Real estate housing and economic news round up for January 13 2017…
Happy Friday the 13th!
ATTOM Data Solutions just released their Year-End 2016 U.S. Foreclosure Market Report, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions were down 14% from 2015. They also said that foreclosure filings are at the lowest level since 2006.
They also said that 0.70% of all U.S. housing units had at least one foreclosure filing in 2016. This is the lowest annual foreclosure rate nationwide since 2006. The average time to foreclose increased to a new record high in Q4 2016.
The difference between what homeowner think and appraiser opinions grew for the first time in 6 months according to the latest Quicken Loans’ National Home Price Perception Index. The difference between homeowner and appraiser opinion of a home’s value had narrowed in the 2nd half of 2016.
Quicken Loans also said that appraisal values increased 3.85% year-over-year.
Remember that when selling a home, the appraiser’s opinion of value can make or break a deal.
Total U.S. Weekly Rail Traffic Down 11.4% Compared With Same Week Last Year
For this week, total U.S. weekly rail traffic was 441,417 carloads and intermodal units, down 11.4 percent compared with the same week last year. Total carloads for the week ending January 7 were 221,146 carloads, down 7.7 percent compared with the same week in 2016, while U.S. weekly intermodal volume was 220,271 containers and trailers, down 14.9 percent compared to 2016. Two of the 10 carload commodity groups posted an increase compared with the same week in 2016.
Sadly, this is not a positive indicator of a healthy economy.
Rent Growth for Higher-Priced Rental Homes Slowed in 2016
Last July CoreLogic reported that, nationally, rent growth on single-family homes had begun to moderate in 2016. And they just reported that this slowdown in rent growth has continued.
However, CoreLogic pointed out that there is a difference between lower priced and higher priced rentals. The overall growth of rents was pulled down by the high-end market.
Corelogic defines the high-end market as properties with rents of 125% or more of the local-area median. But rent growth for properties with rents less than 75% of the local-area median is still strong.
In October 2016, CoreLogic said that rents on lower-priced rental homes increased 5.4%, up from 5% in October 2015. Rents on higher-priced rental homes increased 2.5%, down from 3.4% in October 2015.
Because of the strong demand and limited supply of lower priced rental homes, rents have been increasing steadily. Most of the new construction has been more expensive homes and the additional supply has caused rent growth for high-priced rental homes to slow down.
There is no doubt that demand for affordable rentals is strong both in Anderson and nationally. Which of course creates an opportunity for investors…
Authorities believe they have found the remains of a missing realtor nearly eighteen months after he disappeared, and have ruled his death a homicide.
Sadly, this is not an isolated incident. All Realtors need to be aware that NO commission is worth their life.
The average size of newly built homes decreased in 2016. In 2015, the typical new home had 2,689 square feet. In 2016, it dropped to 2,634, U.S. Census data show. That’s the first drop in size since 2009.
But the National Association of Home Builders is reporting that while new homes are getting smaller, buyers are demanding more amenities. The number one feature is a separate laundry room.
I can tell you from experience that most buyers truly appreciate a nice laundry room with plenty of storage and a sink for hand washing or soaking clothes.
Check out this chart showing U.S. new home sales by price range. Notice how the homes under $200,000 make up only 14% of the total.
Don’t let this fool you as there are plenty of new homes under $200,000 in the Anderson SC area. Remember that home prices are much higher in other areas of the country.
Private Equity Funds Doubling Down on Single-Family Rental Market
Private equity funds are starting out 2017 continuing to bet on the single-family rental (SFR) market, a large but widely fragmented property segment that’s entering its fifth year as an institutional real estate investment play.
Folks if the big money people are investing in single family rentals, there is an important lesson for you…
Eliminating Rent Seeking and Tough Enforcement of Antitrust Laws are CRITICAL to Reducing Rising Inequality
Eliminating rent seeking and toughening enforcement of antitrust laws are “critical” to reducing rising inequality, said two Nobel Laureates, Angus Deaton and Joseph Stiglitz, during a panel of Nobel laureates last Friday. Two fellow laureates, Roger Myerson and Edmund Phelps, echoed their message and warned of a return to 1930s-style corporatism.
A must read and I fear that rising inequality could eventually lead to social unrest.