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In this Real Estate News Brief for the week ending April 16th, 2022... the latest surge in consumer prices, where rents are growing the fastest, and the high cost of building new homes. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week, and another alarming report on inflation. The consumer price index jumped 1.2% last month to a 40-year high of 8.5%. The increase was mostly driven by higher prices for gas, food, and housing. If you eliminate gas and food you get a core rate of 6.5%. Some economists believe that inflation will ease up soon, when the price of oil stabilizes and some of the supply chain issues clear up. But other economists worry that we might continue to see prices going higher. (1) Wholesale prices are also surging. The producer price index was up 1.4% in March to an annual rate of 11.2%. That’s the highest it’s been in almost 40 years and likely a sign

Cement is to the construction industry like dirt is to a garden. It’s essential for all kinds of buildings and infrastructure. But it’s also a huge greenhouse gas contributor. With the current push toward more climate-friendly technologies, two researchers from Massachusetts claim they have created a cement-like material that is not just carbon neutral, but literally sucks carbon dioxide out of the atmosphere. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. So what is this intriguing new material? It’s called Enzymatic Construction Material or ECM. It was created at the Massachusetts-based Worcester Polytechnic Institute by researchers Suzanne Scarlata and Nima Rahbar. Carbon-Negative Foodprint In addition to its eco-friendly carbon-negative footprint, they say it will also use stored carbon to heal cracks. And it may also be a good material to patch aging concrete. As reported by Construction Dive, the primary component of ECM

In this Real Estate News Brief for the week ending April 9th, 2022... the Fed’s inflation fighting game plan, first quarter housing affordability, and the metros with more new listings. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week, and the Fed’s plan to rapidly shrink its $9 trillion balance sheet to help control inflation. According to the minutes of its March meeting, which were released last week, the Fed plans to reduce its bond portfolio by about $95 billion per month. (1) Fed policymakers haven’t made a final decision yet, but they say the reduction plan could begin next month. Federal Reserve Governor Lael Brainard said at a conference that she expects a series of rate hikes and a rapid winding down of the balance sheet to bring inflation to a “more neutral position.” That includes bigger-than-usual rate hikes. Kansas City Fed President Esther George said i

Real Estate News Brief - Week Ending April 2, 2022 Prices Move Higher, Fed Misstep Worries, Biden’s Housing Budget In this Real Estate News Brief for the week ending April 2nd, 2022... consumer prices march higher, Wall Street worries about how the Fed will handle inflation, and Biden’s budget proposal for housing. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week and more concerns about inflation. The core personal consumption expenditures price index increased 5.4% from a year ago. That’s the largest year-over-year increase in 40 years. The PCE is considered more accurate than the consumer price index or CPI, and is the Fed’s preferred inflation gauge. The core rate excludes prices for gas and food. If you include those, the PCE is 6.4%. (1) Consumers are spending a larger share of their paychecks because of those higher prices, but they are also splurging on things l

A new theme park has opened in Texas that might help get kids, and adults, interested in the construction industry. It’s called “Dig World” in Katy, Texas, just west of Houston near Interstate 10. It’s designed to provide a real world experience with full-size construction machinery that you see at job sites. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Dig World opened its doors on March 17th, and provides 3-and-a-half acres of construction-related activities. (1) According to Dig World, it’s “designed to safely provide a hand-on experience for both children and adults in operating heavy equipment.” That includes: full-size Caterpillar Mini-Excavatprs, Skid Steers, and UTVs. What’s a Skid Steer? Okay, I had to look a few of them up! Bigrentz defined a skid steer as “a small, versatile piece of construction equipment used primarily for digging. It’s light and maneuverable, and its arms can attach to a range of tools for vario

The construction industry is reporting good news about the worker shortage. The Associated Builders and Contractors group says there’s been a surge of workers returning to the industry, and the workforce size is almost what it was at the start of the pandemic. But even with that progress, the workforce gap is still an issue. (1) Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. The Labor Department says the industry added 60,000 jobs last month, in February. Nonresidential construction added about 29,000 of those jobs for an annual increase of 3.9%. Residential construction added about 31,000 jobs for an annual increase of 4.5%. That brings the total number of construction workers to 7.6 million but the industry still has many positions to fill. The unemployment rate for the construction industry is currently at 6.7%. That’s almost twice the rate of unemployment for the population in general, which is running at 3.8%. State Data o

The Real Estate News Brief - Week Ending March 26, 2022 Fed’s Next Rate Hike, Mortgage Rate Surge, Pets Who Sell Homes In this Real Estate News Brief for the week ending March 26th, 2022... the Fed’s next rate hike, the latest surge in mortgage rates, and why pets might help sell homes. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week. The Federal Reserve is ramping up for bigger rate hikes. Fed policymakers are saying that inflation is much too high, and that more aggressive action may be needed, including a 50 basis point rate hike in May. San Francisco Fed President Mary Daly said at an event last week: “With the labor market so strong, inflation, inflation, inflation is at the top of everyone’s mind.” Fed Chief Jerome Powell also said the central bank may start reducing its $9 trillion balance sheet in May. The Fed’s portfolio mushroomed in size with the purchase o

