60,000 Buyers Backed Out

Mortgage & REITS

Average going rates as of Aug 20 2024

New? Join our newsletter – no cost!

🏛️ Economic Rundown

SCE Labor Market Survey Shows Sharp Increase in Job Seekers.

• The expected likelihood of moving to a new employer increased to 11.6% from 10.6% in July 2023, while the average expected likelihood of becoming unemployed rose to 4.4% from 3.9% in July 2023. The current reading is the highest since the series started in July 2014.

• The average expected likelihood of receiving at least one job offer in the next four months increased to 22.2% from 18.7% in July 2023. The average expected likelihood of receiving multiple offers in the next four months rose to 25.4% from 20.6% in July 2023.

• Conditional on expecting an offer, the average expected annual salary of job offers in the next four months declined to $65,272 from $67,416 in July 2023, though it remains significantly higher than pre-pandemic levels. The decline was broad-based across age and education groups.

Full Survey Details Here

🎢 Stock Exchange

S&P 500 wobbles as Wall Street struggles to maintain comeback’s momentum

• Market Pullback: After eight consecutive gains, the S&P 500 and Nasdaq Composite paused, with the S&P 500 down 0.2% and Nasdaq shedding 0.4%. The Dow dipped 61 points.

• Volatility Drop: The CBOE Volatility Index (VIX) dropped from 65 on August 5th to around 15, marking a sharp decline in market fear since the S&P 500's worst session of 2022.

• Fed Focus: Investors await the Federal Reserve's Jackson Hole Symposium, where Chair Jerome Powell's remarks may provide clues on the next interest rate decision, amidst a strong market recovery.

🎙️ RE Spotlight

Apartments Out of Reach for Many Teachers, Miami Is Hardest

• Housing Affordability Crisis for Teachers: On average, teachers can only afford 14.3% of homes within commuting distance of their schools, a slight dip from 14.4% last year and a significant decline from 39.1% in 2019.

• Rent Affordability Shows Minimal Improvement: Teachers can afford 47.9% of rental apartments near their schools, up from 40.7% last year, but this still leaves many struggling to find affordable housing options.

• Miami Among the Worst for Teachers: In Miami, teachers can afford only 0.2% of apartments within commuting distance, making it one of the least affordable cities for educators.

Renting Now Beats Buying in All Major US Cities, Some Areas Diminishing 

• Renting Surpasses Buying in All Major Metros: As of July, renting a starter home is more financially advantageous than buying across all 50 largest U.S. metropolitan areas, marking a significant shift from last year when only 47 metros favored renting.

• High Costs of Homeownership: On average, buying a starter home costs $1,067 more per month than renting, with cities like Austin, Texas leading the way, where buying is 144.4% more expensive than renting.

• Narrowing Rent-Buy Gap: The financial gap between renting and buying has narrowed by two percentage points this year, from 63.3% in 2023 to 61.3% in 2024, driven by a slight decrease in home prices and an increase in affordable listings.

🏰 State Zone

A Record 60,000 home buyers backed out of deals in July. Here’s why.

• July Cancellations Surge: Approximately 59,000 home-purchase agreements, or 16%, were canceled in July, marking the highest share of cancellations for any July on record since 2017.

• Market Impact: Cancellations were most prevalent in Tampa, Fort Lauderdale, and San Antonio, where new home inventory has surged, prompting sellers to cut prices.

• Buyers Hesitate: Despite falling mortgage rates, high home prices and political uncertainty are causing many potential buyers to delay their purchases, awaiting clarity on future market conditions.

🏕️ Niche-RE

“I Treat Houses Like Hospitals. You Get In, You Get Out”: Grant Cardone Says

• Renting Over Buying: Despite a $4 billion net worth, Grant Cardone prefers renting over homeownership, viewing a house as a financial liability rather than an asset.

• Income Over Ownership: Cardone emphasizes cash flow and passive income, investing in income-generating properties instead of owning a home, which he likens to a "financial prison."

• Contrarian Investment Approach: Cardone predicts a future where ownership declines across various sectors, reinforcing his belief that real estate should generate income, not just be a place to live.

👉 More Stories

• High supply is an issue in the multifamily market – but The Beach Company isn't necessarily sinking in it.

• American Real Estate Association ready to collect dues, lays out road map offering basic @ $20 and founding member @ $1500 fees.

• Home Team Vacation Rentals Expands Nationwide, Elevating Short-Term Rental Management Across Key U.S. Markets

🖼️ Chart-Tastic

👾 Interesting in Social

155 Upvotes on reddit “Seller Wants to Take Over Solar Panels Loan”. Full Debate.

🌍 Dwelling of the Day

1,624-square-foot multi-unit house built in 1961 has changed hands on July 19 2024 for $2.4M

And…that's a wrap on this edition!

Got questions or feedback? write to us [email protected] - we'd love to hear from you.