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The Real Estate News Brief: Two Inflation Reports, Fed Minutes on What's Next, Mortgage "Sweet Spot" for Homebuyers Apr 19, 2023

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In this Real Estate News Brief for the week ending April 15th, 2023… we have two inflation reports, the minutes of the last Fed meeting, and the results of a survey on an acceptable mortgage rate. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week. The government released two reports on inflation that show prices are rising more slowly, but that inflation is still too high. The Consumer Price Index or CPI shows a small .1% increase in March, mostly due to lower food and gas prices. Energy prices were down 3.5% while groceries fell .3% including an 11% tumble for egg prices. Grocery prices are still 8.4% higher year-over-year, but those declines helped slow the yearly rate from 6% to 5%, which is the lowest we've seen since May of 2021. (1) The news isn't quite as good for the core rate, which strips out food and gas. That was up .4% and "raised" the annual rate from 5.5% to 5.6%. The increase was partly caused by a 2.7% increase in shelter prices, although rents and home price growth are slowing. The Producer Price Index or PPI for March was also released, and shows a big drop in wholesale prices. That typically means we'll see retail prices coming down in the coming months. The data shows a .5% monthly decline which brings the yearly rate down from 4.9% to 2.7%. That's the lowest it's been since January of 2021. The core rate shows a slight increase of .1%. That also reduced the annual rate from 4.5% to 3.6%. (2) Meantime, the Federal Reserve released minutes from the meeting in February which resulted in a quarter-point rate hike. The notes show that Fed officials are very concerned about rate hike stress on the banking system, and are now admitting that we'll likely see at least a "mild" recession later this year. They raised the Federal Funds rate nine times in a row to a range of 4.75% to 5% at the last meeting. They believe that inflation is still much too high and that further rate hikes may be needed, but they will be looking closely at the incoming economic data ahead of their meeting in May. (3) U.S. Treasury Secretary Janet Yellen spoke out at the end of the week, saying that banks are being more cautious, and that if they tighten their lending standards further, there may be no need for further rate hikes. She said that would serve as a "substitute for further interest rate hikes that the Fed needs to make." (4) Consumers are spending less, which is another sign that the economy is softening. Retail sales have declined four out of the last five months, and were down 1% in March. As reported by MarketWatch: "Retail sales haven't fallen off a cliff, but they also aren't rising rapidly like they did in 2021 and early 2022." (5) Jobless applications are slowly rising. There were 239,000 initial claims for the previous week, which is an increase of 11,000. That's not much of a blow to the job market, but it does show that layoffs are slowly rising. Most of the unemployment applications were filed in California where big tech companies are handing out pink slips. Continuing claims are still very low at 1.81 million. (6) Mortgage Rates Mortgage rates held steady for the most part. Freddie Mac says the average 30-year fixed rate mortgage was down just one basis point to 6.27%. The 15-year was also down one point to 5.54%. (7) In other news making headlines... Mortgage Rate "Tipping Point" The National Association of Realtors is predicting they will fall below 6% by the end of the year. NAR economist Nadia Evangelou says: "If rates drop to 6%, 3.1 million more households will be able to afford to buy the median-priced home compared to the beginning of the year." A survey by John Burns Real Estate Consulting shows the "sweet spot" for most homebuyers is lower than 6%. 71% of the participants taking that survey said they won't accept anything higher than 5.5%. (8) Sharp Drop in Single-Family Permits There's been a steep drop in the number of building permits pulled for single-family homes. The National Association of Home Buliders says the they are down more than 34% year-over-year with the sharpest decrease in the West followed by the South and the Midwest. They are down about 44%, 33%, and 31% respectively. The Northeast had the smallest drop of 23%. (9) Multifamily permits are up slightly for the nation with a year-over-year rate of just over 8%. There's been a steep drop in the Northeast for apartments while they have surged to almost 32% in the South. Texas had the highest number of single-family permits, but those have dropped more than 40% in the last 12 months. Florida and North Carolina have also experienced big declines of just over 31% and 22% respectively. That's it for today. You'll find more on all these topics by following links in the show notes at newsforinvestors.com. You can also learn more about how demand is growing for single-family rentals at our website and where it makes sense to buy them. Hit the "Join for Free" button to become a member with access to all parts of our website. And please remember to hit the subscribe button, and leave a review! Thanks for listening. I'm Kathy Fettke. Links: 1 - https://www.marketwatch.com/story/consumer-prices-rise-more-slowly-cpi-shows-but-inflation-still-stubbornly-high-74611cd9 2 - https://www.marketwatch.com/story/wholesale-inflation-posts-biggest-drop-in-3-years-ppi-shows-3fc04750?mod=economy-politics 3 - https://www.marketwatch.com/story/fed-officials-at-march-meeting-were-keenly-worried-about-impact-of-bank-stress-on-economy-26f2d36d?mod=mw_latestnews 4 - https://www.cnbc.com/2023/04/15/yellen-says-us-banks-may-tighten-lending-and-negate-need-for-more-fed-rate-hikes.html 5 - https://www.marketwatch.com/story/retail-sales-tumble-in-march-in-a-sign-of-softening-u-s-economy-b9d35c44?mod=economy-politics 6 - https://www.marketwatch.com/story/jobless-claims-climb-to-239-000-and-point-to-rising-layoffs-5f07ceb5?mod=economy-politics 7 - https://www.freddiemac.com/pmms 8 - https://www.nar.realtor/magazine/real-estate-news/mortgage-rates-move-closer-to-sweet-spot-for-buyers 9 - https://eyeonhousing.org/2023/04/steep-year-over-year-decline-for-single-family-permits-in-february-2023/

The Real Estate News Brief: Job Markets Soften, Single-Family Rent Yields, Top Home Price Growth Metros Apr 11, 2023

