Investor Intel: Housing Market Off to a Strong Start in 2016
And they’re off! Last weekend saw the 142nd Kentucky Derby with Nyquist racing away with the win. Like Nyquist, the housing market continues to sprint ahead.
Now that we’re almost near the midpoint of the year, most indicators are looking positive for continued strength. The National Association of Realtors reported that existing home sales posted the best first quarter in nearly a decade, despite lots of headlines on crazy home prices and lack of inventory.
Lawrence Yun, chief economist at the National Association of Realtors, forecasted existing sales to finish 2016 at a pace of around 5.40 million – the best year since 2006 (6.48 million).
Yun said, “The housing market continues to expand at a moderate pace in spite of the fact that home prices are rising too fast in some areas because of insufficient supply fueled by the grossly inadequate number of new single-family homes being constructed. The good news is that pending sales in recent months have remained stable and should support a modest gain in home sales heading into the summer.”
Like existing home sales, rental rates in a number of markets are also on the rise. RentRange, one of the premier providers of market data and analytics for the single-family rental industry, released data ranking the top 25 U.S. Metropolitan Statistical Areas (MSAs).
The data showed a shake-up in the top 25 MSAs for rental rate increases, with three new markets taking spots in the top 10 compared to last quarter: Naples-Marco Island, FL, Syracuse, NY and Milwaukee-Waukesha-West Allis, WI.
Wally Charnoff, CEO at RentRange had this to say about the data: “The single-family rental market across the U.S. continues to offer significant opportunity for investors. The robust data available today empowers even non-institutional investors to analyze geographies and select the investment locations throughout the U.S. that are most opportune, as opposed to being limited to their own backyard.”
We’ll be digging into these numbers further in an upcoming blog post, so stay tuned!
Finally, we hope to see some you loyal readers in Miami next week. B2R Finance is a Gold sponsor at the IMN Single-Family Rental Forum and B2R experts will be on hand to discuss rental property financing and lead panel discussion on pertinent industry topics. Check out more information about the show here.
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