Real Estate

2021 Price Surges Yield Record-Level Profits for Home Sellers, Report Says

Daily Real Estate News - January 28, 2022 - 5:04am

It’s no secret that 2021 was a banner year for real estate sales, but a new report from ATTOM Data Solutions indicates that homeowners that were willing to sell last year reeled in a profit that hasn’t been seen in more than a decade.

ATTOM released its Year-End 2021 U.S. Home Sales Report on Jan. 27, which shows that home sellers realized a profit of $94,092 on the typical sale in 2021—up 45% from 2020 and up 71% from two years ago.

Based on median purchase and resale prices, experts said the profit increase marked the highest level in the United States since at least 2008.

Major takeaways

  • National median home prices rose 16.9% in 2021 to $301,000, causing profits to surge.
  • Profits margins rose in nearly 90% of the nation—150 of the 173 metro areas with sufficient data to analyze.
  • Homeownership tenure dipped to a nearly 10-year low of 6.14 years.
  • One of every three single-family house and condo sales in 2021 was an all-cash purchase—a six-year high.
  • Institutional investing accounted for one of every 14 single-family home and condo sales in 2021 in the U.S.—an eight-year high.
  • Federal Housing Administration sales hit their lowest levels in 14 years.

What this means

Frenzied market behavior filled headlines last year as pandemic-induced stimulus and historically low mortgage rates helped fuel demand for a finite number of homes for sale.

According to the report, a surge of buyers financially unscathed by the pandemic flooded the market throughout 2021. The intense competition for a tight supply of homes contributed to a price surge that proved to be a boon for sellers who were able to reel in nearly $95,000 in profit for their homes.

“What a year 2021 was for home sellers and the housing market all around the U.S.,” said Todd Teta, chief product officer at ATTOM, in a statement. “Prices went through the roof, kicking profits and profit margins up at a pace not seen for at least a decade. All that happened as the virus pandemic raged on, which actually helped drive the increases instead of stifling them. Households that escaped job losses from the pandemic dove into the market, in large part as a response to the crisis. And the rising demand led the market boom onward.”

While 2021 was a record-setting year for price gains and profit margins, ATTOM noted that there are signs that prices could flatten out in this year as declining affordability, lower investor profits, and rising foreclosure activity contributes to a market cooldown that began in the fall.

The report stated that that was layered over with rising inflation and likely increases in mortgage rates this year.

A silver lining is that the current imbalance in demand and supply suggests there is room for at least some additional price gains.

“No doubt, there are warning signs that the surge could slow down this year,” Teta said. “But 2021 will go down as one of the greatest years for sellers and one of the toughest for buyers.”

Jordan Grice is RISMedia’s associate online editor. Email him your real estate news ideas to jgrice@rismedia.com.

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Categories: Real Estate

Broker Confidence Dips Slightly in January Amidst Inventory and Pandemic Concerns

Daily Real Estate News - January 27, 2022 - 3:04pm

Editor’s note: On a monthly basis, we will be checking in with more than 3,000 of the U.S.’s top residential real estate brokers to gauge their confidence in their own business and the overall market, on a scale from 1 – 10. Additionally, we will ask relevant questions pertaining to the current state of the market to gain more insights on what’s impacting the index score. This report will not only keep real estate professionals up to date on the current conditions of our industry, but it will also serve as a critical indicator of where it’s headed in the coming month, quarter and year.

Despite rising inflation, a flare up in COVID-19 cases and an unprecedented inventory shortage, brokers remain confident in the real estate industry this month, according to RISMedia’s Broker Confidence Index (BCI). January’s index score dipped just a few decimal points to 7.9 versus 8.2 in December 2021.

After polling more than 3,000 residential brokers, we can conclude that despite some mounting concerns, the overall state of confidence remains high during the doldrums of winter. Nearly 20% of respondents scored a maximum confidence of 10/10, and more than 25% were only slightly less confident with a score of 9. In total, nearly 75% of all respondents purported a confidence level of 8 or higher.

In addition to gauging the month’s BCI, we also asked if the recent surge in COVID-19 cases was having an immediate impact on the respondents’ businesses. Slightly more than half (53%) said that it was indeed, which is not surprising given the record-setting number of cases that have been recorded since our last BCI report.

