Housing Supply Dropped to Lowest Level Since 1999 and 9 more insights.

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Housing Supply Dropped to Lowest Level Since 1999. Nearly One-Third of Realtors Say Lack of Inventory Stopped Clients from Buying Homes in 2022 As link

• Inventory Crisis: In 2022, 32% of Realtors® reported a lack of inventory as the primary factor preventing potential clients from purchasing homes. Housing supply plummeted to its lowest level since 1999.

• Experience Matters: Realtors® with 16 or more years of experience reported a greater share of repeat business or referrals (43% in 2022). Realtors® with two years or less experience reported no repeat business.

• Income Shifts: The median gross income for Realtors® increased to $56,400 in 2022, up from $54,300 in 2021. However, Realtors® with 16 years or more experience saw a decrease in median gross income from $85,000 in 2021 to $80,700 in 2022.

US Annual Home Price Growth Drops to the Lowest Rate in 11 Years in May link

• Slowing Momentum: U.S. single-family home price growth slowed for the 12th straight month in May, falling to a 1.4% increase year over year.

• Western Woes: A significant number of Western states saw prices decline in May from the same time in 2022, reflecting out-migration and loss of affordability due to home price surges during the pandemic.

• Pressure on Potential Buyers: Elevated mortgage rates and high home prices are putting pressure on potential buyers, cooling recent month-over-month home price growth, which began to taper and is returning to the pre-pandemic average, with a 0.9% increase from April to May.

New housing supply is driving down the price of rent link

• Supply Surge: Builders are adding more supply than at any point in the past five decades, with another million units on the way in the coming few years.

• Renters Rejoice: The increase in supply is driving down rent prices, providing renters with more choices and better affordability.

• Sun Belt Soars: Over 75% of all net new demand in the U.S. in the second quarter was in the Sun Belt region, indicating a strong demand for new leases.

Restaurant Properties Sell Across US as Investors Bet on More Demand for Dining Out link

• Big Moves: Necessity Retail REIT sells 44 Bob Evans restaurants for $93 million to Orion Real Estate Group, marking a resurgence of investor interest in dining establishments.

• Bullish on Dining: Amidst the pandemic recovery, Darden Restaurants, parent of chains like Olive Garden and LongHorn Steakhouse, acquires upscale Ruth's Chris chain for approximately $715 million, signaling confidence in the dining industry.

• Consumer Shift: JLL data shows that spending at food and beverage places has surpassed grocery spending since March 2021, indicating a return of consumer demand for dine-in experiences.

CMBS Delinquency at Highest Level Since 2021 link

• Surge in Delinquency: The CRED iQ delinquency rate for CMBS for June 2023 increased for the fifth consecutive month to 4.4 percent, marking a 5 percent increase from the prior month's rate of 4.2 percent. Over $4 billion in aggregate CMBS debt was reported as newly delinquent as of June.

• Office Sector Distress: Distress in the office sector continued to build in June with the delinquency rate increasing to 4.6 percent, a 16 percent increase from May 2023. The delinquency rate for office is nearly 2.5 times higher than July 2022.

• Special Servicing Rate: The special servicing rate, equal to the percentage of CMBS loans that are with the special servicer (delinquent and non-delinquent), increased month-over-month to 6.21 percent, from 6.01 percent. The special servicing rate has climbed in five out of six months so far in 2023.

Mckinsey study on Economic Outlook- Respondents share more positive views on their economies vs last year link

• Rising Optimism: Global executives are more positive than negative about economic conditions for the first time in over a year, with 48% stating that economic conditions have improved in the past six months.

• Interest Rate Shift: The smallest share of executives since June 2021 expect their countries' interest rates to increase, indicating a change in perspective on the interest rate environment.

• India's Bullish Outlook: Indian executives report a significantly more positive view on their economy, with 85% stating that conditions are better now than six months ago, a stark increase from 46% in March.

CNBC: Home prices are hitting new highs again, as high rates put the squeeze on supply link

• Surge in Prices: Home prices hit a record high in May, rising 0.7% nationally compared with April. Despite a dip in the housing market due to high mortgage interest rates last year, prices are now gaining again, with an annualized growth rate of 8.9% projected.

• New Normal: With mortgage rates around 7%, buyers seem to have adjusted to this new normal. By May, over half of the nation's 50 largest housing markets had either returned to their prior price peaks or set new highs.

• Supply Squeeze: New listings are down about 25% from a year ago, with homeowners reluctant to sell due to potentially higher interest rates on their next home. This has led to a decline in supply, with total inventory now about half of what it was just before the pandemic.