Investor Appetite In This Asset Is Strongest in a Decade

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Growth in the Labor Force Coming Entirely From Immigration Link

The foreign-born labor force has grown 11% since February 2020, and the native-born labor force has remained unchanged over the same period, see chart below.

Inventory Inches Up While Prices Hold Steady link

• National unsold inventory of single-family homes increased by 1.5% this week, reaching 621,000 homes. This represents a 38% increase compared to the same time last year, indicating a plateau in inventory growth.

• New listings totaled 87,000, with 16,000 immediate sales, showing a slight decrease in market momentum. Despite a 9% increase in sellers from last year, the market is not seeing a significant surge in inventory or sales.

• The median price of homes going into contract is just under $399,000, up 3.7% from last year. Overall market prices remain flat, with no significant appreciation expected for the rest of 2024.

• Price reductions are up to 36.4%, reflecting slow demand and flat future home sales prices. High mortgage rates continue to suppress demand, keeping price appreciation minimal.

Boomers struggled more than millennials to buy their first homes link

• Boomers faced higher mortgage rates, with peaks over 16% in the 1980s, leading to monthly payments consuming 33.2% of median income. Millennials, benefiting from a decade of ultralow rates, only used 22.5% of their income for mortgage payments.

• Inflation-adjusted home prices grew by 18% for boomers, 23% for Gen X, and 14% for millennials, highlighting varying affordability challenges. Despite lower student debt, boomers dealt with a tougher job market in the 1980s.

• Historical debt-to-income ratios hit a record high of 53.69% in 1981 for boomers, significantly higher than recent years. This indicates greater financial strain for boomers during their prime home-buying years compared to millennials.

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Do Elections Impact the Housing Market? link

• Home sales typically slow down in November during election years due to uncertainty, but this slowdown is temporary. Sales usually bounce back in December and rise the following year.

• Home prices generally remain stable or increase during election years, with seven out of the last eight Presidential elections seeing a rise in home prices the following year. The only exception was during the housing market crash.

• Mortgage rates tend to decrease from July to November in election years, as seen in eight out of the last eleven elections. This trend is expected to continue, potentially leading to lower monthly payments for home buyers.

Amazon's New Twist on Logistics: Out-of-Sight Drone Deliveries link

Amazon has been talking about delivery drones since 2013. It might be here.

• Amazon is launching a new drone delivery system that operates out of sight from operators, potentially revolutionizing logistics. This approach aims to enhance delivery efficiency and reduce human error.

• The drones will primarily serve rural and suburban areas initially, addressing the challenge of last-mile delivery in less accessible regions. This could significantly reduce delivery times and costs in these areas.

• The FAA has granted Amazon special permissions to conduct these out-of-sight drone operations, highlighting regulatory support for innovation in logistics. This approval marks a critical step forward in the broader adoption of drone technology for commercial use.

Investor Appetite In This Asset Is Strongest in a Decade 

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 Only 0.69 Acres Link

If 365 of us put just 28k down, we can have a day-a-year timeshare. Someone start a website to buy to group buy these homes. :)

That's all, folks.

Cheers,

Vidit

P.S - Read past newsletters here