The Real Estate Syndication Show

WS1189: Weekly Investor Update (January 16-22, 2022)

Whitney Sewell Episode 1189

MARKET INDICATORS SNAPSHOT

WEEKLY

  • Mortgage Rate (30-Year Fixed): 3.7% (as of 1/18)


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: +6.4% (4Q21)


Sources: NAR, BLS, Federal Reserve Bank, MBA


HOUSING

  • Housing supply drops to a new low since start of the pandemic 

Seventy-nine of the 88 largest metro areas registered plummeting home sales.

  • Homebuilder confidence plummets for the first time in 4 months

Builder confidence fell one point to 83 in January, according to NAHB.


COMMERCIAL REAL ESTATE

  • Global lodging sector to recover in the second half of 2022

Business travel appears to be recovering faster in the US than in other parts of the world. 

  • Omicron variant will not affect CRE recovery

The US office market has already recorded three consecutive quarters of leasing volume increases, and leasing activity is on the rise. 


OFFICE

  • WSJ: Office leases rise thanks to tenant perks

Landlords are showering tenants with tens of millions of dollars and months’ worth of free rent and cash gifts to tenants to attract lease renewals.

  • Manhattan office real estate not affected by WFH setup

Manhattan office leasing rose by a robust 8.3% in 4Q21.



ECONOMY & JOB MARKET

  • Top academics: 2022 will be a tough year for housing

Price increases to lose momentum in the coming year, albeit a not-so-clear magnitude of the slowdown.

  • Fed: Interest rate hike likely to begin in March

Hike to begin once it terminates its purchases of Treasuries and mortgage-backed bonds.

  • Survey: Workers likely to receive 3.4% pay hike

Inflation is the main driver towards faster wage growth.

  • 30-year fixed mortgage rate at the highest level since April 2020

It is now 83

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