2024 – Page 57

Realtor.com® January Rental Report: Mild Relief for Renters Continues As Rental Prices Decline to Start New Year

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In January, U.S. median rents dropped (-0.3%) for sixth straight month Rents fell in January for the sixth month in a row, with year-over-year prices down -0.3%, according to the monthly Realtor.com® Rental Report . That’s providing some relief for renters, though prices remain higher than pre-pandemic levels amid strong demand and a limited supply of new units in many markets. In January, the median asking rent for 0-2 bedroom units in the 50 largest metros declined to $1,712, down $5 from the previous January and $46 below its August 2022 high. Following this trend, a recent Realtor.com® Avail Landlord & Renter Survey found that the percentage of landlords planning to raise rents in the next 12 months declined in recent quarters. Still, prices are 18.3% higher than they were four years ago. Median rents were mixed across unit sizes. Regionally, some big Western metro markets began to rebound while supply of new multifamily housing units outstripped demand in the South, pushing down prices. “Rental prices are declining, especially in places where new units are entering the market, but there’s still plenty of demand driven by the large population of renters, including potential first-time homebuyers who remain on the sidelines for now,” said Danielle Hale, Chief Economist at Realtor.com®. “Looking forward, Realtor.com® anticipates the rental market to decline only slightly in 2024, as an increase in the supply of new units is balanced out by continued enthusiasm for renting as a more affordable alternative to purchasing.” January 2024 Rental Metrics by Unit Size – National Unit Size Median Rent Rent YoY Rent Change – 4 years Overall $1,712 -0.3 % 18.3 % Studio $1,434 -1.0 % 11.9 % 1-bed $1,591 0.1 % 17.9 % 2-bed $1,892 -0.6 % 20.4 % Studios saw largest rent declinesThe median asking rent for studios fell by -1.0% to $1,434, which is down -3.8% from its October 2022 peak but still 11.9% higher than four years ago. Asking rents for two-bedroom units declined by -0.6% to $1,892. Those larger units still saw the highest growth in rent prices over the past four years, with an increase of $321 (20.4%). Meanwhile, asking rents for one-bedroom units rebounded after declining since July 2023, increasing by 0.1% year over year to $1,591 in January. Demand for one-bedroom units may be fueled by the perception that they’re a sweet spot in the market: more spacious than a studio and more affordable than a two-bedroom unit. Big Western Metros started to see reboundIn January 2024, the median rent in the West fell by -0.3% from a year ago, led by declines in areas including Phoenix (-4.0%), Riverside, Calif. (-2.6%) and Las Vegas (-1.8%). But rents rebounded in some big metros, with Los Angeles (0.2%) and Seattle (1.3%) showing year-over-year increases following eight straight months of decline. With home prices still high and mortgage rates expected to remain elevated in the short term, many first-time buyers are choosing instead to rent. Rents are rising faster in big Northeastern