WS1168: Weekly Investor Update: December 26, 2021 to January 1, 20222

MARKET INDICATORS SNAPSHOT

WEEKLY

• Mortgage Rate (30-Year Fixed): 3.05% (as of 12/23)

MONTHLY

• Existing Home Sales: +1.9% (November 2021)
• New Residential Sales: +12.4% (November 2021)
• Median Sales Price for New Houses Sold: $416,900 (November 2021)
• Construction Spending: +0.2% (October 2021)
• New Residential Construction: 3.6% (November 2021)

QUARTERLY

• Homeownership Rate: +65.4% (3Q21)
• Rental Vacancy Rate: +5.8% (3Q21)

Sources: NAR, BLS, Federal Reserve Bank, MBA

COMMERCIAL REAL ESTATE

• Record year for commercial real estate in 2022 expected

CBRE announced a positive outlook for the commercial real estate economy despite the threat of the COVID Omicron variant and other risks.

• Return-to-office trend will raise office space demand this year

The National Association of Real Estate Investment Trusts predicts that the office will remain the hub of business activity.

• CRE expected to deliver 6% unlevered returns to investors in 2022

Commercial real estate will remain strong this year with yields averaging 6% and values rising 11% according to real estate advisory firm Green Street.

• The end of LIBOR expected to shift the CRE market

It has been observed that most lenders are not yet confident with substitute benchmark rates such as SOFR and BSBY.

• Growth in life sciences jobs to fuel real estate space for lab and research uses

With such strong demand for life sciences jobs, a total of 23.8 million square feet of labs were under construction in 3Q2021.

• Self-storage industry remains strong despite the pandemic

The industry has considerably gained some of the best returns in the market since the pandemic

• Vacation rental demand to grow 14.1% in 2022

Occupancy will also remain strong with an expected averate rate of 59.8% 

HOUSING

• Will the housing market crash in 2022? 

Questions on how the housing market can weather issues has prompted many to expect a market crash in the coming months.

• Multifamily properties’ rental growth to continue this year

Market tightness, sales volume and equity financing remain strong.

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