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Sizzling Hot Summer Home Market

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This is not the first time that the US has had a strong market. The difference this time around is that the market is exceptionally strong in all parts of the country. The coastal intense markets are typically found, but this time it’s almost everywhere, with the national average list price hitting a new high of $ 380,000 in May 2021 (Realtor.com). That is 15.2% more than in the previous year.

How the summer market got so hot

Let’s look at the main drivers of this unprecedented summer 2021 housing market (it’s a long list):

  • Millennials are in their prime when buying a home.
  • Mortgage rates have long been exceptionally low as the Federal Reserve continues to support low rates.
  • COVID turned our homes into offices, classrooms and havens for the outside world.
  • Construction workers were laid off during the pandemic – few new homes were built.
  • Timber prices are exceptionally high and are getting higher. It is estimated that the cost of building an average home has increased by $ 80,000.
  • Many large construction companies have slowed production while waiting for business costs to stabilize. (Some give deposits back because they can’t build, prices are previously quoted).
  • At the current rate of sale, the stock is estimated at a very low level of 2.4 months.
  • Compared to the traditionally much slower winter season, there are currently around half of the houses for sale.
  • The high cost of buying a replacement home has led many potential sellers not to sell their current home.
  • All consumer costs are rising rapidly (inflation).
  • Inflation increases the pressure to raise interest rates. A rate hike from 2.75% to 3.25% decreases a home buyer’s purchasing power by an average of $ 23,250.
  • Because of the pent-up travel needs, consumers spend more on flights, vacations, family visits and entertainment – and save less on their own home.
  • The pandemic stimulus is mostly in the rearview mirror (less savings for down payments).

The hot domestic market in 2021 has reached a peak of affordability.

Like it or not, we may be on the verge of a slowdown. That doesn’t mean it will immediately become a buyer’s market in two months. However, more buyers are being pushed out of the market every day. You give up. After all, the home buying frenzy has driven millions of Americans out of the market. The National Association of Home Builders says about 60% of households can no longer afford the house at the average price. Since the cost increases occurred at the lower end of the market, the number of first-time buyers has no choice but to decrease.

Sellers recognize the top of the market. Two week old data from realtor.com suggests that more and more sellers are bringing homes to market. Most recently, new listings rose 7% after rising in March and April after falling briefly in the first half of June. If the rise in listings continues, it is to be expected that the feverish price increase of the past year will weaken slightly.

Also this week the Federal Reserve announced that it would examine the interest rates closely. No rate hike is planned for the moment, but a closer look adds to concerns that the economy is recovering faster than expected. A rate hike could come earlier than previously forecast to keep inflation under control.

Completions of new buildings rose slightly in May, while building permits declined in the summer months. Timber prices and the shortage of labor keep new residential construction significantly below demand.

A March poll by Fannie Mae showed more Americans have lost confidence that this is a good time to buy, with shoppers’ confidence falling 4%. If this sentiment persists, it means fewer new buyers are entering the market while existing buyers are giving up. The expected outcome can be a slowdown in the market.

Key indicators to keep watching are interest rates, inventory levels and consumer confidence. The affordability problem may finally have peaked. The average US home price is projected to rise above $ 395,000 in June. The high end of the market for well-qualified Millennials can be a 3-bedroom, 2.5-bath home for $ 360,000 or less.

Please leave your comment.

Additionally, our weekly Ask Brian column welcomes questions from readers of all levels of real estate experience. Please email your questions, inquiries or article ideas to askbrian@realtybiznews.com.

Photo by Tuce on Unsplash

Author Biography: Brian Kline has been investing in real estate for more than 35 years and has been writing about real estate investing for 12 years. He also has over 30 years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives in Lake Cushman, Washington. A vacation destination near a national and Pacific ocean.

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Real estate industry groups spent millions to halt the national eviction moratorium • OpenSecrets

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(Photo by Kevin Dietsch / Getty Images)

Housing and real estate groups spent more than $ 100 million lobbying over the past year and a half while Congress and the White House worked to extend the COVID-19 eviction moratorium that these groups were hoping to stop.

President Joe Biden announced Tuesday that the Centers for Disease Control and Prevention would impose a 60-day eviction ban on counties with “significant and high” virus transmission. At the start of the coronavirus pandemic in 2020, the CDC put in place a nationwide moratorium to curb the spread of the virus by keeping tenants in their homes. The House of Representatives did not pass a law on Friday that would keep the moratorium in place across the country until October 18.

The 60-day ban came days after House Democrats, including MPs Cori Bush (D-Mo.), Ayanna Pressley (D-Mass.) And Ilhan Omar (D-Minn.), Put heavy pressure on Biden and the Congress had exercised to reinstate the moratorium. Bush, who has experienced homelessness, slept on the Capitol steps for five nights in protest at the lifting of the ban.

“Last night we stood on the Capitol steps in a moment of silence for all the people who are vacant and whose lives have been taken for political violence,” tweeted Bush on Sunday. “For everyone whose life is in danger until the eviction moratorium is extended. We have to save lives. “

But the moratorium has also been the subject of several lawsuits and lobbying since it was introduced by groups such as the National Association of Realtors and the National Apartment Association.

