visited the battlefield many years ago with my BIL from bakersfield (we were visiting family in portland). stopped at subway for lunch and my BIL asked for avocado on his sandwich. the sandwich artiste' (not @mrwicked) said "you must be from california." it was pretty funny.
I don't know what to call this, but was thinking of putting something together here that may be beneficial for people and if there is interest can continue maybe weekly or so. If this is a bad idea or not well received I'd rather not waste my time and not bump a thread no one cares about, please add your input or not and this will die off.
As most here know, I am a mortgage/real estate expert for over 21 years. That allows me to compile helpful consumer data for people looking to make all sorts of financial decisions whether mortgage/real estate related or not. I noticed over the years and experience, I have gone from just giving people rate/payment numbers to actual long term planning or economic thoughts to help them plan.......I 100% am not a financial wizard, financial planner, and 100% always recommend speaking to an astute professional such as a financial advisor, CPA, lawyer, or specific financial field of their necessity. A lot of my info comes from services or tools I pay for or have access to and I can share some of them here in kind of a weekly easy to read or interesting number newsletter.
So, if you guys want I can share some simple to digest economical numbers affecting our everyday lives from housing, to inflation, to financial trends, and ultimately what our economical climate and outlook. It could be helpful to some here or even spark conversation on various sectors. Again, please send input whether here or DM me to gather whether this is worthwhile. With that said, let's dive in!
The overall market and how it pertains to housing and mainly mortgages. This will be extremely confusing to most, but I can explain it and what it means to us everyday folk.
Some interesting overall trends and data:
The Producer Price Index (a measure of inflation) rose 8.3% year-over-year in August as the rat moves through the python and supply chains reset post-lockdown.
Food prices are up 2.9% on the back of an 8.5% rise in meat prices.
Lumber prices are coming back down to earth – up 4% year over year, but down 19% in the last month.
Mortgage and real estate trends, if you are looking to buy or sell, and how to overall economy can impact your decision:
1. Mortgage Industry Employment : The mortgage industry shows no sign of slowing down its hiring pace. Since 2010, total head count has sustained its trend upward.
2. Home Sales: Slowing home sales suggest some push back from buyers as home prices have continued to rise.
3. Existing Condo Sales Dip A Bit: Condo sales have fared well during the pandemic. Even the recent dip to 12% of total existing home sales bodes well for the trend toward condos when we zoom out and look at the larger trend.
4. Refinance Applications: When we read rates are near all-time lows, we should believe it. The relationship between the red and blue lines below tell the tale. *This comes with a graph that would just take up space.
5. Mortgage Credit Availability: The mortgage credit box remains well below pre-pandemic levels as agencies and lenders appear to take a wait-and-see approach.
Here are some housing numbers from "pros" and their insight on the housing market and it's current state:
July Rental Data: Buying a Starter Home is More Affordable than Renting in Nearly Half of the Largest Markets
The never-ending “buy vs. rent” debate is as hot as ever these days. Realtor.com makes the case that “renting” continues its squeeze in nearly half of the largest U.S. markets.
Buying a starter home was more affordable than renting in 24 of the 50 largest metro areas.
In the 50 largest metros, the median rent was $1,607, up 9.8% year-over-year.
Rents for all unit sizes are at series highs.
Studio: $1,315, up 5.6% ($70) year-over-year
1-bed: $1,495, up 9.5% ($130)
2-bed: $1,802, up 10.9% ($177)
In these markets, the monthly cost to buy was 15.5% ($216) lower than renting, on average.
Condo Prices Rise At Least 20 Percent In Majority Of Oceanfront Counties Around U.S.
Condos near oceanfronts cost more. No surprise there. But a 20% increase changes the landscape. 50% of those oceanfront countries surpass the typical $305,000 condo price nationwide, while 50% fell below.
There condos are located matter. Especially in the Southern U.S.
The Southern region of the U.S. had 69,616, or 67%, of the 104,359 condo sales in the 86 counties with sufficient data to analyze during the second quarter of 2021.
Median condo prices increased by at least 20% from the second quarter of 2020 to the second quarter of 2021 in 47 of the 86 oceanfront counties with sufficient data to analyze, or 55 percent.
Building Materials Prices: Large Increases Year-To-Date
Limited existing housing inventory and the corresponding price increases are caused by several factors, including the cost of building new homes. The price of new housing materials has risen significantly, YTD.
The prices of goods used as inputs to residential construction, including and excluding energy, have risen 19.0% and 12.0%, respectively, year-to-date (YTD).
The price of steel mill products increased 81.3% YTD following a 2020 increase of 11.1%.
Copper pipe and tubing witnessed an increase of just under 35% YTD.
And there you go with keeping it simple and not getting too into the data. But the person looking to buy/sell a home, where some of the inflation numbers come from on things like gas, groceries, etc. and what it means to our personal finances, and maybe a little insight into those looking into financial planning based off what our economy and markets are doing.
Since this is my first (and maybe only one) and I'm not a tech wizard, the formatting may be off and I can work on that if this continues.
Cheers.
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