Did You Know About These 2 Things Changing The Real Estate World?

The final weekend of February has arrived. I don't know about you, but February is my least favorite month with the endless cold and no meaningful sports to watch on TV. But alas, March is sight just like our top 5:

1. Mortgage Demand Takes A Massive Hit As Interest Rates Cross Back Over 7%??
2. The Map That Can Change Everything ??
3. The Hottest Type Of Real Estate To Buy ??
4. Renters Find Their Income Goes Further in These Cities ??
5. Can You Pass This Social Security Quiz? ????

Before we get into our top 5 here is our weekly one question poll that ties to retirement. Already 60% of you have said you want to retire before 60, which begs the question what plans have you put in place to hit that?

Markets: Year to Date as of 2/23

Our Top 5:

Mortgage Demand Takes A Massive Hit As Interest Rates Cross Back Over 7%??

Mortgage rates moved back above 7 percent last week following news that inflation picked up in January, dimming hopes of a near term rate cut. Here are the key points:

• The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 7.06% from 6.87%
• Applications to refinance a home loan dropped 11% last week compared with the previous week and were just 0.1% higher than the same week one year ago.
• Applications for a mortgage to purchase a home fell 10% for the week and were 13% lower than the same week a year ago.

This type of volatility should come as no surprise for people given how tough a maneuver the Fed is trying to pull off for a soft landing.?

If you are trying to buy and sell in the market, consider creatively structuring a deal to close.?

The Map That Can Change Everything ??

Have you ever heard of Zoning Atlas ?

If you are in real estate then you might want to as this mapping organization could forever change the real estate world.?

Increasing housing supply may appear to be the obvious fix for a housing shortage, but it's rarely that straightforward. Outdated zoning regulations in many municipalities restrict density, preventing the construction of apartments, townhouses, duplexes, and more in sought-after areas. This not only drives up housing prices but also perpetuates segregation based on race and class.

But what if you had one place?where these rules were simple and easy to compare?

That’s the idea behind Zoning Atlas.

This research project being led out of Cornell has an ambitious goal is to make the regulations across the US’s ~30k jurisdictions easier to understand, implementing standard definitions, and allowing for “apples-to-apples comparisons” across cities.

The atlas allows users to see on a map where people can build single-family homes, ADUs, apartments, and more, with filters for things like minimum parking requirements or height caps. This is useful for both local lawmakers and residents who want to advocate for changes in their communities.?

But they still have a long way to go with only 2k jurisdictions or 7% of the US signed up.?

The Hottest Type Of Real Estate To Buy ??

Jordan Davis and Luke Bryan were ahead of their time when they shared their knowledge about how to make money in real estate a few years ago when they wrote the following lyrics:

"A few days 'fore he turned eighty

He was sitting out back in a rocker

He said, "What you been up to lately?"

I told him, "Chasing a dollar"

And in between sips of coffee

He poured this wisdom out Said,

"If you want my two cents on making a dollar count

Buy dirt."

Well, it sounds like all the institutional investors heard this advice because the amount of farmland bought by investment firms has jumped ?231% from 2008 to the middle of last year, according to the National Council of Real Estate Investment Fiduciaries. Investors owned $16.6 billion worth of farmland at the end of 2023, up $9.2 billion from 2020.

• Aside from being relatively unaffected by inflation, farmland is a solid investment: The world will need to produce 60% more food by 2050, according to UN estimates.
• The value of farmland increased from $2,700 per acre in 2010 to $5,460 in 2023, according to the USDA.

As the average age of farmers continues to rise, there is growing concern among experts that attracting young talent to the field (literally) may become increasingly challenging, particularly with the competition from well-funded investors.

Maybe I will ask Luke Bryan for some money to help me buy a farm.?

Renters Find Their Income Goes Further in These Cities ??

Cost is a big consideration for renters in choosing a location. However, a recent?report ? from Rentcafe indicates today’s renters are seeking more than just an affordable rental location. Renters are seeking the appropriate balance between income and expenses.

The analysis examined components such as median income, average rent, and average prices for necessities such as utilities, food, healthcare, transportation, and goods in services, in 189 cities nationwide. Next, income-to-rent ratio was calculated for each city. Then, the disposable income left after paying rent was determined to see how well necessities could be covered each month.

It might come as a surprise, but Sunnyvale, CA was determined the city where renters can get the most out of their income. Located in the heart of Silicon Valley, Sunnyvale has the highest median wages in the nation, triple the nation’s median income. The average renter household income in Sunnyvale is just under $146,000 and monthly rent is about $3,000. While the monthly rent in this city is 76% higher than the average, the total price for basics came in at only 28% more than the national average.?

?Popular cities, like Buffalo, NY; Milwaukee; Baltimore; Cincinnati; and Cleveland are at the other end of the spectrum, according to the report. In these areas, monthly rent and expenses for daily necessities are below average. At the same time, incomes are lower, which makes the financial balance renters seek difficult to achieve.?

Where do you live and and how does it measure up based on this analysis?

Can You Pass This Social Security Quiz?

Many near retirees expect Social Security to be their largest source of income when they stop working.

Yet, those who are on the brink of their so-called golden years fall short when it comes to knowledge about the program’s rules and what they can personally expect, according to a new survey from MassMutual.

When put to the test with a 13 question true/false Social Security quiz, 78% of respondents ages 55 to 65 failed or barely passed. That includes 41% who failed and 37% who got a D.

You can take the quiz here to see if you are on the right path to retirement.?

Will You Be My Valentine?

Last week was Valentine's Day. So we looked at a few examples of love.

What people love can vary widely based on individual preferences, values, and experiences.

But one thing I believe that every person loves is MONEY.

Loving money can have both positive and negative aspects, which we broke down in this week's blog .?

Dad Jokes For Leap Year

What do kids play on Leap Day?

Hop-scotch ?????

Why did the sprinter get disqualified on Leap Day?

He tried to jump the gun. ????♂??

Where do most people eat on Leap Day?

IHOP. ??