The real estate association, the largest real estate business in the country, spent over $ 84 million on lobbying last year, its highest figure ever and having spent over $ 18 million to date in 2021.

The group continued to oppose the eviction moratorium and pushed for more rent support funds because the moratorium is detrimental to housing providers or landlords who lose rent payments. She reported lobbying discussions with Congress, the Ministry of Housing and Urban Development and the National Economic Council, among others, regarding the moratorium.

The group was also involved in two lawsuits with the Alabama and Georgia Brokerage Association seeking to lift the eviction notice. The two groups filed lawsuits against the Trump administration last year, saying it was illegal for the CDC to enact the moratorium.

The lawsuit against the Alabama Realtors’ Association reached the Supreme Court, which ruled in June that the moratorium could remain in place but warned the Biden administration not to extend the ban beyond July.

The Housing Association, a landlord trading group, filed a similar lawsuit against the federal government shortly after the Supreme Court ruling. The association has campaigned heavily against the moratorium, spending over $ 1.4 million in 2020 and $ 670,000 so far this year. The group also campaigned for more tenant aid funds, claiming in a statement accompanying the lawsuit that homeowners “owe $ 26.6 billion.”

“Any extension of the eviction moratorium amounts to an unfunded government mandate that forces housing providers to provide an expensive service without compensation and places tenants with insurmountable debt,” said Bob Pinnegar, president and CEO of the NAA, in a statement Dec. July.

The Mortgage Bankers Association, an advocacy group for the real estate finance industry, also campaigned against the moratorium. The association spent over $ 2.4 million on lobbying efforts in 2020 and has already spent nearly $ 1.2 million this year.

Last year, the group also campaigned against the moratorium on coronavirus eviction law and spent much of 2021 campaigning for rental support. The organization said in a statement following the initial adjustment of the ban that the moratorium would trigger a “cascade reaction” that would only tighten the economy.

While lobby groups insist that the eviction ban is detrimental to the economy, Democrats and civil rights activists, including MP Alexandria Ocasio-Cortez (DN.Y.) and Senator Elizabeth Warren (D-Mass.), Praised Bush after the new ban was imposed had been put in place for their efforts outside the Capitol.

“I applaud the CDC for imposing an eviction moratorium on the vast majority of the population,” Senate majority leader Chuck Schumer (DN.Y.) said in a statement on Tuesday. “It is devastating for anyone who loses their home through no fault of their own, and it is shameful that the Republicans in Congress have not lifted a finger to prevent it.”

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Sera Global Continues Expansion of Real Estate Expertise with Hire of Six Industry Leaders

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NEW YORK, 4th August 2021 / PRNewswire / – Sera Global (“Sera”), a leading global independent real estate advisor, today announced the continued expansion of its real estate business with the hiring of five partners and an executive director. famous North America and Europe.

The new employees bring a wealth of experience to Sera’s growing real estate team. These professionals, who move into Private Capital Advisory (PCA) and Investment Banking, further underscore how Sera is building an integrated advisory platform to meet clients’ strategic priorities across their business or asset lifecycle.

“We are excited to welcome each of these talented individuals to our growing global team and are excited about the extensive real estate knowledge and experience they will bring to our client base,” said Leo van den Thillart, Managing Partner and Global Head of Sera. “These people are central to realizing our vision as a holistic strategic advisor as our clients continue to seek long-term partnerships with specialist real estate expertise in investment banking, private capital advisory and liquidity solutions.”

  • Bailey Puntereri, Partner joins Sera’s private capital advisory business new Yorkwhere he will be responsible for institutional investor and advisor coverage as well as advising property operators and managers on capital raising strategies, vehicle structuring and equity placement. He brings almost 20 years of experience in commercial real estate and most recently served as a Principal in the real estate sales team at PJT Park Hill, serving institutional investors along the East Coast and Southern United States.
  • James Park, Partner strengthens Sera’s investment banking team in new York from Evercore, where he served as a managing director in the real estate consultancy practice. Previously, he was also Managing Director at UBS in their Real Estate Lodging and Leisure (RELL) Group, both in London and Singapore. At Sera, he will be responsible for M&A, strategy and fundraising advice for public and private companies and sponsors.
  • Patricia Wilkinson, Partner will be responsible for the project management function for Real Assets for Sera Global’s Private Capital Advisory business and will also be responsible for advising general partners, operating companies and managers of Real Assets on capital formation and fund strategy, as well as overseeing the fundraising process and business development . She joins Sera from Threadmark, where she was responsible for project management and origination worldwide.
  • Alexandra Cromer, Partner becomes Co-Head of Project Management and Deal Management for Sera Global’s Private Capital Advisory business. Prior to joining Sera, Alexandra was with Atlantic-Pacific Capital for over 13 years, providing strategic advice and management services for primary fundraising, co-investments and direct transactions to a number of infrastructure and real estate clients.
  • Eoin Bastible, Partner comes from UBS Asset Management, where he has been Head of Business Development EMEA for Real Estate and Private Markets since 2014. Seat in London, he will be responsible for Funding, Origination and Business Development for Private Capital Advisory in EMEA.
  • Ian Currie, Executive Director becomes Executive Director in Sera’s Private Capital Advisory business, based in London. Ian was previously Executive Director at MEC Global Partners, Mitsubishi Estate’s investment platform.