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In this Real Estate News Brief for the week ending April 8th, 2023... reports show a slowly weakening job market, what could be a great year for single-family rentals, and a list of the top metros for home value growth and stability. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week. Although the job market remains strong, the latest reports show it is softening. For the week of March 25th, jobless claims hit 228,000. It's the ninth week in a row that they've topped 200,000. They had bottomed out last fall when they dropped to a 53-year low of 182,000. They continued around the 200,000 level for several months and have been slowly rising since February. Government revisions also show that claims during the first part of the year were higher than previously reported. MarketWatch economists say that's probably due to corporate layoffs that are just now showing up in the jobless data. (1) Job openings are also declining. They fell to a 21-month low in February, which is another sign that the job market is softening. Listings dropped from 10.6 million in January to 9.9 million in February. Openings are now down to about 1.7 openings for each unemployed worker. They were at 1.9 openings or each unemployed worker previously. Bill Adams of Comerica told MarketWatch: "The labor market is still very hot but the big drop in job openings is a sign the labor market is cooling in general." (2) A third report on job growth shows that U.S. companies added 236,000 new jobs in March. That's a sign of strength and resiliency, and probably not what the Fed would like to hear. Those new jobs helped lower the unemployment rate from 3.6% to 3.5%. Wage growth was slower however. It's come down from 4.6% in February to 4.2% in March. (3) A report on construction spending shows it was down slightly in February. The Commerce Department says it fell .1% to $1.844 trillion. Single-family construction spending was down 1.8% while multi-family spending was up 1.4%. Year-over-year, multifamily is up 22.2%. Single-family is up 21.4%. (4) Mortgage Rates Mortgage rates dipped slightly this last week. Freddie Mac says the average 30-year fixed-rate mortgage was down 4 basis points to 6.28%. The 15-year was down 8 points to 5.64%. (5) In other news making headlines… Single-Family Rental Market Remains Strong Some parts of the housing market may be in for a rough ride this year, but the single-family rental market isn't one of them. A new report from Attom projected single-family rental yields for 212 counties with a population of at least 100,000. Rental yields are calculated by dividing the annualized gross rent by the purchase price. According to Attom, rentals in those 212 counties will see a 7.5% yield this year. That's up from 6.7% last year. (6) Attom says that SFR rents are growing in over 90 of the counties analyzed, so those counties will be the most desirable. Three of the top five counties for the biggest upside in rent yields are in Florida including counties for Miami, Fort Lauderdale, and West Palm Beach. California's Orange and Santa Clara counties are the other two. There's a lot of data in this report so it's worth digging deeper if you're deciding where to buy a rental property this year. You'll find a link to the report in the show notes. Texas Shows Strength for Overall Housing Market Another report on the U.S. housing market lists the top 20 cities for growth and stability, and 12 of them are in Texas. The Smart Asset study compared home value data for 400 metros between 1998 and 2022. It then calculated the growth rate from that data. (7) The Austin, Texas, area was In the number one spot for growth and stability followed by Midland, Texas, in the Western part of the state. Boulder and Fort Collins, Colorado, took the third and fourth spots. The Kennewick-Richland part of Washington State was fifth. Rapid City South Dakota took the sixth position. Then it's back to Texas with the Odessa area in West Texas as seventh and the Dallas area as eighth. San Antonio was in the ninth spot, and Houston right after that. Texas also dominated the next ten top cities as well with six more metros showing the strongest growth and stability. The report also shows the worst cities for growth and stability with Flint Michigan topping that list. I won't list those cities, but you'll find a link to the report in the show notes. Will Commercial Real Estate Go Belly Up? While there has been a lot of concern that commercial real estate is going to implode because of maturing debt and the inability to refinance at high interest rate, CNBC published a story with the title: "The coming commercial real estate crash that may never happen." This story argues that only a quarter of office-building loans will need to be refinanced in the next year. A quarter of office-buildings? That sounds like a LOT to me. CNBC also reports that industrial, retail, and hotels are on solid ground. (8) Kevin Fagan of Moody's Analytics says: "There likely will be issues but it's more of a typical down cycle." Whether it's a typical down cycle or a rare one, losing money is never good for investors and is usually a result of aggressive underwriting in a bull market. According to The RealDeal, distress has started to rear its ugly head in the Houston market. Arbor Realty Trust just foreclosed last week on four low-income multifamily properties in Houston, valued at $229 million. The portfolio includes Heights at Post Oak, Redford Apartments, Reserve at Westwood and Timber Ridge Apartments, all of which were purchased between August 2021 and April 2022. (10) The RealDeal says Arbor's foreclosure is "indicative of the current state of the market, where higher interest rates, regional banking turmoil, and slowing rent growth continue to negatively impact multifamily operators. Investors decreased their purchase of apartment buildings by about $40 billion in the first quarter of 2023, representing a 74% decline in sales from the first quarter of last year, according to CoStar Group. That's it for today. Check the show notes for links at newsforinvestors.com. As always, I ask that you sign up as a RealWealth member. It's free and will give you complete access to our market data and resources. And please remember to hit the subscribe button, and leave a review! Thanks for listening. I'm Kathy Fettke. Links: 1 - https://www.marketwatch.com/story/jobless-claims-top-200-000-after-changes-to-formula-for-seasonal-adjustments-877bfe37?mod=home-page 2 - https://www.marketwatch.com/story/job-openings-in-the-u-s-fall-to-21-month-low-of-9-9-million-cd1fc5ee?mod=home-page 3 - https://www.marketwatch.com/story/jobs-report-shows-236-000-increase-in-employment-in-march-9656b5fc 4 - https://www.marketwatch.com/story/construction-spending-falls-in-february-90188a02?mod=economic-report 5 - https://www.freddiemac.com/pmms 6 - https://www.attomdata.com/news/market-trends/attom-2023-single-family-rental-market-report/ 7 - https://smartasset.com/data-studies/best-housing-markets-for-growth-and-stability-2023 8 - https://www.cnbc.com/2023/04/09/the-coming-commercial-real-estate-crash-that-may-never-happen.html 10 - https://therealdeal.com/texas/houston/2023/04/10/arbor-realty-forecloses-on-229-million-multifamily-portfolio-in-houston/?fbclid=IwAR3yZwTh9jylfQsZQp4HjpOLNPqSE_BiXjlQSGWkE6T42lyeTN3WawP1ZMc

