Factors Driving Real Estate

Mortgage & REITS

Average going rates as of Aug 16 2024

Numbers as of Aug 16 2024 closing

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🏛️ Economic Rundown

July Housing Starts and Fed Rate Cuts: Key Drivers for Real Estate Market Growth

• Markets now anticipate a quarter-point rate cut from the Federal Reserve in September, signaling the start of an easing cycle as inflation edges closer to the target.

• Despite some weakness in manufacturing and housing, strong retail sales and positive updates from major companies like Walmart are helping to ward off recession fears.

• U.S. and global stocks are on track for their best week in months, bolstered by resilient economic data and easing inflation concerns, with Japan’s Nikkei and European markets leading the charge.

🎢 Stock Exchange

Stock Futures Rise Slightly after S&P 500 Notches Best Week of the Year.

• S&P 500 Futures Rise: Stock futures ticked up, with S&P 500 futures climbing 0.1% after the index posted its best week of 2024, gaining 3.9% as market optimism rebounded.

• Market Recovery Driven by Positive Data: Last week’s rally was fueled by strong retail sales and jobless claims data, which helped ease recession fears and supported hopes for a soft landing in the economy.

🎙️ RE - Spotlight

US Rent Prices Fall Amid Apartment Boom: Trends, Regional Variations, and What Renters Should Know

• Rent Decline After Construction Boom: U.S. asking rents dropped for all apartment sizes in July, with a 2.4% decrease for three-bedroom units, reflecting the impact of the recent surge in apartment construction.

• Regional Variations in Rent Trends: Florida and Texas led rent declines, with Austin and Jacksonville seeing significant drops, while regions like Virginia Beach experienced rent hikes, up 13.7% year-over-year.

• Renters' Window of Opportunity: Despite the current dip, construction slowdown hints at potential rent increases within the next year or two, making now a favorable time for renters to secure deals.

Housing Inventory Recovery: 41 Major Markets Exceed Pre-Pandemic Levels as 'Reset' Unfolds

• Housing Inventory Rebounds: July 2024 active listings hit 884,273, up 62% from pandemic low but still 29% below 2019 levels

• Market Shift: 41 of 200 largest U.S. housing markets now exceed pre-pandemic inventory, up from just 8 in July 2023

• Price-Inventory Correlation: Markets with recovered inventory see weaker price growth, while low-inventory areas experience stronger gains

🏰 State Zone

Luxury Meets Controversy: 360-Unit Livana Complex Brings First Apartments to Wealthy Colts Neck, NJ

• Luxury living in Colts Neck: 360 high-end apartments coming to NJ's wealthiest town (median income: $187,969), featuring 15 buildings on 30 acres along Route 537, completion expected by February 2027

• Controversial $500M+ development: 30-acre Livana complex sparks debate over wastewater treatment, with concerns about thousands of gallons pumped daily into local wells; NJDEP granted permit despite opposition from NJ Sierra Club and 2020 lawsuit against Freehold Township

• Affordable housing meets affluence: 72 units (20% of total) designated for lower-income residents in $1M+ average property value community; amenities include fitness center, yoga studio, pools, and work-from-home spaces, located 2 miles from Trump National Golf Club Colts Neck

🏕️ Niche-RE

US Hotel Occupancy, Average Daily Rate Climb Steadily

• U.S. hotel industry shows resilience: RevPAR up 1.9% to $109.51, ADR rises 1.4% to $159.49, occupancy increases 0.5% to 68.7% (August 4-10, 2024 vs 2023), reflecting steady growth despite economic uncertainties

• Houston leads Top 25 Markets in recovery: 31.1% occupancy surge to 76.3%, RevPAR skyrockets 47.2% to $93.89 year-over-year, signaling strong rebound in travel demand for the Texas metropolis

• Market divergence highlights regional trends: Chicago's ADR jumps 13.8% to $188.95, while Los Angeles sees 12.2% RevPAR decline to $161.66 and Dallas drops 11.3% to $66.30, indicating varied performance across major U.S. cities

👉 More Stories

• Google To Spend Over $1 Billion in Texas This Year To Meet Demand for Its Data Centers.

• Overlooked by Developers, Small-Bay Warehouses Drive Philadelphia’s Industrial Sales. Deals Reflect Strong Leasing Demand Across Smaller Warehouses

• Travel spending reflects consumer confidence and the broader economic outlook. Now, notably, travelers are prioritizing value and becoming more selective in their bookings. Cruise lines, with their all-inclusive pricing, are benefiting, while some domestic hotels are struggling

🖼️ Chart-Tastic

👾 Interesting in Social

Throwback to September 13th, 2022 the 5th largest daily point loss in S&P 500 history

And…that's a wrap on this edition!

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