• Zero Flux
  • Posts
  • Investor Home Buying Rising for First Time in 2 Years

Investor Home Buying Rising for First Time in 2 Years

Charted:The Most Polluted Cities in the U.S, Housing Trends This Past Week,and 8 more Real Estate Insights

Hey, If you have not received an email in a while, as a reminder you signed up on Zero Flux - A daily newsletter with 5-10 actionable real estate trends.

Unsubscribe below if you would like to stop receiving future emails

A Quote

“The key is not to prioritize what's on your schedule, but to schedule your priorities.”

― Stephen Covey

Latest Rates

Loan Type

Rate

Daily Change

Wkly Change

52-Wk Low/High

30 Yr. Fixed

7.12%

-0.04%

-0.13%

6.61/8.03

15 Yr. Fixed

6.53%

+0.03%

-0.10%

5.95/7.35

30 Yr. FHA

6.55%

+0.03%

-0.06%

6.00/7.44

30 Yr. Jumbo

7.31%

+0.01%

-0.08%

6.40/8.09

7/6 SOFR ARM

7.24%

+0.04%

-0.10%

6.11/7.55

30 Yr. VA

6.57%

+0.02%

-0.05%

6.02/7.46

Macro Trends

Economic Watch: Inflation Cools Slightly in April link

  • In April, the Consumer Price Index (CPI) rose by 0.3% monthly and 3.4% annually, marking a slight decrease from March's figures. This moderation suggests a cooling inflation trend, aligning with the Federal Reserve's expectations for easing inflation pressures.

  • Core inflation, which excludes volatile food and energy prices, remained stable with a 0.3% increase from the previous month and a 3.6% rise over the past year. April's core inflation rate is the lowest it has been since April 2021, indicating that the Federal Reserve's tighter monetary policy is influencing economic conditions.

  • The report forecasts subdued capital market activities for Q2 but anticipates improvement later in the year. Lower volatility and declining bond yields, expected to reach 4.1% by year-end, are likely to bolster commercial real estate investment and maintain healthy economic growth.

Real Estate Trends

Investor Home Purchases Rise for First Time in Nearly Two Years link

  • The first increase in investor home purchases since mid-2022 was recorded in Q1 2024, marking a subtle yet significant shift. Investor purchases rose by 0.5% year-over-year, indicating a renewed interest in the housing market.

  • California saw significant activity, with jumps over 20% in markets like San Jose and Oakland. This region experienced some of the highest increases, underscoring its attractiveness to investors despite high property values.

  • Investors are also focusing more on single-family homes and entering the affordable housing market, purchasing 26% of low-priced homes. This trend shows a strategic diversification of investment portfolios, likely driven by the potential for higher returns and growing rental demand.

Enjoy the newsletter? 🙏 Please forward to a friend. It only takes 10 seconds. Writing this one took 3 hours. A referral also earns you a 3-month free trial of the pro plan. Just share the link at the end of this email with others.

Foreclosure Activity Nationwide Shows Slight Decline in April 2024 link

  • Foreclosure filings in the U.S. decreased slightly by 4% both monthly and annually, totaling 31,649 properties in April 2024. The report reflects ongoing shifts in the housing market dynamics.

  • Maryland, Illinois, and Nevada had the highest rates of foreclosure, with significant disparities observed across different states and metropolitan areas. For example, Elkhart, IN, and Columbia, SC, topped the list in their respective categories for highest foreclosure rates.

  • Despite the overall decline, foreclosure starts in some states like Maryland and Oregon saw a sharp increase, demonstrating regional variations in foreclosure activities. Major cities like Chicago, New York, and Houston led in the number of foreclosure starts.

Weekly Housing Trends —Data for Week Ending May 11, 2024 link

Image

  • Median listing prices stayed flat year-over-year for the second week in a row, but per square foot prices rose 3.8%. Smaller, more affordable homes are driving this trend.

  • New listings increased by 6.6% compared to last year, although this growth rate has slowed since February. Seller activity is still cautious due to high mortgage rates.

  • Active inventory is up 35.0% year-over-year, marking the highest number of homes for sale since August 2020. The South leads with a 43.0% inventory increase.

Please note: I send an email most weekdays at 6:00 ET, so if you don’t see the email in your inbox in the future, please check your spam.

Something I found Interesting

Most US Homes Are Overvalued link

  • Home prices in the U.S. are significantly inflated, often by more than 10%, with a population-weighted average overvaluation at 11.1% as of late last year. Prices might see some moderation later this year.

  • The majority of metropolitan areas in the U.S., about 90%, are experiencing overvaluation. This includes a decrease from 91% in the previous quarter.

  • Memphis tops the list as the most overvalued metro area among the 50 largest populations in the country. This indicates a possibly concerning trend for potential homebuyers in these regions.

One Chart

Percent Change In Home Values, Month over Month, Seasonally Adjusted

Image

Pro Member Only Content Below

Retail Market Spotlight: Orlando

(This content is restricted to Pro Members only. Upgrade)

Recent Supply High Softens Apartment Fundamentals in Albuquerque 

(This content is restricted to Pro Members only. Upgrade)

Chicago Claims Most Balanced Supply/Demand Relationship Nationwide 

(This content is restricted to Pro Members only. Upgrade)

Knoxville Multifamily Market Report

(This content is restricted to Pro Members only. Upgrade)

Savannah Industrial Properties are a Hot Commodity 

(This content is restricted to Pro Members only. Upgrade)

Off Topic

Charted:The Most Polluted Cities in the U.S.

Image

It would mean a lot if you could reply and tell me which story you liked the most 🙏. It helps me pick the best trends, but your reply also helps with deliverability + ensures the email lands in your inbox. 🙂

That's all, folks.

Cheers,

Vidit

P.S - Read past newsletters here

Referral Milestones

Discount

Referrals Needed

3 MONTHS FREE on the Pro Plan

1

30% off FOREVER on the Pro Plan

5

50% off FOREVER on the Pro Plan

10

75% off FOREVER on the Pro Plan

15

100% off FOREVER on the Pro Plan

25

Want to sponsor the newsletter? Details here

If you are finding value, please consider helping the newsletter by becoming a paying subscriber

A subscription gets you:

✓ More issues per week

✓ Special reports on new housing studies

✓ Exclusive insights that are usually tucked behind paywalls (which I cover the costs for)

✓ Curated Top 10 lists

✓ The latest updates on prop-tech funding rounds

day

Join the conversation

or to participate.