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According to new data released by the US Census Bureau on Thursday, the seasonally adjusted annual rate of housing starts fell to 1,382,000, 1.4% below levels recorded in November.
The Federal Reserve's efforts to rein in historically high inflation have come at a steep price for multifamily real estate borrowers, who must now contend with increased interest rates and a greater requirement for down payments in order to close deals.
From January through November of this year, housing finance giants Fannie Mae and Freddie Mac issued a total of 3,340 unique multifamily loan securities, which CoStar evaluated. More than $74 billion in loans on around 8,500 properties were represented by the securities.
Interest rates are increasing, as seen by the statistics. Loan-to-value ratios, which measure how much a borrower is borrowing in relation to how much their home is worth, dropped at the start of the year and have since leveled off around 50%.
Default notices, scheduled auctions, and bank repossessions were filed on a total of 30,677 U.S. properties in November 2022, according to ATTOM's recently issued U.S. Foreclosure Market Report. A year-over-year increase of 57% was offset by a monthly decrease of 5%.
According to ATTOM's most recent foreclosure activity research, one in every 4,580 homes would have a foreclosure filing in the month of November 2022. Foreclosure filings were found in one in every 2,401 homes in Illinois, 2 in every 736 homes in Delaware, 2 in every 2,916 homes in New Jersey, 1 in every 3,195 homes in South Carolina, and 1 in every 3,195 homes in Wyoming, according to the study (one in every 3,237 housing units).
IRVINE, CA—December 15th, 2022 — ATTOM, the nation's premier real estate data aggregator, has just issued its Q3 2022 U.S. Home Flipping Report, which shows that 92,422 homes in the United States were traded hands during that period. They accounted for 7.5% of all house sales in Q3 2022, or about 1 in every 13 closings. The most recent percentage is below the second-quarter 2022 level of 8.2 percent, which represented one in every twelve house purchases throughout the country. Still, that's an improvement from the 5.9 percent, or one in every 17 transactions, saw in the third quarter of 2017.
This year's third quarter house flipping rate was lower than the record high of 9.7 percent seen in the first quarter of 2022, but it was still the third highest in the prior decade.
According to Rick Sharga, ATTOM's senior vice president of market intelligence, "this is a typical good news/bad news report for fix-and-flip investors." The general price weakness in today's housing market was reflected in the fact that "although flipping activity in the third quarter was among the greatest on record, gross earnings and profit margins decreased dramatically."
According to the National Association of REALTORS®, Atlanta has the best prospects for growth among major U.S. housing markets in the coming year.
The "New York of the South" is on NAR's list of 2023's most exciting real estate markets for three primary reasons: The NAR research cites many factors that give Atlanta a leg up on other comparable cities when it comes to housing affordability. These include a fast-expanding population, a lower median home price, and a larger share of renters who can afford to buy. Additionally, several large technology businesses are coming to Atlanta from the West Coast, contributing to the city's thriving job economy.
Taxes are an inevitable cost of doing business for real estate investors. However, 1031 exchanges (called for Section 1031 of the IRS's tax code) let you avoid paying taxes on capital gains.
We've compiled some advice on making a 1031 exchange, as well as a few of the most crucial regulations in this area.
Investment giants backed by venture capital as well as small businesses with fresh funds have been pouring into real estate over the past several years. Investment in real estate increased from brisk to frenetic as a result of record-low mortgage interest rates and the widespread distribution of stimulus funds. Additionally, investors, many of whom made all-cash offers, completely altered several markets, often making it impossible for first-time purchasers to obtain a property.
Due to the changes in the property market, many investors, especially smaller ones, have recently slowed down on their acquisitions.
As mortgage rates have risen and rent increases have slowed, the market circumstances that made real estate investing so appealing have begun to dry up.
A mortgage with just interest payments might be the smartest choice. Perhaps you are a student anticipating a large income after graduation, have received a large inheritance, or do not plan to keep the property for the foreseeable future.
On the other hand, there are serious dangers to consider. Learn the ins and outs of interest-only mortgages, including the circumstances in which they make sense and don't.
People who are in the market to purchase a home are constantly on the lookout for a good bargain. There's nothing novel about it. In today's tightening real estate market, however, a genuine deal is rarer and more precious than ever.
According to Christopher Whalen, head of Whalen Global Advisors, even if Federal Reserve Chairman Jerome Powell and his colleagues stopped rising policy rates soon, the 30-year fixed mortgage rate still would increase to 10%.
