Staying Ahead in the Evolving Real Estate Scene | Real Estate Market Update w/ Martin

Is the commercial real estate boom truly over, or are we simply witnessing a strategic pivot in the sector? Join us as we unravel the latest data from MSCI Real Assets and the RCA-CPPI National All Property Index. Industrial properties are on a roll with impressive growth, while apartments and offices are facing hurdles that have started to ease. Retail prices are showing a steady improvement, hinting at resilience amid a shifting landscape. We'll guide you through these market dynamics, equipping you with the insights needed to make savvy investment choices.

Housing market predictions can be tricky, especially when mortgage rates are climbing. Yet, pending home sales are defying expectations, showing surprising strength in major U.S. metros. With a robust economy and shifting investor sentiments due to looming elections, the real estate market is anything but predictable. Understanding these nuances is essential whether you're negotiating buying terms or considering selling. Tune in to gain valuable strategies and insights, that help you to successfully navigate these changing tides and make informed decisions in the real estate arena.

Introducing the 60-Day Deal Finder!
Visit: www.MartinREIMastery.com
Use the Coupon Code: WEALTHYAF for 20%  off!

This episode is brought to you by Premier Ridge Capital.

Sign Up for our Newsletter and get our FREE E-Book where you'll learn everything you need to know about creating financial freedom through multifamily syndication.

Visit www.premierridgecapital.com now!

This episode is brought to you by Premier Ridge Capital.
Build Generational Wealth As A Passive Investor In Multifamily Real Estate Syndication!
Visit www.premierridgecapital.com to find out more.

Transcript

Speaker 1: 0:28

Are we witnessing the end of the commercial real estate boom? The latest data suggests a cautious landscape and it's crucial for investors to understand the shift happening right now. All that and more in today's weekly real estate market update on Wealthy AF. According to MSCI Real Assets, the RCA-CPPI National All Property Index revealed a 1.9% decline from last year and a 0.3% drop just from August alone. This marks the third consecutive monthly decline after a mid-year pause in prices. However, not all sectors are on the decline. Industrial properties are shining, with a 6.7% year-over-year increase, maintaining a consistent growth pattern over the last three months. Even month-over-month, an industrial index saw a slight uptick of 0.4%. In contrast, apartments faced a tougher reality, dropping 6.3% year over year, the second largest decline amongst property types. But there's a silver lining those declines have been gradually moderating. In September, the year over year decrease was 13.4%. Yikes Less talk offices, vices fell 8% overall, with central business district offices hit the hardest, at 22.4% down, while suburban offices were down 3.3%. Yet this is a significant improvement from a year ago when CBD prices were plummeting at nearly 34%. And what about? Retail Prices? Fell 1.5% from last year, maintaining a steady decline consistent with the trends since May, although it's an improvement from the high single-digit declines seen last year. So what does this mean for you?

Speaker 1: 2:39

Understanding these trends is crucial as you navigate investment opportunities. Whether you're leaning towards industrial or reconsidering apartments, the current landscape demands strategic thinking. Stay informed, stay prepared and let's explore these shifting tides together. If you're serious about stepping up your real estate game, whether it's commercial properties or building a portfolio, don't go at it alone. Our coaching program gives you the tools, strategies and insider knowledge you need to navigate this market like a professional. Go ahead and head over to wwwmartinreimasterycom and see how you can start leveling up your real estate investments today. Are we in a housing boom or a bust guys? The surprising real estate trends you need to know.

Speaker 1: 3:30

As mortgage rates roar to their highest levels in months, many might expect a slowdown in the housing market. But here's the kicker Pending home sales are actually up 3.5% year over year, making the biggest increase in three years. That's right. Despite rising rates, buyers still hitting the market hard. In fact, 35% out of 50 largest US metros are experiencing increased pending sales. This is a significant sign that demand remains robust. Now let's talk numbers. The weekly average mortgage rate is currently at 6.44%, a notable rise from two-year low at 6.08 just a few weeks ago. And, yes, this spike has pushed the median monthly housing payment to an eye-watering $2,587, just shy of the highest since July.

Speaker 1: 4:27

So what's fueling this market resilience? According to Redfin's economists, the surprisingly strong economy and a shift in investor sentiment regarding the upcoming elections are at play. Investors are worried about potential government spending and this is driving mortgage rates higher. But there's more. While mortgage purchase applications fell 5% last week, the early stages of home buying, as indicated by Redfin's Home Buyer Demand Index, are actually up 3% year over year.

Speaker 1: 4:59

What does this mean for buyers and sellers? Sellers are still listing homes, with new listings up 2.2% annually, but many buyers are negotiating harder on prices and asking for concessions. In today's market, 26 percent of homes are sold above the list price, down from 30 percent. As we look ahead, many buyers and sellers are waiting to see how the elections play out, creating a sense of uncertainty. In conclusion, whether you're buying or selling, understanding these trends is absolutely crucial. The real estate market is unpredictable, but with the right insights you can navigate it successfully. Make sure you go on and head over to wwwmartinreimasterycom so that you can get the training you need to level up and learn how to navigate the real estate market froma professional. And that's a wrap for this week's real estate market update on Wealthy AF. I'll see you guys next week. Peace out.