MarketWatch: Weekly Real Estate Update for Riverdale, Bronx – 2/26/2024 – 3/1/2024

Did You Know?

* On June 21st, the longest day of the year, Manhattan has about 1 hour and 20 minutes more daylight than Miami? On the shortest day of the year December 21st, however, Miami gets about 1 hour and 15 minutes more light than Manhattan.

* CORRECTION:  Amy Berry of COMPASS Texas informs us that  Texans over 65 are not able to defer their property taxes. What they are able to do is to get a reduction in the amount of their taxes for the school tax portion of their property taxes. In fact, there’s a lot of confusion and each county can apply it in different ways so it can vary considerably, but they are not able to get rid of paying property taxes. They still have to pay but the valuation of their property for the portion that gets taxed for the school districts gets frozen. Therefore, that amount will never go up.

* How does the state of Montana address housing affordability that has reached crisis levels in many areas? Here is a video of an interview with their governor. Thanks David Feldman of COMPASS Philly for sending this!

* More evidence that corporations have tapped into the high inflation narrative to boost prices – and profits – by raising prices attributing this to rising material and labor costs…..but…. the reality is in the numbers: Berkshire Hathaway posted operating earnings – or profits – from businesses across insurance, railroads and utilities of $8.481 billion in the 4th quarter of 2023….. up 17% from $30.853 billion in 2022…..slightly higher than the 3-4% inflation rate! Berkshire held $167.6 billion in cash in the fourth quarter.  The high inflation narrative has possibly fueled corporate coffers more than anything, ever. Or is the risk to insurers so great that this prepares their coffers when the next big payout is needed? Or will they pay out and simply raise premiums as they have in the past? Or….Are we suckers?

* What are the 10 best U.S. cities for quality of life  based on the following factors: 

Crime Rates, Quality of Education, Well-being, Commuter IndexQuality and availability of healthcare, Air quality index, Federal Emergency Management Agency…..

Ann Arbor, Mich.
Boulder, Colo.
Madison, Wis.
San Jose, Calif.
Portland, Maine
Boston, Mass.
Green Bay, Wis.
Hartford, Conn.
Rochester, N.Y.
Trenton, N.J.

More than 90% of Ann Arbor’s residents live less than a 10-minute walk from a public park, and the cost of living is just 4% higher than the national average. The average Ann Arbor home value is $471,650, up 5.7% over the past year.  Its Gen Z population— aged 18 to 24— grew the fastest in 2022. The city had 26.4% new Gen Zers and a total population of 35.9%.  (US News and World Report)

Mortgage Rate Updates

The average rate on a 30-year fixed mortgage was at 6.9% as of February 22nd, rising 13bps from the prior week to the highest level in over two months. The result was consistent with the increase in Treasury yields in the period, as hot price data and remarks from FOMC members suggesting a delay in the start of the quantitative tightening taper lifted bond yields in the US. One year ago, the average rate on a 30-year fixed mortgage was 6.5%. “Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates,” said Sam Khater, Freddie Mac’s Chief Economist. “Historically, the combination of a vibrant economy and modestly higher rates did not meaningfully impact the housing market. The current cycle is different than historical norms, as housing affordability is so low that good economic news equates to bad news for homebuyers, who are sensitive to even minor shifts in affordability.”. 

Source: Freddie Mac