What the brokers are saying:

“I believe the surge of the variant is causing possible sellers (boomers and older) to delay selling. The 65-plus crowd are not moving on to different housing as they normally would. But this first month in 2022 it is a situation of a very serious shortage of inventory. If or when COVID goes away there could be a wave of new inventory.”

– David Winans, Founder, Better Homes and Gardens Real Estate, Winans, Dallas, Texas

“We are seeing less movement on the listing side with sellers holding back on the decision to move; reduced traffic at our open houses; and agents staying away from the office.”

-Robert Baily, Associate Broker, Howard Hanna Real Estate Services, Washington Pennsylvania

“Just as we were seeing more agents return to the office for trainings/events this has shifted more people back home. We are also seeing some buyers delay the near year searches as COVID peaks—particularly in our area. ”

-Kimber Menkiti, President, Menkiti Group, Washington, D.C./Maryland/Virginia

“A large percentage of agents and their families are affected. Agents not working for the last two-three weeks will have an impact on closings 30-45 days forward.”

-Cami Pinsak, Owner/Manager, Realty ONE Group Summit, Camarillo, California

“Our business is very unpredictable.”

-Henry Erwin, Broker Manager/Owner, RE/MAX Excels, Geneva, Illinois

Caysey Welton is RISMedia’s Content Director. Email him your real estate news ideas cwelton@rismedia.com.

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Categories: Real Estate

Mortgage Rates Remain Flat

Daily Real Estate News - January 27, 2022 - 3:02pm

After a month of rising mortgage rate increases, this week’s data shows a flattening, according to Freddie Mac’s Primary Mortgage Survey. The rate increases have not significantly impacted demand in the real estate market, although gradual increases are expected to continue soon. Freddie Mac suggest that now is still a good time for homeowners to refinance now.

U.S. weekly averages:

  • 30-Year Fixed Rate Mortgage – 3.55% (down .01 week over week, up .78 YoY)
  • 15-Year Fixed Rate Mortgage – 2.8% (up .01 week over week, up .59 YoY)
  • 5/1 Year Adjusted Rate Mortgage – 2.7 (up .1 week over week, up .1 YoY)

What it means:
“The Freddie Mac fixed rate for a 30-year loan steadied this week, dropping 1 basis point to 3.55%, in line with longer-term rates. This week’s Fed meeting reinforced the idea that interest rates are moving higher, with Fed rate hikes likely to begin as soon as March. However, long-term Treasuries bounced down and then up again this week, as investors evaluated whether they are correctly positioned to navigate the tightrope of a Fed tightening cycle and other economic growth risks against a still-strong economy. Despite this flattening, which is likely just a temporary reprieve, mortgage rates remain 50 basis points higher than they were roughly one month ago.

Rising mortgage rates and inflation are creating a hefty incentive for homebuyers to move sooner rather than later, but the fast-paced housing market is making finding the right home a challenge. Even though rising home prices, which ticked higher this week, and mortgage rates have driven up the monthly cost of buying, rising rents, which surged by double-digits in 2021, are a key motivator for first-time home buyers. Despite affordability challenges, the sheer number of potential first-time buyers on the market are expected to keep home sales rising in 2022.” —Danielle Hale, realtor.com® chief economist

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Categories: Real Estate

Rate Hikes ‘Soon’ as Fed Walks Tightrope

Daily Real Estate News - January 27, 2022 - 6:04am

A highly scrutinized two-day meeting of the Federal Reserve that concluded Wednesday resulted in no new interest rate hikes, though the central bank appears poised to move forward with an increase in the next few months following persistent inflation and an accelerating economic recovery.

“With inflation well above 2% and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate,” the Fed wrote in a statement following the meeting’s conclusion on Wednesday, Jan. 26.

After referring to inflation—which peaked at a historic year-over-year increase of 7% in December—as “transitory,” the Fed appears to have pivoted somewhat, increasing the taper of its asset purchases—emergency measures which are now expected to finish in March. Fed members have also indicated that 2022 is likely to see three or four rate hikes, which has already pushed mortgage rates up slightly from their 2021 lows.

Markets were down following the meeting after pushing higher through the morning, with all three major stock indexes dropping in afternoon trading Wednesday.

The Fed has been extremely careful not to commit to any specific timeline, saying it will react to new developments specifically in the pandemic and the job market. Raising rates will be predicated on so-called “maximum employment” and the bank continues to aim for 2% inflation “in the long run.”

