real estate news FOREIGN BUYER VOLUME DOWN 36% FROM PREVIOUS YEAR The National Association of Realtors reported that the number of home sales to foreign buyers from April of last year to March of this year has dropped 36%. This drop is a caused by several factors that are outlined in NAR’s 2019 Profile of International Transactions in U.S. Residential Real Estate . According to Lawrence Yun the chief economist from NAR “slower economic growth abroad, tighter capital controls in China, a stronger U.S. dollar and a low inventory of homes for sale.” all of which add up to show less confidence in owning property in the US. China is one of the largest buyers of US Real Estate that also showed one of the largest pull backs in purchases. These cut backs are attributed to the Chinese government tightening controls on foreign expenditures in their effort to keep money inside their country. Read More MAREI.org/ForeignBuyer2019 ———-
HARVARD REPORT ON HOUSING The Joint Center for Housing Studies of Harvard University released its 2019 Housing Report. It covers all aspects of housing for both renters and homeowners. Rental Demand: The report shows a minimal Page 4
decline in demand, mostly in the larger more expensive metros, while the smaller markets show a few gains. Plus there was an increase in older rentals and higher-income households. Rental Construction: The report shows the construction of rental housing being strong in 2018 with an increase in upgraded amenities that helped boost rents. Existing Rentals: The report shows that the nation lost 338,000 units from 2016 to 2017 the biggest decline in 15 years. The largest losses were in single-family rentals. This loss was attributed to rentals converting to owner-occupied homes. Rental Rates: Rental rates continued to climb attributed to low vacancy rates. Despite higher rents and low vacancies, the cost of doing business has put the squeeze on landlords profits. At the same time, as housing gets more expensive, the number of cost-burdened renters is growing. Forecast: Baby Boomers are trending more to aging in place by modifying their existing housing instead of moving. Although some downsizing is expected. Millennials are expected to account for almost 2/3rds of household growth in the next decade with demand for entry-level homes and singlefamily rentals. Read more MAREI.org/Harvard-Report ———Grow Your Business
