There are a lot of articles that tell you what the latest in real estate news is. If you are interested in home prices, you can read about the rise in October. You can also read about how inventory has remained tight and how the largest real estate investment firm in the world, Blackstone, is slowing down the pace of its purchases of houses to rent in San Francisco. You can also read about the massive number of foreclosures that are occurring in the judicial states.
Home prices rose 0.76% in October
The S&P/Case-Shiller home price index showed a 0.76% increase in October, compared to the 0.4% expected by Wall Street. Half of the name, Yale professor Robert Shiller, said some increases in the housing market are troubling. Prices in some cities like San Francisco and Miami rose nearly 9% year over year. But, the slowdown in home price increases in recent months remains unclear.
Inventory remains tight
With an increased demand and a limited supply of new homes, inventory remains tight in the real estate market. In Jacksonville, Florida, new listings were down 4.7% year-over-year in
February 2022. However, median sales price rose 23.5%, reflecting a strong buyer’s market. Mortgage interest rates have decreased by nearly a quarter of a percent, improving the purchasing power of buyers. However, a shortage of new homes could continue for some time.
Blackstone slows its purchases of houses to rent in San
Blackstone Group Inc., the world’s largest private equity firm, has agreed to buy Home Partners of America Inc., an owner of more than 17,000 houses across the U.S. Blackstone is known for its practice of buying and renting out houses to people, offering them the option to purchase the homes later. A statewide eviction ban is set to end on June 30, but Blackstone has not yet evicted tenants. According to the San Francisco Chronicle, Blackstone currently employs nearly 5,500 people in the region. The company says its latest multifamily purchase will create 500 new jobs, including the refurbishment of apartments and a green space.
Foreclosures in judicial states are massive
The massive number of foreclosures in judicial states is due in part to the massive amount of debt that these properties are being sold for. The lenders receive a mortgage as collateral and the borrower signs a note agreeing to pay the debt. This lien creates a lien on the property and allows the lender to sell it in order to recover their money. A mortgage servicer must present evidence that proves the borrower has fallen behind on the payments and has not met the terms of the contract. If the mortgage servicer is successful in this case, the court will enter a judgment against the borrower and order the sale of the property news. Some states combine the judgment with the foreclosure process and require a court order before a foreclosure can take place.
California is an indicator of what is to come for the rest of the nation
The high cost of housing in California is not the only reason residents of the state are less satisfied. Low-income households also face higher costs of housing in California. The lack of affordable housing options, along with high property values, have made homeownership a distant dream for many residents. Housing is also highly expensive in many coastal communities, causing residents to live farther away from jobs. The cost of housing in California has been a factor in population decline for several decades.