metros such as New York (2.3%) and Boston (2.7%), where labor markets are strong and there’s slow growth in new housing stock, putting upward pressure on rents. Rents grow in Midwest markets, drop in the SouthAsking rents in the Midwest rose by 0.2% in January, bolstered by markets such as Chicago (4.2%), Indianapolis (3.5%) and Kansas City, Mo. (3.1%). These markets are enjoying low unemployment, which stokes rental demand, and they remain affordable in comparison with other parts of the country. Chicago’s median rent of $1,852 is almost $1,000 less than big-city counterparts New York ($2,844) and Los Angeles ($2,829). Meanwhile, the median asking rent fell by 1.2% in the South, led by year-over-year declines in Memphis, Tenn. (-5.5%), Atlanta (-3.8%), Austin, Texas (-3.6%). St. Louis, Mo. (-3.6%) and Miami (-3.4%). Unemployment in the South is also low, but the supply of new multifamily housing is growing, pushing down rental prices. Rental Data – 50 Largest Metropolitan Areas – January 2024 Metro Median Rent (0-2 Bedrooms) YOY (0-2 Bedrooms) Atlanta-Sandy Springs-Roswell, GA $1,619 -3.8 % Austin-Round Rock, TX $1,547 -3.6 % Baltimore-Columbia-Towson, MD $1,790 -0.6 % Birmingham-Hoover, AL $1,245 -0.8 % Boston-Cambridge-Newton, MA-NH $2,981 2.7 % Buffalo-Cheektowaga-Niagara Falls, NY NA NA Charlotte-Concord-Gastonia, NC-SC $1,542 -0.1 % Chicago-Naperville-Elgin, IL-IN-WI $1,852 4.2 % Cincinnati, OH-KY-IN $1,318 1.4 % Cleveland-Elyria, OH $1,217 -2.0 % Columbus, OH $1,178 -2.5 % Dallas-Fort Worth-Arlington, TX $1,505 -1.0 % Denver-Aurora-Lakewood, CO $1,922 0.3 % Detroit-Warren-Dearborn, MI $1,308 -0.3 % Hartford-West Hartford-East Hartford, CT NA NA Houston-The Woodlands-Sugar Land, TX $1,394 2.8 % Indianapolis-Carmel-Anderson, IN $1,288 3.5 % Jacksonville, FL $1,534 -2.2 % Kansas City, MO-KS $1,318 3.1 % Las Vegas-Henderson-Paradise, NV $1,489 -1.8 % Los Angeles-Long Beach-Anaheim, CA $2,829 0.2 % Louisville/Jefferson County, KY-IN $1,234 2.7 % Memphis, TN-MS-AR $1,247 -5.5 % Miami-Fort Lauderdale-West Palm Beach, FL $2,373 -3.4 % Milwaukee-Waukesha-West Allis, WI $1,574 -0.9 % Minneapolis-St. Paul-Bloomington, MN-WI $1,491 -0.4 % Nashville-Davidson–Murfreesboro–Franklin, TN $1,613 -2.3 % New Orleans-Metairie, LA NA NA New York-Newark-Jersey City, NY-NJ-PA $2,844 2.3 % Oklahoma City, OK $988 2.2 % Orlando-Kissimmee-Sanford, FL $1,682 -1.9 % Philadelphia-Camden-Wilmington, PA-NJ-DE-MD $1,780 -2.0 % Phoenix-Mesa-Scottsdale, AZ $1,550 -4.0 % Pittsburgh, PA $1,421 1.1 % Portland-Vancouver-Hillsboro, OR-WA $1,656 -0.7 % Providence-Warwick, RI-MA NA NA Raleigh, NC $1,529 -1.5 % Richmond, VA $1,492 -0.1 % Riverside-San Bernardino-Ontario, CA $2,174 -2.6 % Rochester, NY NA NA Sacramento–Roseville–Arden-Arcade, CA $1,844 0.9 % San Antonio-New Braunfels, TX $1,275 1.0 % San Diego-Carlsbad, CA $2,811 1.1 % San Francisco-Oakland-Hayward, CA $2,837 -0.6 % San Jose-Sunnyvale-Santa Clara, CA $3,217 2.9 % Seattle-Tacoma-Bellevue, WA $2,012 1.3 % St. Louis, MO-IL $1,295 -3.6 % Tampa-St. Petersburg-Clearwater, FL $1,740 -1.1 % Virginia Beach-Norfolk-Newport News, VA-NC $1,508 -0.4 % Washington-Arlington-Alexandria,DC-VA-MD-WV $2,194 1.9 % SOURCE Realtor.com

