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Rising Rents Pose Risks to the Fed’s Inflation Outlook

The biggest wildcard for U.S. inflation over the next year doesn’t come from used cars or airline fares. Instead, it is housing.

Officials at the Federal Reserve and the White House have highlighted what many forecasters expect will be the temporary nature of elevated price readings stemming from the reopening of the economy following pandemic-related restrictions.

But the degree to which 12-month inflation readings fall back to the central bank’s 2% goal could rest on the behavior of rents and home prices. In recent months, housing-cost trends point to more persistent, rather than transitory, upward price pressures in the coming years.

Core inflation, which excludes volatile food and energy costs, rose 3.5% in June from a year earlier, according to the Fed’s preferred gauge, the personal-consumption expenditures price index. That was the highest rate of growth in 30 years. Rising prices over the April-to-June quarter largely reflected disrupted supply chains, temporary shortages, and a rebound in travel—trends that came ahead of the latest virus surge caused by the Delta variant of the Covid-19 virus.

Economists at Goldman Sachs Group Inc. estimate that travel and other supply-constrained categories have added 1.2 percentage points to core inflation this year, and they forecast those contributions should wane to around 0.6 percentage point by the end of the year.

Contributions from rising rents and home prices could partially offset anticipated declines. In a June report, economists at Fannie Mae said they expected the rate of shelter inflation to pick up from around 2% in May to 4.5% over the coming years—and higher still, if house-price growth doesn’t cool off soon.

They forecast that by the end of 2022, housing could contribute 1 percentage point to core PCE inflation, the strongest contribution since 1990, and they forecast core inflation slowing to just 3% by then.

Housing inflation is important because it accounts for a hefty share of overall inflation—around 18% of core PCE inflation, and around one-third of a separate inflation gauge, the Labor Department’s consumer-price index.

Fed officials have held interest rates near zero since March 2020, at the beginning of the pandemic, and they are purchasing $120 billion per month in Treasury and mortgage-backed securities to provide additional stimulus. Just how fast and how far inflation falls back towards the Fed’s target one year from now could weigh heavily on how long to leave interest rates at zero.

Growth in rents slowed sharply during the pandemic as people stayed put or doubled up with family. Residential rents rose 1.9% over the 12 months through June, about half of the rate of growth seen in February 2020.

Before the pandemic hit, “we were treading water,” said Ric Campo, chief executive of Camden Property Trust, which owns and manages 60,000 apartment homes across 15 U.S. markets. Landlords lost any pricing power during the pandemic, as vacancy rates jumped.

But that began to change earlier this year as demand for new leases soared. “In March, it was like a light switch went off,” said Mr. Campo. “We have significant pricing power that we did not have a few months ago.”

Invitation Homes Inc., the largest single-family landlord in the U.S., raised rents by 8% in the second quarter, including 14% on leases signed by new tenants. Invitation reported occupancy of more than 98%, an extremely tight market.

Home prices, on the other hand, never missed a beat. They surged during the pandemic, boosted by a combination of low mortgage rates, pandemic-driven changes in home preferences, favorable demographics, and low inventories of for-sale homes. Prices rose 16.6% in May from one year earlier, according to the S&P/Case-Shiller U.S. national home price index, up from around 4% in the year before the pandemic.

Government agencies don’t take soaring home prices directly into account when calculating inflation because they consider home purchases to be a long-lasting investment rather than consumption goods. Instead, they calculate the imputed rent, called owners’ equivalent rent, of what homeowners would have to pay each month to rent their own house. Owners’ equivalent rents, which rose around 3.3% before the pandemic hit, cooled earlier this year, rising just 2% in the 12 months ended April.

Those measures tend to lag movements in home prices because leases are set for a year. The upshot is that leases signed one year ago, when landlords weren’t expecting to have much pricing power, are now coming up for renewal. As landlords pass along higher rents, annual inflation measures should soon start to pick those up.

“As the labor market improves and we have higher income and more household formation, that’s a lot of potential strength in rental inflation and in shelter inflation more broadly,” said James Sweeney, chief economist for Credit Suisse.

