Weekly Tide Real Estate News Bits – 1.22.22 – Coastal Collective Real Estate

Happy Friday, friends! At the risk of sounding like a broken record: the market doesn’t seem to be slowing down. We thought the new year might bring some additional inventory but the National Association of Realtors just confirmed we are at an all-time low on inventory, once again.

So we’re feeling very fortunate to be in escrow on two homes on the buyer side, having just closed two on the seller side with another coming on the market this week.

We’re beyond waiting for the market to cool down and have adopted a formula for success: it involves a bit of patience, lots of communication, playing nice and a secret dance we do at midnight every time we submit an offer.

Nearly every day, Compass’s Leonard Steinberg puts together a handful of real estate news bits that are always so interesting I have to share some of my favorites of the week. To receive these every day from Leonard, please click here and include your full name and email address to get on his mailing list.

DID YOU KNOW?

* According to a report from the Knight Foundation, the 3 things that generate place-based attachment among residents are social offerings (spaces and businesses that encourage social gathering), aesthetics (that is to say, physical beauty), and openness (defined as a community that is welcoming to all different types of people).

* Rent growth is up in most cities, albeit not equally across the country. Large cities with high population density and relatively few detached houses generally experienced slower rent growth compared to other places in 2021, as prospective tenants often sought homes in suburban and exurban communities. Single-family rent growth in the New York City area was about 50% that of the U.S. Sydney, Toronto, and Auckland also experienced annual rent growth that was less than for their respective nation. Rent growth has been high globally, except for Canada – where rents have risen too – which contained COVID well, the greatest global inflationary driver. Canada’s Covid case and death rate per capita is less than one third that of the UK, France or US. (CORELOGIC/Worldometers)

* Miami saw a 25% reduction in homicides for 2021, and a 14% reduction in gun related incidents according to Miami’s Mayor Suarez, despite a surge in such crimes nationwide. Miami’s crime likely dropped even faster on a per capita basis due to surging population growth in 2021. At the beginning of the pandemic in 2020, Miami had a homicide-free stretch that lasted over 7 weeks, the longest since 1957. In 2018, the city had just 51 homicides – the lowest since 1967, when the population was much smaller. Miami’s unemployment rate is hovering around 3% which demonstrates how much crime can drop when jobs are in abundance.

* Mayor Suarez is now the 80th president of the US Conference of Mayors and highlighted that 51.8% of US GDP comes from the TOP 25 US metro areas/cities with 38.2% coming from the other smaller 359 metro areas….combined that’s around 90% of all US GDP coming from city/metro areas. In 1900, 60% of the US lived in rural areas. Under 20% of Americans live in rural areas today, although rural areas account for 97% of total US land. (2017 Bureau of Economic Analysis).

* According to the Canadian Real Estate Association, the number of newly listed properties for sale fell by 3.2% month-over-month in December to 68,252 listings, resulting in the tightest market conditions ever recorded. Despite inventory being down, annual home sales still reached a new high in 2021, eclipsing the previous record set in 2020 by about 20%. About 667,000 residential properties changed hands in 2021, about 30% above the 10-year average.

* Federal tax receipts in the 4th quarter of 2021 – October to December – increased by 31%., a cool $248 billion increase to $1.05 trillion for the quarter. Individual income taxes revenue soared by 55% – $189 billion – to $536 billion. Corporate income taxes rose 44% – or $30 billion – to $99 billion. Payroll taxes and a variety of other receipts – including a 16% increase ($4 billion) in remittances from the Federal Reserve – made up the rest. (WSJ)

* Here is a GoFundMe page for a 9-year-old girl Miriam, as well as her two older siblings 16 and 19 years old whose mother and 5-year-old brother lost their lives in the awful Bronx fire on January 9th, 2022.

* Pre-pandemic in the first quarter of 2020, over 26% of people sought to move to a different metro area in the US…..that rose to over 31% in 2021. While higher, it shows that people have been looking to move metro areas well before COVID. (Washington Post)

* During the 3rd quarter of 2021, investors bought 18.2% of all the homes that were purchased in that period in the US, up from 11.2% during the third quarter of 2020. (Washington Post)

* Florida has 5 of the top 10 cities with the biggest year-over-year jumps in one-bedroom rent. And in New York, the most expensive place in the U.S. ($3,190), the median one-bedroom rose 32.4%. (CNBC)

Here’s what’s happening in our markets:

National:

Existing-home sales rose in November, denoting three consecutive months of increases (NAR)
The median existing-home price for all housing types in November was $353,900, up 13.9% from November 2020 (NAR)

Maui (Source)

Maui saw a 2.0% increase in the number of homes sold for November 2021, compared to November 2020, on par with the national average of 1.9%.
Maui’s median sales price has inched closer to the million dollar mark with a 16% increase, compared to November 2020, and average percent of list price received has increased to 99.0%.

Palm Springs (Source)

Palm Springs has seen monumental growth in median sale price, rising to $710,111, a 25.4% increase for November 2021, compared to November 2020,
At a 29.7% drop, Palm Springs’ decrease in year over year inventory for November 2021 is more than double the national average decrease of 13.3%.

Tampa (Source)

Median days on market fell to just 7 days, a drop of 22.2%, compared to November 2020, marking one of the swiftest sales markets in the country.
Tampa’s median sales price for November 2021 has seen a significant 23.5% jump, compared to November 2020, well beyond the national average of 13.9%.

* Most ‘bigger city’ buyers are 100% accustomed to seeing a floorplan on a listing. Many are super-frustrated when they don’t see a floorplan on the listing, so if you want to stand out and appeal to this audience always try to include a floorplan…..one that is easily legible.

* Now that AMAZON has decimated lots of bricks and mortar retail it announced the first 30,000sf Amazon Style store, located in the Los Angeles suburb of Glendale, Calif., set to open later this year.

* CØMPASS CØRE launches today, and is an immersive, 10 week program, led by top Sales and Industry Leaders, focusing exclusively on the core elements of business growth in real estate, designed to elevate your business to levels you’ve never dreamed of. This program was developed here at Compass, for Compass agents, leveraging the best practices and ideas from every region in the country! Nearly 7,000 CØMPASS Agents will be attending the inaugural program! While enrollment for the first session is closed, you can sign up HERE for the next session, starting in April.

* COMPASS’ Lara Pavanelli is quoted in this article about the robust Austin, TX area market that recorded a whopping $23 BILLION in residential real estate sales in 2021! https://www.bizjournals.com/austin/news/2022/01/18/abor-2021-overview.html

* For all of 2021, housing starts were the highest for any year since 2006. The seasonally adjusted annual rate of housing starts in December was about 1.7 million, beating consensus estimates that called for 1.65 million. The seasonally adjusted annual rate of issuance of building permits was about 1.87 million, higher than estimates that called for 1.71 million. Both starts and permits were higher than November’s revised rates of 1.68 million and 1.72 million, respectively. (Anyone wondering why building labor and material costs have soared need wonder no more!) The rate of starts on homes with one unit fell 2.3% month over month, and was 10.9% lower than in the prior December. Construction on homes with five or more units, meanwhile, increased 13.7% month over month, and was up 56% compared with last year. (BARRONS)

* COMPASS Miami Agent Levi Meyer is dropping #MeyerOnTheMove: His new video series discussing hyper-local real estate topics and Miami market trends with the nation’s biggest movers and shakers. The pilot episode features Mayor Francis Suarez of the City of Miami as he and Levi chat about Miami’s real estate boom, currency trends, and even sing a little karaoke. Watch the pilot episode of Meyer on the Move on YouTube!