Market Update
In this report from Marcus & Millichap, you will find a market momentum update.
Housing: Swell in home buying inflames shortfall
In late 2021, the single-family housing landscape mirrored the conditions witnessed earlier in the year. For-sale inventory of both existing homes and finalized new homes trailed historical averages. Meanwhile, the desire for residences remains very strong, which continues to reinforce the imbalance between supply and demand. In November, purchases of existing homes climbed to the highest level since January of 2021, but the buying activity compressed listed inventory of these dwellings to the lowest count in five months.
This combination resulted in the the median sale price moving up for the eighteenth straight month, to $367,250.
Multifamily pipeline aligns with pockets of robust demand Nationally, the U.S. is expected to add roughly 400,000 new rentals in 2022, a monumental number that is a record spanning back multiple decades. Digging deeper, about one-fourth of those deliveries will be in just six markets across the Sun Belt, where rapid migration supports the increase in new supply. Dallas-Fort Worth, Phoenix, Austin, Houston, Nashville and Atlanta are each expected to add more than 10,000 units in 2022. These six metro areas are projected to add a combined 250,000 new households this year. The overall multifamily construction figure is lofty, but development is correlating with demand and the new supply will play a key role in appeasing the housing shortage in 2022.
Developing Trends – New-home sale stock climbs for eighth straight month
The number of newly built homes available for purchase surpassed 400,000 in November, rising in every month going back to April. Nevertheless, only 39,000 of those dwellings were fully completed when listed for sale while more than 25 percent had not yet started construction. These conditions are impacting buying activity as houses in building phases are less appealing to people with condensed move-in timelines. Sales of new homes were down 14 percent year over year in November despite 112,000 more of these houses on the market relative to the same month in 2020.
To inquire about our next offering or request a Suitability Questionnaire Click here.
To schedule a 15 minute one on one meeting with US, Click Here.
Our goal is to educate our friends and grow our elite group of partners.
If you have a friend who would be interested to learn how to get involved in passive investing, please forward this email.
If you have friends who are interested in these articles, please pass this page and our contact info. Just right-click and copy this link. To sign up to get occasional emails from Cypress Ventures Group, please contact us here.