👀 Pending Home Prices Hit All-Time High

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"In my whole life, I have known no wise people (over a broad subject matter area) who didn't read all the time – none, zero."

― Charlie Munger

Pending Home Sales Prices Hit All-Time High link

• Despite rising mortgage rates, the U.S. housing market shows unexpected strength. Home prices have now reached all-time highs, surpassing levels seen two years ago. Sales volumes continue to grow as the market adjusts.

• Inventory is building quickly due to higher mortgage rates. There are currently 543,000 single-family homes on the market, a 31% increase from last year. This inventory build-up indicates a shift towards greater market availability, potentially easing competitive pressures for buyers.

• New home sales contracts show sustained growth, with 71,000 new contracts in the latest week. This marks a 7% increase from the previous year, despite overall slower growth compared to 2022. Home prices in contracts are also at a new peak, with the median price reaching $398,000.

Despite Higher Mortgage Rates, New Home Sales Post Solid Gain in March link

• Sales of new single-family homes increased 8.8% in March to a 693,000 seasonally adjusted annual rate, an 8.3% rise from the previous year. This surge comes despite higher mortgage rates and limited existing home inventory.

• The inventory of newly-built single-family homes stood at 477,000 in March, representing an 8.3 months’ supply. This is a 10.2% increase year-over-year, driven by a shortage of resale homes.

• The median sale price for new homes was $430,700 in March, which is nearly a 6% increase from February but down 1.9% from the same month last year. Regionally, sales have notably increased in the Northeast, Midwest, and West.

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Medical Outpatient Buildings Are a Good Segment for CRE link

• The shift towards outpatient care is driven by demographic trends and technological advancements. People aged 65 and older make up 18% of the population but account for 36% of total health spending.

• Outpatient procedures offer significant cost savings over hospital settings. This economic advantage is propelling a projected 10% growth in outpatient volumes over the next five years, contrasting with a 0.7% decline in inpatient volumes.

• Real estate for outpatient services is becoming a prime investment due to persistent demand and limited supply. Net absorption of outpatient facilities remained strong in 2023, reaching 16.9 million square feet, with occupancy rates climbing to 93.0% by the end of the year.

Minneapolis Most Searched Market for Fourth Month in a Row link

• Despite its notoriously cold winters, Minneapolis continues to attract a significant number of apartment searchers. The city topped Yardi’s RentCafe ranking for the fourth consecutive month.

• The region experienced more than a threefold increase in traffic in March compared to the previous year. Page views surged by 216% and saved searches by 159%.

• The West region dominated the top spots in rental search rankings. Overland Park, KS, notably rose to second place, marking a significant shift in regional rental search preferences.

CoStar Acquiring Matterport For A Whopping $1.6B link

• CoStar Group has announced a $1.6 billion acquisition of Matterport, a company known for its photorealistic 3D virtual property tours. The payment is evenly divided between cash and CoStar stock.

• This acquisition integrates Matterport's extensive library, which includes 12 million virtual tours covering about 38 billion square feet, into CoStar's existing portfolio of online property marketplaces.

• The strategic move aims to enhance CoStar's digital offerings across its platforms like Apartments.com and LoopNet, promising to reshape how users interact with property listings online.

Community Solar: A Growing Opportunity Within Commercial Real Estate

Notable Population Growth in Small Southeast Towns

Latest Proptech Funding Rounds

Countries With the Largest Happiness Gains Since 2010

That's all, folks.

Cheers,

Vidit

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