CPI Report for July, New Era of Luxury Living and Zillow Survey

Mortgage & REITS

Average going rates as of Aug 15 2024

Numbers as of Aug 15 2024 closing

New? Join our newsletter – no cost!

🏛️ Economic Rundown

CPI Report for July is out: What Does Latest Data Mean for US Economy?

• Inflation Eases to 2.9% in July 2024: The annual inflation rate fell to 2.9% in the 12 months through July, marking its lowest level since March 2021 and signaling a continued easing of the inflation surge that began in 2022, according to the Labor Department’s Consumer Price Index.

• Shelter and Transportation Drive Core Inflation Up: Despite a modest overall inflation rise, shelter prices increased by 5.1%, and transportation services soared by 8.8%, pushing the core inflation rate to 3.2% year-over-year. Shelter prices accounted for nearly 90% of the monthly increase in the overall inflation rate.

• Federal Reserve Poised for Rate Cuts Amid Easing Inflation: With consumer prices stabilizing and the inflation rate edging closer to the Federal Reserve's 2% target, analysts anticipate a potential interest rate cut by the Fed in mid-September, potentially the first in over a year.

🤌🏻 Real Trends

Real Estate's Next Big Status Symbol - A New Era of Luxury Living

• With fewer than 100 units sold annually, Pagani introduces a 70-unit luxury condo project in Miami, priced from $3 million, targeting exclusive clientele.

• Branded residences are set to double globally in the next five years, driving unit prices 30% higher than non-branded counterparts, enhancing property investment potential.

• Pagani joins the ranks of Bentley, Porsche, and Aston Martin in Miami's luxury real estate, offering investors branded living spaces with upscale amenities and a promise of unique lifestyle experiences.

🎙️ Spotlight

Latest Zillow Survey to Support Growing for Middle Housing

• Broad Support for Middle Housing: A Zillow survey covering 26 metro areas shows 78% of homeowners and 91% of renters support at least one form of middle housing, indicating growing acceptance of options like duplexes and small apartment buildings.

• ADUs Lead Popularity: Accessory dwelling units (ADUs) receive the highest support among surveyed options, with 68% of respondents backing their inclusion in neighborhoods. Support is strongest among renters (71%) and adults aged 30-49 (75%).

• Housing Discrimination and Affordability: Approximately 79% of LGBTQ+ adults report housing discrimination, with 61% of renters facing similar challenges. Housing affordability is a significant election issue for 52% of respondents, particularly among millennials (62%).

Latest Zillow Survey Results Here

Biden-⁠Harris Administration $100 Million Grant To Housing Supply. White House Fact Sheet

• Historic Housing Investment: The White House's $100 million grant, part of the Housing Supply Action Plan, will fund state and local government efforts to increase housing stock, addressing construction challenges faced by the real estate industry.

• Record Multifamily Construction: In June 2024, around 60,000 multifamily units were completed, the highest in 50 years, easing rent pressures and highlighting a stark contrast to single-family home production, which hit a four-year low.

• Innovative Development Measures: The HUD's PRO Housing program will simplify the financing of housing developments by easing transit-oriented project requirements, accelerating historic preservation reviews, and allowing more housing types under the HUD Code.

Read White House Fact Sheet

🏰 State Zone

Home Ownership in Senior Living Can’t Be Based on Age, New Jersey Court Rules

A recent New Jersey appellate court ruling has set a significant precedent by determining that restrictions on property ownership based on age violate the U.S. Fair Housing Act. This decision, which responds to Berkeley Township's ordinance aimed at preventing corporate and younger investor speculation in over-55 communities, emphasizes the legal right to own property regardless of age, while municipalities can still restrict occupancy. The ruling could have considerable implications for the senior real estate market by potentially increasing the pool of eligible buyers and helping to stabilize or reduce property prices for senior citizens, ensuring affordability for those on fixed incomes.

🏕️ Niche-RE

Multifamily Lending Declined 49 Percent to $246 Billion in 2023

• In 2023, multifamily lending volume experienced a significant drop, with $246.2 billion in new mortgages representing a 49% decrease from 2022 levels, reflecting reduced sales transactions and fewer refinancing activities.

• Despite the downturn, the multifamily lending market remained broad, with 2,520 lenders issuing over 36,000 mortgage loans across the nation, showcasing the depth and variety in the market.

• Government Sponsored Enterprises (GSEs), including Fannie Mae and Freddie Mac, dominated the lending landscape, accounting for 42% of the total dollar volume in multifamily loans, underscoring their pivotal role in the market.

👉 More Stories

• CBRE announced the sale of an eight-unit multifamily property in Garden Grove, Calif., to a private investor for $2,225,000. The selling price represents $278,125 per unit and over $438 per square foot.

• Bay Area Scraps $20 Billion Housing Bond From November's Ballot

🎢 Stock Market

Walmart Grows more Optimistic about 2024 as Bargains Prove a Powerful Lure

• Strong Q2 Performance: Walmart reported robust Q2 earnings, with sales rising by nearly 4.8% to $169.33 billion, exceeding expectations and reflecting resilience among U.S. consumers.

• E-commerce Growth: Walmart’s global e-commerce sales surged by 21%, matching the pace from the first quarter and highlighting the company’s successful digital strategy.

• Optimistic Outlook: Walmart increased its full-year earnings per share guidance to $2.35-$2.43, up from a previous range, while projecting annual sales growth between 3.75% and 4.75%, signaling a strong finish to the fiscal year.

🧮 Chart-Tastic

Phoenix is at the top for single family home activity in the United States. Between 1980 and 2023, more than 215,000 building permits were issued, the most among major cities. However, the pace slowed significantly after the Great Recession. During the peak in the 2000s, about 7,068 permits were issued each year. From 2020 to 2023, the average dropped to 4,443 units per year.

🏘️ Dwelling of the Day

A Billionaire’s Greek Temple.

And…that's a wrap on this edition!

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