December 2024 hottest housing markets

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Few countries in recession in 2025 and 2026 link

• The IMF's latest forecast shows a record-low number of countries expected to be in recession during 2025 and 2026. Out of 196 countries analyzed, the share facing recession is historically low.

• This trend suggests global economic recovery is gaining momentum, even in regions previously struggling with slow growth. Countries are benefiting from diversified strategies and stable monetary policies.

• Risks remain, as projections are subject to economic uncertainties and shifts in global markets. The IMF highlights the importance of sustained structural reforms to maintain this positive outlook.

December 2024 hottest housing markets

• Rockford, IL, ranked as the hottest market in December for the first time, with 2.9 times the national viewership and a 21.3% year-over-year price growth. Midwest and Northeast markets dominate, with 10 spots each on the list.

• Home prices fell 1.8% nationally but rose 2.7% in the hottest markets due to high demand and low inventory. Inventory in these markets was 57.8% below pre-pandemic levels compared to a 15.7% national decline.

• Homes in the hottest markets sold in 48 days on average, three weeks faster than the national median. Viewership in these markets was 2.5 times higher than the national average in December.

• click on the link to see the rest of the list.

Office market sees first positive net absorption since 2021 link

• Leasing activity hit 52.9 million square feet in Q4 2024, marking a 17.6% increase year-over-year. This growth represents over 92% of pre-pandemic leasing levels, with the Sun Belt markets exceeding 95% recovery.

• Effective rents for first-generation spaces rose by nearly 17% year-over-year, while second-generation renewals grew by approximately 7%. Face rents remained stagnant as effective rents outpaced them, signaling reduced concessions in the market.

• Sublease vacancies decreased for five straight quarters, reaching mid-2022 levels. High-quality subleases gained traction, highlighted by Snowflake's 773,000-square-foot deal in Menlo Park, the largest sublease agreement of 2024.

Data center demand keeps surging link

• Global data center capacity is projected to grow 15% annually through 2027, with the Americas expanding to around 30 gigawatts. AI applications are a major driver, with tech giants investing over $200 billion in 2025, more than doubling 2020's spending.

• Data centers consume about 2% of global electricity but cause regional strain, such as in Virginia, where they account for over 25% of power demand. Nuclear power, including small modular reactors, is being explored as a future energy solution.

• Cooling challenges are intensifying as AI accelerates, with immersion cooling systems requiring reinforced structures due to their weight. Efficiency innovations like advanced liquid cooling and chip architectures are becoming critical.

U-Haul’s U.S. growth metros for 2024 link

• Dallas-Fort Worth-Arlington topped U-Haul's 2024 Growth Index due to significant net gains in one-way rentals. Suburbs like McKinney, Plano, and Addison are also growing rapidly thanks to affordable living and job opportunities.

• Charlotte, Phoenix, Lakeland, and Austin ranked among the top five U.S. growth metros. These cities have seen increased migration driven by lower costs of living and better employment prospects.

• The index is based on over 2.5 million U-Haul transactions, highlighting a nationwide trend toward southern and western metros. Notable mentions include Nashville, Raleigh, and Palm Bay among the top 10 metros.

Top-10 travel trends for 2025 by Condé Nast Traveller link

• Cowboy-themed vacations like ranch stays and camping under the stars are booming, reflecting a fascination with Wild West culture. This trend extends to country music festivals and outdoor adventures with cowboy vibes.

• Family sabbaticals are gaining traction as midlife professionals take breaks for transformative experiences. These trips focus on education, milestones, or rejuvenation, often lasting weeks or months.

• Accessible adventure travel is breaking barriers with adaptive sports and inclusive tour options. Activities like skiing, rafting, and hiking are now more accessible for people with disabilities and their families.

• click on the link to see the rest of the list.

Donald Trump could privatize Fannie Mae and Freddie Mac: What it means for your mortgage link

• Privatizing Fannie Mae and Freddie Mac could drive mortgage rates higher by removing the government guarantee that keeps rates lower. Current mortgage rates near 7% are already causing affordability challenges in the housing market.

• Experts warn that privatization might reintroduce risks similar to those that led to the 2008 financial crisis, including potential mismanagement and looser mortgage standards. Fannie and Freddie have operated under strict federal oversight since their 2008 bailout.

• Analysts suggest privatization could adversely affect the secondary mortgage market, pushing primary mortgage rates higher. Many predict the decision will likely be delayed until rates fall to around 4%.

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A steal for just $36 per sq ft

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Vidit

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