These Multifamily Markets Are Faring the Worst in Absorption

The Average U.S. Home Is Selling Above Its Asking Price For the First Time in Nearly a Year link

• Surpassing Expectations: For the first time since last August, the average sale-to-list price ratio has exceeded 100%. This means homes are selling above their asking price.

• Inventory Crunch: New listings are down by 25% from a year ago, and the total number of homes for sale has decreased by 12%. This scarcity is driving up prices.

• Buyer Demand Resilient: Despite high prices and low inventory, early-stage homebuyer demand is on the rise. Redfin's Homebuyer Demand Index is up 4% from a month earlier and near its highest level in over a year.

Mortgage rates reach their 2023 peak link

• Rate Rumble: Mortgage rates have soared, with the 30-year fixed rate averaging 6.81%, a significant increase from last week's 6.71% and a massive leap from last year's 5.30%.

• Economic Echo: The rise is driven by a resilient economy, persistent inflation, and a hawkish tone from the Federal Reserve. The 10-year Treasury yield has crossed the 4.0% threshold, unseen since March this year.

• Housing Hurdles: High rates and low inventory are pricing many potential homebuyers out of the market. However, the housing market remains resilient with buyers accepting mortgage rates in the new normal of 6% – 7% range.

Multifamily Developers Experiencing Construction Delays Spiked to 90% in Q2 link

• Rising Tide: Persistent construction and permitting delays have led to a significant 90% spike in construction delays for multifamily developers in Q2.

• Government Impact: Additional project requirements imposed by local governments are contributing to the slowdown in apartment development.

• Labor Shortage: The survey reveals a concerning trend with 17% of respondents reporting construction labor to be less available than three months ago, a noticeable increase from 10% in March.

BLS: Job Openings Decreased to 9.8 million in May link

• Dip in Opportunities: Job openings fell to 9.8 million in May, marking a decrease from the previous month.

• Stable Hires and Separations: The number of hires and total separations remained relatively unchanged at 6.2 million and 5.9 million respectively.

• Yearly Comparison: Job openings were down 14% year-over-year, with voluntary separations (quits) also seeing a 5% decrease.