolina; Jacksonville, Florida; Charlotte, North Carolina; and Cleveland.
The value of the U.S. housing market has increased $10.9 trillion since 2012 and is now valued at a record $33.3 trillion, a Zillow economic data analyst reported Jan. 3. The California market — gaining $3.7 trillion in value — accounts for nearly one-third of the overall increase.
Pop up content here.