In a press conference after the meeting, Fed chair Jerome Powell said that current market conditions were “consistent with maximum employment,” though he also cited the ongoing Omicron surge as hampering labor market health in the short term.

“ surely weigh on economic growth this quarter. High frequency indicators point to reduced spending in covid sensitive sectors,” he said. “And activity more broadly may also be affected as more workers may be unable to report to work.”

While many observers expect a rate hike in early spring, Powell said that the Fed has not made any decision on that front.

“It is not possible to predict with much confidence exactly what path for our policy rate is going to prove appropriate, and so this time we haven’t made any decisions about the path of policy,” he said. “And I stress again we will have to be humble and nimble.”

A significant question regarding potential rate hikes is whether the Fed’s first increase will more than a quarter-point, says Matthew Gardner, chief economist for Windermere Real estate.

“They have to raise rates given the inflation environment we are in right now,” he says. “I still believe it’s transitory, but the question is how do you define that term. It is going to be transitory, but it’s going to be over a longer period of time. I’m still seeing inflation in the 3% range in 2023.”

Mortgage rates are almost certain to rise in response to any interest rate hikes, which will certainly affect the housing and real estate markets, according to Gardener, who says he doesn’t anticipate the housing market will see sales surpass their 2021 performance as rates and home prices continue to climb.

“Investors want to see growth and it’s going to be hard to come by,” he says. “I don’t think we are going to see growth in transactions, and I think that increasing interest rates is going to play into a lot of markets because it’s further going to diminish housing affordability.”

“I think that rates have certainly seen a significant spike relative to where they were, however, we’re still talking sub-4% ,” he adds.

This is in-line with other industry observers, as the Mortgage Banker Association’s chief economist Mike Fratantoni predicted a similar path, with rates reaching around 4%.

“MBA is holding on to our forecast that the combination of a stronger economy, persistent inflation, and the reduction of monetary policy accommodation will all push towards somewhat higher mortgage rates, with the 30-year fixed rate hitting 4% by the end of 2022,” Fratantoni said in a statement.

Jesse Williams is RISMedia’s associate online editor. Email him your real estate news ideas jwilliams@rismedia.com.

Jordan Grice is RISMedia’s associate online editor. Email him your real estate news to jgrice@rismedia.com.

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Categories: Real Estate

Key Tax Proposal Affecting Real Estate May Be Off the Table

Daily Real Estate News - January 27, 2022 - 6:03am

As stalled negotiations over the sweeping federal Build Back Better bill appear to be regaining some momentum, one change championed by the real estate industry might be off the table this time around as Democrats navigate a narrow path to pushing a revised piece of legislation through congress.

The state and local income tax deduction, or SALT deduction, allows families to deduct taxes paid to their state and local governments from their federal liability, including property taxes. Currently capped at $10,000, the original Build Back Better text raised the cap to $80,000—a change that was supported by many legislators, as well as the National Association of REALTORS® (NAR).

But new reports suggest that change might be off the table as the Democratic caucus attempts to win the support of both moderate and progressive members.

An NAR spokesperson tells RISMedia the organization is still “advocat for Congress to find a solution on SALT relief.”

“The limit on SALT deductibility has made buying and owning a home much more difficult for millions of Americans,” the spokesperson says. “With record low inventory and rising prices, now is the worst time to reduce tax incentives that have long been available to help make homes more affordable for buyers.”

The SALT change is most important to areas with high state and local taxes—mostly New England states, California and Atlantic coastal areas, and primarily benefits high-income families, according to the non-partisan Tax Foundation. A write-off for high earners who live in these places (a $1 million home in Hartford, Connecticut comes with a $50,000 annual property tax bill) is often a tremendous boon, and proponents of raising the cap have argued it makes investing in expensive properties more attractive.

At the same time, progressive Democrats have pushed back on the change, arguing that it will exacerbate already rampant income inequality, while others have worried it would increase the federal deficit.

Candace Adams, President & CEO of Berkshire Hathaway HomeServices New England Properties, tells RISMedia that the change, “must happen as far as I’m concerned.”

“The migration to no tax states has been significant and reinstating the deduction will help to stabilize the region,” she says. “The notion that it is for the uber wealthy has no basis, as each high taxpayer leaving the states takes with them a large sum of tax money. It absolutely impacts everyone.”

