Consumer confidence continued to fall in July to the lowest level since February 2021 amid inflation angst and an economic slowdown, the Conference Board reported on Tuesday. The top-line number fell to 95.7 from 98.4 in June, driven by broad declines across all components. But there was good news: ... READ MORE >
Real Estate
Real estate and the middle market go hand in hand. Developers in commercial, residential and industrial markets provide the economic fuel to transform local economies, building infrastructure that leads to new business and job creation.
Existing home sales continued its slump, down 21% in 2022
Existing home sales fell for the fifth straight month as the housing market cooled significantly amid steep rises in mortgage rates and housing prices, the National Association of Realtors reported on Wednesday. Sales dropped 5.4% in June from a month earlier to 5.12 million on a seasonally adjusted ... READ MORE >
U.S. housing supply continues to fall amid rising mortgage rates
Housing starts and permits in the United States continued to fall in June amid higher interest rates and sharp declines in demand because of elevated housing prices, the Census Bureau reported on Tuesday. There were 1.56 million new housing starts in June on an annualized basis, a 2.0% decline from May ... READ MORE >
Canadian housing starts fall slightly in a sign of possible cooling
Housing starts in Canada fell to 273,800 in May, a 3% drop from April, according to data released by the Canadian Mortgage and Housing Corporation on Monday. Although housing starts are still much higher than during the pre-pandemic era, the slight decline might be a preview of the construction ... READ MORE >
Direct investment favored by family office real estate investors
Direct investment in real estate remains a predominant trend among family offices. This was a theme we heard recently at a real estate conference in Dana Point, California. Typically created with a general partner or co-general partner structure, this method of investment offers control over a real ... READ MORE >
Senior housing, investors’ ‘golden-aged’ goose, gives way to multigenerational living
For the better part of the past decade, investors have flocked to senior living, which was viewed as the golden goose for sure-bet growth as the baby boomer generation aged. More recently, however, due in large part to pandemic-related challenges including health safety considerations and staffing ... READ MORE >
New home sales rise unexpectedly despite higher mortgage rates
New home sales rose unexpectedly in May despite rising mortgage rates and an otherwise cooling housing market. The increase was driven by more supply coming online, pushing prices down for the first time since February. Sales increased by 10.7% on the month to 696,000 new homes annualized, after ... READ MORE >
As rates rise, Canada’s construction industry enters a new phase
In response to rising inflation, the Bank of Canada began a series of aggressive rate hikes this year, bringing its policy rate from an effective lower bound of 0.25% to 1.5% in June. One of the industries hit hardest by rising interest rates has been construction, and this slowdown now threatens to ... READ MORE >
The American housing deficit and what it takes to close it
Over the past 15 years, the United States has not built enough houses to keep up with growing demand. The problem intensified during the pandemic as demand skyrocketed because of the shift to working from home and historically low mortgage rates encouraged this move. We estimate that at the end of ... READ MORE >
Chart of the day: U.S. housing starts and permits plunge
U.S. housing starts and permits plunged in May amid a steep rise in mortgage rates and sour builder sentiment. We expect new housing supply to fall further as mortgage rates continue to rise following the Federal Reserve’s 75 basis-point rate increase on Wednesday, its largest since 1994. Housing ... READ MORE >