Even if recent eye-popping rates of rental increases can’t be sustained, housing analysts and executives see continued strong growth. Property tax increases from rising home values, for example, could be passed onto renters. Higher home prices could prevent more would-be buyers from becoming owners, which may keep pressure on rents.

Some of the housing market’s challenges reflect anemic new-home building that followed the 2008 bust. “We destroyed three-quarters of the supply chain, and a lot of resources left the business at the same time millennials were starting to emerge,” said Doug Duncan, chief economist at Fannie Mae. The result has been a shortage of houses and apartments in the places where many people want to live.

The pandemic, meanwhile, fueled new demand for housing. A recent study by Fed economists found that new for-sale listings would have had to expand by 20% to keep price growth at pre-pandemic levels.

A majority of economists surveyed by The Wall Street Journal in July projected inflation would decline to at least 2.2% by the end of 2022. If the conventional wisdom among professional forecasters about inflation proves wrong, housing would be a big reason why.

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How New York Real Estate Is Embracing Wellness In 2021

While there will hopefully be many lessons learned from this pandemic—how to make a sourdough starter, how to keep houseplants alive, how to practice gratitude—none is perhaps more important than how to take care of one’s mental and physical health. 

Maintaining mental and physical wellness can be done in a variety of ways—anything from meditation to exercise to a steam shower—and now more than ever these activities are being done in the home. This is perhaps why many new homeowners are making self-care amenities like fitness centers, luxury bathrooms and spas more of a priority.

A fitness center, residents lounge and outdoor garden are among wellness perks of Stella Tower in Hell’s Kitchen, where this two-bedroom residence is listed for $3.399 million. WARBURG REALTY
Nowhere in America is there a greater need for a relaxing and rejuvenating home than New York City where the hustle and bustle that makes the city such a thrill to live in can also begin to tax both body and mind. 

New Yorkers may have notoriously tough resolves, but even the most tenacious need a little respite here and there.

A Manhattan gym with floor-to-ceiling windows brings skyline views inside the workout space. GETTY

Many of New York’s most famous residential buildings have been renovated to include state-of-the-art gyms and indoor swimming pools. Iconic pre-war buildings like the Essex House in Midtown or Stella Tower in Hell’s Kitchen can now feature amenities like 24-hour fitness centers or spas. 

These facilities are not your average basement gyms or saunas. Fitness centers often include modern equipment like pilates machines and smart bikes, but they also don’t leave out classic essentials like kettlebells, heavy bags, and olympic barbells. Spas can offer body and beauty treatments like facials, body scrubs, and of course, massages.

At the Sovereign building in Sutton Place, where this six-room unit asks $1.595 million, wellness amenities include a windowed gym and close access to the neighborhood’s wonderful parks and gardens. WARBURG REALTY

Broker Cecilia Serrano of Warburg Realty offers the JW MarriottEssex House at 160 Central Park South as an example of how residential towers are approaching wellness in 2021.

“They recently renovated as part of the maintenance, and it is really lovely with permanently free individual water bottles in the refrigerator and green apples,” Serrano said. “But what’s best is that they always keep it very attractive and super clean, particularly the sauna, steam room, and showers, which are a pleasure to show to potential buyers. JW Marriott does a terrific job of maintaining its standards.”

Many residential towers are going beyond traditional amenities such as pools and gyms. New wellness amenities seen around New York City’s choice buildings include golf simulators. GETTY

Newer developments also have implemented many health-based and recreational amenities into their designs, like the colossal Moma Tower which includes a stunning indoor lap pool, a golf simulator and a “cold plunge” pool. 

While building amenities offer convenient opportunities to exercise and relax the body, self-care must also take place in the home. This starts with simple design features like huge tilt-and-turn windows that let in natural light and fresh air to brighten rooms and moods or open-concept floor plans that give spaces an airy openness.

