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CALCAP Connections November 2018
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Home Values Still Rising
Home values are still rising, according to the latest S&P CoreLogic Case-Shiller data. Prices increased 5.5% year over year in September. This is down slightly from the 5.7% annual increase in August. One of the main contributors to the slowdown in price increases has been rising interest rates. The average rate on a 30-year fixed rate mortgage is now one full percentage point higher than a year ago. Affordability has now weakened to its lowest level in the last decade. Sales activity for both existing and new homes has slowed since peaking in November of 2017, according to the report.
Cities that experienced the largest price declines during the housing crisis in 2008, are currently still seeing the biggest gains. Las Vegas, Phoenix and Tampa are still seeing healthy price gains. Prices in Las Vegas increased 13.5% annually. Supply constrained markets like San Francisco and Seattle increased 9.9% and 8.4% respectively. Zillow is currently reporting the median price US home at $221,500. Zillow predicts home values rising 6.4% nationally over the next year.
At CALCAP we believe the housing markets are still very stable, as more stringent lending standards have prevented the artificial price run ups seen during the great recession. Prices have been increasing due to more normal supply/demand fundamentals and will naturally slow if the Fed continues to raise rates. We also believe that real estate is a "localized" investment and continue to evaluate properties and markets on that basis.
Sincerely,
Patrick Wakeman
Principal
858-764-4890
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Top multifamily operators band together, plan massive investment in real estate tech
According to the companies, the group of investors is the largest single group of institutional multifamily owners of its kind in North America, with the companies combining to own or manage nearly one million rental units.
And now, those companies are turning their focus towards investing in the cutting edge of real estate tech.
The firm leading the charge is Real Estate Technology Ventures, which organized the fund. RET Ventures is led by John Helm, who brings experience in venture capital, real estate and real estate tech.
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Real estate crowdfunding startup RealtyShares hits hard times, halts new investments
The real estate crowdfunding startup had
just purchased one of its biggest rivals, Acquire Real Estate, and had plans to grow its investment in commercial and multifamily real estate, as well as "fix and flip" and construction loans for single-family housing.
Then the company ended up
selling its residential lending business to Lima One Capital and shifting its focus entirely onto commercial and multifamily lending.
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The new boomtowns: Why more people are relocating to 'secondary' cities
The highest percentage of Atlanta's and Nashville's new residents are from New York City. New residents in Phoenix, Dallas and San Diego are mostly from Los Angeles; Portland's and Austin's new residents are largely from San Francisco.
Miami is seeing significant traffic both ways: Inbound migration is from New York and Orlando, while outbound migration is to Tampa.
"We started to notice this trend a few years ago, that despite real estate investor focus on '24/7' gateway cities like New York and San Francisco, there's stronger growth happening in the next tier of cities," said Ed Walter, global chief executive for the Urban Land Institute, a Washington-based organization representing urban land use and real estate experts around the world.
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California Capital Real Estate Advisors, Inc. (CALCAP) is a real estate investment and advisory firm.
Partnering with businesses, asset managers, developers and communities we reposition distressed real estate, and provide liquidity, adding value for our stakeholders and the communities we serve.
We are proud of our ability to identify opportunities and to move quickly in adding value to a diversity of projects. Through our experience, extensive network and creative problem-solving skills we have established a strong record of success.
CALCAP's work includes the acquisition of distressed residential and commercial properties and debt; the repositioning of real estate; asset management; real estate brokerage; consulting; and real estate financing services.
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LOS ANGELES
The Sanborn House
65 N. Catalina Avenue
Pasadena, CA 91106
Edward M. Aloe, President & CEO
(626) 229-9057
Mark A. Mozilo, Principal
(626) 229-9056
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SAN DIEGO
12626 High Bluff Drive, Suite 360
San Diego, CA 92130
Patrick A. Wakeman, Principal
(858) 764-4890
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PHOENIX
4747 North 7th Street Suite 170
Phoenix, AZ 85014
Drew Buccino, COO
(602) 419-3381
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SANTA BARBARA
1309 State Street Suite A
Santa Barbara, CA 93101
Greg Blix
Director of Investor Relations
(805) 896-8500
greg.blix@calcapadvisors.com
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IRVINE
2603 Main Street, Suite 850
Irvine, CA 92614
Len Israel
CEO, CALCAP Lending, LLC
949-439-1044
len.israel@calcapfinancial.com
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