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Median prices for single-family homes and condos increased in 62% of opportunity zones between the second and third quarters, which parallels the growth reported in the broader U.S. housing market, ATTOM reported Nov. 18. However, home values in about three-quarters of opportunity zones remain below the national median of $310,500.
Mortgage rates inched up during the past week amid rising inflation and consumer spending, Freddie Mac reported Nov. 18 in its Primary Mortgage Market Survey. The survey noted that the current market is challenged by prospective buyers who continue to fuel strong housing demand but are met with inventory shortages that keep prices high.
Real estate investors purchased 18.2% of residential properties sold during the third quarter, up 11.2% year-over-year, setting a new record, Redfin reported Nov. 15. Investors bought 90,215 homes during the quarter, an increase of 80.2% from the same point a year ago.
Hotel demand and average daily room rates are rising faster than anticipated, leading some analysts to speculate about a complete recovery next year — a year earlier than was forecast, MBA NewsLink reported Nov. 16. However, revenue per available room, known as RevPAR, is still off pace and likely will remain below 2019 levels until at least 2025.
San Jose, California; Raleigh, North Carolina; and Austin, Texas, are the nation’s top “revolving door” metros, experiencing high turnover with many renters moving both in and out, Apartment List reported Nov. 16 in its Q3 Renter Migration Report. These metros are tech hubs and many remote workers are moving out, which has created vacancies that are attracting new renters from afar.
The housing market is expected to become more balanced in 2022 as mortgage rates rise, new listings increase and rents continue to climb, Redfin reported Nov. 18. The report also predicted that more homebuyers will “vote with their feet,” meaning they’ll choose to move to areas with more like-minded people who share their political beliefs.
The average sales price of a home that sold at a foreclosure auction during the third quarter rose to $167,503 — an eight-year high — up 15% from the previous quarter and up 42% from a year ago, according to a report from Auction.com, MBA NewsLink reported Nov. 17. Nearly half of the auctioned homes generated surplus funds above total debt owed.
The Federal Housing Finance Agency on Nov. 17 released the 2022 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions, which are meant to hold those entities accountable for fulfilling their core mission requirements of promoting sustainable and equitable access to affordable housing in a safe and sound manner. The goals apply to ownership and rental opportunities.
Airbnb is expected to have a significant effect on real estate in 2022 as it plans to increase its inventory by 25%, and many of its new properties will be pulled from the residential sector, the National Association of Realtors reported Nov. 14. The move to more short-term rentals likely will affect home availability and affordability, unless new options from developers fill the gap.
Lending for commercial real estate soared during the third quarter, up 31.6% from the second quarter and up 135% from a year ago when lending stalled due to the coronavirus pandemic, according to CBRE, MBA NewsLink reported Nov. 17. Activity was led by alternative lenders, including debt funds and mortgage real estate investment trusts; banks were the second most active lending group.
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