Owners are also enhancing their personal spaces with wellness in mind. This $2.7-million apartment inside Moma Tower on West 53rd Street pampers with a lavish bath. Building amenities include a sitting room overlooking Central Park, squash courts and one of the best lap pools in Manhattan. WARBURG REALTY

One of the most important rooms for self-care is the bathroom. Homes that offer spa-like comforts can change a room normally used for utility into an oasis for relaxation and revitalization. 

Luxury amenities like radiant heated floors, steam showers and soaking tubs allow residents to enjoy all of the soothing pleasures of a spa retreat right in their own homes while aesthetic choices like lacquered cabinets, cast iron tubs and Black Zeus tile add a calm elegance to the space.

Skin-care and grooming become further opportunities for wellness and more than just routines with the addition of large, marble vanities, backlit mirrors and brass fixtures. Penthouse properties can many times include expansive terraces that offer gorgeous views of the city skyline and a place of outdoor refuge in a city where such spaces are few and far in between.
The primary bathroom inside this 174 East 74th Street apartment calms the sense with Rohl hardware, a Calcutta gold marble shower, and a Toto smart toilet. WARBURG REALTY

As mental and physical wellness become increasingly important in our chaotic world, a future where self-care amenities are offered to all New York residents is hopefully around the corner.

Origination: https://www.forbes.com/sites/forbes-global-properties/2021/08/08/how-new-york-real-estate-is-embracing-wellness-in-2021/?ss=real-estate&sh=6007c0c22549 

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Understanding The Record Absorption Of Manhattan’s New Development

New York City’s new development sales market has rebounded fast and furiously, quieting naysayers who lamented that the city was doomed for a slow and painful recovery. In contrast, our firm’s data show that Manhattan’s 2021 new development sales market posted 980 new contracts signed through June 30, 2021, a 34% increase over the same time period in 2019. Further, by our calculation of the current pace — 163 units per month, on average — the Manhattan new development market is poised to absorb approximately 1,960 new development units in 2021.

So, to what can we attribute this impressive rebound from a once-in-a-lifetime event? 

  • Pent-up demand: As savvy buyers believed the market to have bottomed out, many began their search for a new home or investment property in the third quarter of 2019 and into early 2020. Those buyers did their homework, shopped online and attended virtual tours seeking out the perfect opportunity. Now, as vaccine efficacy became apparent and a new administration took over to implement its distribution, buyers realized that the window of opportunity for slightly lower prices and choice of inventory would be short-lived. They took advantage of this in ready-to-move-in new developments offering concessions such as up to 10 years of free common charges. These perks primed the pump for a quick recovery.
  • Covid cabin fever: Looking at the same four walls for a year created a yearning for new beginnings, more space, outdoor space and views. This helped build demand for new development. Buyers began to realize that their current residences did not meet their needs. With historically low interest rates, a healthy supply of new, ready-to-move-in product and demand growing for re-sale residences, upgrading for that extra bedroom, terrace or alcove was critical.
  • The suburban housing boom: With many fleeing the city as Covid-19 spread, the suburbs saw a resurgence, allowing empty-nesters in particular to sell their homes at prices far above what they could have sold for in the past five years. Many of those empty nesters chose to take advantage of the incentives and price adjustments in the Manhattan market. They scooped up trophy penthouses, pieds-a-terre, and two- to three-bedroom condos.
  • Back to school: With most Manhattan universities announcing the return to in-person classes, many parents have chosen to assist their college-age children in buying a new home by investing in Manhattan real estate rather than renting an apartment. Many of those parents expect to one day move into the city themselves, and thus their children can attend school while their equity grows. When their child moves on, the parents could plan to occupy the apartment either on a permanent or part-time basis.

Together, these four touchpoints helped make the first half of 2021 a record time for the Manhattan new development market. Low interest rates, high demand for homes convenient to work as employees begin to occupy their offices again and new jobs being added at a record pace have also led to this incredible reboot. 

As we move into the second half of 2021, we can expect demand to continue to be high as the foreign investor market is showing signs of heating up and as the market begins to reach equilibrium between seller and buyer. New York City has long proven to bounce back beyond expectations after significant events, and the same is holding true through Covid-19.

