82% Surge Green-Certified Buildings

Good morning, Dwellers! Welcome to another edition of Dwellings Digest, a realtor and investor driven newsletter simplifying real estate, exploring the economy-stock-real estate link, adding a fun twist with niche topics and more. Enjoy!

Quote of the day - "House Hunting Be Like: 'This is perfect! Now let's see what we can actually afford...'"

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🏛️ Economic Sentiment

US Consumer Confidence Rises in August as American’s Optimism about Future Improves

• Buyer and Seller Confidence: With consumer confidence rising to 103.3 in August, buyers and sellers may feel more optimistic. However, concerns over the labor market and inflation could lead to cautious market behavior.

• Property Values: Slower job growth and a revised unemployment rate of 4.3% might put pressure on property values, particularly in weaker job markets, while stronger areas could see steady or modest growth.

• Market Activity: Despite a rise in consumer confidence, mixed economic signals may result in slower real estate activity, as both buyers and sellers await more stable conditions.

🎢 Impact on Real Estate

6 of Every 7 People With Mortgages Have an Interest Rate Below 6%, Lock-In Effect Is Easing.

• 86% of Homeowners Locked Below 6% Mortgage Rates: In Q1 2024, 86% of homeowners held onto mortgages below 6%, down from 93% in mid-2022, showing signs of the "lock-in effect" easing.

• 4.1% Increase in Median Home Prices: The ongoing housing shortage, with an estimated deficit of 4 to 7 million homes, pushed the median home price to $439,455 in July, marking a 4.1% year-over-year rise.

• Only 2% Willing to Buy at 6% Rates: With mortgage rates averaging 6.46%, only 2% of potential buyers are comfortable purchasing, highlighting the continuing impact of high rates on buyer sentiment.

🎙️ RE Spotlight

Nearly One-Third of All Apartment Renter Households are Starting Out Singles

One-Third of Property Managers are Offering Concessions

The U.S. rental market is cooling, prompting a significant rise in concessions offered by property managers, with 33.2% of rental listings on Zillow providing perks like free rent or parking in July 2024, up from 25.4% last year. This trend accompanies a multifamily construction boom, creating more rental options and spreading demand across more homes, leading to slower rent growth. Despite these incentives, rents continue to rise, with a 3.4% year-over-year increase, although at a decelerated pace, helping renters maintain affordability just on the edge of what is considered manageable.

🔮 Housing Forecast

CoreLogic Forecasts 2.3% Home Price Increase by June 2025

• National Home Prices Rise 4.7% YoY: As of June 2024, U.S. home prices, including distressed sales, increased by 4.7% year-over-year, with a 0.3% month-over-month gain, highlighting a continued, though cooling, appreciation trend.

• CoreLogic Forecast Predicts Modest Growth: The CoreLogic HPI Forecast projects a 2.3% year-over-year increase in home prices from June 2024 to June 2025, indicating slower price growth amid elevated mortgage rates.

• Top Markets at Risk: Markets like Palm Bay-Titusville-Melbourne, FL, face a 70%+ risk of price declines over the next 12 months, while other metros such as Atlanta, Gainesville, and Spokane are also flagged as high-risk areas.

🏰 Deal Room

Acquired - 300 Unit Multifamily Property in Plano Texas

TruAmerica Multifamily, a leading national investment firm, has expanded its Texas portfolio with the $50.3 million acquisition of Sheridan Park at Spring Creek Apartments in Plano, a highly sought-after Dallas/Fort Worth suburb. This 300-unit community features a mix of one, two, and three-bedroom homes, offering amenities like wood-burning fireplaces, private patios, and two pool areas. Located near popular retail spots and major highways, Sheridan Park benefits from Plano’s robust job market and high quality of life, making it a strategic addition to TruAmerica’s growing portfolio in Texas.

🏕️ Niche-RE Trend

India’s Real Estate Market Shifts Towards Sustainable Office Spaces

• Green Office Spaces Dominate Leasing: In Q2 2024, 82% of the 13 million sq. ft. office space leased in India’s top six cities was in green-certified buildings, marking a 24% YoY increase, driven by corporate awareness of environmental impact.

• Bengaluru and Mumbai Lead in Sustainability: Bengaluru and Mumbai account for over 50% of green office space leased, with 60% of these leases in buildings constructed within the last five years, emphasizing the shift towards newer, sustainable developments.

• Tech and BFSI Sectors Drive Green Adoption: Since 2023, technology, engineering, and BFSI sectors have led the adoption of green office spaces, with 80% of leasing activity in green buildings, showcasing a strong industry preference for sustainability.

🖼️ Chart-Tastic

🌍 Dwelling of the Day

Perfect Vacation Home

Zillow Floor Plan Update with Photo Tagging

🤪 Fun for the Road

Real estate is serious business, but that doesn’t mean we can’t have some fun along the way! Let’s celebrate the wins and enjoy a little humor 😉

Here is One - Why don’t real estate agents trust stairs? Because they’re always up to something! 😂

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And…that's a wrap on this edition!

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