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Sales of newly built homes jump to 16-month high as builders push incentives link

• New single-family home sales reached a seasonally adjusted annual rate of 738,000, a 4.1% increase from August and a 6.3% rise year-over-year. This marks the fastest pace since May 2023.

• Median sales prices for new homes were $426,300 in September, a 3.7% increase from August but stable compared to last year. Inventory remains steady with 470,000 unsold homes, providing a 7.6-month supply.

• Mortgage rates dropped early in September before rising, with current average rates at 6.44%.

There are now 30 renters for every home for sale in the U.S. link

• Supply shortages remain severe, with 30 renter households for each home available for sale, a stark increase from fewer than 10 renters per home in 2006. This imbalance has intensified since the Great Recession, during which new home construction lagged behind growing demand.

• First-time buyers face significant affordability issues, as entry-level home prices have risen 63% faster than high-end prices since 2000. Rising mortgage rates also add pressure, with 30-year fixed rates now up to 6.54%.

• Homeownership remains a strong preference, as 83% of Americans would rather own than rent, despite financial barriers like down payment costs and credit challenges. Flexibility and stability are top reasons cited for preferring ownership over renting.

Multifamily permitting dropped 17.4% YOY link

• Annualized multifamily starts decreased by 15.7% from September of the previous year, bringing the current rate to 317,000 units. This decline, despite a slight increase in single-family starts, has led to a total residential starts decrease of 0.7% year-over-year.

• Multifamily permitting dropped 17.4% year-over-year, with September's rate at 398,000 units, while single-family permitting stayed relatively stable, ticking up just 0.3% from the previous month. Total permitting has seen a 5.7% drop year-over-year.

• The West saw the steepest decline in multifamily permitting, down 26.7%, while the South, typically the most active, fell 12.1%. Only the Northeast saw a significant increase in annualized multifamily starts, up 183% to 84,000 units.

Most Americans support rent caps

• A recent Redfin survey shows 82% of Americans favor rent caps, with slightly higher support among Democrats (86%) and renters (86%) compared to Republicans (79%) and homeowners (78%). Only 7% of those surveyed opposed these caps.

• The White House proposed a federal rent control policy in July, limiting rent increases to 5% for landlords with over 50 units. This policy would impact over 20 million rental units nationwide, but new constructions and significant renovations would be exempt.

• Seven states, including Oregon and California, have already implemented rent control measures, with over 200 localities adopting similar policies by 2022. Redfin economists, however, warn that rent control may worsen housing shortages by deterring new developments.

Sarasota was battered by hurricanes Milton and Helene—but home prices will likely rise there link

• Sarasota’s Gulf Coast was recently struck by Hurricanes Helene and Milton, causing up to 7 feet of storm surge and extensive damage to grade-level homes. The storms ended a 50-year period without major hurricane impacts in the area.

• The death toll from Hurricane Milton in Florida reached 33, with CoreLogic estimating total storm damages at $34 billion. Post-hurricane trends show that home prices tend to rise by up to 10% in impacted areas within two years, fueled by reduced supply and high demand.

• Market data indicates a swift recovery in mainland Sarasota listings, while activity on barrier islands remains low. Rebuilds following the storms may lead to a surge in modern, hurricane-resistant homes, likely increasing property values in the long term.

Manhattan investment volume set to skyrocket by 76% this year link

• Manhattan saw $3.2 billion in investment volume over 80 transactions in Q3, with total dollar volume up 16 percent and transactions up 29 percent from Q2. This activity marks strong momentum, with Avison Young predicting a 76 percent increase in 2024 compared to last year.

• Development sales led the market, totaling $824.7 million—up 194 percent quarter-over-quarter—with Related Companies closing the largest deal at $632.5 million for 625 Madison Avenue. Conversion projects also surged, reaching $519 million, an increase of 59 percent from the second quarter.

• Retail transactions doubled, reaching $318.1 million, while office sector sales dipped 25 percent to $794.5 million despite a year-over-year increase of 58 percent. Retail cap rates hit a high of 6.98 percent, while multifamily and office cap rates settled at 5.59 percent and 4.58 percent, respectively.

Zillow, Realtor.com join forces to share 3D home tours and interactive listings link

• Demand for 3D home tours is high, with 62% of buyers wanting immersive listings, while 72% of sellers prefer agents who utilize these tools. This trend reflects a strong consumer shift toward digital home-viewing options.

• Zillow and Realtor.com are collaborating to make 3D tours, floor plans, and interactive features accessible across both platforms. This partnership enhances visibility and usability for potential buyers, aiming to streamline the home search process.

• Zillow’s 3D home tour technology launched in 2019 uses 360-degree cameras and AI to create a more immersive experience. Realtor.com will integrate these features, providing an edge in competitive markets where in-person viewings are limited.

(If you like this new section, please reply🙏 and let me know)

Camphor leverages AI to build custom, beautiful, and luxurious IDX-powered real estate websites for agents, teams, and brokerages. Every real estate salesperson deserves to have a unique brand for their business, which is not just a public-facing business card for their online presence, but also an investment to generate higher quality leads.

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