Steve Eisman, the Neuberger Berman portfolio manager who famously profited during the 2008 collapse of the subprime mortgage market, criticized Zillow’s business model in a CNBC interview. Eisman disclosed he’s shorting the stock, which means he makes money if the share price declines. “Zillow has one of the most flawed business models I’ve seen in a very, very long time,” Eisman said.
The national mortgage delinquency rate declined in May, according to the latest Home Price Index report from CoreLogic. According to the report, nationally, 3.6% of mortgages remained in some stage of delinquency in May.CoreLogic Chief Economist Frank Nothaft said growth in family income and home prices continues to support low delinquency rates.
Apartment occupancy rates climbed in July to their highest level since in since 2000, according to a report from RealPage, which revealed that occupancy rates rose 0.4% from last year to reach 96.2% last month. Meanwhile, average rent prices across the U.S. remain around $1,414, as a number of Millennial renters keep demand strong.
In March, Austin’s employment growth rate climbed to 2.5%, far above the nation’s average of 1.6%. With Apple and Amazon both announcing further job expansions within Austin, there doesn’t seem to be an end in sight with regard to job growth. In the midst of it all, rent growth rose at a 3.7% rate through April.
The average American home listing price rose 5.5% to $315,000 in July, according to Realtor.com’s Housing Trend Report. Although this rate is only 0.2% down from June, it’s a significant decrease from the 8.7% growth during the same time period in 2018. George Ratiu, realtor.com’s senior economist said July’s data highlights tension between buyers eager to take advantage of lower mortgage rates and potential sellers concerned about slowing price growth.
The Federal Reserve Bank of New York describes U.S. home sales as “soft” and “anemic” in a Monday report. Fed economists pointed to June’s existing home sales level, which was 1.7% below a year ago, as part of the reason for their conclusion: “Home sales remain lackluster.”
New York-based real estate company Douglas Elliman has hired Stephanie Garbarini as vice president of marketing. Garbarini has guided media strategies for companies including J. Crew, Liz Claiborne, Barneys, and most recently, the Ascena Retail Group.
As prices for imports go up due to trade-war tariffs, it’s tougher for builders to afford construction material. Prices for goods used in residential construction increased by 0.7% in July, according to the Bureau of Labor Statistics.
“Tariffs are a great negotiating tool,” President Donald Trump tweeted last month, one of dozens of times he has extolled the power of levies to get the trade deals he wants. Goldman Sachs issued a note to clients on Sunday saying that tariff strategy isn’t going to work with China, the world’s second-largest economy. “We no longer expect a trade deal before the 2020 election,” Goldman economists said.
Purchasing a home is one of the biggest decisions a person can make during their lifetime. After all, where you live determines many factors about your life, including where you work, worship or even send your children to school. As back to school season approaches, a report from the National Association of Realtors highlights the different purchasing and selling habits of Americans, revealing that a significant share root their home purchasing decisions in school district quality.