Trouble for CRE Or Media Clickbait & Investor Opportunities? Apr 07, 2023

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Commercial real estate is feeling the impact of high interest rates, slower rent growth, and the banking turmoil, but is that asset class really set to implode? Many of the headlines you see today would lead you to believe that that's going to happen but some real estate insiders say: "Not so fast. We could be in for a buying opportunity." Hi, I'm Kathy Fettke and this is Real Estate News for Investors. Please remember to subscribe to this podcast and leave us a review. First, let's take a look at what's happening with apartment sales. Commercial real estate data company CoStar just released a preliminary report on first quarter sales that shows a 74% year-over-year drop. That's the biggest slowdown since 2012 except for the second quarter of 2020, when the pandemic shut down the economy. From the start of the year to March 17th, sales were around $10.6 trillion. If the quarter finished with another $2.8 billion in sales, the total would be equal to the second quarter of 2020. (1) Apartment Sale Slowdowns In 2020, apartment sales fell because of the pandemic. Now, sales are slowing down because the Fed has been pushing up interest rates to fight inflation and investors can't make the numbers work. Alex Horn of CoStar News says: "The value of multifamily assets across the United States has started to decline" over the last six months. And he expects valuations to fall further. As dour as that sounds, CoStar reports that multifamily sales are doing better than other kinds of commercial real estate, such as office and industrial. CoStar's Jay Lybik says that multifamily is "still the preferred sector to invest in." But this kind of data is looking at a "national" snapshot, which doesn't say much about the submarkets, and places where things aren't quite so bad. The Basic Tenets of Real Estate Eric Brody of ANAX Ventures is one of those optimists. ANAX is a real estate developer and lender that provides funding to distressed real estate projects. Brody spoke with Benzinga about the current situation and said: "What are the basic tenets of real estate? Location, location, location and hyper-local markets. Now you have the mainstream media making projections based on a macro scale." He says that the media should be asking about what asset class in which market and how they structured the deal. (2) He also objects to stories about a big slowdown in construction that's impacting values. According to Brody, you don't count a half built building as worth only half of it's value. He says the values are still there and there's "a lot of stuff under construction right now." Maturing Debt Creates Investor Opportunities In December, he forecast big buying opportunities in commercial real estate because of all the debt that's maturing. He told GlobeSt.com that a report by Newmark shows "over $1 trillion in loans are coming due in the next two years, and due to rising interest rates, it is expected that repayment conditions will become more challenging, with bridge financing, office, and retail loans being the most at risk." He said: "In addition to the rising rates because of increased construction costs, rent growth, and political headwinds, real estate will need an infusion of capital to either refinance assets at a lower rate, pay down existing debt, or complete current projects." (3) But what does that mean for investors with capital? Brody told Benzinga that this creates an opportunistic environment for investors with cash on hand. He says: "It's an incredible moment in time if you have the capital and the expertise." That's it for a more positive view of the commercial real estate market. You'll find links to the stories I mentioned at newsforinvestors.com. You can also join RealWealth for free while you are there, if you haven't already done so. As a member, you have full access to our website, with data on individual rental markets, sample properties, and experienced investment counselors who can answer questions for qualified investors. If you haven't subscribed to the podcast, please do so! And leave us a review! Thank you! And thanks for listening, Kathy Links: 1 - https://www.costar.com/article/2111442536/us-apartment-sales-on-pace-for-the-slowest-quarter-in-more-than-a-decade 2 - https://www.benzinga.com/real-estate/23/04/31659957/is-commercial-real-estate-dead-dying-or-just-the-subject-of-media-clickbait 3 - https://www.globest.com/2022/12/19/will-investment-sales-recover-in-2023/

New Ban on Single-Family Zoning in D.C. Metro Apr 07, 2023

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Demand for badly needed housing has triggered another ban on single-family zoning. Lawmakers in Arlington County, Virginia, approved a controversial plan to eliminate single-family exclusivity, and allow as many as six homes on one property. The decision came after a contentious three-year debate, and is part of a growing trend to dismantle the long-standing concept for single-family communities. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. Please remember to subscribe to this podcast and leave us a review. The policy was unanimously approved by a five-member county board after a battle that included a so-called "Missing Middle Housing Study." The missing middle is a phrase that refers to housing that falls between apartments and single-family homes. It covers several kinds of housing including townhomes, duplexes, and triplexes with more space than apartments. It could also include backyard cottages or in-law units which are more officially known as accessory dwelling units or ADUs. Divisive Debate Over Single-Family Zoning Ban As reported by the Washington Post, some Arlington County residents supported the idea, saying a ban on exclusive single-family neighborhoods would increase affordable housing options and diversify their communities. Other residents argued that it would lead to overcrowding, lower property values, and the destruction of their lifestyle and neighborhoods. (1) Arlington County is a desirable part of the greater Washington, D.C. metro with a growing population and a growing demand for more housing. The county's board chair, Christian Dorsey, said the ban will help the county address population growth, and move past the "discriminatory noise" within zoning rules. He says: "Growth and change are not good or bad, they just are." And, he says: "It's our responsibility to make sure we accommodate that – to make sure that it works well for as many people as it possibly can." New Rules Among the Most Permissive in the Country The new rules are some of the most permissive in the country. Contractors will be allowed to put up to five or six homes on lots that range in size from 6 to 7,000 square feet. Smaller lots will have a limit of 4 units. Height, lot coverage, floor area, and setbacks will remain the same. According to Wikipedia, single-family zoning has been around since 1916, and began in the Elmwood neighborhood of Berkeley, California. The story goes that a real estate developer in the Elmwood district pushed for single-family zoning rules to prevent a dance company owned by a Black resident from moving into homes that he was trying to sell. He apparently pushed for single-family zoning with the help of other developers who were also trying to keep certain groups of people out of the neighborhood. Growing Opposition to Single-Family Zoning More than one hundred years later, the concept is now wavering under the weight of the housing crisis, and the idea of banning this kind of exclusive zoning is gaining momentum across the country. According to BisNow, at least three states and eight municipalities have passed bans on single-family-only zoning. The city of Minneapolis was the first to implement a ban in 2018. The state of Oregon followed in 2019. Several cities in California banned that kind of zoning, but state lawmakers approved a bill in 2019 called Senate Bill 9. That legislation makes it legal to have two units on a single-family property, and in some cases, four units. The state of Maine adopted a ban last year. The Washington State House of Representatives just recently passed a bill that would ban single-family zoning statewide, but it still needs approval from the state senate and the governor. (2) The policy in Arlington, Virginia, goes into effect on July 1st and will be phased in over five years. During those first five years, only 58 permits a year will be approved. The cap will be lifted in 2028. This kind of ban opens up opportunities for homeowners to be coincidental landlords if they build additional housing on their properties, and rent them out. You'll find links to the Washington Post story in the show notes at newsforinvestors.com. Please remember to join RealWealth by clicking on the "join for free" button. As a member, you'll have greater access to investing opportunities in desirable rental markets across the country. That includes our investor portal, our market data, and our experienced investment counselors. You can also find out more about our spring real estate tours in metros that are popular among single-family rental investors, and our mastermind events to help get you on the path to long-term wealth. If you haven't subscribed to the podcast, please do so! And leave us a review! Thank you! And thanks for listening, Kathy Show Notes link: https://www.newsforinvestors.com Join link: https://join.realwealth.com/?utm_content=Real%20Estate%20News%20Podcast&utm_campaign=Join%20for%20Free&utm_term=Description%20Text%20Link Subscribe link: https://podcasts.apple.com/us/podcast/real-estate-news-real-estate-investing-podcast/id1079952715 Links: 1 - https://www.washingtonpost.com/dc-md-va/2023/03/22/arlington-missing-middle-vote-zoning/ 2 - https://www.housingwire.com/articles/wa-house-passes-bill-that-would-ban-single-family-zoning/

