Investor Intel: Pre-Labor Day Lowdown
China’s exchanges and banks are closed until Monday to commemorate the 70th anniversary of Japan’s World War II defeat, giving investors much needed relief from recent global market gyrations. While volatility still reigns in U.S. stocks this past week (slightly raising fixed-mortgage rates), the markets have eked out a recovery after news of continued stimulus in Europe and solid U.S. data.
Friday, the Labor Department reported that payrolls rose by 173,000 in August (lower than expected, but still strong), and the U.S. jobless rate dropped to 5.1 percent, the lowest since April 2008. Further, a few days earlier the Labor Department reported the productivity of nonfarm workers increased at a 3.3 percent seasonally adjusted annual rate in the second quarter. This is a year-over-year increase of 0.7 percent and the strongest pace of productivity since the fourth quarter of 2013.
Meanwhile, CoreLogic reported home prices nationwide increased 6.9 percent year-over-year in July 2015 (includes distressed sales). Over this same period, the National Association of Realtors reported existing sales up 10 percent, and the Census Bureau reported new home sales up 26 percent. Only two states experienced home price depreciation: Massachusetts (-2.1 percent) and Mississippi (-0.8 percent).
According to CoreLogic, the five states with the highest home price appreciation (including distressed sales) were: Colorado (+10.4 percent), Washington (+9.9 percent), Nevada (+9.1 percent), Hawaii (+8.9 percent) and Oregon (+8.8 percent).
As homes become more expensive and the peak of hurricane season approaches, it may be time to make sure your rental property is properly insured from natural disasters. RealtyTrac came out with its 2015 U.S. Natural Disaster Housing Risk Report which found the states with the most homes in high risk or very high risk counties for overall risk are California (8.4 million), Florida (6.7 million), New York (2.4 million), New Jersey (2.3 million) and North Carolina (2.3 million). Stay tuned for B2R’s full report plus tips on how to prepare your rentals for natural disasters the week after next here on the blog.
An interesting report from CNBC found that student housing is fast becoming a hot sector in real estate for developers, and they’re not talking boxy cement dorms. Luxury apartment buildings featuring units with granite countertops and stainless steel are in demand, raising the standard for student housing. Have an upscale single-family rental near a college or university that you never thought would be appropriate for students? It may be time to look again at that market. Opportunity reigns for the real estate investor.
B2R Finance offers rental investors innovative lending products to help unlock equity from existing portfolios and provide the cash needed to build rental portfolios nationwide. For more information about how B2R can help you obtain rental property financing, just call 800-227-8107 or visit www.b2rfinance.com/borrowers and follow us on Twitter @B2RFinance.
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