Origination: https://www.forbes.com/sites/forbesrealestatecouncil/2021/08/02/understanding-the-record-absorption-of-manhattans-new-development/?ss=real-estate&sh=73b584cf62e3 

 

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Gloria Vanderbilt’s Unique Manhattan Apartment Is Listed for $1.125 Million

“Decorating is autobiography,” said Gloria Vanderbilt, the late designer, artist, and heiress whose Manhattan apartment has just been listed for sale. The home is an artifact of her keen appreciation for art and home decor and as such has largely been kept the same as it was upon her death in 2019 at the age of 95.

The building, located on Midtown East’s Beekman Place, was constructed in 1931 and was Vanderbilt’s home from 1997 to the time of her death. Her son, the CNN journalist Anderson Cooper, insisted to the New York Times that this long occupancy is a testament to her love for the place — in his childhood their family moved every four years as she’d often grow restless and want to find somewhere new.

An explosion of bright pink greets guests in the entryway. Photo: Anastassios Mentis/Brown Harris Stevens

“It’s a constant laboratory for her,” said Wendy Goodman, a friend of the multi-hyphenate and author of The World of Gloria Vanderbilt, “She’s always repainting and redecorating. It’s like a tonic for her.” The space has numerous unique design elements that would only be found in a former residence of Gloria Vanderbilt, all of which are visible in the listing photos Take, for instance, the mirrored walls, the unique light fixtures, or the mantel she hand-painted with a quote paraphrased from Albert Einstein: “The distance between past, present and future is only an illusion, however persistent.”

The socialite’s former living room. Photo: Anastassios Mentis/Brown Harris Stevens 

The 3 bedrooms 2.5 bathroom residence has been listed for $1.125 million by Ileen G. Schoenfeld and Aracely Moran of Brown Harris Stevens. The apartment has beautiful high ceilings with tasteful beams throughout, ample closet space, and natural light, though the unit has not been renovated since Vanderbilt’s arrival in 1997 and is in need of some updates. The ground floor space she used as a studio is also being considered for sale.

 

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Share of U.S. Homes Bought in Cash Hits 30 Percent

Largest Percentage of Cash Buyers Since 2014

National property broker Redfin is reporting that nearly one-third (30%) of U.S. home purchases this year were paid for with all cash.

That’s up from 25.3% during all of 2020 and represents the largest share since 2014, when 30.6% of homes were purchased with all cash. Redfin analyzed county records published from January 2021 to April 2021.

Cash purchases are on the rise as Americans reap the benefits of a strong stock market. The S&P 500 Index has gained 36% in the past 12 months alone, as of July 14, 2021.

“I’ve never seen more cash in Boise’s housing market than I’ve seen in the past year,” said Shauna Pendleton, a Redfin real estate agent in Idaho. “I just sold a $700,000 home to a cash buyer last week. The entire $700,000 came from his E*Trade account.”

Additionally, remote work has allowed homeowners in expensive cities, including San Francisco and New York, to sell their homes and move to less expensive areas, where they can often afford to buy properties in cash.

“Affluent homeowners in Seattle, Portland, and parts of California are selling their homes for $1 million or $2 million,” Pendleton said. “Then they’re coming to Boise, where they’re buying houses that are twice the size for half the price.”

Investors, who often pay in cash, are wading back into the housing market after pressing pause at the onset of the pandemic. U.S. home purchases by investors rose 2.7% year over year in the first quarter, marking the first period of growth since the coronavirus pandemic began.

The rise in all-cash home purchases is posing challenges for many first-time and lower-income homebuyers, who are having trouble competing with cash offers. While competition is easing slightly, about two-thirds of the home offers written by Redfin agents still face bidding wars.