The Real Estate News Brief: PCE Shows Weaker Inflation, Best Markets for SFR Returns, Savings Gap Grows for Apartment Renters Apr 03, 2023

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In this Real Estate News Brief for the week ending April 1st, 2023… new PCE numbers show inflation is weakening, where investors are reaping the biggest returns for single-family rentals, and how much apartment renters are saving if they don't buy. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week, and a favorable report on inflation. The Bureau of Economic Analysis released a report on the February Personal Consumption Index, or PCE, and it shows a mild .3% increase. That's down from a .6% increase in January, and suggests that the Fed may be getting the upper hand on high prices. With this report, the yearly rate dropped from 5.3% to 5%, which is the lowest it's been in more than a year and a half. (1) Senior Federal Reserve officials are suggesting that another quarter point rate hike is still needed, before they call for a pause. That would be decided at the Fed's next meeting in May as Fed officials also weigh the risk of further interest rate hikes on the banking system. The government revised their Q4 GDP for a third time. It was initially 2.9%. Last month, it was lowered to 2.7%. The government is now saying it was 2.6%. As MarketWatch reported, the GDP was reduced because data shows weaker consumer spending, and a decline in corporate profits. (2) The weekly jobless report shows 198,000 people applied for benefits. That's a three-week high, but it's still a very low number and indicates that the labor market remains strong in the face of high-interest rates and a potential recession. (3) Reports on housing include the latest Case-Shiller home price report. The national index fell .2% in January, while the 20-city index was down .4%. Year-over-year home prices are still 2.5% higher, but that's down from 4.6% last month. (4) Home buyers seem to be warming up to the idea of higher mortgage rates. The National Association of Realtors reports that pending sales were up for a third month in a row. They rose .8% in February. That's after a huge 8.1% surge in January. If you compare the numbers to one year ago, they are down 21.1%. (5) Mortgage Rates Mortgage rates didn't move much in the last week, but they remain at a lower level than recent highs. Freddie Mac says the average 30-year fixed-rate mortgage was down one point to 6.32%, which is essentially the same as the previous week. The 15-year dropped 12 points to 5.56%. (6) In other news making headlines… More Sellers Sitting on the Sidelines While it seems the spring buying season is producing a surge in buyers, and mortgage rates have come down slightly, sellers are still in a wait-and-see mode. Realtor.com says that new listings fell again in March, and are down 20% compared to a year ago. The active inventory is about 60% higher year-over-year, but that's because homes are taking longer to sell. Realtor.com says that homes are now sitting on the market for an average of 54 days. That's up from an average of 36 days last spring. Chief economist, Danielle Hale, says shoppers are very sensitive to mortgage rates and they "only jump back in the market when rates dip." She says rates will play a big role in whether the housing market "bumps along or picks up speed this year." Best Counties for Single-Family Rentals If you're trying to decide where you might get the best returns for a single-family rental, real estate data firm ATTOM just issued its Q1 2023 Single-Family Rental Market report. ATTOM analyzed 212 U.S. counties with a population of at least 100,000. The report shows the overall single-family rental yield increasing from last year in 91% of those counties. It was 6.7% last year, and rises to 7.5% this year. Rents are rising faster than home prices in many counties. CEO, Rob Barber says: "Rents for single-family homes are growing while prices have flattened out, which has helped boost yields for landlords for the first time in at least several years." Three of the top five counties for rental returns are in Florida, including River County, Florida, in the Sebastian-Vero Beach area; Collier County, Florida, in the Naples area; and Charlotte County, Florida, in the Punta Gorda area. A few other counties with high rental yields include Chicago's Cook County, Cleveland's Cuyahoga County, and West Palm Beach's Palm Beach County. Looking at the top 50 counties for rental returns: 29 are in the South, 13 are in the Midwest, eight are in the Northeast, and none are in the West. Big Savings for Apartment Renters The savings gap is growing for people who rent an apartment instead of buying a home. The National Multifamily Housing Council says it's now more than $1,000 dollars more expensive per month to buy a home than it is to rent an apartment – $1,176 to be exact. That's the widest gap in 15 years. (9) Apartment rent growth has been slowing. It was only up 2.6% in March and is now back to pre-pandemic levels. Vacancies are also returning to normal levels. They are currently at 6.6%. That's up from 6.4% in February. (10) That's it for today. Check the show notes for links at newsforinvestors.com. You'll also find market data at our website, along with investing education and opportunities. You need to become a member to access some of our information, but it's free to join and will only take a few minutes. We also ask that our listeners subscribe to the podcast, if you haven't done so already. And if you have a minute, please leave us a review! Thanks for listening. I'm Kathy Fettke. Links: 1 - https://www.marketwatch.com/story/u-s-inflation-softens-in-february-pce-finds-785c116e?mod=home-page 2 - https://www.marketwatch.com/story/u-s-gdp-in-fourth-quarter-trimmed-again-to-2-6-on-weaker-consumer-spending-663e9a5b?mod=search_headline 3 - https://www.marketwatch.com/story/jobless-claims-rise-to-three-week-high-of-198-000-but-layoffs-still-extremely-low-3efde979?mod=economy-politics 4 - https://www.marketwatch.com/story/u-s-home-price-rises-slow-again-in-january-with-western-markets-leading-declines-2ea97cfb?mod=economic-report 5 - https://www.marketwatch.com/story/u-s-pending-home-sales-rise-for-the-third-month-in-a-row-in-february-18c2a392?mod=economic-report 6 - https://www.freddiemac.com/pmms 7 - https://www.cnbc.com/2023/03/30/more-home-sellers-are-sitting-out-of-the-spring-housing-market.html 8 - https://www.attomdata.com/news/market-trends/attom-2023-single-family-rental-market-report/ 9 - https://www.globest.com/2023/03/31/renting-an-apartment-is-now-1175-cheaper-per-month-than-owning-a-home/ 10 - https://www.cnbc.com/2023/03/28/rent-growth-drops-to-pre-covid-levels.html?__source=realestate%7cnews%7c&par=realestate