Ryan Raveis, co-president of William Raveis Inc., which also boasts a large footprint in real estate, mortgage and insurance in those highly-taxed Northeast markets, called the SALT deduction “an issue of fairness.”

“The SALT deduction limitation also presents an economic issue that puts these states at a competitive disadvantage to states with low tax/low benefits,” he tells RISMedia. “It’s essentially a federal surcharge on the highest taxed states, and it dampens the real estate market and the wealth creation generated from an asset that is often a person’s largest—their home.”

Whether the SALT cap change is truly off the table remains unclear, and any revival of Build Back Better is still in the very early stages of negotiations. Republicans have remained broadly opposed to the legislation, which originally included a bevy of housing provisions championed by NAR and other housing advocates.

Speaking back in October when the initial legislative framework was announced (sans any mention of SALT), NAR chief advocacy officer Shannon McGahn promised to keep lobbying for the change.

“We won’t let down our guard on SALT and are still hopeful for a solution,” she said at the time.

Jesse Williams is RISMedia’s associate online editor. Email him your real estate news ideas jwilliams@rismedia.com.

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Categories: Real Estate

Contract Signings Slide as Buyers Find Fewer Choices

NAR Daily News Magazine - January 27, 2022 - 1:00am

Diminished housing supply is problematic for eager home shoppers. Read more from NAR’s latest home sales report.

Categories: Real Estate

Rental Market’s ‘Wild Ride’ Likely to Continue

NAR Daily News Magazine - January 27, 2022 - 1:00am

“For those thinking about making the transition from renting to buying their first home, rising rents will remain a motivating factor,” says realtor.com®’s chief economist.

Categories: Real Estate

High Demand Remains for New Homes

NAR Daily News Magazine - January 27, 2022 - 1:00am

New-home sales posted a double-digit jump last month as buyers rush to build.

Categories: Real Estate

Rate Hikes Loom as Fed Announces Increases in March

NAR Daily News Magazine - January 27, 2022 - 1:00am

More pressure will likely be placed on mortgage rates after the Fed announced Wednesday it will raise its key benchmark rate and end its bond-buying program in the coming months.

Categories: Real Estate

Home Seller Profits Averaged $94K in 2021

NAR Daily News Magazine - January 27, 2022 - 1:00am

“2021 will go down as one of the greatest years for sellers,” a new report shows.

Categories: Real Estate

Follow the Money: New Leads vs. Database

Daily Real Estate News - January 26, 2022 - 3:04pm

Any successful real estate agent will tell you that their best source of leads exists within their own database. This was discussed during RISMedia’s Real Estate’s Rocking in the New Year virtual session, “New Leads vs. Database: How to Focus on Your Best Sources,” held earlier this month.

Buffini & Company’s Vice President of Coaching and Membership, Dave McGhee, moderated a panel of top agents that included Greg Chaplain of The Real Estate Group; Greg Lukina of David Lyng Real Estate; and Dawn Pfaff of My State MLS, all of whom dove deep into strategies for tapping into databases to generate new and lucrative business opportunities.

McGhee kicked things off by explaining the importance of starting the year’s business off quickly with lead generation, noting studies suggest that 40% of the average agent’s business is generated during the first quarter of the year.

With that in mind, he asked the panel: “What are your top three sources of lead generation?”

“Our team is founded on—number one—working on referrals,” said Chaplain. “Second, we have a robust business-to-business platform, which is basically the same thing as working by referrals, but working with other business owners. Third, I would say…social media and traditional marketing that’s connected to our listing business.”

“I’m going to start off with open listings, and that’s a trick that New York City brokers have used forever,” said Pfaff. “Second, a strong marketing and public relations strategy. Our third way is to really think outside the box on where there are places to get listings without just buying leads.”

“Realistically, my top lead generation source is my database,” said Lukina. “I work mainly off of repeat-referral clients. Second is business-to-business relationships; I’m currently in two business networking groups and they’re great sources of leads for me. Third is strategic partnerships. I work with a company that provides down payment assistance to teachers in our community, and so I get leads through that partnership.”

When it comes to mining your database for new listings and referrals, the panelists noted there are a variety of approaches real estate professionals can take.

