News

Did You Know?

- 11/23/20

Did You Know?

The US housing market remains strong: The NAHB Housing Market Index for November rose to an all-time high of 90 from 85. All three components of the index registered record highs, indicating that builders are extremely optimistic about current and future conditions in the housing market. Housing starts accelerated in October to 4.9% month-on-month, beating expectations of a 3.2% increase.

Office Leasing activity halved during the 3rd quarter compared with the same period of 2019, according to JLL. In the U.S., the decline was even sharper at 55%. (WSJ) Having a designated home office has never been more appealing to potential buyers.

For the 13th time in 2020, mortgage rates set a new weekly record low on Thursday, according to data that Freddie Mac has been compiling for nearly 50 years. The average rate for a 30-year fixed-rate mortgage hit 2.81 percent for the week ending November 19, a drop from 2.84 percent the week prior.

Did You Know?

- 11/23/20

Did You Know?

The US housing market remains strong: The NAHB Housing Market Index for November rose to an all-time high of 90 from 85. All three components of the index registered record highs, indicating that builders are extremely optimistic about current and future conditions in the housing market. Housing starts accelerated in October to 4.9% month-on-month, beating expectations of a 3.2% increase.

Office Leasing activity halved during the 3rd quarter compared with the same period of 2019, according to JLL. In the U.S., the decline was even sharper at 55%. (WSJ) Having a designated home office has never been more appealing to potential buyers.

For the 13th time in 2020, mortgage rates set a new weekly record low on Thursday, according to data that Freddie Mac has been compiling for nearly 50 years. The average rate for a 30-year fixed-rate mortgage hit 2.81 percent for the week ending November 19, a drop from 2.84 percent the week prior.

Did You Know?

- 10/27/20

Did You Know?

The average U.S. mortgage rate for a 30-year fixed loan fell to 2.8% this week, another record low, Freddie Mac said in a report on Thursday. The rate fell one basis points from the week prior and is now six basis points lower than the original all-time low set in mid-September. The average fixed rate for a 15-year mortgage was 2.33%, falling from last week’s 2.35%. (Housingwire).

Next week, the U.S. will get economic news like it has never seen before, reflecting growth that had seemed impossible, as it is likely that US GDP will have risen by about 30% or more in the third quarter of 2020. In the middle of a pandemic. In the middle of a recession. In the middle of 12.5 million unemployed people. This after a 31.4% plunge in the second quarter. For GDP to fully recover, though, would require a 45% rise in GDP, so while 30+% is phenomenal, we still have quite a way to go before a full recovery. The Fed’s official forecast for 2020 is GDP to decline by 3.7%, which would be its biggest single-year drop going back through at least World War II. In 2021, the estimate is for a gain of 4%, which, conversely, would be the biggest increase since 2000. (CNBC).

Prospective home buyers are using short-term rentals as an opportunity to test out neighborhoods and cities before committing to a full relocation, according to data from Airbnb, a short-term rental network. The company reports a 128% increase from July to September over the same period last year in guest reviews that mention “relocation,” “relocate,” “remote work,” and “trying a new neighborhood.”

Did You Know?

- 10/19/20

Did You Know?

Demand for luxury homes (the most expensive 5% of homes in a given market) is soaring, underscoring how the pandemic has intensified wealth disparities in the U.S. High-end sales jumped 42% in the third quarter from a year earlier, the largest jump dating back to 2013. Sales of mid-priced homes climbed just 3%, while affordable purchases declined 4%. This is NOT for all areas of the USA. It is averages, that are not always that great. (Bloomberg).

Businesses are seeking places to expand that are pro-growth, low-tax, politically stable, and with an educated workforce in advanced degrees like engineering, math, technology, business, and law. Austin, Salt Lake City, Raleigh, Charlotte, Nashville, and San Jose all top the list in 2020 in this respect according to CoStar, with occupied office growth expected to exceed 10% over the next 5 years. Dallas, Miami, Phoenix, Atlanta, San Antonio, and Boston are all expected to grow by 8%+ as of Q3 2020. (Forbes).

Newport Beach leaders support more rules clamping down on short-term rentals, requiring renters to be at least 25 years old and making owners of the properties responsible for parking violations issued to renters. The latest regulations, approved by the City Council in a 4-to-3 vote on Tuesday, Oct. 13, aim at striking a balance between visitors and residents who mix in the popular coastal tourist town, as the demand for short-term lodging has surged in recent years. A second vote will need to be taken Oct. 27 to finalize the changes. (OCRegister).