The Real Estate News Brief: Fed's Latest Rate Hike, The Impact on Banks, Tenant Migration Destinations Mar 31, 2023

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In this Real Estate News Brief for the week ending March 25th, 2023... the Fed's latest rate hike, the impact of high rates on banks, and the top states for tenant migrations. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with economic news from this past week. The Federal Reserve hiked the short-term rate once again by a quarter point. The benchmark rate is now 4.75% to 5%. There had been speculation that we'd see a half point rate hike because inflation hasn't been coming down fast enough, but the failure of Silicon Valley Bank forced the central bank to be more cautious. (1) Fed Chief Jerome Powell said he was surprised at how quickly Silicon Valley Bank collapsed and even admitted that committee members considered a pause in rate hikes. Federal Reserve data shows that almost $100 billion were pulled from accounts during the week that ended March 15th. Most of that money came from small banks, while larger banks saw more of an inflow. Although depositors have been yanking money from smaller banks, Powell says the deposit drain from small banks has slowed down and the U.S. banking system is "sound and resilient." He says the Fed set up a powerful backstop for banks, allowing them to tap into an emergency loan program. (2) It's important to remember that FDIC-insured banks will guarantee deposits up to $250,000 and $500,000 for couples. If you have more than those amounts, you can protect yourself by keeping the maximum-insured amounts at different banks. Moving on to the job market… The weekly unemployment report shows another drop in claims for new benefits. Those applications declined to a three-week low of 191,000. That indicates that companies are not laying off employees in any great numbers, and that higher interest rates have "not" hit the job market, yet. (3) New home sales are up for a third month in a row, thanks to a dip in mortgage rates. They rose 1.1% to an annual rate of 640,000 in February. (4) And for the first time in 13 months, existing home sales were higher. According to the National Association of Realtors, they surged 14.5% last month to an annual rate of 4.58 million. NAR says the sale of single-family homes is the highest ever since the association began tracking those sales in 1999. As reported by MarketWatch, there's clearly a pent-up demand for homes as the spring home-buying season gets underway. (5) Mortgage Rates Mortgage rates slid closer to the 6% level this last week. Freddie Mac says the average 30-year fixed-rate mortgage was down 18 basis points to 6.42%. The 15-year dropped 22 points to 5.68%. (6) In other news making headlines... Small Bank Impact on Real Estate Pressure on small banks could make it harder to get a real estate loan. According to Goldman Sachs, there are about 4,800 small and mid-sized banks in the U.S. and they are often the go-to lenders for real estate loans, including a high percentage of construction loans. These smaller banks are responsible for 67% of commercial real estate loans and 37% of all residential real estate loans. (7) As reported by Axios, small banks had already started tightening their lending standards by the end of last year, but now economists are expecting more tightening. CoStar says about 40% of loan officers had tightened their lending standards for commercial real estate loans by Q4 of last year. Only about 5% said they were doing that in Q4 of 2021. Commercial real estate could face the biggest impact as property owners deal with low-interest loans that are maturing, and a whole lot of half-empty office space. Those loans will need to be renegotiated at higher rates, making it tough on property owners and their lenders loans become unaffordable. Study: 190 Small Banks Could Collapse One study projects the failure of 190 smaller banks if depositors decide to withdraw even half their uninsured amounts. The study was done by social Science Research Network and published in USA Today. (8) The report did not list the at-risk banks but described them as smaller banks with a total of $300 million in FDIC-insured deposits. They are at risk because the value of long-term investments, like government bonds and mortgage-backed securities, has gone down. Economists say if those values decline further, more of those smaller banks could be at risk. Spring Tenant Migration It isn't just the beginning of the spring home-buying season. Real estate insiders are expecting a huge number of renter migrations as well, and many of those renters are looking for homes in new cities. A study by Apartment List shows that 40% of tenants searched in a new metro last year, while 27% searched in a new state… and that many are considering long distance moves. (9) Apartment List says those long-distance moves tend to be more common among high-income renters, and that many of them are coming from California and New York. Those two states each lost about a half a million residents from 2020 to 2022. Top destinations for ex-Californians are Nevada, Arizona, Texas, Washington, and Florida, while New Yorkers are heading for Florida, California, Massachusetts, Pennsylvania, and Connecticut. That's it for today. Check the show notes for links at newsforinvestors.com, and make sure you hit the "Join for Free" button for complete access to our market data and resources for real estate investing opportunities. It's also important to subscribe to our podcast, and we'd love a review if you haven't left one yet! Thanks for listening. I'm Kathy Fettke. Links: 1 - https://www.marketwatch.com/story/fed-hikes-interest-rates-again-pencils-in-only-one-more-increase-ac42c84e?mod=the-fed 2 - https://www.cnbc.com/2023/03/24/100-billion-pulled-from-banks-but-system-called-sound-and-resilient.html 3 - https://www.marketwatch.com/story/jobless-claims-dip-to-3-week-low-of-191-000-labor-market-still-very-strong-fd75abd1?mod=economic-report 4 - https://www.marketwatch.com/story/u-s-new-home-sales-rise-for-the-fifth-consecutive-month-a8de7116?mod=economic-report 5 - https://www.marketwatch.com/story/u-s-existing-home-sales-rise-for-the-first-time-in-13-months-surging-14-5-in-february-12603067 6 - https://www.freddiemac.com/pmms 7 - https://www.axios.com/2023/03/21/small-bank-struggles-could-hit-the-real-estate-market-hard 8 - https://www.bisnow.com/national/news/capital-markets/186-smaller-banks-risk-of-collapse-mark-to-market-assets-118152 9 - https://www.apartmentlist.com/research/apartment-list-renter-migration-report-2023?utm_source=linkedin&utm_medium=social&utm_campaign=brandmkt&utm_content=apartment-list-renter-migration-report-2023&sr_share=linkedin