In Parts of Florida, More Than Half of Homes That Have Sold This Year Were Bought With Cash

In the West Palm Beach, FL metro area, 52.6% of home purchases this year were paid for with all cash. That’s the largest share of the 86 metropolitan areas in Redfin’s analysis. Metros must have had at least 3,000 recorded home sales from Jan. 1, 2021, and April 30, 2021, to be included in this report. West Palm Beach was followed by Naples, FL (52.5%), Nassau County, NY (50.2%), North Port, FL (49.4%), Port St. Lucie, FL (46.2%), Greenville, SC (45.4%), Palm Bay, FL (44.1%), Cape Coral, FL (44.1%), Des Moines, IA (41%) and Jacksonville, FL (40.1%).

“Florida is a big second-home market, and second-home buyers often pay with cash,” said Dina Blau, a Redfin real estate agent in the West Palm Beach area. “During the pandemic, folks also flocked to Florida to buy primary homes. They sold their houses in New York, New Jersey, Chicago, or California and used the proceeds to pay cash for properties in Florida.”

California Has Lowest Share of Cash Transactions

Expensive California metros, where it’s more challenging to pay with cash because home prices are relatively high, were at the bottom of the list. In both San Jose, CA and Oakland, CA, 12.5% of reported home purchases this year used all cash–the lowest share of the metros Redfin analyzed. Next came Richmond, VA (16%), Los Angeles (16%), San Diego (16.2%), Lake County, IL (17.2%), Sacramento (17.7%), San Francisco (17.8%), Oxnard, CA (18%) and Bakersfield, CA (19.3%).

Still, buyers in California aren’t out of the woods, according to Steven Moore, a Redfin real estate agent in Los Angeles.

“I recently put in a $1.8 million offer on a home that was listed at $1.7 million,” Moore said. “The top 10 offers–out of 40 total–all came in at around $2 million and were all cash.”

Origination: https://www.worldpropertyjournal.com/real-estate-news/united-states/seattle/real-estate-news-cash-home-buyer-data-for-2021-redfin-housing-reports-percentage-of-homes-purchased-in-cash-in-2021-covid-19-impact-on-real-estate-hom-12625.php

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Housing Market Update: Pending Sales Dip, Price Drops Becoming More Common

Over 4% of homes for sale had price drops, and pending sales are down more than 10% from their 2021 peak.

The average weekly share of homes for sale with a price drop passed 4% for the first time since September, another signal that the hyper-competitive housing market is cooling. Other indicators corroborate the slowdown: the share of homes sold over list price, the share of homes sold within a week and median days on market are all also either cooling off or plateauing.

Pending sales were up 11% from a year ago, but down 11% from the 2021 peak, and asking prices have been relatively flat since late May. Even amid this shift, sellers remain in the driver’s seat, as home prices continued to rise more than 20% from a year ago and the number of homes for sale sits 30% below the same time last year.

Looking ahead, some indicators of early-stage homebuyer interest like tour activity, mortgage purchase applications and requests for service from Redfin agents have shown signs of picking back up. It’s too early to call it a trend, but we’ll continue to track whether this continues and leads to sales and competition heating back up.

Unless otherwise noted, the data in this report covers the four-week period ending July 11. Redfin’s housing market data goes back through 2012.

“Asking prices are still high, but the share of listings with price drops is rising steadily and could soon reach pre-pandemic levels,” said Redfin Chief Economist Daryl Fairweather. “That’s an early indication that we are past the peak for this intense seller’s market. Buyers may begin to regain some negotiating power on properties that have been on the market for more than a week.”

Key housing market takeaways for 400+ U.S. metro areas:

Data based on homes listed and/or sold during the period:

