3 cities where home prices to massively increase > 22%

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Estimated read time: 3 minutes 34 seconds.

Zillow says home prices to surge more than 6% in the next year link

• Zillow predicts a 6.5% increase in US home prices by July 2024, implying the median price will rise to $370,754 from the current $348,125.

• Contrary to Zillow's forecast, Realtor.com expects a 0.6% decline and Redfin a 4% drop in home prices by the end of 2023.

• The housing market's imbalance is attributed to high mortgage rates and a significant inventory shortage, with housing supply cut by half since July 2019.

Multifamily Permits Down 32.2% From a Year Ago link

• Multifamily permitting in July 2023 saw a sharp decline of 32.2% from the previous year, with the current rate at 464,000 units, a decrease of 220,000 units from July 2022.

• Single-family permitting and starts are on the rise, with the SAAR for single-family permitting at 930,000 units, a 24.3% increase since January.

• Multifamily completions in July plummeted by 38.8% from June, standing at 297,000 units, marking a 23.3% drop from the previous year's rate.

Interest Rate Hikes Haven't Made a Dent in Industrial Prices link

• Interest rates have slowed the sales volume of industrial properties. However, they haven't affected the average selling price of the properties that are sold.

• The national average sale price for industrial properties has seen a rise. It went from $124 per square foot in 2022 to $131 per square foot in 2023.

• Despite the economic challenges and rate hikes, the industrial sector remains resilient. The data suggests a stable demand and valuation in the market.

One jarring chart shows just how empty remote work will leave office buildings link

• Goldman Sachs predicts a surge in vacant office space by 267 million square feet over the next decade due to the rise in remote work.

• The share of US workers working from home has stabilized between 20%-25%, leading to office usage being about half of pre-pandemic levels.

• Despite the current occupancy rate only dropping to 86% from 90% in the past three years, a significant change is anticipated as 35% of office leases are set to expire after 2030.

Case-Shiller: National House Price Index increased 11.8% year-over-year in June link

• National house prices surged by 11.8% YoY in June, marking the 14th consecutive month of double-digit growth.

• The 20-city composite posted a 12.1% annual gain, outpacing the 10-city composite's 11.7% increase.

• Phoenix, San Diego, and Seattle led the charge with the highest YoY price gains among the 20 cities.

Smaller Sales Again Showing Strength Over Larger Deals link

• Trepp's recent report suggests smaller balance CBRE loans might be a better investment choice.

• Historically, CMBS loans below $50 million were more prone to delinquency than those above $50 million. However, July marked a rare inversion of this trend, only the third occurrence in 13 years.

• The previous inversions were observed in July 2012 and June 2020, both during economic downturns.