“We work with clean-out companies; people who clean out houses of people who want to move but have too much stuff,” said Pfaff. “If you work with clean-out companies, then you can do a lot to get new listings and referrals.”

There are a lot of other companies, Pfaff notes, that real estate professionals can work with to garner new referrals. However, the difficulty with thinking outside the box is just that—there’s no clear-cut strategy for coming up with clever ways to get those leads. Real estate professionals are going to have to put in the effort and hours to get those contacts, especially in the current market.

“Advertising is important, but what’s more important is marketing and having a solid marketing plan in place. You need to stay in front of people,” added Pfaff.

Traditional marketing and online marketing are still trusted ways for real estate professionals to get new referrals. However, when reaching out to former clients, it’s imperative to remain consistent and authentic to your company’s voice and brand.

“When it comes to referrals, make sure that you’re being deliberate and staying consistent. If you’re doing mailers, make sure you’re getting them out on time, every time,” Lukina concluded.

Even today, when new listings seem hard to come by, agents and brokers can mine their databases for leads and develop sustainable business.

Missed the event? Replays, including every panel and expert interview, are available here.

Jameson Doris is RISMedia’s blog and social media editor. Email him your real estate news ideas jdoris@rismedia.com.

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Categories: Real Estate

Mortgage Rates Rise for Fifth Straight Week to Highest Level Since March 2020

Daily Real Estate News - January 26, 2022 - 3:02pm

Mortgage applications decreased 7.1% from one week earlier, for the week ending January 21, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.

Key findings:

  • The Market Composite Index decreased 7.1% on a seasonally adjusted basis from one week earlier.
  • Unadjusted, the index decreased 6% compared with the previous week.
  • The Refinance Index decreased 13% from the previous week—53% lower YoY.
  • The seasonally adjusted Purchase Index decreased 2% from the previous week.
  • The unadjusted Purchase Index increased 5% compared with the previous week—11% lower YoY.
  • The refinance share of mortgage activity decreased to 55.8% of total applications from 60.3 percent the previous week.
  • The adjustable-rate mortgage (ARM) share of activity increased to 4.4% of total applications.
  • The FHA share of total applications decreased to 8.6% from 9.3% the week prior.
  • The VA share of total applications decreased to 9.9 from 10.0% the week prior.
  • The USDA share of total applications increased to 0.5% from 0.4 percent the week prior.

A look at interest rates:

Conforming loans
The average contract interest rate for 30-year fixed-rate mortgages with balances ($647,200 or less) increased to 3.72 percent from 3.64 percent, with points decreasing to 0.43 from 0.45 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

Jumbo loans
The average contract interest rate for 30-year fixed-rate mortgages with balances (greater than $647,200) increased to 3.56 percent from 3.54 percent, with points decreasing to 0.38 from 0.47 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

FHA-backed
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.69 percent from 3.64 percent, with points increasing to 0.61 from 0.44 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

15-year fixed-rate
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.00 percent from 2.95 percent, with points decreasing to 0.39 from 0.43 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

5/1 ARMs
The average contract interest rate for 5/1 ARMs increased to 3.18 percent from 3.04 percent, with points increasing to 0.33 from 0.24 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The takeaway:

“All mortgage rates in MBA’s survey continued to climb, with the 30-year fixed rate rising for the fifth consecutive week to its highest level since March 2020. The 30-year fixed rate is now 77 basis points higher than it was a year ago,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Unsurprisingly, borrower demand for refinances subsided, with applications falling for the fourth straight week. After almost two years of lower rates, there are not many borrowers left who have an incentive to refinance. Of those who are still in the market for a refinance, these higher rates are proving much less attractive to them.”

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Categories: Real Estate

Report: 2021 Rental Market Ends with Price Growth More Than 5X Faster Than in 2020

Daily Real Estate News - January 26, 2022 - 3:01pm

New data from realtor.com® show national rents grew five times faster in 2021 than in 2020, on average, and in December, rent prices hit the sixth straight month of double-digit yearly increases nationwide.

According to realtor.com®’s Monthly Rental Report, prices also surged in most large metros, led by Miami, Tampa and Orlando Fla. with gains of more than 34% each.

