Most Active Brokerage Firms, Weekly Housing Trends Summary

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Household net worth is almost eight times higher than disposable income

It is difficult to be negative on the economic outlook when household net worth relative to income is near record high levels, see chart below.

Weekly Housing Trends —Data for Week Ending June 22, 2024 link

• The median listing price remained flat compared to last year, supported by an increased presence of smaller homes in the market. While affordable options have become more common, similarly sized homes are still likely to be pricier.

• New listings rose by 7.4% from one year ago, indicating an increase in seller activity. However, many homeowners are hesitant to sell due to the higher current mortgage rates around 7%.

• Active inventory increased by 36.1% from last year, marking the 33rd consecutive week of year-over-year growth. Despite this, current inventory levels are still over 30% below typical pre-pandemic figures.

Self-Storage Rates Fall In a Time When Performance Should Be Strong link

• Street rates for self-storage units decreased in May across all major metros tracked by Yardi Matrix. This decline contrasts with typical performance patterns for this time of year.

• Economic conditions and high interest rates are dampening demand for self-storage, impacting performance. These factors are expected to influence the market well into 2025.

• The self-storage sector, usually resilient, is struggling due to the ongoing real estate market downturn. This situation highlights broader economic challenges affecting real estate.

KKR Makes Massive $2.1 Billion Bet on U.S. Apartment Market Link

• KKR acquired over 5,200 apartments from Quarterra Multifamily for $2.1 billion, marking its largest multifamily investment to date. The portfolio includes recently-built Class A properties in coastal and Sunbelt markets such as California, Washington, Florida, Texas, Georgia, and North Carolina.

• The properties are a mix of mid-rise and high-rise buildings, and KKR will collaborate with operators Carter-Haston, MG Properties, and Dalan Real Estate for management. This strategic move aims to leverage KKR's scale, relationships, and local market knowledge.

• KKR's head of real estate equity in the Americas, Justin Pattner, highlighted the current market as ripe for investment, citing increased transaction activity following a two-year dislocation in commercial real estate. This acquisition positions KKR advantageously in the growing multifamily sector.

Artificial Intelligence models let home buyers find properties that share the same “look-and-feel” – an industry-first, new feature link

• The "Homes with similar rooms" feature on Realtor.com uses advanced AI to help users find properties with similar looks and feels. This tool categorizes images by room type, making it easier to discover properties with desired features.

• Powered by OpenAI's CLIP model, the feature identifies attributes in images that haven't been explicitly trained for, ensuring accurate room-to-room comparisons. This allows for precise matching of visual features across listings.

• The test phase showed high user engagement, particularly with kitchen images, followed by exteriors and living rooms. Increased page views indicate the feature's effectiveness in enhancing the home search experience.

Most Active Brokerage Firms

(More insights, More details per insight, and more charts)

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What the deck?!

Link to the listing

That's all, folks.

Cheers,

Vidit

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