Happy Friday! Brian Manning here at the weekly update video. All kinds of stuff to talk about this week. Let’s see. Monday markets were closed for Martin Luther King Day. Hope everyone, if they had the holiday off enjoyed their day off. Tuesday, we got a report from CoreLogic on annual rents on a year-over-year basis. Rents were up 12%. We’re just seeing… extremely high rents increasing across the nation. 12% is a really high number.
Wednesday this week, we got housing starts. So… housing starts measure single family residences or houses in general that were started. So housing starts for the month of December rose by 1.4%. Single family residences rose by 2% but on a year-over-year basis, housing starts are still down 8.5%. So… a challenge we’re seeing is that this backlog just continues to grow. So… homes that are permitted and authorized and ready to go are at 39% year-over-year. So there’s a tremendous amount of backlog with new construction across the United States where you have homes permitted, they’re ready to get built, but they’re just not being built for various reasons. So that’s certainly causing housing starts to be lower on a year-over-year basis.
Thursday, we’ve got existing home sales. So existing home sales for the month of December were down 4.6%, you know, something that’s interesting to look at as far as available homes for sale. So in the month of December, across the entire United States, there was 910,000 homes for sale, which is the lowest number ever. A couple of months before that, there was 1.3 million homes for sale. So we just saw a downtrend in available homes. And usually we see a bump up in inventory in the fall. So October, especially November, December, and last year, we did not see the bump up in inventory. We just really saw the opposite of reduction. So I get a lot of people to ask about a housing bubble or are we in a bubble? Just to give you some color on this. So… In 2007, at the same time, there were 3.6 million homes available for sale. So 3.6 million in 2007, 910,00 in 2021. So it’s just a stark difference between the two as far as availability.
In addition to that, if you look at households that were created from 2007 to today, there are 13 million new households that were created. So households are… when two people come together and they start to share finances. So you got 13 million new households that were created. Significant reduction in available homes for sale. And that’s just going to continue to perpetuate the strength in the housing market. As far as the composition of sales, first-time home buyers home buyers made up 30% of all transactions. Cash buyers made up 23% of all transactions, and investors made up 17% of all transactions. So, good to see an increase in first-time home buyers. Today is a relatively quiet news day. We kind of have seen, though, a three-day trend in mortgage rates calming down. So, it looks like we might be in a position, at least temporarily, to stop the upward move that we’ve been seeing. We have three days in a row now where we see mortgage rates level off, which is really great to see. If you have any questions about mortgage rates, why they’re moving? What’s going on? Give me a call. Also, if you want to go through our strategic buyer consultation, call me anytime. I’m available seven days a week. Call me or text me on my cell phone. Evenings, weekends, it doesn’t matter. I’m your guy. Call me anytime. Happy Friday. I hope you have a great day.