The Blueprint for Growing & Scaling Multiple Businesses

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Ricardo Rosales is a real estate entrepreneur with years of experience in flipping and owning rental properties. Today, he is the CEO of Top Of The Line VA and Prospector Web, which are businesses he built out of the challenges he faced during different market cycles. He is on the show today to tell us more about his journey, what fuels his passion, and how he overcame adversity through the years. Quotables “Pick one first and run with it, so before you diversify yourself into 4 or 5 income streams, make sure you’re good at one, that way you could pay the bills with that.” “Businesses are either going up or going down. There’s not a plateau. There’s no steady state, that doesn’t exist.” “Just go and take action. Go implement everything you’ve dreamed of – if you want to be a real estate investor, go buy something. A piece of land, buy a mobile home, buy a trailer, buy a house, buy something, but go do it and don’t just stay in the planning stages.” Links Website: Ricardo Rosales https://www.ricardorosales.com/ Website: RCN Capital https://www.rcncapital.com/podcast Website: REI INK https://rei-ink.com/

Private Lending Industry Veteran Stephan Leccese Joins Lima One Capital’s Senior Management Team

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Lima One Capital, the nation’s premier lender for real estate investors, has added Stephan Leccese as Managing Director of Operations. In this newly created role, Leccese oversees core operational functions including loan production, strategic accounts, lender finance, valuations, and construction management. Leccese brings over two decades of experience in real estate, finance, and technology that will help Lima One drive efficient loan production and a more effective customer experience. “I’m pleased to welcome Stephan to the Lima One team,” Lima One CEO Jeff Tennyson said. “I have known Stephan for several years in various operational and industry leadership roles and have always respected him and his strong operational skills, insights, ethics, and professionalism. He’s an excellent addition to our senior leadership.” Rankin Blair, Lima One’s Chief Operating Officer, stated, “As Lima One continues to grow, we are always looking for experienced industry leaders to join our team. We are pleased to have Stephan and his family in Greenville and look forward to the positive impact he will make on our operations and loan closing processes.” Leccese’s track record features deep experience in business-purpose lending for real estate investors. He has co-founded multiple real estate ventures where he played key roles in generating over $1 billion annually in both loan origination and loan acquisition across multiple companies. He is also a founding member of the National Private Lenders Association (NPLA), having served multiple terms on the Advisory Council and currently serving as the co-chair of the Ethics Committee. “After serving on the NPLA Advisory Council with Jeff Tennyson for many years, I witnessed firsthand and respected the impressive company culture and values at Lima One. And I was impressed with how they have achieved substantial growth over the last few years in a very challenging industry environment,” Leccese said. “I am thrilled to join Jeff and to work directly with Rankin and his impressive operations team as we continue to deliver operational excellence to our borrowers as the nation’s premier lender for real estate investors.” About Lima One Capital: Since its inception in 2010, Lima One Capital has been recognized as the nation’s premier lender for real estate investors and has funded over $9 billion in business purpose real estate loans. With a reach across 46 states, Lima One operates as a capital partner for real estate investors who are building, improving, and stabilizing neighborhoods. Lima One’s core loan products are Fix and Flip loans, New Construction loans, Rental Property and Portfolio loans, and Multifamily Bridge loans. Lima One works directly with customers and also offers business-to-business partnership platforms for Brokers, Wholesale, and Lender Finance table funding. For more information, visit limaone.com. Contact: Robert Neely rneely@limaone.com (864) 248-6066

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Home prices rose 0.5% month over month in January, on par with December’s gain, as the drop in mortgage rates at the end of last year gave buyers a bit more purchasing power U.S. home prices climbed 0.5% from a month earlier in January, matching the 0.5% gain seen in both December and November, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. On a year-over-year basis, prices rose 6.7%—the largest increase in a year. This is according to the January Redfin Home Price Index (RHPI), covering the three months ending Jan. 31, 2024. Read the full RHPI methodology here. “Price growth held steady last month because many of the home purchases that closed in January were negotiated at the end of last year, when mortgage rates posted the biggest drop since 2008. The decline in rates gave buyers more purchasing power, and for some, a sense of urgency to lock in a mortgage,” said Redfin Senior Economist Sheharyar Bokhari. “Prices also climbed because there’s still a shortage of homes for sale, which is fueling competition in some areas.” New listings fell 1.2% month over month on a seasonally adjusted basis in January, the first drop since June, and remained far below pre-pandemic levels—contributing to the increase in prices. Listings are declining largely because many homeowners are hesitant to give up their rock-bottom mortgage rates; a majority of homeowners still have rates below current levels. Prices Climbed Most in Montgomery County, Fell Fastest in Charlotte In Montgomery County, PA, home prices rose 3.7% from a month earlier in January—the biggest increase among the 50 most populous U.S. metropolitan areas. Next came Philadelphia (1.9%), Baltimore (1.9%), Cleveland (1.7%) and New York (1.6%). Thirteen metros saw price declines. In Charlotte, NC, home prices dropped 0.7% month over month—the largest decrease among the 50 most populous metros. It was followed by San Francisco (-0.6%), Austin, TX (-0.6%), San Diego (-0.5%) and Sacramento, CA (-0.4%). To view the full report, including charts, please visit:https://www.redfin.com/news/redfin-home-price-index-january-2024

