MarketWatch: Weekly Real Estate Update for Riverdale, Bronx – 9/4/2023 – 9/11/2023

Did You Know?

* Hempcrete is a new type of building block developed from hemp fiber, with an estimated lifespan of at least 300 years, longer than traditional concrete lifespan of 50 – 1,000 years. Hempcrete is made from hemp fiber, which is very strong. Hemp grows very fast and can be produced in mass quantities. These blocks are also used without the need for concrete. They use special glue, which is more eco-friendly than cement and offer good insulation, which reduces heating and cooling costs. Concrete is known for being a very poor insulator and hence high heating and cooling expenses. (Inhabitat)

* US debt now stands at around $33 trillion taking the debt-to-GDP ratio to around 100% (or more). Some argue that debt is a good way to grow an economy – especially for emergencies – where raising taxes or cutting spending would harm the economy and make GDP shrink. During 2020, US debt grew $4 trillion to offset the impact of COVID. The Fed’s higher interest rates make servicing this debt more expensive but it’s also feeding hundreds and hundreds of billions of dollars in additional income to bondholders…. There are only 2 ways to reduce this debt:  spend less or make/tax more. We are spending more now and the 2018 tax cuts reduced taxes……which addresses all voters….but leaves big debts.

* A total of 31,877 U.S. homes had foreclosure filings (default notices, scheduled auctions or bank repossessions) in July 2023.  Maryland had the highest foreclosure rate of any state in July, at one foreclosure filing for every 2,071 housing units. (ATTOM Data Solutions)

*Here are some design trends to look forward to in 2024 according to Leadingarchitect.com:

– Eco-friendly design including Improved Indoor Air Quality using low-VOC or VOC-free materials such as paints, adhesives, and furniture that emit fewer harmful chemicals into the air, leading to better indoor air quality. Poor indoor air quality can cause respiratory issues, allergies, and other health problems.

– Natural and hypoallergenic materials that are less likely to harbor dust, mold, and allergens that can significantly benefit people with allergies or respiratory sensitivities.

– Use of non-toxic materials minimizing exposure to harmful chemicals.

– Energy Efficiency for lighting, appliances, and HVAC systems that can lead to lower energy consumption and reduced greenhouse gas emissions, contributing to a healthier planet and potentially lower utility costs.

– Connecting with nature profoundly impacts our well-being, and biophilic design aims to bring the outdoors inside. In 2024, expect to see an increased focus on integrating natural elements into interior spaces. Living walls, indoor gardens, and large windows that allow ample natural light.

Mortgage Rate Updates

The average rate on a 30-year fixed mortgage was at 7.12% as of September 7th, 2023, easing 6bps from the prior week and 11bps below the 22-year high touched on August 23rd, tracking the slight retreat from soaring bond yields since late August. Still, the value remains well above the 5.89% from the corresponding week of the previous year. “For the fourth consecutive week, the 30-year fixed-rate mortgage hovered above seven percent,” said Sam Khater, Freddie Mac’s Chief Economist. “The economy remains buoyant, which is encouraging for consumers. Though while inflation has decelerated, firmer economic data have put upward pressure on mortgage rates which, in the face of affordability challenges, are straining potential homebuyers.”

Source: Freddie Mac