Texas Market downturn worsens. Vacant Inventory up 100%, CMBS Delinquency Rate Nears 4% in June 2023; Office Delinquencies Increase Again and more

Colliers: CRE Transactions May Be Beginning to Thaw link

• Dramatic Dip: Commercial real estate sales in May experienced a significant drop, coming in at $19.8 billion, a 71% decrease compared to last year's volume.

• Sector Impact: The multifamily and industrial sectors led this decline.

• Predicted Thaw: Despite the downturn, Colliers suggests that the market may be approaching its low point, indicating a potential thaw in CRE transactions.

Texas Housing Market downturn worsens. Vacant Inventory up 100%. link

• Surge in Vacancies: Texas and Florida are witnessing a significant increase in vacant properties, with a 100% surge in the past year. Landlords, who invested heavily during the pandemic, are now struggling to find tenants.

• Austin's Rental Market Struggles: Austin, Texas, is a prime example of this trend, with a 151% year-over-year growth rate in vacant house rentals. The city is now experiencing a decline in both rents and home prices.

• Florida's Rental Market Woes: Florida, particularly West Palm Beach, is also grappling with a surge in vacant rentals, with a 159% growth rate over the last year. High rental prices are proving unaffordable for the local population, leading to a glut of vacant properties.

Fix-and-Flip Fintech Backflip Expands to 41 New U.S. Markets link

• Expansion Extravaganza: Backflip, the proptech company, has broadened its horizons by expanding to 41 additional metro markets.

• Data-Driven Decisions: Investors from Alaska to Hawaii can now leverage Backflip's data, technology, and capital to make informed real estate investment decisions.

• Growth Galore: Alongside nationwide expansion, Backflip has experienced significant business, product, and team growth, and completed its first acquisition as a seed-stage startup.

These 33 cities have lower rent prices than last year — including trendy spots like Austin, Texas link

• Stagnation Station: Rent growth is finally leveling out after years of rapid increase.

• Affordability Ascending: 33 US cities are now more affordable than they were in 2022.

• Trendy and Thrifty: Even popular places like Austin, Texas are seeing a decrease in rental prices.

Apple just eclipsed a $3 trillion valuation. now bigger than France’s economy and India’s entire stock market. link

• Monumental Milestone: Apple's ascent to a $3 trillion valuation makes it the highest valued company in the world, surpassing the annual GDP of France and double the size of India's entire stock market.

• Impressive Earnings: Apple is on track to generate $400 billion in annual revenue and $100 billion in annual profit, reinforcing its massive valuation.

• AirPods' Astonishing Achievement: Even Apple's AirPods segment alone, if considered a standalone business, generates enough annual revenue to qualify as a Fortune 500 company.

Lumber Prices Down About 35% YoY link

• Switch in Gear: The CME group discontinued the Random Length Lumber Futures contract on May 16th, transitioning to a new physically-delivered Lumber Futures contract that began in August 2022.

• Current Pricing: The new Lumber Futures (LBR) contract is currently priced at $528.50 per 1000 board feet.

• Seasonal Shift: There was no significant increase in lumber prices this Spring due to a slowdown in housing, breaking the usual seasonal trend of peaking prices in April or May.

Housing Market Tracker: Inventory is negative YOY link

• Inventory Dips: Housing inventory in 2023 has dropped below 2022 levels, with active listings only increasing by 5,848 compared to 30,940 in the same period last year.

• Mortgage Rates Rise: Mortgage rates have climbed above 7% following better-than-expected jobless claims data, yet purchase application data shows a 3% growth week to week.

• Inventory Turn Negative: Housing inventory in America is now negative year over year, indicating a significant shift in the housing market dynamics since November 9, 2022.

CMBS Delinquency Rate Nears 4% in June 2023; Office Delinquencies Increase Again link

• Uptick Alert: The commercial mortgage-backed securities (CMBS) market experienced a significant rise in delinquencies in May 2023, reaching its highest rate in 14 months. The trend continued into June 2023, albeit at a slower pace.

• Hotel Hurdle: The delinquency rate rose by 28 basis points to 3.90%, largely driven by a surge in hotel delinquencies. This was primarily due to a single-asset, single-borrower (SASB) hotel loan missing its balloon date.

• Office Ouch: Office delinquencies increased by another 48 basis points, bringing the rate for that segment to 4.50%. The overall Trepp CMBS Delinquency Rate jumped 28 basis points in June to 3.90%.

New Home Sales Jump 12.2% in May link

• Surge in Sales: New home sales in May 2023 saw a significant increase of 12.2% compared to April's revised rate.

• Yearly Growth: The sales rate is also 20% higher than the same period one year ago, indicating a robust market.

• Price Point: The median sales price of new houses sold in May stood at $416,300, reflecting the current state of the real estate market.

Amazon Has $8B Plan for Ohio Data Centers link