The latest attempt to create affordable housing in California is sending shockwaves through the real estate industry. And it doesn’t just impact investors. It’s a wake-up call to any California resident who likes the freedom to move to a new home when the urge strikes them! This new effort involves legislation that would create a steep capital gains tax for anyone who sells their home within seven years of buying it. Hi I’m Kathy Fettke and this is the Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Democratic Assemblymember Chris Ward of San Diego introduced the legislation. It’s called the California Speculation Tax Act. Under this Act, the sale of a home within three years of its purchase would trigger a 25% capital gains tax. The tax would be reduced 5% for each subsequent year and disappear if the owner holds on to the property for at least seven years. Applies to All Residential Buyers/Sellers This would apply to any kind of residential property including

In this Real Estate News Brief for the week ending March 19th, 2022... we check on the Fed’s rate hike, look at a range of inflation projections, and get the latest update on single-family rent growth. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week, and the first interest rate hike in four years. The Federal Reserve has said that a quarter point rate hike was likely at its March meeting to control inflation, and that’s exactly what committee members approved. That puts the overnight lending rate between a quarter and a half point. The Fed warned that another six rate hikes are likely this year and that half point moves are a possibility. Fed Chief Jerome Powell says: “I guess I would say the expectation still is that inflation will come down in the second half of this year, but we still expect inflation to be high this year.” (1) The Fed is expecting inflation will a

In this Real Estate News Brief for the week ending March 12th, 2022... we'll take a look at how the Russian invasion of Ukraine could affect the U.S. housing market, the number of homes selling for more than 100,000 over asking price, and why a federal court blocked a ban on homebuyer “love letters.” Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week, which includes the Russian invasion of the Ukraine. Housing experts have been weighing in on whether this will impact the real estate market. According to a blog post by the National Association of Realtors, Russian buyers account for less than 1% of foreign purchases. Most of that activity has been in Florida, Georgia and New York. But that reduces Russian input to .2% in Florida, for example. As a result, NAR researchers don’t think we’ll see any major disruptions for real estate. If anything, it could give domestic buye

In this Real Estate News Brief for the week ending March 5th, 2022... you’ll hear about the Fed’s rate hike plan, new figures on record high home equity, and why there’s a land rush for autonomous trucks. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week, and more aggressive talk about rate hikes to control inflation. Fed Chief Jerome Powell spoke before Congress and said he will support a quarter percent hike on the Federal Funds rate at the next policy meeting. He also anticipates that this will be one of a series of rate hikes this year, and that one or two of them would be more than a quarter point. (1) One big concern is the impact the war in Ukraine will have on prices. We’re already seeing higher gas prices than we’ve ever seen before. Realtor.com also reports that high heating bills are giving many homeowners sticker shock. A PG&E spokesperson said in a TV

Home builders are facing all sorts of supply chain issues that are contributing to higher prices and construction delays. Some are hoarding supplies in rented warehouses while others are putting in ghost orders for projects that don’t exist yet. Whatever magic tricks they have to perform, they are running into problems right up to the finish line, including the almost impossible task of finding a garage door. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. No Garage Door The dilemma facing builders prompted a recent headline in the New York Times that reads: “4 Bed, 3 Bath, No Garage Door: The Unlikely Woes Holding Up Home Building.” (1) Rick Palacios, Jr. of John Burns Real Estate Consulting told the Times: “Garage doors are a nightmare.” The article says that almost everyone is having a difficult time getting garage doors right now, and that prices have doubled or tripled for those doors. Plus, it could take several weeks to

Airbnb is offering free temporary housing for 100,000 Ukrainian refugees. It announced the effort in partnership with it’s charitable arm, Airbnb.org, and the generosity of its hosts. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. As we’ve been hearing, many Ukrainians are fleeing their country because of the Russian invasion. The accommodations will be offered to people with immediate housing needs, paid for by Airbnb, the Airbnb.org Refugee Fund, and hosts that offer their homes and discounts for those accommodations. Help During Moments of Crisis Airbnb sent letters to European governments detailing the support that’s being offered. They were signed by CEO Brian Chesky and other company officials. The letters went to officials in Poland, Germany, Hungary, and Romania. Airbnb says it will try to accommodate any special needs, including the possibility of longer-term stays. Airbnb and its charitable arm have helped more than 5