Fed Hikes Rates Despite Bank Turmoil Mar 24, 2023

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The Fed followed through on another rate hike despite the banking turmoil. Members of the Federal Open Market Committee raised the Federal Funds rate another quarter point on March 22nd. That brings the short term rate to a range of 4.75% to 5%. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. Please remember to subscribe to this podcast and leave us a review. Fed Chief Jerome Powell said the collapse of two banks, and the near-collapse of a third, did force Fed officials to consider a pause in rate hikes. But he says they were persuaded to hike rates again because of stubbornly high inflation and a strong job market with strong wage growth. But Powell offered assurances that the central bank is prepared to protect the banking system. He also still believes there's a path to a soft landing. (1) Powell says he expects the need for one more rate hike this year, while seven of the 18 Fed officials are forecasting two hikes. If the short-term rate is raised another quarter point, the end range would be 5% to 5.25%. Fed Sees Higher End-of-the-Year PCE Percentage The Fed previously thought Personal Consumption Expenditure index, or PCE, would end the year at 3.1%. It's now projecting a higher 3.3%, which is moving in the wrong direction from the central bank's 2% target. In the meantime, the Fed also needs to make sure the financial system remains stable. There's fear that nervous depositors could pull more money out of regional banks, which are already under stress. Federal regulators took control of Silicon Valley Bank and Signature Bank, and are making sure depositors get all their money back despite the FDIC limit of $250,000. The Fed also worked with the FDIC, and the U.S. Treasury in the creation of a fund for banks that need to borrow money to cover deposits. As reported by Bisnow, banks withdrew a total of $300 billion during the first week. Government Prepared to Prop Up Small Banks Treasury Secretary Janet Yellen also says the government is prepared to protect small banks from failures, but much of this stability depends on the confidence of depositors. Archie brown of Cincinnati-based First Financial Bank told Bisnow: "The main thing is to make sure that the Fed is instilling confidence in the deposit base. As long as we do that, I think everything else will manage itself." The San Francisco-based First Republic had teetered toward failure with a $70 billion run on deposits, which is about half of its total. The bank received an infusion of cash from eleven large banks and the federal government to keep it from toppling. But the experts are still worried about smaller regional banks which is where a lot of commercial real estate investors get their loans. According to an article in Axios, small and mid-sized banks hold 67% of commercial real estate loans, and 37% of residential real estate loans. (3) Small Banks Could Reduce Real Estate Exposure Brad Kraus of the CRE financial consulting first Ascension said in an email to Bisnow: "If banks do end up struggling, the first thing we see here on the front lines is a reduction in their real estate exposure." He said: "If things get worse, they simply start quoting rates which guarantee profitability, thus effectively pricing themselves out of the market." (4) Higher rates will push commercial real estate values lower. Keiran says: "Those looking to sell anytime soon, especially those owners that are facing loan maturities, will have to offer their deals at higher cap rates to attract buyers." According to the Wall Street Journal, as much as $270 billion in commercial mortgages will mature this year. As these loans mature Keiran expects to see a "major value adjustment" for commercial properties especially if we sink into a recession. Banks are also likely to cut back on lending as a way to preserve capital, especially if they expect the Fed to keep hiking rates. That's it for now. You'll find links in the show notes at newsforinvestors.com Please remember to join RealWealth. It's free to join and gives you an all-area pass to our website. That includes our investor portal, our market data, and our experienced investment counselors. You can also find out more about our mastermind events, and our real estate tours in markets that are popular among single-family rental investors. Please remember to subscribe to the podcast, and leave us a review! Thanks for listening, Kathy Links: 1 - https://www.cnbc.com/2023/03/22/live-updates-fed-rate-march.html 2 - https://www.marketwatch.com/story/fed-hikes-interest-rates-again-pencils-in-only-one-more-increase-ac42c84e?mod=home-page 3 - https://www.axios.com/2023/03/21/small-bank-struggles-could-hit-the-real-estate-market-har https://www.nytimes.com/2023/03/22/business/svb-signature-commercial-real-estate.html 4 - https://www.bisnow.com/national/news/capital-markets/banking-crisis-will-have-profound-effect-on-regional-bank-cre-lending-118190

The Real Estate News Brief: Encouraging Inflation Reports, Skittish U.S. Buyers, Foreign Buyers - Eager! Mar 20, 2023

