Have you heard of the Invisible House in Joshua Tree?

Your 5 minute weekly real estate update

Kimi Green
May 18, 2023

The most expensive home ever listed in Joshua Tree, California, is now on the market for $18 million! Named the Invisible House, the property features a mirror-clad facade that reflects the surrounding desert landscape, allowing it to blend seamlessly with the rocky environment.
The modern glass architecture sits on 67.5 acres near Joshua Tree National Park and includes nearly 5,500 square feet of living space, three bedrooms, four bathrooms, and a 100-foot indoor pool.
Despite its remote location, the property has been a lucrative investment, generating over $1.4 million in total revenue in 2021 from rentals on Airbnb and for production shoots. The agents believe the unique design and potential income opportunities justify the record-breaking asking price, and they expect it to surpass the highest sale price ever achieved in Joshua Tree.
Do you think this type of architectural masterpiece could spark a trend in the real estate market, leading to more similarly designed and priced homes?

The current housing market is grappling with the consequences of low interest rates, as homeowners opt to stay put, resulting in a shortage of available properties and intensified competition.
Data reveals that as of March 31, almost two-thirds of primary mortgages had interest rates below 4%, with 73% of them being fixed-rate mortgages for 30 years. This reluctance to sell homes has diverged from past downturns, potentially preventing significant national declines in home prices.
Home builders and remodeling companies are capitalizing on this market dynamic, while the Federal Reserve's attempts to control inflation are being challenged by the reluctance of homeowners to give up their low mortgage rates.

Homebuyers in the US have been putting more money down for down payments in 2022 and Q1 2023 compared to pre-pandemic levels. However, the overall personal savings rate has fallen, dropping from 13.4% in February 2021 to 4.6% in February 2023 due to inflation, rising home prices, and mortgage rates.
Down payment sizes remain higher than pre-pandemic levels, indicating that those who can purchase homes are competing in a more expensive market. In Q1 2023, buyers paid 71.8% more as a down payment ($24,100) compared to Q1 2020 ($14,000), reflecting the significant 28.9% median sale price growth during that period.
The combination of higher down payments and climbing mortgage rates has led to a notable constraint on demand in the housing market, as buyers grapple with the challenge of balancing affordability and homeownership.

Lafayette, Indiana, a manufacturing hub and college town, leads the list for up and coming markets with a median list price of about two-thirds of the national median price in March. The majority of the top emerging markets have median list prices below the national median, making them attractive for both investors and first-time buyers. Manchester, New Hampshire, and Knoxville, Tennessee, stand out as exceptions, experiencing rapid rent increases. Full list here
Work-from-home arrangements have surged, with nearly 30% of work conducted from home as of January. Sky-high prices in urban areas are pushing individuals to relocate to more affordable regions, seeking smaller communities with attractive amenities and booming economies.
Notably, emerging markets are found in smaller metros, offering first-time homebuyers opportunities with local wages.

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