Where Property Prices Are Trending by Type

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Determine never to be idle. No person will have occasion to complain of the want of time who never loses any. It is wonderful how much may be done if we are always doing.

― Thomas Jefferson

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Job Openings Drop to Lowest Level Since February 2021 link

Today’s graphic from Statista illustrates that the number of job openings in the United States dropped to its lowest level in more than three years in April, which they say further indicates that the U.S. labor market is cooling off. They say 8.06 million positions remained unfilled on the last business day of April—the lowest reading since February 2021.

Home Prices Hit New High, But Buyers Gain Power as Stale Listings Pile Up and Price Drops Become More Common link

• The median U.S. home-sale price has reached an all-time high of $396,000, but buyers now have more negotiating power. Listings that sit for 30 days or longer are more likely to see price drops, with sellers reducing their asking prices at the highest rate since November 2022.

• Pending home sales have decreased by 3.8%, marking the largest year-over-year decline in nearly four months. High housing costs are deterring buyers, leading to fewer requests for home tours and buying services.

• Mortgage rates have slightly declined to 6.95%, offering some relief but remaining significantly higher than pandemic-era lows. This small decrease could signal further declines, potentially easing the financial burden for buyers in the coming months.

Home Flippers Return to Market as Resale Prices Rise link

• Gross profits on flipped homes in Q1 2024 rose to $72,375, up from $65,000 in Q4 2023, yet still below the 2022 peak of $80,000. This indicates a recovering but cautious market for home flippers.

• The typical gross profit margin for flips was 30.2%, but high carrying costs can significantly reduce net profits. Renovation expenses, mortgage payments, and property taxes are critical considerations.

• Market conditions suggest that while there is opportunity, the potential for profit loss remains high due to volatile costs. Home flippers must carefully manage expenses to ensure profitability.

Steady is the Trend in Single-Family Rent Growth link

• National single-family rental growth has stabilized at a 3% year-over-year increase for most of the past year. Only the highest price tier, with properties priced at 125% or more of the regional median, saw a higher increase at 3.2%.

• The lower-priced tier experienced a 3.1% rent increase, down from 6% the previous year. This suggests a cooling in the lower end of the market compared to the more moderate increases in higher-priced rentals.

• Rents in the lower-middle and higher-middle tiers increased by 3.5% and 3.3% respectively, both showing a slight decrease compared to last year's figures. This indicates a general trend of steady but modest growth across different rental price tiers.

Declining Birth Rates, Fewer Children Affect US Housing Demand link

• Birth rates have shifted, with women now having children later in life, leading to an increase in demand for move-up housing as people are more financially established when starting families. In 2023, the highest birth rates were among women aged 30-34, up from 25-29 in 1990.

• Migration trends are creating regional differences in housing demand, with cities like Dallas, Houston, and Charlotte experiencing increased move-up home purchases. These areas attract higher-income migrants from cities like New York and Los Angeles, where home prices are significantly higher.

Another Proptech AI Acquisition, Entrata Buys Colleen AI link

• Entrata's acquisition of Colleen AI aims to enhance its property management software with advanced AI capabilities. This integration introduces ELI+, a suite of AI tools designed to automate and optimize various property management workflows.

• ELI+ offers immediate access to AI-powered collections and renewal modules, with plans to include leasing and other modules soon. This move is part of Entrata's strategy to bring more efficiency and modernization to property management operations.

• The acquisition reflects a broader trend of consolidation in the proptech industry, driven by a competitive market and investor caution. This trend highlights the ongoing shift towards technology-driven solutions in real estate management.

Where Property Prices Are Trending by Type 

New data from the U.S. Census Bureau Shows Fastest Growing Cities in America

These kind of areas are seeing sharp home-price increases: SmartAsset

Why are home prices at all-time highs with more inventory? 

Who is getting funded in Proptech?

The Growth of $100 Invested in Jim Simons’ Medallion Fund

Odd, but I kind of dig it. link

That's all, folks.

Cheers,

Vidit

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