Headlines

What’s new in the world of Real Estate

• Investment funds continue to purchase U.S. farmland

• Existing-home sales dropped in October, but pending home sales rose slightly

• Homebuilder sentiment fell to the lowest point in a year

• Millennial and Gen-Z buyers are becoming more interested in “house-hacking”

Plus: Home values are falling slightly and rents are rising in Berlin.

Listing of the week: A furnished train car in Montana.

Market Updates

The seven largest farmland investment firms now own 1.65 million acres in the U.S. This represents an increase of 231% since 2008, while the value of the holdings has risen 800% in that time, according to the NCREIF’s quarterly report. The U.S. government is taking steps to potentially restrict investment fund purchases and ability to use USDA farm programs. As more private investors enter the market, it has pushed up the price of land, which is already rising as demand for food grows and the amount of viable farmland decreases due to climate change.

Total existing-home sales dropped 4.1% monthly and 14.6% year over year in October. The report from National Association of Realtors showed the lowest level of sales in 13 years, with decreases most pronounced in the Northeast and the South. The report did find that total inventory rose by 1.8% in October, which coupled with slightly lower mortgage rates could lead to a bump in sales this month. Indeed, a Redfin report showed that pending home sales rose 1% in October, adjusted for season, though buyers backed out of deals at the highest rate on record.

Homebuilder sentiment fell again in October for the fourth straight month. The National Association of Home Builders/Wells Fargo Housing Market Index fell six points to 34, the lowest it’s been since last December. The index had been in positive territory (above 50) in July, but has fallen 22 points since then due largely to rising interest rates. However, they did note that since the data for October was compiled, some more recent macroeconomic indicators show that conditions are improving, making it seem likely the index will rise next month.

“House-hacking” has become more attractive to younger potential homebuyers. A Zillow report found the practice, in which a buyer rents out part of a home or units in a multifamily building they live in, has gained momentum as younger buyers are increasingly priced out of traditional home ownership. Over 50% of Gen Z and Millennials say that the opportunity to house-hack is “very” or “extremely” important to them, while just 4% of those 59 or older say the same. House-hacking, when done correctly, can make home ownership more attainable and more financially responsible, making it an option that everyone should consider.