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๐ Pending Home Prices Hit All-Time High
Plus, The Rise Of Medical Outpatient Buildings, Minneapolis Most Searched Market and 5 more Real Estate Insights.
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A Quote
"In my whole life, I have known no wise people (over a broad subject matter area) who didn't read all the time โ none, zero."
โ Charlie Munger
Latest Rates
Loan Type | Rate | Daily Change | Weekly Change | 52-Week Range Low/High |
---|---|---|---|---|
30 Yr. Fixed | 7.38% | -0.05 | +0.72% | 6.45% / 8.03% |
15 Yr. Fixed | 6.82% | -0.03 | +0.78% | 5.90% / 7.35% |
30 Yr. Jumbo | 7.58% | -0.04 | +1.38% | 6.15% / 8.09% |
7/6 SOFR ARM | 7.40% | +0.00 | +0.58% | 6.11% / 7.41% |
30 Yr. FHA | 6.86% | -0.05 | +0.61% | 6.00% - 7.44% |
30 Yr. VA | 6.88% | -0.04 | +0.63% | 6.02% / 7.46% |
Real Estate Trends
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.
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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 monthsโ 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.
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Location Specific
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 Yardiโs 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.
Proptech
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.
Pro Member Only Content Below
Community Solar: A Growing Opportunity Within Commercial Real Estate
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Notable Population Growth in Small Southeast Towns
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Latest Proptech Funding Rounds
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Off Topic
Countries With the Largest Happiness Gains Since 2010
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/e8615ec7-c41e-4d69-ba26-025f48ae8c32/image.png?t=1713940185)
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Vidit
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