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In this Real Estate News Brief for the week ending March 18th, 2023… the latest reports on inflation, why homebuilders blame the media for skittish homebuyers, and what international buyers think about the U.S. real estate market. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin with the latest economic news from this past week, and what a week it's been. The banking crisis continues to underscore the impact that interest rate hikes can have on the economy. Economists are now predicting that the Fed may only raise rates a quarter point when it meets in the coming week, instead of the previously anticipated half point rate hike. (1) The latest inflation reports are also encouraging. The Consumer Price Index was up .4% in February. That's after a .5% increase in January. The lower rate of inflation brings the annual rate down to 6% from 6.4%, which is still high, but receding. The CPI's core rate was a bit higher. It was up .5% on a monthly basis with an annual rate that is now at 5.5%. The core rate doesn't include prices for food or gas. (2) The Producer Price Index was also down an unexpected .1% in February. Economists had expected a .3% gain. The decrease brought the annual rate down to 4.6% which is substantially below the January reading of 5.7%. Most of the decline was due to a steep drop in egg prices. They came down more than 36%. The Fed will be paying attention to both those reports at the upcoming meeting, along with the risk to banks that rate hikes are causing. (3) The job market continues to show strength. Jobless claims tumbled to 192,000 last week. That's down from 212,000 the week before. The report suggests that companies are not laying off many workers, despite the tough economy. (4) The government also reported good news about home construction. Housing starts were up almost 10% in February. Economists had estimated a seasonally adjusted annual rate of 1.31 million, but the report shows 1.45 million. It's the first time in six months that new home construction is higher. Building permit applications also surged higher by almost 14% indicating more new homes are in the pipeline. They are now up to 1.52 million, while economists had forecast 1.34 million. (5) Builders are also showing more confidence. The National Association of Home Builders reports that its home-builder confidence index is up for a third month in a row. The reading is now up to 44 which is still below the midway point of 50. It was at 79 last year at this time. The NAHB says that home buyers are still wrestling with high prices and a tight inventory while builders are dealing with tight credit and a dwindling number of buildable lots. (6) Mortgage Rates After several weeks of slowly rising mortgage rates, they reversed course after the bank failures. That's due to investors shifting money to safer assets such as Treasury notes and bonds. When that happens, Treasury yields fall along with mortgage rates which tend to follow those yields. Freddie Mac says the average 30-year fixed-rate mortgage was down 13 basis points to 6.6%. The 15-year was down 5 points to 5.9%. (7) In other news making headlines… Homebuilders Blame the Media for Buyer Fears Homebuilders are blaming the media for headlines that are scaring off home buyers. The NAHB says that almost 80% of home builders believe this. Last year, it was only 55%. The issue is that most reports about the real estate market provide information on the entire U.S. But the nation is made up of hundreds of smaller real estate markets, and while some are seeing a pullback, others are doing quite well. Also, many buyers may not understand that a recent dip in home sales is part of a return to normal after a pandemic-related home-buying frenzy while interest rates were still super low. Last November, a Lending Tree survey showed that 41% of consumers believed we're headed for a housing market crash within the next year. While many consumers are worried about a repeat of the 2008 housing market crash, economists have offered many reasons why that won't happen in today's environment. Chief economist for Nest Seekers International, Erin Sykes, says: "We're now in a more balanced, health housing market." And that's the headline she'd like home buyers to pay attention to. Foreign Buyers Rank U.S. Housing Market as "Excellent" International buyers have a much healthier opinion about the U.S. housing market than domestic buyers. According to a survey by Global Luxury Coldwell Banker Real Estate, 80% of the participants call U.S. real estate a "safe investment." The majority also rank U.S. real estate as either excellent or good. Contrast that with the Fannie Mae Home Purchase Sentiment Index which shows 79% of consumers saying it's a bad time to buy a home. Liz Gehringer of Coldwell Banker Affiliate Business says for the international buyer, the dream of homeownership is alive and well, although she says that international buyers also tend to buy in cash. She says: "Affluent buyers are flocking to diverse U.S. locations to enhance their portfolio diversification, with many opportunities for growth, investment and building long-term wealth." The top international buyers are coming from China, Canada, India, and Mexico. Most are buying properties in Florida, California, and Texas. That's it for today. You can find out how to diversify your portfolio by joining RealWealth at newsforinvestors.com. It's free to join, and free to access all our data and resources. You can check the show notes for links and please remember to hit the subscribe button, and leave a review! Thanks for listening. I'm Kathy Fettke. Links: 1 - https://www.cnbc.com/2023/03/17/fed-poised-to-approve-quarter-point-rate-hike-next-week-despite-market-turmoil.html 2 - https://www.marketwatch.com/story/cpi-shows-slightly-cooler-u-s-inflation-but-pressure-still-on-fed-to-raise-rates-fe88e2f5?mod=economic-report 3 - https://www.cnbc.com/2023/03/15/ppi-february-2023-.html 4 - https://www.marketwatch.com/story/jobless-claims-tumble-to-192-000-and-show-no-sign-of-rising-layoffs-a2a78aa2?mod=economy-politics 5 - https://www.marketwatch.com/story/u-s-housing-starts-rise-by-9-8-in-february-led-by-a-surge-in-apartment-construction-aa4d395c?mod=economy-politics 6 - https://www.marketwatch.com/story/u-s-builder-confidence-rises-for-third-consecutive-month-despite-high-mortgage-rates-and-construction-costs-fa26d3a?mod=home-page 7 - https://www.freddiemac.com/pmms 8 - https://www.nar.realtor/magazine/real-estate-news/is-the-media-keeping-home-buyers-in-a-state-of-fear 9 - https://www.nar.realtor/magazine/real-estate-news/rich-foreign-buyers-call-u-s-housing-market-excellent

Inflation Cools Slightly as Fed Meeting Draws Near Mar 15, 2023

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Just out, the Consumer Price Index for February and it shows that inflation cooled slightly for the month. Government figures show it rose .4% which brings the annual inflation rate down to 6%. It was 6.4% last month. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. Please remember to subscribe to this podcast and leave us a review. The report on the CPI also shows a .5% rise in the core rate of inflation, which omits volatile pricing for food and energy. That's slightly higher than a .4% estimate for the core rate, but the annual core rate of 5.5% was inline with expectations. Economists Expect Soften Fed Policy Overall, inflation went down in February, but likely not enough to prevent another rate hike when the Federal Reserve meets next week. Economists expect the banking turmoil to soften the Fed's stance however. The head of Evercore ISI's global policy and central bank strategy, Krishna Guha, told CNBC: "While only moderately higher than consensus, in the pre-SVB crisis world this may well have pushed the Fed to hike 50 basis points at its March meeting next week. It is a sign of how much things have changed in the very near term that 50 basis points is almost certainly off the table for March." Economists started predicting a 50 basis point rate hike after hawkish comments by Fed Chief Jerome Powell when he testified before two congressional committees. During two days of testimony, Powell said that interest rates will probably be "higher than previously anticipated." After the failure of Silicon Valley Bank and two other banks, economists now expect the Fed to back off a bit, but not completely. Jeffrey Roach, who's the chief U.S. economist at LPL Financial told CNBC: "Even amid current banking scares, the Fed will still prioritize price stability over growth and likely hike rates by .25% at the upcoming meeting. Inflation Rate Varies from Sector to Sector When you break the report down into sectors, you see that lower energy prices helped bring the overall rate down. Energy prices were down .6% in February, to an annual rate of 5.2%. Food prices were up .4% although egg prices tumbled. They were down 6.7% but are still up 55.4% on a year-over-year basis. Shelter costs were .8% higher which brought the annual rise in shelter prices to 8.1%. Shelter costs make up about one third of the CPI, but fed officials expect those costs, including rent growth, to slow down throughout the year. As Bright MLS chief economist, Lisa Sturtevant, told CNBC: "Housing costs are a key driver of the inflation figures, but they are also a lagging indicator. It typically takes six months for new rent data to be reflected in the CPI." She says the fact that the data is six months old means that inflation levels are not accurately reflecting current rates of inflation. Moody's: Six Banks at Higher Risk of Failure Fed officials will be taking this report into consideration at their meeting, along with other newly released economic data and the risk to the banking system. Moody's released a list of six banks that it considered at higher risk of failure because of the current economic environment. Those banks include: First Republic Bank, Zions, Western Alliance, Comerica, UMB Financial and Intrust Financial. (2) Economist Gus Faucher of PNC Financial Services told MarketWatch: "What was a tricky task for the Fed, raising rates by enough to cool off inflation, but not by too much as to push the economy into recession, has gotten even more difficult with the recent bank failures." (3) Check the show notes at newsforinvestors.com for links to our sources. I also encourage you to join RealWealth for free. When you become a member, you have access to more than just the Learning Center. You'll be able to log in to the Investor Portal where you'll find data on some of the best rental markets in the country, along with sample properties for sale to investors. Members also have access to our experienced investment counselors, and our list of property teams and other real estate professionals that can help put you on the path to financial freedom. Thanks for listening, Kathy Fettke Links: 1 - https://www.cnbc.com/2023/03/14/cpi-inflation-february-2023-.html 2 - https://www.cnn.com/2023/03/14/investing/moodys-us-banks-downgrade/ 3 - https://www.marketwatch.com/story/cpi-shows-slightly-cooler-u-s-inflation-but-pressure-still-on-fed-to-raise-rates-fe88e2f5

