Real Estate Stats & Trends

Updates on Real Estate Investing statistics and trends in the United States.

Three Market Trends Make a Strong Case for Residential Real Estate Lending

In early October, Fannie Mae reported their Home Purchase Sentiment Index (HPIS) rose 3.5 points in September, continuing a rapid rebound of consumer confidence in the housing market since the lows brought about by the COVID-19 pandemic. (Fannie Mae: Rapid rebound of consumer housing sentiment continues)”. This increase in consumer sentiment tracks well with the increase in demand we are seeing on the lending side of our business. The obvious… 

Almost a Year Later, the Demand for Fix and Flip Still Strong

Back in November of 2019, we wrote about our doubts with the opinion that tightening margins in the house fix and flip industry was an indicator of the softening of the real estate market overall (The Fix and Flip Business is Increasingly Competitive). Our thesis then – as it is now – is that as long as the supply of houses remains crimped, and demand from home buyers is firm,… 

Three Ways that Volatility Can Harm Your Investment, and What You Can Do About It…

We’ve all heard that price volatility is bad for investments. However, most investors couldn’t give a great explanation as to how or why. Many would say that volatility is bad because it feels bad. After all, investors can lose money in volatile markets. It’s mentally and emotionally painful to see an investment drop in value. Without question, that is one reason why volatility is harmful to an investment. However, it… 

Chasing Yield

As bond yields drop to zero, investors take on unprecedented risk in search of yield. And hope the Fed has their backs. With the Covid-19 crisis showing no sign of abating, the Federal Reserve has cut interest rates to near zero in an effort to prop-up the economy.  In addition, the Fed has pledged to do ‘whatever it takes’ to support the economy going forward.  This includes launching a number… 

Real Estate Opportunities post Covid

Mitigating risk and seizing opportunities in a volatile market

As we continue to monitor the rapidly changing landscape, Aloha is implementing prudent changes to protect our fund investors and borrowers. We feel these changes provide both groups with the best opportunity for success going forward. Most significantly, we paused lending for 45 days while we surveyed the new environment. As a result of the lending pause, the cash position of the fund increased, which decreases risk and volatility. We… 

Homebuilder bullishness underscores the positive outlook for residential housing in 2020

With every new year, those of us in real estate and other businesses look into our crystal ball to try to assess what lies ahead. And as we assess the outlook for housing in 2020, we should note that one group is unusually bullish – homebuilders.  According to the December NAHB/Well Fargo Housing Market Index, homebuilder confidence was at its highest point since June of 1999. With a low supply of… 

The Fix and Flip Business is Increasingly Competitive; but Enterprising Flippers are Still Making Good Profits

It’s getting increasingly difficult to turn a profit in the house flipping business these days. At least that’s the story making the rounds in the press recently. Some of the reasons given: home prices are high, there are fewer distressed or foreclosed properties available to buy inexpensively, and the competition among investors is substantial. There is also the suggestion that the increasingly competitive fix and flip-it business is a sign… 

U.S. Mortgage Debt surpasses level hit in 2008 during the financial crisis. But homeowners’ debt picture looks much better this time around

In the third quarter of 2008, U.S. mortgage debt hit a record $9.294 trillion. That extreme marked the end of the housing boom and the beginning of the Great Recession. So, when we hear that U.S mortgage debt has recently surpassed its 2008 peak, it might raise concerns. But this time around, the homeowners’ debt picture is much better. Mortgage balances have indeed surpassed the peak set 11 years ago… 

Foreign buying of US real estate slows over the intermediate term

This month, given the recent, constant barrage of international news in the press, we decided to relate the issue of US real estate markets to foreign interests and sales stats. As you’ll see-these foreign investors have been pulling back substantially in their buying of houses here at home over the past couple of years–and to a surprising degree. Please note that this letter is expressly not intended to be a… 

Drop in mortgage rates continues to propel the housing market

Just last December, many economists were sounding loud and consistent alarm bells that interest rates were poised to rise (potentially rapidly) in 2019, and that the peak in U.S. home prices had been hit. As of summer 2019, it looks like the experts were wrong on both counts. Since touching 5% in late October, the 30-year mortgage rate has dropped to 3.84%, its lowest level since September 13, 2017. Meanwhile,…