Welcome to the Daily Dose of Real Estate, your go-to source for the latest updates and insights in the real estate market. This week, we delve into housing market trends, top-performing real estate markets, significant commercial real estate developments, multifamily market insights, and the latest mortgage market activity. Additionally, we provide updates from key real estate organizations and government agencies impacting the industry. Stay informed and ahead of the curve with our comprehensive coverage.
- Stabilizing Home Prices: The housing market is expected to see higher mortgage demand and stabilizing home prices.
- Top Real Estate Markets: McKinney, TX, Frisco, TX, and Cary, NC, are among the top real estate markets in the US for 2024.
- Commercial Real Estate Developments: Columbus, OH, adopts significant zoning code changes, and Voyant Beauty signs major leases in Southern California.
- Multifamily Real Estate: Rent growth in the multifamily sector is expected to decelerate due to a record-high number of apartment buildings under construction.
- Mortgage Market Activity: Current mortgage rates remain steady, with experts predicting elevated rates through most of 2024.
- Government Agencies: HUD announces significant funding to help end homelessness among Native American veterans, and the Federal Reserve is likely to cut interest rates in September 2024.
- Key Real Estate Organizations: Updates from SitusAMC, Trepp, JP Morgan, Attom Data, MortgageNewsDaily, CalculatedRiskBlog, and CoreLogic.
Housing Market Trends and Outlook
- Stabilizing Home Prices: According to HousingWire, the housing market is expected to see higher mortgage demand, stabilizing home prices, and an uptick in housing inventory. Zillow predicts home values will level off, falling by 0.2%, while Freddie Mac expects a slower price increase of 2.6% in 2024 (HousingWire
).
- Housing Affordability: With the Federal Reserve expected to cut interest rates next month, there is some optimism for improved housing affordability. However, regions like New York, San Diego, and Las Vegas have seen significant home-price growth, making them some of the most unaffordable markets in the US (CNN
).
- Market Insights: The latest report from CNN indicates that the national housing market is becoming more balanced, with a 4.1-month supply of homes. This is giving buyers more confidence, despite higher mortgage rates and increased sales prices (CNN
).
- Best Real Estate Markets: McKinney, TX, Frisco, TX, and Cary, NC, have been identified as the top real estate markets in the US for 2024. These cities have shown significant growth in housing inventory and job growth, making them attractive for both buyers and investors (Realty Today
).
- Buyer-Friendly Markets: According to Realtor.com
, Lubbock, TX, and several cities in Florida, including Punta Gorda and Lakeland, are currently the most buyer-friendly markets. These areas have seen an increase in housing supply, giving buyers more negotiating power (CNBC
).
Commercial Real Estate Developments
- Columbus Zoning Code Changes: Columbus, OH, has adopted significant changes to its zoning code, creating six mixed-use districts and incentivizing the development of up to 88,000 housing units. These changes are expected to make development more cost-effective and support the region's economic health (Ohio Equities
).
- Voyant Beauty Leases in SoCal: Voyant Beauty has signed leases for 180,000 square feet in Southern California with Rexford Industrial. This move highlights the ongoing demand for industrial space in key markets (Commercial Observer
).
- SKY Sammamish Sale: MainStreet Property Group and HAL Real Estate have sold the 159-unit SKY Sammamish multifamily property in Sammamish, WA, for $71 million. The property features high-end finishes, LEED gold certification, and various amenities, highlighting continued demand for quality residential properties (The Registry
).
- Multifamily Market Insights: Rent growth in the multifamily sector is expected to decelerate in 2024 due to a record-high number of apartment buildings under construction. This will expand available inventory and provide some relief to renters (Multi-Housing News
).
- Current Mortgage Rates: The current median interest rate for a 30-year fixed-rate mortgage is 6.341%, and 5.500% for a 15-year fixed-rate mortgage. These rates have remained steady, reflecting a potential stabilization in the mortgage market (WSJ
).
- Mortgage Rate Forecast: Experts predict that mortgage rates will remain elevated through most of 2024, with a gradual decline expected if the Federal Reserve cuts rates. The Mortgage Bankers Association (MBA) forecasts the 30-year fixed-rate mortgage to average 6.8% in Q3 and 6.6% in Q4 (Forbes
).
Government Agencies Impacting Real Estate and Mortgage Industries
- HUD Actions: The U.S. Department of Housing and Urban Development (HUD) announced more than $10 million to help end homelessness among Native American veterans and offered disaster aid to New Hampshire and New Mexico victims (HUD
).
- Federal Reserve: Federal Reserve Chair Jerome Powell indicated that the Fed is likely to cut interest rates at its next meeting on September 18, 2024. Powell stated, "The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks" (Forbes
).
Updates from Key Real Estate Organizations
- Strategic Partnership: SitusAMC has formed a strategic partnership with Backshop owner CMBS.com
to enhance their commercial real estate solutions (SitusAMC
).
- White Paper Release: SitusAMC released a white paper titled "What Looms Beneath the Surface: How Forensic Diligence Builds on CRE Asset Management to Uncover & Mitigate Deeply Hidden Risk," exploring hidden risk factors in commercial real estate loans and portfolios (SitusAMC
).
- CMBS Special Servicing Rate: The Trepp CMBS Special Servicing Rate increased to 8.30% in July 2024, marking a three-year high. The office sector saw the most significant rise in delinquencies (Trepp
).
- Market Volatility: Trepp's latest report highlights the impending wall of commercial real estate loans maturing before the end of 2026, totaling almost $1.8 trillion, with the CMBS special servicing rate at its highest since June 2021 (Urban Land
).
- Mid-Year Outlook: JP Morgan's 2024 Mid-Year Outlook reflects on the first half of the year, noting surprisingly strong growth despite a fragile political and geopolitical backdrop. The report highlights the potential of AI in public equities and private markets (JP Morgan
).
- Zombie Foreclosure Report: ATTOM's Q3 2024 Vacant Property and Zombie Foreclosure Report shows that almost 1.4 million residential properties in the US are vacant, with a decline in foreclosure activity (ATTOM
).
- Home Flipping Activity: ATTOM's latest report indicates that home flipping activity and profits have risen in the first quarter of 2024, with a typical gross profit of $72,375 on flipped homes (PR Newswire
).
- Current Mortgage Rates: The current average interest rate for a fixed-rate, 30-year conforming mortgage loan in the United States is 6.341%, reflecting a slight decrease from previous rates (Fortune
).
- Weekly Update: CalculatedRiskBlog reports that active single-family inventory was up 0.8% week-over-week and 41.4% from the February seasonal bottom (Calculated Risk
).
- Home Price Insights: CoreLogic's latest report shows that home prices nationwide increased by 4.7% year-over-year in June 2024. The forecast indicates a 0.3% rise from June 2024 to July 2024 and a 2.3% increase from June 2024 to June 2025 (CoreLogic
).
This week, the real estate market is buzzing with discussions on housing market trends, top-performing real estate markets, significant commercial real estate transactions, multifamily developments, and increased mortgage market activity. Additionally, recent updates from key real estate organizations and government agencies provide valuable insights into economic forecasts, lending trends, and market dynamics. These topics reflect the dynamic and evolving nature of the real estate landscape in the US.