“As our customers develop their business and growth strategies, these people will help drive our integrated approach to customer solutions and help us achieve their long-term goals,” said Maggie Coleman, Managing Partner, Real Estate Private Capital Advisory at Sera Global. “We look forward to expanding our portfolio of real estate advisors as we accelerate our delivery of solutions to global markets.”

These appointments follow the recent addition of Michael Yang and Kilian Toms Head of the Liquidity Solutions / Secondaries Practice of Sera and Maria Kang | and Stephane Marguier to drive the North American and European expansion of Sera’s infrastructure PCA business, both key pillars of Sera’s integrated approach to strategic advice.

About Sera Global

Sera Global is a leading global real estate advisor with over $ 100 billion in the previous transaction volume; Sera management has more than $ 300 billion of capital. The company offers integrated investment banking, private capital and strategic advisory services in the real estate, infrastructure and renewable energy sectors. Sera is co-headquartered in New York, NY and London, United Kingdom with own offices in The angel, Toronto, and Seoul.

Contact:
Anne Hart / Claire Walsh
[email protected] / [email protected]

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Modiv Completes Three Commercial Real Estate Transactions in Texas | News

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Newport Beach, Calif., Aug. 3, 2021 (GLOBE NEWSWIRE) – The transactions include an acquisition, property sale and lease renewal, indicating healthy portfolio activity for Modiv in the Texas real estate market

Modiv Inc., an innovative real estate, fintech and proptech asset manager, today announced the completion of three separate commercial real estate transactions in central Texas. The transactions include an acquisition and rental extension in San Antonio and a property sale in the greater Austin area with a cumulative total of 99,265 square feet of real estate.

Texas Transaction Details include:

Acquired a 3,800 square foot fast food restaurant leased to Raising Cane’s® located at 19110 Stone Oak Parkway in San Antonio. Founded in 1996,

Raising canes

is a popular and growing fast food brand that specializes in chicken fingers and operates approximately 550 restaurants in 30 states and the Middle East. The property is on a major thoroughfare near schools, medical facilities, and new housing developments. An eight year lease extension for a Pre-K 4 SA Educational Center on 1255 Old Highway 90 W in San Antonio. The 50,000 square foot facility is leased to the San Antonio Early Childhood Development Corporation (“Early Childhood”) and the lease is guaranteed by the City of San Antonio. This pre-K center is one of four in the San Antonio market and has an enrollment of over 400 students. Modiv worked closely with the board of directors of Early Childhood on the transaction so that the center can continue its mission of delivering high quality, high impact early childhood education to the San Antonio community at 5900 183A Frontage Road in Cedar Park became with an aerospace technology company completed. Pricing came before the most recent independent assessment that shows the strength of the greater Austin commercial real estate market.

“These transactions reflect our team’s ability to add value and actively manage our diverse real estate portfolio,” said David Collins, chief property officer at Modiv, based in Dallas. “We remain optimistic about the continued growth of the Texas commercial real estate market and we believe our investments in the area can provide long-term value to our investors.”

Within Texas, Modiv also owns an office property leased to Texas Health Resources in Dallas and a retail property leased to Dollar General in Big Spring.

Forward-Looking Statements Certain statements contained herein, other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Exchange Act of 1934 as amended (the “Exchange Act”). Modiv intends that all such forward-looking statements be subject to the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act, Section 21E of the Exchange Act and other applicable laws. Such statements include, in particular, statements about Modiv’s ability to add value and actively manage its portfolio, the strength of the Texas real estate market and its ability to create long-term value. Therefore, such statements are not guarantees of future results and are subject to risks, uncertainties and other factors, some of which are beyond Modiv’s control, which are difficult to predict and which could cause actual results to differ materially from those expressed in the forward-looking statements implied differ. seek statements. Accordingly, Modiv makes no representations or warranties, express or implied, as to the accuracy of any forward-looking statements contained herein. Unless otherwise required by federal securities laws, Modiv assumes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unforeseen events, or changes in future operating results, whether as a result of new information, future events or otherwise.

About Modiv Modiv Inc., a real estate, fintech and proptech asset manager, is reinventing modern real estate investments for retail investors. Driven by innovation, a focus on investors and an experienced management team, Modiv has created one of the largest unlisted real estate funds raised through crowdfunding technology and the first real estate crowdfunding platform wholly owned by investors. Modiv offers retail investors access to real estate and property-related investments that are designed to generate both income and long-term growth. To learn more, visit modiv.com.

Contact Associate Vice President Hudson Pitts RUBENSTEIN hpitts@rubenstein.com 248-767-1688

Copyright 2021 GlobeNewswire, Inc.

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