  • The median home-sale price increased 21% year over year to $365,500, a record high.
  • Asking prices of newly listed homes were up 12% from the same time a year ago to a median of $361,700. This is up 0.5% from the four-week period ending July 4, but down 0.6% from the all-time high two weeks ago.
  • Pending home sales were up 11% year over year, the smallest increase since the four-week period ending July 5, 2020. Pending sales were down 11% from their 2021 peak during the four-week period ending May 30, compared to a 4% decrease over the same period in 2019.
  • New listings of homes for sale were up 3% from a year earlier. The number of homes being listed is in a typical seasonal decline, down 8% from the 2021 peak during the four-week period ending May 23, compared to an 11% decline over the same period in 2019.
  • Active listings (the number of homes listed for sale at any point during the period) fell 30% from 2020—the smallest decline since the four-week period ending January 31—and have climbed 9% since their 2021 low during the four week period ending March 7.
  • 53% of homes that went under contract had an accepted offer within the first two weeks on the market, well above the 44% rate during the same period a year ago, but down 4.2 percentage points from the high point of the year, set during the four-week period ending March 28.
  • 38% of homes that went under contract had an accepted offer within one week of hitting the market, up from 32% during the same period a year earlier, but down 5.1 percentage points from the high point of the year, set during the four-week period ending March 28.
  • Homes that sold were on the market for a median of 15 days, an all-time low that has been flat for the last four weeks, and down from 38 days a year earlier.
  • A record 55% of homes sold above list price, up from 28% a year earlier. This measure is plateauing, having been 54-55% since the four-week period ending June 27.
  • The share of homes for sale with price drops rose to 4.1%, continuing to surpass 2020 level, and climbing closer to 2019 levels (4.7% at this time in 2019).
  • The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, increased to 102.3%. In other words, the average home sold for 2.3% above its asking price. This measure is an all-time high and 3.5 percentage points higher than a year earlier, but growth has slowed and it may be at or near its peak for the year.

Other leading indicators of homebuying activity:

  • Mortgage purchase applications increased 8% week over week (seasonally adjusted) during the week ending July 9. For the week ending July 15 30-year mortgage rates fell to 2.88%, the lowest level since mid-February.
  • From January 1 to July 11, home tours went up 23%, compared to a 50% increase over the same period last year according to home tour technology company ShowingTime.
  • The seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other services from Redfin agents—rose sharply during the week ending July 11, and is currently up 15% from a year earlier.

Refer to our metrics definition page for explanations of all the metrics used in this report.

Origination: https://www.redfin.com/news/housing-market-update-price-drops-over-4pct/ 

CategoriesNews

Penthouse ‘Crown Jewel’ in One of NYC’s Oldest Skyscrapers Hits the Market for $2M

The penthouse on top of one of New York City’s oldest skyscrapers has become available. Located in a historic Lower Manhattan building, the unit is available for $2 million.

Billed as one of New York City’s “crown jewels,” the full-floor penthouse in the landmarked Liberty Tower offers an unusual aerie, where the owner is at eye level with the ornamental decorations that adorn the exterior.

Upon its completion in 1979, the notable building was “one of only a handful of skyscrapers,” according to the New York Times. “Its striking Gothic style, the centuries-old inspiration for cathedral spires that reach into the sky to approach the divine, is central to the tower’s romantic appeal.”

Living room (Brown Harris Stevens)
Dining room (Brown Harris Stevens)
Sloped ceiling (Brown Harris Stevens)
Bedroom (Brown Harris Stevens)
Bathroom (Brown Harris Stevens)
Views with building ornaments (Brown Harris Stevens)

Now known as Liberty Tower, the Gothic Revival-style building designed by Henry Ives Cobb initially opened as office space. The law office of Franklin D. Roosevelt was one of the first tenants of the 33-floor tower in 1910. (FDR later served as president, from 1933 to 1945.)

Soon after World War I, Sinclair Oil acquired the building, and in 1979, the structure was converted into residential apartments.

Unlike many sleek monoliths of the modern era, this historic tower, with its terra-cotta facade and ornate design, has more of a Notre Dame Cathedral vibe than a typical New York City skyscraper. The exterior is decorated with birds, alligators, flowers, and gargoyles.

Designated a city landmark in 1982 and added the following year to the National Register of Historic Places, the building also received a preservation award from the New York Landmarks Conservancy in 2010.

Last sold in 2005 for $958,000, the apartment could bring quite a windfall if it sells close to its asking price. Still, as penthouses in Manhattan go, the price could be considered a relative deal. Especially from that perch overlooking the city.

