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Retail Becomes Top Performing Asset Class

Plus, 6 U.S. Spots Where Renters Can Have a Taste of Europe and 6 more Real Estate Insights

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A Quote

“The best armour of old age is a well spent life preceding it.”

― Charles T. Munger,

Latest Rates

Loan Type

Rate

Daily Change

Weekly Change

52-Week Range Low/High

30 Yr. Fixed

7.12%

-0.04%

-0.13%

6.61/8.03

15 Yr. Fixed

6.62%

-0.02%

-0.06%

5.95/7.35

30 Yr. FHA

6.59%

-0.03%

-0.05%

6.00/7.44

30 Yr. Jumbo

7.37%

-0.03%

-0.08%

6.38/8.09

7/6 SOFR ARM

7.30%

-0.03%

-0.02%

6.11/7.55

30 Yr. VA

6.60%

-0.04%

-0.05%

6.02/7.46

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Real Estate Trends

Overwhelming Majority of US Metro Areas Saw Home Prices Increase in Q1 link

  • In the first quarter of 2024, 93% of U.S. metro areas reported an increase in home prices, reflecting widespread growth in the real estate market. This survey included 221 metro areas, indicating a robust national trend.

  • The median price for existing single-family homes rose to $389,400, marking a 5% increase from the previous year. This escalation in prices occurred despite historically high mortgage rates.

  • Monthly mortgage payments have surged as well, with a typical payment on an existing home now averaging $2,037, up 9.3% from last year. The significant price hikes are notable given the challenging economic conditions, including high interest rates.

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Many Secondary Markets Experiencing Increase in Apartment Asking Rates link

  • Apartment rents are surging in secondary markets while primary markets see a stagnation or decline. This shift indicates a broader trend of migration and demographic changes favoring smaller cities.

  • Economic uncertainty looms over the U.S. multifamily sector, with mixed forecasts regarding the direction of interest rates by the Federal Reserve. Yardi Matrix speculates that rates might decrease by year-end despite the unpredictable economic climate.

  • Supply dynamics have also evolved post-pandemic; markets that previously expanded rapidly are now experiencing flat or reduced rental rates. This suggests an adjustment period as the market absorbs the influx of new units.

Retail Becomes Top Performing Asset Class link

  • Retail leads as the best performing asset among major property types. Marcus & Millichap reports strong first-quarter fundamentals with high demand across multiple markets.

  • Positive absorption of 1.4 million square feet in multi-tenant retail spaces highlights robust growth. This figure represents about half of the total new constructions for the quarter, emphasizing a healthy market expansion.

  • High investor confidence reflects in increased transaction activities. The dynamic performance in the retail sector is influencing real estate investment trends, attracting more stakeholders to consider retail assets.

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Something I found Interesting

Multi-Tenant Retail Investment Sales Up 7.8% link

  • Investment sales in multi-tenant retail properties have risen by 7.8% quarter-over-quarter. This upswing follows a significant year-over-year decline of nearly 18%.

  • The market is showing recovery signs, outperforming the pandemic levels when investment activities had drastically slowed. Current cap rates are the highest since mid-year 2014.

  • Analysts attribute this recovery to increased investor confidence and a gradual return to pre-pandemic market conditions. Strategic shifts in investment focus are also observed as the retail sector adapts to new consumer behaviors.

One Chart

Zillow and BARK name America’s most dog-obsessed cities

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6 U.S. Spots Where Renters Can Have a Taste of Europe 

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Single-Family Home Prices Had Gains in 92.3% of 221 Metro Areas in 2024 Q1 

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Real Estate's Impact on the Economy by the Numbers: A State-by-State Analysis 

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Off Topic

Charted: How Americans Feel About Federal Government Agencies

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Vidit

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