“On average in 2021, national rents were more than 10% higher than in 2020. As our December report further illustrates, this average understates the wild ride that the rental market, and many renters, experienced in 2021. Rents started the year roughly flat and gained incredible momentum throughout the year, hitting double-digit yearly pace by summer and continuing to surge through December,” said realtor.com® chief economist, Danielle Hale, in a statement. “While yearly growth is still strong, monthly growth cooled in December, which is typical for this time of year and not expected to last. With rents already at a high and expected to keep going up, rental affordability will increasingly challenge many Americans in 2022. For those thinking about making the transition from renting to buying their first home, rising rents will remain a motivating factor even as for-sale home prices and mortgage rates continue to climb.”

Largely attributed to winter seasonality, the U.S. median rental price posted a smaller monthly gain in December compared to earlier in 2021. However, December rental trends also reflect a shift in demand towards smaller rental units common to major metropolitan centers. For instance, two-bedroom rents posted monthly declines for the first time since November 2020 in December, after skyrocketing earlier in 2021 as workplace flexibility enabled some big city renters to explore smaller markets offering more space for their money. Now that more workers are returning to downtown offices, studio rents accelerated at a faster pace than larger unit rents in December and helped overall rents remain at a double-digit percentage point higher than in 2020 for the sixth month in a row.

  • In December, the U.S. median rental price grew 19.3% year-over-year to $1,781, which was relatively flat from last month’s level ($1,780).
  • Larger unit rents posted smaller monthly gains than seen from October to November, but grew by double-digits over December 2020. Among 0-2 bedroom units, the median rental price for one-bedrooms grew at the fastest annual pace, up 19.3% to $1,651.
  • December rental prices for two-bedroom units ($2,003) increased 19.1% year-over-year, coming in slightly below the November median ($2,005).
  • The median studio rental price continued to accelerate in December, rising 18.6% over the same month in 2020 to a two-year high of $1,462.

U.S. rental markets took consumers on a wild ride over the course of 2021. Following shallow growth in the first two months of the year, rents began to recover before hitting a double-digit pace in summer which continued through end-of-year. The early gains were led by secondary markets and larger units, driven by the migration of big city renters to smaller rental markets where budgets stretched further. Even as the big city rental recovery began, as reported in September, the 2021 surge in secondary rental market popularity and prices continued, and helped offset slower early-year growth. As a result, the average pace of growth in overall U.S. rents closed out the year at more than five-times faster than in 2020.

  • Nationally, rent growth hit a double-digit pace in 2021, up an average of 10.1% – 5.3 times higher than the 2020 rate (+1.9%) and above the Realtor.com® Forecast for 2022 (+7.1%).
  • With demand for space rising during COVID, larger unit rents posted the biggest annual gains among unit sizes in 2021, each rising at a double-digit pace. Over the past 12 months, average year-over-year rent growth for two-bedroom and one-bedroom units was 11.7% (+$196) and 10.0% (+$139), respectively.
  • Common to big cities that saw an exodus of renters earlier in the pandemic, studio rents declined at the beginning of 2021. However, studio rents began to recover in the second half of the year as downtown offices and attractions began to reopen, and ended 2021 at an average annual growth rate of 6.1% (+$76).

The real “Cinderella story” of the 2021 rental market was among smaller secondary metros. The year’s fastest-growing rental markets were all outside of big tech cities, with the top 10 led by the relatively affordable Los Angeles alternative of Riverside, Calif. Rental popularity in these secondary metros was driven by a number of COVID-related trends in consumer preferences, including the need for more space and easier access to the outdoors. As a result, 2021 annual rent growth across the top 10, on average, was two times faster than the national rate.

  • In 2021, rents increased by an average of 20.7% in the top 10 markets, led by Riverside (+28.5%), Tampa (+25.6%), Memphis (+23.0%), Miami (+22.1%) and Sacramento (+19.5%). Additionally, December data shows many of these markets remained among the fastest-growing metro areas through end-of-year.
  • A key trend driving rental demand and price growth in these areas is rising workplace flexibility. In half of 2021’s fastest-growing rental markets, LinkedIn data shows the share of job seekers applying for remote work roles is higher than national average (25.2%), led by Tampa (29.6%).
  • Comparatively, big tech cities dominated the 2021 list of slowest-growing rental markets, with average rent growth across these 10 metros ending the year at just 2.0%. However, 2021 data shows big city rents recovered significantly from sharp drops earlier in the year, with average rents declining in just two of the bottom 10. (see table below)

“Regardless of where you live, renting is generally more expensive now than in prior years,” Hale stated. “However, expected income growth could give renters more negotiating power – especially if you continue to have workplace flexibility. Those able to work big city jobs while living in secondary metros are still likely to find more affordable rental options than in the biggest tech cities. Take the example of Tampa—despite being one of the fastest-growing rental markets in 2021, the December median rental price ($2,038) remained significantly lower than in a big northeastern city like New York ($2,670).”

