July Newsletter: As vacancy rates increase, what will you do?
What's happening in real estate
🏡 Vacancy rate increase to 7.2%
After the vacancy rate hit a low in October 2021, our national vacancy rate has been steadily increasing over the last year and a half. As of June 2023, the vacancy rate rose to 7.2 percent, matching the pre-pandemic peak in July 2020. The cities experiencing the highest vacancy rates include Pasadena, TX (13%) Nueces County, TX (12%), and Corpus Christi, TX (12%). There are no signs of this increase in vacancies slowing, and it is likely that the vacancy rates will continue to trend upwards as new apartments continue to recover from pandemic-related disruptions. With increased inventory, more rental owners will be fighting to fill their units. Find out more about the vacancy rates here.
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Recent Webinar
💻 Introducing Eviction Guard
Missed our Eviction Guard Webinar? Not to worry, we recorded this webinar to make sure you have all you need to know about Eviction Guard+ and how you can get peace of mind on all rental payments for just $4.95/door/month.
What's happening in real estate
💸 Home prices decreased by just $4,000 YoY
Redfin reports that sale home prices in June experienced the smallest decline in nearly four months. The typical home is selling for roughly $383,000 now. This is roughly $4,000 less (-1%) than what we saw in June last year. New listings fell 27% YoY during the four weeks ending June 25, the biggest drop since the start of the pandemic, and it contributed to a decline of 11% in the total number of homes for sale. The lack of homes for sale and high mortgage interest rates has been keeping housing prices afloat. As mortgage rates approach 7% and vacancy rates continue to climb, real estate investors and homeowners will most likely be hanging onto their current properties which have a lower mortgage rate.
⏳ Days on market for home sales have increased by 13 days since last year
In June, the average time a typical home is on the market increased to 44 days, which is almost two weeks longer than the same period last year. An increase in the time homes spent on the market was seen across the 50 largest metros. The number of days range from a 26 day increase (Raleigh) to a 4 day increase (Kansas City and San Francisco).
Despite a significant slowdown, the days a property is on the market is still lower when compared to the pre-pandemic era. This indicates that the housing market is continuing to move much faster. As home prices are declining YoY, and mortgage rates are increasing, real estate investors are holding onto their rentals. More on this topic here.
New content from Hemlane
New Blog: Maximize Returns by Embracing Hybrid Property Management
The real estate industry has witnessed a significant shift as landlords and property managers embrace hybrid property management models for their business due to its benefits and advantages. By combining self-management and technology, they gain greater transparency and flexibility over their properties, leveraging automations to simplify tasks and streamline operations.
Learn more about hybrid property management here.
New Blog: Tech Trends in Property Management
As technology continues to develop, property managers and landlords around the world are increasing the efficiency and the effectiveness of their business through the use of property management software and smart home technology. Click here to learn more about how you can utilize these tools to level up your property management business.
Click here to learn all about these trends.
eBook
Finding and Selecitng the Best Tenant
Learn how to quickly find and select a qualified tenant while following the law.
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