Rents are not just making a rebound after a dip during the pandemic. They are blowing right past the monthly cost of buying a home in more than half of the largest U.S. markets. A new realtor.com report says they’ve been rising so fast, it’s now more affordable to buy a home in 26 U.S. cities, than it is to rent. (1) Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. January was the eighth month in a row that rents have shown double digit growth in the U.S. Realtor.com says the year-over-year increase hit 19.8% in January. That kind of growth is almost double the monthly cost increase for buying a home – which started the year at 11%. Rent Growth Breakdown Rents have risen the most for studio apartments. Those rents are up 21% or about $256 a month, compared to a year earlier. One- and two-bedroom units are up 19.2% which adds about $266 dollars to the monthly rent for a one-bedroom and about $323 for a two-bedroom. Higher rents m

In this Real Estate News Brief for the week ending February 26th, 2022... mortgage rates move past the 4% level, homebuyers battle it out in January, and big investors target vacation homes. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. https://podcasts.apple.com/us/podcast/real-estate-news-real-estate-investing-podcast/id1079952715 Economic News We begin with economic news from this past week. Concerns about inflation continue. The Federal Reserve’s preferred monitoring tool, known as the PCE Index, shows a .6% increase in January for a yearly rate of 6.1%. (1) That’s slightly lower than the more widely known CPI or Consumer Price Index. It shows an annual rate of inflation, at 7.5%. Companies are raising prices because of labor shortages and supply chain issues. Russian military action in Ukraine is also contributing to inflation worries, especially for oil, grains, and metals. Some economists believe a full-scale Russian in

In this Real Estate News Brief for the week ending February 19th, 2022… what economists are saying about rate hikes, where rents are growing the fastest, and a new residential development plan for Disney fans. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week, and what economists are saying about inflation and rate hikes. St. Louis Fed President James Bullard believes the Fed should push rates up a full point in the near term. His comments about the need for more aggressive action is also pushing rate hike forecasts as high as seven this year. Bullard told CNBC: “I do think we need to front-load more of our planned removal of accommodation than we would have previously.” (1) The government reported last week that the annual rate of inflation hit 7.5%. (2) Unemployment applications were up 23,000 last week, but economists are not concerned about the strength of the job

Real estate investors were very busy in the second half of last year. A new Redfin study shows that they purchased a record share of U.S. homes in the fourth quarter. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. The Redfin study shows that investors bought about 80,000 homes in the fourth quarter. That’s about 18.4% of all residential real estate sales for that time period. The investor home purchase share was 17.4% in the third quarter, and 12.6% a year earlier. (1) Share vs. Numbers While investors accounted for a record share of residential real estate purchases in the fourth quarter, the number of homes they bought dropped about 9% from the third quarter. They purchased about 88,000 homes in Q3 compared to 80,000 in Q4. The dip in quantity is due to the lack of inventory affecting all homebuyers. Redfin says it’s also due to typically slower sales at the end of the year. Investors have been buying more homes despite skyr

Some people in the Midwest are losing their homes because of a loophole in “quiet title” laws. Law experts say real estate opportunists are claiming that homes are abandoned, and are using the loophole to grab the home when homeowners are away. There are reports that this has been happening in Iowa but that quiet title laws in several states could be used to do the same thing. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Iowa Public Radio broke the story about a homeowner in Marshalltown, Iowa, outside of Des Moines and Cedar Rapids. (1) Natalia Esteban had purchased the home in 2001 with her ex-husband, before they divorced. She moved to California in 2018, but kept the house in Marshalltown where she returned each summer. Big Surprise for the Homeowner Esteban’s daughter, Maria Kendall, lived in Marshalltown with her family and noticed a listing on Zillow one day, for her mom’s house. Her mother was in California at the ti

In this Real Estate News Brief for the week ending February 12th, 2022… the latest reading on inflation, home price growth, and foreclosures. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week. The latest inflation report shows that consumer prices notched up another .6% in January. That brings the annual rate of inflation to 7.5%, which is the highest inflation we’ve seen in 40 years. Much of the increase is due to the high cost of food, energy and housing costs, which include rents. According to MarketWatch, Wall Street analysts only expected a .4% gain in January. (1) If you strip out food and energy for a core rate of inflation, it’s at 6%. That’s still twice the rate the Federal Reserve would like to see. Shawn Huss at Warsaw Federal calls inflation an “economic killer.” He wrote in an emailed newsletter: “It is a tax that does not get collected and if people belie

There’s a real estate boom going on in the metaverse! They hit $500 million dollars last year, and are expected to double this year, to one billion. The uptrend took off recently when Facebook announced plans to expand into the metaverse and changed its corporate name to Meta Platforms. CNBC reports that virtual real estate sales have gone up ninefold since Facebook’s announcement in October. (1) Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. According to metaverse data provider, MetaMetric Solutions, investors spent a total of $83 million in January sales alone. Analysts based their 2022 projections on that amount of spending throughout the year. But some analysts are anticipating more growth. Analytics firm BrandEssence Market Research expects the virtual real estate market to grow at a compound annual rate of 31% a year through 2028. What is the Metaverse? But what exactly is the metaverse? And why are investors buying real