Saturday Morning Coffee - Feb 1

Dated: February 1 2025

Views: 102

Saturday Morning Coffee ☕

Mortgage Rates trend this week: ⬇️ 7.05% MND

Flippers costs to rehab - Twitter

Sellers are more negotiable - FAR

2025 Word of the Year - Stabilization 


Economic Update: No Major Surprises, Mortgage Rates Dip Slightly

This week’s economic news had few surprises and little impact on mortgage rates, which ended slightly lower.

  • Inflation Data Steady: Core PCE, the Fed’s preferred inflation gauge, rose 2.8% year-over-year, matching expectations but still above the 2.0% target.
  • GDP Slows: The U.S. economy grew 2.3% in Q4 2024, down from 3.1% in Q3, with consumer and government spending driving growth while business investment declined.
  • Fed Holds Rates Steady: As expected, the Fed made no rate changes, with Chair Powell emphasizing that future decisions will be data-driven despite increased uncertainty.

While inflation remains a challenge, mortgage rates saw a slight dip this week.


The giants of real estate are beating a retreat from the housing market. After swooping in to buy homes at record levels during the pandemic, large institutional landlords have dramatically pulled back their purchases. These corporate buyers - who each own more than 1,000 homes - grabbed just 0.3% of U.S. home sales in Q3 2024, their smallest slice of the market in six years. It's a stark contrast to their peak buying spree in Q2 2022, when they commanded 2.4% of sales.

While these corporate landlords control only about 1% of single-family homes nationwide, their presence is far more concentrated in certain Sun Belt cities. Atlanta leads the pack, where institutional investors own more than 4% of single-family homes. They've also carved out significant territory in Jacksonville, Charlotte, Memphis, and Tampa, where they control between 2.85% and 3.77% of the housing stock.

These numbers from John Burns Research and Consulting paint a picture of a shifting landscape, where corporate landlords are becoming more selective about where and when they buy, even as their existing holdings continue to shape local housing markets across the Southeast.


FEATURED LISTING OF THE WEEK

Coastal Elegance in Inlet Heights

Just steps from 30A's finest beaches, this newly updated home offers the perfect blend of luxury and coastal living.

Built in 2016 and thoughtfully renovated, this 1,831 sqft residence features 3 bedrooms, 2.5 baths, and designer touches throughout.

Property Spotlight:

  • Updated kitchen with quartzite countertops
  • Main-level primary suite with private porch
  • Screened-in porch overlooking wooded views
  • Community pool and Lake Powell access
  • 2-minute drive to beach, dining & shopping
  • Fully furnished & rental-ready

 

Price: $749,900

Details and pictures are HERE

Blog author image

Andy Rose

Andy brings to the table over 12 years of real estate experience including becoming a licensed Georgia broker in 2018 and a licensed Broker in Florida in 2019. Prior to his real estate career he proud....

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