Just when you might think we are living in the strangest of times… things get even stranger! In the current residential market, we are seeing a bifurcated reaction by investors.
As small landlords are being crushed by increased regulations and eviction moratoria, there is increased intense demand by corporate investors trying to get cash into hard assets. If you have property, the “big guys” want to buy it. Inflationary pressure seems to be driving some of this, but there is also the threat of tax law changes. The need to get your money in the right place to survive and thrive is intense.
For fix and flip investors, it has been tempting to overpay, just to keep projects in the pipeline. With material costs skyrocketing, and a quickly changing market, I personally don’t think it makes sense to be taking on more risk by overpaying.
Each of us have our own circumstances and opinions about the challenges and opportunities ahead. It is a time to read, listen, learn and think. Stay tuned as we intend to keep you up to date on legislation and other factors that will affect your decisions
|Rent Prices Show Largest Jump in April Since 2017
Rent prices are continuing to rebound with the national index up by 1.9 percent month-over-month in April, “the biggest monthly jump in our national index since the start of our estimates in 2017, breaking a record set just last month,” said Rob Warnock, senior research associate with Apartment List.
Rent growth has now been outpacing prior-year averages for several months, “indicating that this year’s moving season is set to be a historically busy one,” Apartment List says in the report. ARTICLE
We love stories about where people are moving.
“The rental market experienced significant disruptions last year, mostly due to the global health crisis, which caused changes in both lifestyle and housing preferences. Amid health, affordability, and employment concerns, 18% more renters changed residences in 2020 compared to 2019…” ARTICLE
By taking foreclosure rates and the growth (or lack thereof) in home values over the last one- and two-year periods, the study identifies those areas where local real estate is seriously suffering. ARTICLE
This Harvard Study gives an overview
of how smaller landlords have been impacted by and are dealing with arrearages during the pandemic. It compares small, medium, and large landlords’ challenges and responses.
National REIA has been following the issue about higher lumber prices for some time now. In fact, they recently posted about how increased lumber costs are adding over $24k to the price of a new home! The folks over at John Burns Real Estate Consulting recently put together a quick infographic illustrating the path to rising lumber prices. Enjoy!
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