To view the full report, visit https://www.realtor.com/research/december-2021-rent/.

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Categories: Real Estate

Leading Real Estate Companies of the World Appoints Taco Heidinga as Global Business Development Director

Daily Real Estate News - January 26, 2022 - 5:02am

Leading Real Estate Companies of the World® (LeadingRE) has announced the appointment of Taco Heidinga, who joins the business as director, global business development. Based in Kuala Lumpur, Malaysia, he will be responsible for recruiting new members in APAC region and growing the company’s program for marketing real estate developments worldwide. Heidinga, an expert real estate coach, will also be involved in growing the organization’s online learning platform Institute, the company stated.

Taco Heidinga

Heidinga brings 14 years of industry experience to the role, most recently running his own real estate training company focused on the business environment in Southeast Asia, where he worked alongside top agents and developers as well as marketing and sales professionals in the region. He is a Dutch national with global experience, having worked with multiple companies across international markets, including Malaysia, Thailand, Singapore, the Netherlands and the Caribbean.

Chris Dietz, executive vice president of global operations at LeadingRE, commented: “We are delighted to welcome Taco to our global leadership team. A long-time friend of our network, he brings a specialized background in the APAC region and a fantastic professional network internationally. His skills will be hugely valuable as we continue to strengthen our global value proposition and create program offerings that support our members worldwide, particularly on the new development side. Taco’s appointment will also re-enforce our strong APAC footprint and support our growing initiatives in the region.”

“I am excited to join a LeadingRE, a hugely successful business with proven models and efficient tools to support global real estate professionals, agencies, and developers to achieve their goals and perform at the highest level,” Heidinga said. “Having spent years developing real estate training programs and workshops, I look forward to helping our members dive deeper into communication techniques and strategic growth to expand new ideas, strategies, and most importantly innovation for growth.”

For more information, visit https://www.leadingre.com/.

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Categories: Real Estate

FHFA House Price Index Up 1.1% in November; Up 17.5% from Previous Year

Daily Real Estate News - January 26, 2022 - 5:01am

House prices rose nationwide in November, up 1.1% from the previous month, according to the latest Federal Housing Finance Agency House Price Index (FHFA HPI®). House prices rose 17.5% from November 2020 to November 2021. The previously reported 1.1% price change for October 2021 remained unchanged.

For the nine census divisions, seasonally adjusted monthly house price changes from October 2021 to November 2021 ranged from +0.5% in the West North Central division to +1.9% in the South Atlantic division. The 12-month changes ranged from +13.3% in the West North Central division to +22.8% in the Mountain division.

“House price levels remained elevated in November, but the data indicate a pivot,” said Will Doerner, Ph.D., supervisory economist in FHFA’s division of research and statistics. “The last four months reflect average gains of 1.0 percentage point, down from the larger prior changes during the spring and summer months. This new trend is a welcome shift but still twice the monthly average we have seen in the last 20 years, which echoes concerns about access and affordability in housing markets.”

The FHFA HPI is the nation’s only collection of public, freely available house price indexes that measure changes in single-family home values based on data from all 50 states and over 400 American cities that extend back to the mid-1970s. The FHFA HPI incorporates tens of millions of home sales and offers insights about house price fluctuations at the national, census division, state, metro area, county, ZIP code and census tract levels. FHFA uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data.

Source: FHFA

The post FHFA House Price Index Up 1.1% in November; Up 17.5% from Previous Year appeared first on RISMedia.

Categories: Real Estate

Randall Lewis Provides ULI with $10 Million Donation to Promote Sustainability in Real Estate

Daily Real Estate News - January 26, 2022 - 5:00am

Real estate executive Randall Lewis has donated $10 million to the Urban Land Institute (ULI), the largest single donation in ULI’s 86-year history to date, to fund the organization’s efforts to make the built environment more sustainable.