“Views of the Hudson and East rivers and the Wall Street Canyon are spectacular,” says the listing agent, Richard N. Rothbloom with Brown Harris Stevens. “And at eye level, right outside each window, are large sculptures of falcons, lions, and fleurs-de-lis that decorate the top of the building.”

The top-floor unit, with two bedrooms and two bathrooms, spans the entire 32nd floor, a total of 1,700 square feet. The living space boasts a dozen windows with southern, western, and eastern exposures, under 11-foot vaulted ceilings in rooms that have the “dramatic slopes of a garret,” as the listing description puts it.

And we know why. Rothbloom notes that the top floor was “formerly the attic of landmark Liberty Tower.” That’s one fancy crawl space!

The foyer opens onto an expansive living room, featuring a wood-burning fireplace, nooks, office, and home theater. The kitchen looks out to a dining room, which can serve both for daily meals and to hold formal gatherings.

The primary bedroom includes a closet system and a double-vanity bathroom with a combination tub and shower.

A second bedroom, currently used as a library, also comes with a bathroom with a glass-enclosed shower.

Other details include hardwood and marble flooring that runs throughout the home. The space also features a central HVAC system, as well as a washer and dryer.

The pet-friendly building is staffed with 24-hour door attendants, porters, and a live-in superintendent.

The location is convenient to dining and shopping at the Oculus, Eataly, and the redesigned South Street Seaport.

For those with offices in the Financial District, that’s in the neighborhood, too. Subway lines converge at Fulton Center, and there’s also quick access to Citi Bike, and the PATH train at the World Trade Center station. 

 

Origination: https://www.realtor.com/news/unique-homes/penthouse-on-one-of-nycs-oldest-skyscrapers-on-the-market-for-2m/ 

 

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Average Rent in Philadelphia & Rent Price Trends

Considering moving to Philadelphia? Before you start apartment hunting, learn about the local rental market. Make sure you know the average rent in Philadelphia to get your budget started!

Average Rent in Philadelphia

  • The average rent for a Philadelphia studio apartment is $1,415
  • The average rent for a Philadelphia 1-bedroom apartment is $1,721
  • The average rent for a Philadelphia 2-bedroom apartment is $2,042
  • The average rent for a Philadelphia 3-bedroom apartment is $2,059

Interested in starting your Philadelphia apartment search, here’s how to find an apartment in Philadelphia. 

Philadelphia Rent Trends: Rent Growth

Philadelphia rents have increased by 1.26% compared to last month, and are up by 2.83% compared to last year.

For a broader discussion of rent changes across the country, check out our National Rent Report. You can download the raw data containing rent estimates for hundreds of cities across the country.

Philadelphia Rent Trends: Inventory by Average Apartment Rent

  • 19% of apartments in Philadelphia are studio apartments.
  • 42% of apartments in Philadelphia are 1-bedroom apartments.
  • 25% of apartments in Philadelphia are 2-bedroom apartments.
  • 14% of apartments in Philadelphia are 3-bedroom apartments.

Average Rent in Philadelphia Neighborhoods

Has your ideal Philadelphia neighborhood already been picked out? Rent prices across neighborhoods can vary, so get familiar with the average rent prices across the various neighborhoods in Philadelphia.

  • The most expensive neighborhoods in Philadelphia are University City ($2,487), Center City West ($2,204), and Rittenhouse Square ($2,086).
  • The most affordable neighborhoods in Philadelphia are Washington Square West ($1,489), Brewerytown ($1,484), and Harrowgate ($1,246).

What Salary Do You Need to Live in Philadelphia?

Using the 30% rule, we can give a rough estimate of the salary needed to rent an apartment in Philadelphia. If these numbers look high, remember that a roommate or two can drastically cut down your monthly rent!

  • If you are renting an average-priced studio apartment in Philadelphia, your annual salary should be around $50,940 or higher.
  • If you are renting an average-priced 1-bedroom apartment in Philadelphia, your annual salary should be around $61,956 or higher.
  • If you are renting an average-priced 2-bedroom apartment in Philadelphia, your annual salary should be around $73,512 or higher.
  • If you are renting an average-priced 3-bedroom apartment in Philadelphia, your annual salary should be around $74,124 or higher.

