More home sellers are withdrawing listings

In partnership with

Whiskey Investing: Consistent Returns with Vinovest

It’s no secret that investors love strong returns.

That’s why 250,000 people use Vinovest to invest in fine whiskey.

Whiskey has consistently matured and delivered noteworthy exits. With the most recent exit at 30.7%, Vinovest’s track record supports whiskey’s value growth across categories such as Bourbon, Scotch, and Irish whiskey.

With Vinovest’s strategic approach to sourcing and market analysis, you get access to optimal acquisition costs and profitable exits.

Schedule a call with a Vinovest advisor to learn more.

New here? Join the newsletter (it's free).

More home sellers are withdrawing listings link

• For every two homes sold, one is withdrawn from the market due to lack of offers. This is driven by sellers holding on for better market conditions, especially those with low mortgage rates.

• Inventory remains steady, with just under 704,000 unsold homes across the U.S., a slight decrease from prior weeks. Sellers are reluctant to list amid high interest rates.

• Home prices have largely stabilized, with the median newly pending sale at $380,000, showing nearly no increase from last year.

Weekly housing trends—data for week ending Sept. 7, 2024 link

• The median listing price has decreased by 0.3% year-over-year, marking the 15th consecutive week of price moderation. Sellers are adjusting to buyer expectations, leading to the highest rate of price reductions in over five years for August.

• New listings have increased by 9.9% from last year, spurred by easing mortgage rates. Despite this growth, the share of new listings compared to total listings fell slightly by 0.7%.

• Active inventory is 33.4% higher than a year ago, continuing a trend of increases for 44 straight weeks. However, much of this inventory growth is due to homes staying on the market longer, with the average home taking eight days more to sell compared to last year.

The latest performance data and trends across CRE link

• The office sector is still struggling with a national vacancy rate of 20.1%, the highest on record. San Francisco's weak performance contrasts with recovery in cities like New York and Miami, which have stronger office utilization.

• Industrial real estate has slowed from pandemic highs, but demand remains supported by e-commerce and reshoring trends. Vacancy rates for warehouse/distribution have risen to 6.5%, while growth in rents is decelerating.

• Multifamily vacancy is at 5.7%, higher than the pandemic peak but in line with long-term averages. The Snowbelt is now leading rent growth, overtaking the Sunbelt, which faces oversupply from recent construction projects.

Single-family housing trends will boost CRE outlook link

• Homeowners locked into low mortgage rates are reluctant to sell, reducing resale inventory and keeping housing prices stable. This has limited home availability despite higher rates thinning the buyer pool.

• The U.S. housing shortage remains significant at around 3.5 million homes, despite the construction of 1.5 million new units annually. This shortage is compounded by rising single-person households and population growth.

• Lower mortgage rates may lead to increased household formation, benefiting retail and industrial sectors. This could drive commercial real estate demand.

• New housing drives CRE demand because more households boost retail needs, spurring demand for shopping centers and local services. As more homes are built, industrial real estate benefits from the increased need for logistics, warehousing, and distribution to support rising consumer activity. This creates a ripple effect where housing growth directly fuels retail and industrial expansion in commercial real estate.

Retail - Luxury chains are buying storefronts in numbers link

• Upscale chains leased over 360,000 square feet of retail space in the U.S. from July 2023 to July 2024, with New York and Los Angeles accounting for 36.9% of new openings. This trend is driven by limited retail space and high demand for premium locations.

• Luxury retailers are buying flagship properties, with Prada spending $835 million on Fifth Avenue and Kering paying nearly $1 billion in Manhattan. This allows brands to avoid rising rents and block competitors from entering key corridors like Madison Avenue and Rodeo Drive.

• Malls are becoming prime locations for new luxury stores, with 48.5% of all luxury openings happening in malls over the past year. Cities like Costa Mesa and Atlanta are seeing growth in luxury retail through top-performing malls like South Coast Plaza and Phipps Plaza.

Tampa Bay's industrial demand tanks 75% link ↓

• Tampa Bay’s industrial market saw a steep decline with net absorption dropping 75% year-over-year in Q2 2024. Only 600,000 square feet were absorbed, highlighting weaker demand.

• Vacancy rates surged to 7.1%, a significant 210 basis points increase from last year, putting more pressure on landlords.

• Asking rents slightly decreased, with rates dipping to $10.35 per square foot compared to $10.55 in Q2 2023, reflecting the demand imbalance.

Sales of $10 million homes surge in these two areas ↓

The 12 best Washington DC neighborhoods to live in ↓

This hot ZIP code will pay you up to $10,000 to move there ↓

Baby boomers are most active in these housing markets ↓

Where are roommate households increasing?

5 swing state metros where Kamala Harris’ $25K subsidy for first-time homebuyers would cover a 10% down payment

Ranked: The World’s Top 10 Tax Havens

6 Square Miles 👀

Link to the listing

That's all folks. Let me know what you think of the email. Quite a lot went into it. If these emails aren't for you anymore, you can unsubscribe here.

Cheers,

Vidit

Linkedin | Instagram

P.S - Read past newsletters here