Hello investors, Sam here back with another weekly summary for the real estate market. This update will cover the week of July 26th, 2021. I hope this summary helps you stay up to date with the American economy and real estate market to make you a more informed investor! Let’s jump right in.
According to the Associated Press, the US Senate voted to start working together on an infrastructure bill. This includes $1 trillion dollars in spending to upgrade America’s deteriorating infrastructure. That means roads, bridges, passenger and freight railways, and electric vehicle charging stations.
The bill has not yet passed and requires support from both parties in order to get into action. A new high speed train running through your town or city could drastically change real estate prices in local markets. Convenient travel much like Western Europe could make way for new residents and investors. Exciting stuff so stay tuned!
According to CNBC, national home prices were 16.6% higher than in May 2020. This is the highest reading by many indexes in more than 30 years. For comparison, in April, we saw 14.8% year over year growth.
The cities of Seattle, Phoenix, and San Diego led the pack with year over year home price gains. All three of these cities saw around 25% growth year-over-year. Cleveland, Chicago, and Minneapolis trailed the pack for major cities but were all still all in the double digits!
Sales of new and existing homes have slowed recently because of insane asking prices. This is due to inventory having slightly increased with new homes being built.
Mortgage rates have bopped around recently but are still at historic lows. It doesn’t seem to have affected buyer’s decisions to borrow money for their homes. Millennials and Gen-Zers must have paid attention in Econ 101 and know money is darn cheap to borrow right now!
- Google and Apple have both postponed their call to return to the office until at least October and other major corporations are not setting a date at all. Is Covid done yet? Ugh.
- The US economy has returned to its pre-pandemic size in Q2. That was a fast recovery!
- Consumer spending increased 11.8% annually, the second highest growth rate since the year 1952.
- Business spending is also up as business owners are doubling down on the economy reopening and building up their business to prepare for another Roaring 20s
- The federal eviction moratorium is still set to expire tomorrow, July 31st.
Unemployment: Unemployment is hovering around 5.9% with a news release on unemployment coming on August 6th from the Bureau of Labor Statistics.
Average Interest Rates: NerdWallet reports the average interest rates are at 2.8% for 30 year fixed rate and 2.2% for 15 year fixed rate mortgages.
The Average Days on Market: The average days on market for a listing is 37 days according to Realtor.com but as we discussed earlier, with crazy ask prices, this may be rising.
Average List Price: Our average list price is hovering around $380,000.Average rent: According to Statista, our average rent is around $1,100-1,200/month for rental apartments as an aggregate.
SUMMARY/NEW INVESTMENT OPPORTUNITIES
That’s it for this market summary blog, but if you want more real estate knowledge, check out our YouTube channel for videos on real estate and how to start investing. We also have a myriad of investment properties available for sale on our website at renttoretirement.com and are ready to help you make the leap into the market and start building wealth. My personal favorite investment strategy right now is the vacation rental market and more and more travelers are going places! You should see the airports! We definitely have vacation rental opportunities available so set up a call with one of our investment counselors and start strategizing!