Friday, September 15, 2023 / by Fahad Karamat
While the Hollywood sign might have you dreaming of stars, Greater Los Angeles is now shining in another domain: apartment completions. However, even as the City of Angels ranks seventh nationwide in new large apartment unit completions, the state's overwhelming housing crisis casts a gloomy shadow.
Apartment Supply Wave in Greater LA
According to a recent RentCafe and Yardi Matrix report, LA is poised to roll out over 14,000 apartment units in substantial constructions this year. While this might sound like a lot, a deeper look reveals that LA trails behind cities like New York, which tops the list with an astounding 33,000 new units, and Dallas, making a splash with around 23,700.
A Pandemic-Inspired Construction High
If there's one upside to the pandemic, it's the surge it prompted in the construction sector. The report highlights that the US has witnessed the introduction of 1.2 million apartments in the previous three years. 2023 seems to continue this trend, dubbed a . ...
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real estate, news, apartment building, construction
Thursday, September 14, 2023 / by Fahad Karamat
In the world of high-stakes real estate, where the glittering allure of oceanfront mansions meets the breathtaking ruggedness of California landscapes, a new tempest brews – and it's not just the ones Mother Nature sends. For the discerning Californian, insuring their coastal jewel or hillside haven is becoming as elusive as an affordable Malibu beachfront. Grab your surfboards and financial spreadsheets; let's ride this wave of insurance woes.
The Rising Premium Tide
As climate change sends more frequent VIP guests like Hurricane Idalia to Florida's doorsteps and Maui's wildfires leave behind scorching bills, insurers are adopting the "better safe than sorry" mantra. While they pack their bags from hard-hit areas, property owners, especially those on a tight budget, feel the pinch.
As Michelle Norris from the National Church Residences notes, an alarming 400% spike in insurance costs over half a decade paints a grim picture. It's like watching your dream Malibu property. ...
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real estate, buying a home, news, home insurance
Friday, August 25, 2023 / by Fahad Karamat
Lights, Camera, Jackson Hole! Another year, another headline from the Kansas City Fed's annual retreat. Last year, Powell cautioned us of some "economic turbulence." This year, he's brought a financial compass ready to steer the economy through its stormy inflation waters. Let's dive in.
A Quick Flashback
Remember Jackson Hole 2022? Powell swung his monetary bazooka, and Wall Street felt it deep. But this year, the tone was different. Not the celebration-with-fireworks kind, but certainly not the lock-yourself-in-the-bunker type either. It's more of a "we're on the right path, but let's not get too comfy" situation.
The Inflation Conundrum
Despite some progress, inflation remains that one party crasher nobody invited. It's still looming larger than what our policymakers would like. But here's the silver lining - the economy is strong like, 'haven't-seen-this-since-the-60s' strong. This means there's reason to be optimistic even as we grapple with inflation. As Powell artf. ...
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news, mortgage
Wednesday, June 28, 2023 / by Fahad Karamat
Renters across the US, rejoice! Recent data from Realtor.com reveals a downward trend in median rent prices in May, breaking the persistent upward trajectory we've witnessed in the past years.
A Historical Dip
May's national median asking rent stood at $1,739, representing a slight monthly increase from April but, more importantly, a 0.5% dip from the previous year's May. This decline is noteworthy, marking the first of its kind since 2020, when Realtor.com started closely monitoring these trends.
Economist's Take
Danielle Hale, the Chief Economist at Realtor.com, perceives this decline as an early sign of fading rental-driven inflation. Hale optimistically points out that the blend of declining rents, easing inflation, and a robust job market spells a positive outlook for American households.
Rental Peaks and Troughs
The pandemic brought about unexpected turns in rental pricing. With "pandemic pricing" dominating 2020, rent soared in 2021 and early 2022 d. ...
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real estate, news, forecast, rent
Wednesday, June 14, 2023 / by Fahad Karamat
In an unforeseen twist, the Federal Reserve has decided to hold its benchmark interest rate, offering borrowers nationwide a temporary sigh of relief. Yet, with future rate hikes looming, how should we interpret this decision?
Taking a Breather Amidst the Rate Hike Marathon
Over the past months, the Federal Reserve has been on a rate-hike spree to address the rampant inflation concerns. Their recent choice to maintain the rate at 5.1% has made some market observers raise an eyebrow. This hiatus might be the Fed's strategy to assess the long-term effects of their prior rate hikes.
Reading Between the Lines
Chairman Jerome Powell's commitment to mitigating inflation is evident. However, his cautious approach indicates that there's still uncertainty surrounding the broader economic trajectory. The balance is indeed fragile: combating inflation without denting the growth momentum.
A Mixed Bag of Predictions
Despite the hawkish hint at two potential rate hikes,. ...
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news, interest rate, economy, fed