The Real Estate News Brief: Collapse of Three Banks & the Fed's Likely Reaction, 1031 Exchange Under Fire Mar 14, 2023

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In this Real Estate News Brief for the week ending March 11th, 2023 and beyond… the collapse of three banks in one week, how this might change the Fed's decision on a rate hike, and a new attempt to kill the 1031 exchange. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. Economic News We begin the latest economic reports and the failure of a huge bank in Silicon Valley. The collapse of Silicon Valley Bank happened in just 48 hours, after a $42 billion bank run. It's now the second biggest bank collapse in U.S. history after the collapse of Washington Mutual in 2008. The crisis began when the bank said it needed to raise $2.25 billion to shore up its balance sheet, but that spooked investors which include some of the biggest tech companies and venture capitalists in Silicon Valley. Withdrawals happened so rapidly that the company was forced to sell all of its available-for-sale bonds at a $1.8 billion loss. At the end of the two-day run, the bank had a negative cash balance of $958 million. (1) Fintech investor Ryan Falvey of Restive Ventures told CNBC: "This was a hysteria-induced bank run caused by venture capitalists. This is going to go down as one of the ultimate cases of an industry cutting its nose off to spite its face." The root cause of the collapse goes deeper however, into the lap of the Federal Reserve and its fight against inflation. As the Fed hiked rates, many of the startups withdrew funds to keep their businesses afloat. That led to a funding shortfall at the bank, and the need to sell those bonds at a loss. The government is trying to prevent further damage to the economy by taking control of SVB and promising to make good on all deposits including deposits worth more than the FDIC-insured $250,000 maximum. The Treasury Department, Federal Reserve, and FDIC said in a joint statement: "This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth." (2) Regulators are also dealing with two other bank failures. They have taken control of crypto-friendly Signature, which has a sizable commercial real estate loan portfolio. They are also promising that customers will have full access to their deposits, beyond the $250,000 FDIC insured amount. (3) It's a different story for crypto-friendly Silvergate which has also failed. That bank started to go downhill after the collapse of crypto exchange FTX last year. At this point, the bank has now announced that is will shut down and liquidate assets to meet its obligations with depositors. (4) Economists say the banking failures point to what some now expect to be a "hard landing" for the economy, or at least harder than the wished-for "soft landing." While they were recently forecasting as much as a half point rate hike at the Fed's next meeting, there's now talk that the Fed will have to back off. CNBC reports that the probability of a quarter point rate hike rose above 70% at one point last Friday. But the Fed will also be considering new economic data including a report on February's Consumer Price Index. (5) Moving on to the job market. Initial claims for unemployment jumped to 211,000 last week. That's the highest since Christmas, but most of those lay-offs were in New York, so they may not indicate a national increase. Meanwhile, continuing claims were up 69,000 to a total of 1.72 million. (6) As for job growth, the government says that companies created a robust 311,000 new jobs in February. That's less than the 500,000 jobs created in January, but more than Wall Street analysts had forecasted. The unemployment rate did rise slightly to 3.6% and job openings have come down somewhat, to 10.8 million. In December, there were 11.2 million open positions and a record 12 million earlier in 2022. (7) (8) Mortgage Rates Checking in on mortgage rates… Freddie Mac says the average 30-year fixed-rate mortgage was up 8 basis points this last week, to 6.73%. The 15-year was up 6 points to 5.95%. (9) In other news making headlines… Another Whack at the 1031 Exchange President Biden is taking another whack at the 1031 exchange. His budget proposal suggests that by eliminating 1031s, the government would collect an additional $19 billion. The 1031 gives real estate investors a way to transfer equity from one investment property to another similar property without triggering a taxable event. But it would only defer the tax obligation, not eliminate it. (10) The White House is calling it a "sweetheart deal" for real estate investors, but it's also a shot in the arm for the economy, when investors can reinvest without taking an immediate tax hit. Let's say you own a property that has increased in value, and you'd like to sell that property so you can buy a similar property elsewhere. If you have a huge tax bill, you wouldn't have enough money to do that, which might discourage you from selling in the first place. The 1031 allows for movement within the real estate industry, and a tax bill that comes due when the investor eventually sells without reinvesting. Biden's budget proposal also seeks to eliminate the carried-interest tax break. It says the loophole allows "wealthy investment managers to pay a 20% rate on the pay they receive for managing fund assets, instead of the 37% rate that comparable wage earners pay." And that by closing this loophole, the government would save $6 billion dollars. That's it for today. Check the show notes for links. And please remember to hit the subscribe button, and leave a review! If you'd like to learn more about how to invest in real estate and the benefits of a 1031 exchange, go to newsforinvestors.com. You can join RealWealth for free and have access to our Learning Center and our Investor Portal. That's at newsforinvestors.com. Thanks for listening. I'm Kathy Fettke. Links: 1 - https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html 2 - https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm 3 - https://www.cnbc.com/2023/03/12/regulators-close-new-yorks-signature-bank-citing-systemic-risk.html 4 - https://www.coindesk.com/tech/2023/03/10/how-silvergates-crypto-collapse-differed-from-silicon-valley-banks-no-us-government-bailout/ 5 - https://www.cnbc.com/2023/03/10/just-like-that-market-pricing-swings-back-to-quarter-point-fed-rate-hike.html 6 - https://www.marketwatch.com/story/jobless-claims-jump-to-211-000-and-hit-highest-level-since-christmas-6911db39?mod=home-page 7 - https://www.marketwatch.com/story/jobs-report-shows-strong-311-000-gain-in-february-puts-pressure-on-fed-for-bigger-rate-hike-1e45fe1e?mod=home-page 8 - https://www.marketwatch.com/story/u-s-job-openings-drop-to-10-8-million-but-they-are-still-too-high-for-the-fed-1111e9ea?mod=economic-report 9 - https://www.freddiemac.com/pmms 10 - https://www.bisnow.com/national/news/capital-markets/biden-budget-proposes-end-to-1031-exchanges-118036

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