In Today’s Email

• Home Showings

• Mortgage Rates & Affordability

• Wall Street Investors

• Quick Reads

• Executive Summary

Home Showings

• The home showing traffic in the US had a significant increase in January 2023 compared to December 2022, as per data by ShowingTime's Showing Index. Although there was a year-over-year decrease, all four regions of the US showed an increase in home showing traffic. Experts believe that the spring market and mortgage rate activity will play a significant role in sales activity in the future.

Mortgage Rates & Affordability

• The US housing market is feeling the impact of high mortgage rates and low affordability, resulting in a drop in home sales and prices. Single-family home prices dropped by 1% in January, with Alaska having the biggest decline in month-over-month prices, and California, Nevada, and Washington leading the drop year-over-year. Although home prices aren't crashing, they are expected to continue declining, with a 5-10% drop predicted over the next two years.

Wall Street Investors

• According to National Association of Realtors Chief Economist, Lawrence Yun, an ongoing shortage of housing will allow Wall Street investors to take control of the market for single-family rental homes. Institutional investors are expected to own 40% of single-family rentals in the US by 2030. The only way to prevent this from happening is to build more homes, says Yun.

Quick Reads Around The Block

• Don’t call it a comeback! Home showings are on the rise

• Rising Mortgage Rates Challenge Prospective Homeowners

• US faces significant shortage of new homes

Executive Summary From PD

“Despite a shortage of new homes being built right now, Groundfloor is still feeling confident that we can help boost the real estate market. How? Well, by having a whopping 33% of our portfolio dedicated to new construction builds! ”

P.S. If you found this week's real estate newsletter as exciting as finding the perfect avocado at the grocery store, share it with your friends and invite them to subscribe for more ripe content!