If you’re considering renting in Philadelphia, be sure to learn more about the cost of living in Philadelphia.

Having trouble deciding how much rent you can afford? Try using a rent calculator.

Origination: https://www.apartmentlist.com/renter-life/average-rent-in-philadelphia 

 

CategoriesReal Estate

Checklist for Homebuyers: What to look for when you are at an open house

Open houses are a very nice part of the house-hunting process, but it is important to focus on specific details when you go there. Usually, open houses are staged as a home decor event, which is the right thing to do when you want to sell a house. However, as a homebuyer, you should consider looking at some fundamental things, such as windows, storage spaces, electrical outlets, etc. 

Here is a checklist of what you should inspect when you are inside the home you’re considering buying.

Windows: Confirm that they are opening and closing well. Another tip is to see if the window is facing the right direction to let the sunlight in, and make sure they don’t open right in front of your future neighbors, because no one wants to be stalked, right?

Storage Space: We all know when we are looking for a house, one of our main concerns is to have enough space in the closets. Therefore, checking out storage spaces is a smart idea, to see if they have adequate space and if they’re placed in a convenient location. 

Electrical Outlets: When walking around the house, ensure it has plenty of electrical outlets in all rooms — appliances in the kitchen, hair styling tools in the bathrooms, charging stations for your devices, etc. These are necessary details in our daily life that should be remembered when you’re looking for a new house. 

Under Sink Cabinets: Check under the sink cabinets of the kitchen and bathrooms to make sure there are no plumbing issues. If you are not capable of gauging that, hire a professional to help you.   

Water Spouts: To check the water spouts, step outside of the house and confirm if everything looks ok. The ​​runoff from the gutters has to be far from the house, so if it is too close, something is wrong. 

Appliances: If the house comes with some appliances, like a refrigerator, oven, or stove, make sure they are working well. Test all of them before you make an offer, and if something is not functioning, you can use this to negotiate with the owner. 

Basement: It is common in some areas for houses to have a basement, and it is crucial to have it well-insulated to not have mold and mildew problems. To know more about this, check out our post Why You Should Waterproof Your Basement. 

This list contains some of the main things you should look at when you are at an open house, but it does not stop here. There are more items you should check off as well, but these are great ones to start with.  Keep following our blog to learn more information about real estate advice and enjoy the house hunting! 

 

CategoriesNews

Mortgage applications sink to their lowest level since before the pandemic hit

Mortgage demand fell for the second week in a row, as low inventory and high home prices continue to weigh on the housing market.

Mortgage applications decreased 1.8% last week, according to the Mortgage Bankers Association’s seasonally adjusted index, falling to the lowest level since the beginning of 2020, before the coronavirus pandemic started to take a toll on the economy.

Both refinance and purchase applications took a hit, even as mortgage rates slipped.

Mortgage applications to refinance a home dropped 2% for the week and were 8% lower than a year ago. Refinance applications have trended lower than 2020 levels for the past four months, according to the MBA.

Home purchase applications dropped 1% for the week and came in 14% lower than a year ago.  

“Swift home-price growth across much of the country, driven by insufficient housing supply, is weighing on the purchase market and is pushing average loan amounts higher,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

Falling mortgage rates didn’t spur demand. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) dropped 5 basis points to 3.15, with points decreasing to 0.38 from 0.39 (including the origination fee) for loans with a 20% down payment.

Mortgage rates loosely follow the yield of the 10-year Treasury. Mortgage rates dipped despite good economic news, Kan added.

“Treasury yields have been volatile despite mostly positive economic news, including last week’s June jobs report, which showed ongoing improvements in the labor market. However, rates continued to move lower – especially late in the week,” he said. “The 30-year fixed rate was 11 basis points lower than the same week a year ago, but many borrowers previously refinanced at even lower rates.”

 

Origination: https://www.cnbc.com/2021/07/07/mortgage-applications-sink-to-lowest-level-since-before-pandemic.html