• The Dallas City Council voted to impose restrictions on short-term rentals like Airbnb and Vrbo, following a lengthy debate and hours of testimony from both supporters and opponents. Short-term rentals will be prohibited in neighborhoods with single-family homes, but allowed in multi-family dwellings and commercial zones under new regulations.

• A compromise was reached, allowing multi-family residential areas with 20 or more units to have short-term rentals, with a cap of 3% of units for such use. The new rules also include provisions for noise control and limiting the number of occupants. Enforcement of the regulations will begin in December 2023, allowing property owners time to transition away from short-term rentals in single-family neighborhoods, while lawsuits have already been filed in response to the changes.

• Currently, there are approximately 1,000 registered single-family rentals in the city of Dallas. However, it is estimated that there are around 6,000 operating rentals that have not yet been registered with the city. This suggests that those unregistered rentals might soon transition to mid-term rentals, where tenants stay for a minimum of 31 days. If you own properties in Dallas, TX, it's something to be aware of and keep an eye on!

Mortgage Rate Volatility

• When discussing mortgage rates in June, it's important to note that they have remained quite stable. In fact, there hasn't been much of a difference between rates from one day to another this month. The volatility index, which measures the average change in mortgage rates over different time periods, is currently at its lowest point since June 2022.

• The volatility index provides insight into how much mortgage rates have been fluctuating. A higher volatility index means that rates are changing more frequently, which can be riskier for those considering getting a mortgage.

• When mortgage rates are stable and have low volatility, it gives borrowers more confidence in their financial planning. Homebuyers and homeowners can expect minimal changes in rates on a day-to-day basis. This stability allows people to make decisions about buying a home or refinancing without worrying about sudden rate increases.

• Additionally, when rates are stable, it can make homeownership more affordable. Borrowers have the opportunity to secure financing at favorable rates without the fear of rates spiking unexpectedly. This stability helps make homeownership costs more predictable and manageable.

• New listings of homes for sale dropped by 25.2% in May, reaching the third lowest level on record. Despite sluggish homebuyer demand, a shortage of available homes is leading to bidding wars, with 37% of homes selling for more than their list price.

• Although home prices decreased by just 3% in May compared to the previous year, competition among buyers is helping to sustain prices. However, the housing market may face challenges as elevated mortgage rates affect affordability. Closed home sales saw a 19.8% year-over-year decline in May, the smallest drop in nearly a year, but still significantly lower than pre-pandemic levels.

💸Propertymate, a proptech startup that simplifies the home buying experience of new construction homes, recently raised $5.5M in seed funding

📈US housing starts surge most since 2016

📢May Foreclosure report by ATTOM