strong job growth
Issue 82 - April 29th, 2022
The wild rollercoaster of a housing market since 2020 has been so interesting and intriguing to watch and (attempt to) understand. We have seen a combination of low mortgage rates, boredom at home during lockdowns, Zillow scrolling becoming a hobby, and record numbers of housing transactions.
Now that we are seeing some rise in rates and incredibly low inventory levels, we are finally starting to see transaction volumes decrease year over year as things start to slow down on a macro level.
Some people may be reading this and thinking, “Sam has lost his mind again, MY MARKET is absolutely crazy still!” And yes, I agree with you that as we move through 2022, we will start to see some stark differences on a micro level in markets all over the USA.
The number 1 driver of strong housing markets this year will be cities that continue to have strong job growth. During the heights of the pandemic, I could never understand why homes in middle of nowhere housing markets were hitting all time highs and seeing multiple offers.
The FOMO effect set in and buyers panicked in some areas sparking a housing bubble in select cities, but I do not think we are anywhere near “bubble territory” in cities like Austin, Dallas, Miami, etc. where we have seen and continue to see record numbers of people moving to these markets. Inventory levels will be a problem for years to come in these markets, and even as rates rise/level off, these markets will continue to see strong housing markets with transaction volumes and price increases.
Newsworthy Links To Share
Gravy launches with $2.6 million seed to help renters save money for first home (FinLedger)
Made of wood? Southfield Park 35, one of the newest Dallas industrial projects, looks more like Noah's ark than a warehouse from the street. What makes the site unique is not that it stretches longer than a football field, but that the building is covered in wood instead of the usual concrete tilt-up walls. The project is being spearheaded by two of the country's largest warehouse developers — USAA Real Estate and Seefried Industrial Properties — to produce a more environmentally friendly building. (CRE Daily)
4 Reasons the Housing Market Won’t Crash (Wealth Of Common Sense)
Bulk buyers bought a record half-million retail homes in 2021, but only 4,200 at foreclosure sale (HousingWire)
TheGuarantors raises $50M Series C: TheGuarantors provides two flagship products which it says help “to create a smart, fair, and human rental experience for customers.” The first product, Lease Guarantee, allows renters access to homes they might not otherwise qualify for, while its Security Deposit Replacement acts as a direct and affordable substitute to a cash security deposit.(FinLedger)
Regulatory filings by home furnishings company Restoration Hardware offer a glimpse into its vision for an “ecosystem” in Aspen. (Aspen Times)
WSJ Real Estate: This private island with a $72 million price tag isn't where you think it is: Cromwell Island on Montana's Flathead Lake spans around 350 acres and includes a 45,000-square-foot, unfinished villa. Check out all of the photos on the Zillow listing HERE!