All the Real Estate News That’s Fit to RE-Print™
Welcome to our weekly edition of Hot Real Estate Investment News.
Here are the real estate investing related news items that caught our attention this past week. We hope they help you stay up-to-date with your real estate investment strategies and inspire some profitable real estate deals for you.
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The State of the Nation’s Housing 2012
This study and report comes from the Joint Center for Housing Studies at Harvard. The Executive Summary states in part:
“After several false starts, there is reason to believe that 2012 will mark the beginning of a true housing market recovery. Sustained employment growth remains key, providing the stimulus for stronger household growth and bringing relief to some distressed homeowners.
Many rental markets have already turned the corner, giving a lift to multifamily construction but also eroding affordability for many low-income households.”
Home-building permits at highest level since ’08
CNNMoney’s Les Christie reports:
Highest new home permit rate since September 2008.
“Builders appear to be getting more bullish on residential real estate: In May, they applied for permits to build new homes at the highest rate since September 2008, according to a government report issued Tuesday.
The increase in permits to an annual rate of 780,000 in the Census Bureau report mirrors a recent survey of builder confidence, which rose in June to its highest level since 2007….”
For more details also see: The U.S. Census Bureau Report and U.S. Department of HUD Joint Press Release.
May U.S. Housing Starts Dropped by 4.8% to a 708,000 Unit Pace
S & P Housing Views reporter, Beth Ann Bovino, states:
“U.S. housing starts dropped by 4.8% to a 708,000 unit pace in May, which was much weaker than the 725,000 expected by consensus and our 720,000 forecast. However, it comes after April starts were upwardly revised to a 744,000 unit pace (was 717,000 units). March starts were also upwardly revised to 706,000 units from 699,000.”
Home Values Continue to Rise; May Marks Third Consecutive Month of Increases
Stan Humphries reports:
“Zillow’s May Real Estate Market Reports….show that home values increased 0.5 percent to $148,100 from April to May, marking the third consecutive month of strong monthly appreciation. Compared to May 2011, home values are still down by 0.9 percent.”
A small drop in the Atlantic?
U.S. Zillow Home Value Index
More Builders Are Turning to New Market: Rentals
CNBC Real Estate Reporter, Diana Olick, states:
“A small but growing number of developers are now building single family homes as rentals. Historically, builders did this largely in low-income, government-subsidized housing projects, but the market is quite different today.
Single family rental demand is soaring, as are rents, and investors are rushing to cash in; if you can’t beat ‘em, join ‘em.”
Why Rental Activity Remains ‘A Bright Spot’ for Housing
DS News author Tory Barringer reports:
“While the lights of the housing market continue to flicker, rental market activity has been a bright spot, said Freddie Mac’s U.S. Economic and Housing Market Outlook for June….newly formed households seem more interested in renting over owning as the economy struggles to get back on its feet.
Freddie Mac expects this trend to continue for the near future.
‘Overall apartment market trends may show further vacancy declines and rent gains, with property values improving as well.'”
Where Have All the REOs Gone?
RealtyTrac Vice President, Daren Blomquist, reports:
REOs have decreased 40% in the last 18 months.
“Bank-owned (REO) inventory has decreased about 40 percent over the past in the past year and a half and continues to decrease despite a recent uptick in foreclosure starts.
More than 109,000 U.S. properties started the foreclosure process in May, a 12 percent increase from the previous month and a 16 percent increase from May 2011 — the first annual increase in foreclosure starts since January 2010.
Still, REO Inventory continued to decline in May, down 5 percent from the previous month and down 31 percent from May 2011.
So where have all the REO homes gone?” Mr. Blomquist says, “They are hiding beneath one of three probable shells….”