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Today’s top stories…
Housing inventory is on the rise across the U.S., but regional differences paint a complex picture of the market
California's Dream For All program is back with $250M to boost homeownership for low-income, first-generation buyers
A decommissioned nuclear missile silo in Kansas has been transformed into a one-of-a-kind Airbnb experience
💰 Deal of the Day!: Day off!
Today’s mortgage rate (30 Yr. Fixed): 0.0%
Housing Inventory Shifts Across the Nation
Active U.S. home listings surged 24% year-over-year in March 2024, reaching 694,820 properties, according to Realtor.com data.
Regional differences abound: Nevada saw a 26% drop in active listings, while Florida experienced a whopping 57% increase.
Despite the uptick, national inventory remains 37.7% below pre-pandemic levels, with just 1,115,940 homes for sale in March 2019.
What's Driving the Trends?
Higher mortgage rates are tempering the pandemic-era housing frenzy, leading to softening in many markets.
Southwest Florida, particularly Cape Coral and Fort Myers, is grappling with the aftermath of Hurricane Ian, which caused an estimated $112.9 billion in damage.
The combination of increased housing supply, damaged homes, and strained demand (due to higher prices, rates, insurance premiums, and HOAs) is contributing to the softening in Southwest Florida.
Spotlight on Florida
While Florida leads the nation in year-over-year inventory growth, the bulk of the increase is concentrated in Southwest Florida.
Many areas, including Miami, still have inventory levels below pre-pandemic benchmarks.
Looking Ahead
If inventory continues to rise and affordability remains constrained, parts of Southwest Florida could experience further price declines.
However, the overall market remains resilient, with many regions still facing tight inventory conditions.
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⏰ Quick Tips
You asked. I answered.
What is the difference between a fixer-upper and a turnkey property?
A fixer-upper is a property that requires significant repairs or renovations before it can be rented or sold, while a turnkey property is move-in ready and requires little to no additional work. Fixer-uppers often come with a lower purchase price but require more time, money, and effort to bring up to rentable or sellable condition. Turnkey properties, while more expensive upfront, allow investors to generate rental income or sell the property immediately. The choice between a fixer-upper and a turnkey property depends on your investment strategy, skills, and available resources.
California's Dream For All Program Reopens with $250M for Downpayment Assistance
The program, relaunched by CalHFA, provides up to 20% downpayment assistance (max $150,000) to low-income, first-generation homebuyers.
Participants must repay the initial amount plus 15-20% of sale profits, which fund future rounds of the program.
The lottery-based system aims to help 1,600-2,000 registrants, with funds distributed proportionally across nine jurisdictions.
Targeting Generational Wealth Disparities
Priority is given to homebuyers unlikely to inherit property, tackling barriers to building generational wealth.
First-generation status is defined as not having ownership interest in a home for 7 years and not having parents who own(ed) a home.
Foster care and institutional care participants are also eligible.
Impact on California's Housing Market
The program reduces stress on the rental market, where 44% of Californians reside (vs. 35% national average).
Lower monthly payments (est. $1,200/mo) result from the substantial downpayment, often eliminating the need for private mortgage insurance.
CalHFA leverages "patient" resources and capital market relationships for a mission-driven approach.
Program Details and Timeline
Registration window closes April 29th, followed by participant notification and eligibility verification.
The program aims to penetrate deeply into markets that may lack access to mainstream news sources through targeted advertising.
As California grapples with affordability challenges, the Dream For All program represents a significant step towards promoting homeownership and economic mobility for historically disadvantaged groups. Real estate investors should monitor the program's impact on local markets and consider potential partnership opportunities that align with its mission.
(source)
From Nuclear Threat to Novelty Retreat: Kansas Missile Silo Turned Airbnb
A decommissioned Atlas F Missile Silo in Kansas, built in 1959 and active until 1965, has been converted into a unique Airbnb.
The $300-a-night underground accommodation sleeps up to four people and features modern amenities like TVs, a microwave, fridge, and coffee maker.
Owner Matthew Fulkerson has been developing the property since 2013, with plans for an RV park, wellness center, gift shop, and event center.
Location and History
Situated off I-70 near Wilson, Kansas, the silo was one of more than 70 built in response to the Soviet Union's Sputnik satellite.
The site cost $12.8 million to construct in 1959 (equivalent to $120 million today) and remained active during the Cuban Missile Crisis.
The bunker's proximity to Wilson State Park makes it a hidden gem for tourism.
Accommodations and Amenities
The austere grey color scheme and metal work throughout the structure contrast with the comfort of the king-size bed.
The silo is 180 feet deep with a 52-foot inside diameter, originally housing nine floors of approximately 2,000 square feet each.
Most Atlas F silos have been salvaged, leaving only the structural walls.
Funding and Future Development
Fulkerson received additional funds from Airbnb's OMG! Fund, which allocates $100,000 to hosts with unique properties.
Future plans include an RV park with water, electrical hook-ups, and high-speed internet for the 2024 season.
A wellness center, gift shop, gourmet coffee shop, wine/whiskey bar, campground showers, and laundry center are also in the works.
This one-of-a-kind Airbnb offers a glimpse into Cold War history while providing a memorable lodging experience. As Fulkerson continues to develop the property, the decommissioned missile silo is poised to become a major attraction for adventurous travelers and history buffs alike.
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Thanks and see you tomorrow!
✍️ Brett