In honor of the historic contribution, ULI has renamed the former Center for Sustainability and Economic Performance the ULI Randall Lewis Center for Sustainability in Real Estate. The center, which focuses upon creating healthy, resilient and high-performance communities around the world, houses ULI’s Building Healthy Places Initiative, the Urban Resilience program, and the Greenprint Center for Building Performance.

In supporting ULI’s sustainability center, Lewis sees an opportunity to impact three crucial issues—building resilience against effects of climate change, creating healthier places for people to live and work and reducing carbon emissions—in a holistic way.

“Synergy between the three parts of the center is important to me,” explained Lewis. “Public health and climate action are very closely related, and many of the solutions will be linked as well. This gift is a way for me to make a personal impact upon one of the world’s most pressing problems and transform millions of lives, and I urge other real estate executives to consider supporting ULI’s far-reaching work.”

“This gift will transform the center by providing near term resources to accelerate our work on climate adaptation and mitigation while we continue our comprehensive work to build healthy communities,” said Ed Walter, ULI Global CEO. “We are grateful for the trust that Randall has in ULI to effectively mobilize its resources, including our 45,000 members, to make a visible difference on these important issues. I want to thank Randall for his invaluable generosity and steadfast support of ULI’s vision over the years.”

Lewis is a longtime ULI member as well as a Governor of the ULI Foundation. He also supports the ULI/Randall Lewis Health Mentorship Program, which pairs graduate students with ULI members to help deepen their understanding of opportunities to advance health through careers in the land use industry. His past gifts to ULI include a $1 million donation in support of the ULI Building Healthy Places Initiative, which focuses on shaping projects and places to improve the health of people and communities. He is an avid volunteer and has devoted more than 25 years to building healthy places and placemaking initiatives nationally.

Lewis’ gift is largely unrestricted, which allows ULI flexibility in funding sustainability programs to meet future needs in a rapidly changing environment. The funding will take ULI’s sustainability efforts to the next level as it delivers on its mission priority to decarbonize the real estate sector and accelerate the path to net zero.

“With this funding, we can tackle the most pressing sustainability challenges in our industry as they arise, helping our members understand the challenges and develop solutions they can apply in their organizations,” commented Billy Grayson, EVP for centers and initiatives at ULI.

“What makes a gift transformational is that this changes the trajectory of ULI and the Center,” noted ULI Foundation President Janice Periquet, “It’s catalytic because we can leverage this opportunity to connect with a broader audience and present ideas that will drive progress on these initiatives.”

An industry veteran with more than four decades of experience, Lewis is an EVP and principal of the Lewis Management Corp., a southern Calif.-based developer of master plan communities, shopping centers, apartment complexes and industrial and residential projects in California and Nevada. The group has built 58,000 homes and developed 24 million square feet of retail, office, and industrial space; and currently owns and manages 11,000 apartments. Lewis oversees the group’s sales and marketing operations.

Over the course of his career, Lewis has also been involved with organizations such as the National Association of Home Builders and has been inducted into the California Homebuilding Foundation’s Hall of Fame. He is a 1973 graduate of Claremont McKenna College where he recently helped establish the Randall Lewis Center for Innovation and Entrepreneurship.

For more information on ULI, visit uli.org.

The post Randall Lewis Provides ULI with $10 Million Donation to Promote Sustainability in Real Estate appeared first on RISMedia.

Categories: Real Estate

2021 a Record Year for Commercial Sales

NAR Daily News Magazine - January 26, 2022 - 1:00am

“Everything's lining up for another strong year," says an official from an investment giant.

Categories: Real Estate

Report: Lack of For-Sale Inventory Drives Rents Higher

NAR Daily News Magazine - January 26, 2022 - 1:00am

Rental demand surged in 2021, partly because higher-income households turned to renting after unsuccessful home searches, according to a new report.

Categories: Real Estate

Emerging Markets May Imply Moving Pattern Change

NAR Daily News Magazine - January 26, 2022 - 1:00am

More populated, pricier housing markets are re-emerging as places to watch in real estate.

Categories: Real Estate

Millennials Willing to Blow Budgets, Buy ‘Sight Unseen’

NAR Daily News Magazine - January 26, 2022 - 1:00am

In the competitive housing market, millennials are willing to take chances for a shot at homeownership.

Categories: Real Estate
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