Welcome back to our Weekly Recap of real estate news. We hope you enjoy these posts. Hopefully you find it useful for understanding what is happening in the real estate market each week.
This covers the week of 07/12/21 to 07/16/21. We have a recap covering economic indicators, lumber prices, and more.
RECAP OF ECONOMIC INDICATORS
UNEMPLOYMENT: According to the Bureau of Labor Statistics, the national unemployment rate of 5.9 percent has stayed steady over the last month. Although, it is more than 5% lower than this time in 2020.
CONSUMER CONFIDENCE: According to MarketWatch, a measure of how consumers feel about the economy right now dipped to 84.5 from 88.6 in June. Consumer optimism in regards the next six months fell more sharply. It fell from 83.5 in June to 78.4 in July. Americans are concerned about an increase in inflation. People are prepping for almost a 5% increase in the cost of living.
RUNNING THE NUMBERS
AVERAGE PRICES: According to Realtor.com, the median home price was up 13% year over year to $385,000.
AVERAGE INTEREST RATES: 30 year fixed: 2.70% – 15 year fixed: 2.19%.
AVERAGE DAYS ON MARKET: The average days on market was down 48% year over year to just 37 days.
ACTIVE LISTINGS: Current active listings are down 43% year-over-year to 548,864
RENTAL PRICES: Rents increased 3% in June and 8.1% year-over-year.
GDP: The Bureau of Economic Analysis real Gross Domestic Product (GDP) increased at an annual rate of 6.4 percent in the first quarter of 2021
LUMBER PRICES & GRILL COMPANIES GOING PUBLIC
After an absolutely crazy price increase during the COVID19 pandemic. Lumber just returned back to pre-COVID19 levels. The supply of wood is finally leveling out with more mills back in action after shutting down for COVID19.
Weber is set to go public at a $6 billion dollar valuation. Traeger grills are also going public. Many Americans purchased grills during the pandemic. People were having to stay home and wanted to enjoy some home grilling.
Fannie Mae and Freddie Mac are dropping a fee on mortgage refinances. They were charging lenders a 50 basis-point fee. This was instituted during the pandemic. This was designed to cover projected losses due to the COVID19 pandemic. The objective was to lower costs for borrowers. However, it was simply being passed on to borrowers.
TRYING NEW INVESTMENT STRATEGIES
Do you want to deploy some capital and create a store of value to hedge against inflation?Does taking advantage of low interest rates and lowered fees interest you? Then check out our investment property Hotlist (sign up in the top right corner of webpage). This week offers properties primarily from the midwest and northeast. You can also diversify by checking out our Florida inventory of single family rentals. We also offer a unique investment opportunity with short-term vacation rental properties in Orlando.