REsimpli’s Real Estate News and Market Update

By Sharad Mehta  
March 4, 2019

Existing Home Sales Fall to 3 Year Low in January

U.S. home sales fell in January to the lowest level in 3 years according to the National Association of Realtors. Home sales dropped 1.2 percent to a seasonally adjusted annual rate of 4.94 million units which is the lowest level since November 2015. This is also lower than the expectations of analysts who predicted 5.0 million units. This is in line with other data that home sales are slowing nationally.

 

New Troubling Housing Data Out for December 2018

Home prices increased 4.7 percent annually in December which is down from 5.1 percent in November according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index. This is important because this is the slowest pace since August 2015. Across the nation prices are inching upwards with the 10-city composite annual increase coming in at 3.8 percent, but this was down from 4.2 percent in November. The 20-city composite rose 4.2 percent year over year and was down from 4.6 percent in November as well.

It’s important to look at wage gains which are between 3.5 percent and 4 percent. Subtracting out the 2 percent inflation means that salaries are only increasing about 1.5 to 2 percent but home prices are outpacing wages. This means that homes are becoming more unaffordable. Mortgage rates did go lower in December which may help with affordability.

 

 

 

 

 

 

 

 

Federal Reserve Key Information:

The Federal Reserve policy affects all asset prices – from housing to stocks. Thus knowing the outlook gives investors insight and better predictability of the future.

Interest Rate: On January 30, 2019 the Federal Reserve said that it would keep its target range for its benchmark interest rate at 2.25% to 2.5%

Federal Reserve Outlook: Federal Reserve Chairman Jerome Powell said Tuesday (2/26/18) the central bank will take a “patient approach” as it weighs future interest rate hikes, echoing the more market- friendly strategy he and other Fed officials have adopted the past couple of months. This could lead to lower interest rates which would lead to more affordable mortgages to sustain housing growth.

 

 

 

 

 

 

 

 

 

 

 

 

Other Key Data:

Data is backward looking and takes time to compile. That’s why only the December data is out for home sales even though it’s February. Home sales data from the National Association of Realtors:

 

 

 

 

 

 

 

 

 

 

 

 

Existing home sales are on a downward trend since the peak was reached in approximately October 2017.

 

 

 

 

 

 

 

 

 

 

 

 

The median price of homes is steadily increasing since 2014.

 

 

 

 

 

 

 

 

 

 

 

Existing home sales price growth is slowly decreasing but is still increasing year over year. It’s a sign of the slow down.

 

 

 

 

 

 

 

 

 

 

 

 

Home sales are rapidly decreasing year over year as shown by this large decrease.
 

This is also apparent in the percent change in sales from last year for homes priced very differently.

 

 

 

 

 

 

 

 

 

 

 

 

 

sources:
https://www.nar.realtor/sites/default/files/documents/ehs-12-2018-summary-2019-01-22.pdf
https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales

Unemployment Rate: 4% through January 2019
source: http://www.ncsl.org/research/labor-and-employment/national-employment-monthly-update.aspx

 

Author Bio

REsimpli is founded by Sharad Mehta, a very active real estate investor. Sharad has done over 400 deals in last 6 years since he became a full-time real estate investor and over the years he has developed systems to automate many parts of his real estate investing. Sharad is a very active investor i See more >>

REsimpli is founded by Sharad Mehta, a very active real estate investor. Sharad has done over 400 deals in last 6 years since he became a full-time real estate investor and over the years he has developed systems to automate many parts of his real estate investing. Sharad is a very active investor in Lake County, Indiana market and he manages his entire business from Carlsbad, California, where he lives. Using the systems that Sharad has developed, he is able to manage 3-4 rehabs a month from a distance.

At reSimpli, our mission is to ‘Simplify Real Estate Investing Through Technology.’ Our team is passionate about using technology to reduce the time and energy required to build and manage a successful real estate business. reSimpli is a cloud-based system that makes real estate investing more efficient by automating tasks and helping the investor manage their business more efficiently.

We are constantly building and improving features that aid in: creating accurate and detailed scope of work for rehab projects, creating contracts with digital signature support, deal analysis tools, etc. We are a team of very active real estate investors so everything we are developing is something we find useful in our day to day investing.


Our passion is to create the best software for your real estate investing business and aim to be the only software program that a real estate investor needs to run a successful, scalable business. See less >>

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