Did You Know?
Some areas of the US are seeing dramatic home price cuts, even as high as 20%. Some house price drops mirror what we are seeing in oil: after dramatic price surges, often dramatic corrections follow. Oil is down 22% in a month and, had jumped over 42% in the past 6 months.
According to the Wall Street Journal, Chief Economists say there are some grounds for optimism over housing. The past 24-month price run-up was driven primarily by two unprecedented factors: rock-bottom mortgage rates, and evolving consumer preferences for more space. Factors not present were the loosened lending standards or excessive risk-taking that culminated in the 2008-2009 crisis. Supply of homes remains tight which will continue to have an impact on home prices.
Per CNBC as of end July, demand for mortgages dropped to their lowest level in 22 years, fueled by higher rates and recession fears.
56% of respondents in a recent poll believe that right now is the time to buy a house. The survey, which compiled responses from 1,000 homeowners and 1,000 renters, reports that 55% of respondents claim ongoing record-high inflation has made them want to buy a home even more. 47% of that group said they aim to get one in the next year. 74% said it would be their first time buying a house. 26% were existing homeowners.
The national median rent has risen for the 16th straight month, reaching $1,876 in June, a new high - yet still 29.9% (or $561) lower than monthly starter homeownership costs. This is due to higher mortgage rates pushing borrowing costs up.
In the past decade, the Top 10 lottery wins collectively handed about $9 BILLION to those with the winning tickets. Americans spend over $70 billion per year on lottery tickets; close to $1 billion in lottery wins are unclaimed every year. The #1 purchase of most lottery winners is homes!
Real Estate Investment Trust companies (REIT) might be looking attractive to some real estate investors. The advantages and disadvantages may vary; some advantages of a REIT include not having to manage properties and removing the risk of calculating returns inaccurately. A REIT owns - and in most cases, operates - income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping centers, hotels and commercial forests. Some REITs engage in financing real estate.
Per the Daily Mail, Los Angeles plans to build housing for its estimated 41,000 homeless people. Roughly1,200 units have been completed since voters approved this in 2016. Of the mostly studio or 1-bedroom apartments, 14% of the units built cost $700,000 each. One project in pre-development is estimated to cost almost $837,000 per unit.
A possible upside to high gas prices - With average gas prices across the US notably higher, the IRS will now allow small businesses that qualify to use the standard mileage rate to deduct 62.5 cents per business mile from July 1 through December 31, 2022, up 4 cents a mile; i.e., 20,000 miles = $800.
The Lightyear One solar EV car charges via built-in solar panels, while driving for up to 43 miles of range gained per day by solar charging alone. An electric car that can charge on the go is the holy grail of EVs. Imagine if car owners in sunny places like Florida, Nevada, Arizona and California never had to charge - or refuel - their cars. For those worried about range, the first electrified road capable of charging EVs as they drive across it, is now open outside of Stockholm, Sweden.