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Redfin reports new listings dropped for the first time since June and pending sales growth slowed; Stagnating mortgage rates and the biggest home-price jump in over a year caused the market to lose momentum New listings dropped 1.2% month over month on a seasonally adjusted basis, the first decline since June, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. They were up 2.7% from a year earlier, but that marks a deceleration from December’s 4.2% gain. Active listings (the total number of homes for sale) fell 0.3% from a month earlier on a seasonally adjusted basis—the first decline in six months—and were down 4.4% year over year. Pending home sales also lost momentum in January, rising 1.1% from a month earlier on a seasonally adjusted basis—a marked slowdown from December’s 5.1% jump. Still, pending sales were at the highest level since September 2022 and rose 8.8% from a year earlier. Stagnant mortgage rates are the main culprit that took the gas off the housing market pedal last month. They started and ended January at 6.6%—unexciting news after buyers and sellers at the end of last year watched rates drop the most since 2008. Homeowners are hesitant to sell because a majority of them still have mortgage rates below current levels, and selling often means taking on a higher rate. “A lot of my customers are paying close attention to what the Federal Reserve says. Buyers and sellers came off the sidelines in December when the Fed signaled it would lower interest rates three times in the next year, but now some are getting cold feet because the Fed indicated that rate cuts may come later than expected,” said Hal Bennett, a Redfin Premier real estate agent in Bellevue, WA. “Inflation and geopolitical conflicts are also scaring some buyers. April, at the absolutely earliest, is when I think things could take off.” Brutally cold temperatures across the country last month, along with rising housing costs, also likely contributed to the slight cooldown in market activity. Home Prices Posted the Biggest Increase in 16 Months The median U.S. home sale price climbed 5.2% year over year to $402,343 in January, the biggest jump since September 2022. Prices were little changed from a month earlier (-0.01%). Please note that home price data is not seasonally adjusted, which is why Redfin focuses on year-over-year changes for this metric. America’s enduring shortage of homes for sale is the primary driver of price growth; both new listings and active listings remained far below pre-pandemic levels in January. January 2024 Highlights: United States January 2024 Month-Over-MonthChange Year-Over-YearChange Median sale price $402,343 0.0% 5.2% Pending sales, seasonally adjusted 430,809 1.1% 8.8% Homes sold, seasonally adjusted 392,446 -0.2% -1.0% New listings, seasonally adjusted 510,057 -1.2% 2.7% All homes for sale, seasonally adjusted (active listings) 1,554,413 -0.3% -4.4% Months of supply 3.1 0.5 -0.3 Median days on market 49 6 -3 Share of for-sale homes with a price drop 16.9% 2.9 ppts 0.2 ppts Share of homes sold above final list price 23.9% -1.7 ppts 2.7 ppts Average sale-to-final-list-price ratio 98.4% -0.2 ppts 0.5 ppts Pending sales that fell out of contract, as % of overall pending sales 14.2% -1.5 ppts 0.9 ppts Average 30-year fixed mortgage rate 6.64% -0.18 ppts 0.37 ppts Metro-Level Highlights: January 2024 To view the full report, including charts, please visit:https://www.redfin.com/news/housing-market-tracker-january-2024

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Median Home Values Decrease During Fourth Quarter of 2023 in Just Over Half of Opportunity Zones Targeted for Economic Redevelopment Around U.S.; Price-Decline Trends Inside Zones Again Follow Closely With National Market Patterns ATTOM, a leading curator of land, property, and real estate data, released its fourth-quarter 2023 report analyzing qualified low-income Opportunity Zones targeted by Congress for economic redevelopment in the Tax Cuts and Jobs Act of 2017. In this report, ATTOM looked at 3,667 zones around the United States with sufficient data to analyze, meaning they had at least five home sales in the fourth quarter of 2023. The report found that median single-family home and condo prices dropped from the third quarter of 2023 to the fourth quarter of 2023 in 52 percent of Opportunity Zones around the country with sufficient data to analyze, declining by more than 3 percent in close to half. Those downturns, in and around low-income neighborhoods where the federal government offers tax breaks to spur economic revival, tracked closely with nationwide price trends as a decade-long boom in the U.S. housing market showed signs of slowing down. The latest trends also continued a long-term pattern of home values inside Opportunity Zones moving alongside broader nationwide gains and losses for at least the last three years. That marked an ongoing sign of economic tides rising or falling inside some of the country’s most distressed communities along with other markets around the country. Opportunity Zones even showed signs again of doing slightly better than other neighborhoods around the country during the fourth quarter of last year. For example, while prices generally decreased, a slightly larger portion of Opportunity Zones saw significant price increases in the fourth quarter compared to other locations around the U.S. “The fourth quarter of last year certainly wasn’t a great one for Opportunity Zone home values, with more losses than gains. But within the bigger picture, those areas keep riding national coattails, whether home values are going up or whether they are going down. Nothing jumped out as much worse than what happened throughout the nation,” said Rob Barber, CEO for ATTOM. “This has clearly become an extended story as the zones continue to attract home-buyer interest in a very tight housing market. More broadly, it also shows the kind of economic strength inside Opportunity Zones that the legislation is designed to use as a springboard to attract investors.” Opportunity Zones are defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet various criteria for redevelopment in all 50 states, the District of Columbia and U.S. territories. Census tracts, as defined by the U.S. Census Bureau, cover areas that have 1,200 to 8,000 residents, with an average of about 4,000 people. Amid the economic limitations of Opportunity Zones, typical home values in most of those neighborhoods continued to fall well below those in other markets around the nation during the fourth quarter of 2023. Median fourth-quarter sales prices were less than the U.S. median sales price of $333,000 in 79 percent of Opportunity Zones. That was about the same portion as in earlier periods over the past year. In addition, median prices remained under $200,000 in 51 percent of the zones during the fourth quarter of 2023. Considerable price volatility also remained in place inside Opportunity Zones, with median values either dropping or increasing by at least 5 percent in almost three-quarters of those locations from the third quarter of 2023 to the fourth quarter. That again likely reflected the small number of sales in many zones. High-level findings from the report: Media Contact:Jennifer von Pohlmann949.412.3897jennifer.vonpohlmann@attomdata.com SOURCE ATTOM