Third-quarter brought $193 billion in commercial property purchases –– the highest ever. But some remain apprehensive that this trend is similar to the four-year-long housing bubble that popped with the 2008 financial crisis and ruined, well, everything. Mortgage rates continue to rise north, pending home sales dip south. Oh, and a California Condor was spotted flying over Mount Diablo for the first time in over 100 years.
Multifamily Market Conditions Showcase Strong Improvement: NMHC
Let’s open with some positive news to kickstart your weekend: The National Multifamily Housing Council’s Quarterly Survey of Apartment Market Conditions for October 2021 corroborates robust and ongoing improvement across the multifamily industry. For the third consecutive quarter, the Market Tightness (82), Sales Volume (79), and Equity Financing (65) indexes reflected results far above the breakeven level of 50. Read more in Multi-Housing News.
Pending Home Sales Dip 2.3% in September
Following a month of growth, pending home sales dipped in September, according to the National Association of Realtors®. “Contract transactions slowed a bit in September and are showing signs of a calmer home price trend, as the market is running comfortably ahead of pre-pandemic activity,” said Lawrence Yun, NAR’s chief economist. While housing supply remains low, Yun is optimistic that inventory will turn the corner in 2022. (National Association of Realtors)
Department of Labor News Release 10-28-21
If you want the numbers, the Department of Labor just released new seasonally adjusted data. There’s a lot to sift through, but I’ll just tease the opener: in the week ending October 23, the advance figure for seasonally adjusted initial claims was 281,000, decreasing 10,000 from the previous week’s revised level. This is the lowest level for initial claims since March 14, 2020. For all the details, see this PDF.
Commercial Real-Estate Sales and Values Surge to Records
Despite incessant warnings that the COVID-19 pandemic would erode property values and put the industry in financial famine, investors purchased a record amount of commercial real estate in the third quarter. Purchases of apartment buildings, life-science labs, and industrial properties skyrocketed to more than $193 billion in the quarter, representing the biggest quarter for commercial property sales EVER. Holy sh*t. (WSJ)
Mortgage Rates Continue to Move North
According to Freddie Mac’s latest PMMS survey, the average 30-year-fixed-rate-mortgage rate continues to trend upwards. Rates have risen roughly 20 basis points over the past month, and experts are confident they will continue to ascend. Last week, the average 30-year-fixed mortgage rate slightly came in at 3.09%, while a year ago today, the 30-year fixed-rate mortgage averaged 2.81%. (HousingWire)
No One Seems Worried About a Housing Bubble. Just Like Last Time the Bubble Burst
Echoing the WSJ article, housing prices –– fueled by historically low-interest rates –– are surging to new records with no end in sight. Yep. That’s the encouraging current state of America’s housing market, but it could also describe the US housing bubble that expanded from 2004 to 2007 before bursting and wreaking havoc on the economy. Chris Isidore weighs in on whether history will repeat itself for CNN Business.
Bonus: California Condor Returns To Mount Diablo For The First Time In Over 100 Years
Ornithologists unite! A California Condor has been spotted on Mount Diablo for the first time in over 100 years. I’d like to interpret this auspiciously. (Claycord News & Talk) Urgent, incisive, and actionable insights concerning NorCal CRE. Curated weekly by Sparacino Realty. Urgent, incisive, and actionable insights concerning NorCal CRE. Curated weekly by Sparacino Realty. Urgent, incisive, and actionable insights concerning NorCal CRE. Curated weekly by Sparacino Realty.
