Good morning. Today's shake includes:

• Homebuyers are mortgage-shocked

• Zavvie Power Buyer LLC closes $3.5M funding round

• Rent growth goes in reverse

• Realtors, diversify tour portfolio with commercial condos

Yummy.

PROTEIN

Rising Interest Rates Give Homebuyers a Case of Mortgage-Shocking

The housing market is currently facing a slowdown as interest rates continue to rise, making it more expensive for buyers to afford a mortgage and causing a decrease in both mortgage and refinance applications, with sellers keeping prices high due to tight inventory and reluctance to negotiate. Read more

• The national average mortgage interest rate for a 30-year traditional mortgage is currently 6.44% as of January 10, 2023, which is more than double the average mortgage interest rate of 3.22% at the beginning of 2022.

• The increase in interest rates has put strong downward pressure on mortgage applications. The average mortgage contract interest rate decreased over the last two months of 2022, from 7.08% to 6.42% by year-end.

• Mortgage application volume saw a slight increase as buyers were eager to lock on a lower rate, but this increase was short-lived as applications plummeted in the final two weeks of the year. Year-over-year, mortgage applications are down close to 41%.

• Year-over-year, refinance applications are down more than 84%.

• Housing prices are staying high despite the increase in interest rates, partly due to tight inventory, but also due to sellers looking to maximize how much they get for their homes and not being open to much negotiating.

VITAMIN C

More tasty news in this shake

TECH

Zavvie Power Buyer LLC Closes Funding Round, Realtors Say "Hallelujah! Read more

• Zavvie Power Buyer LLC, a Boulder software company, has closed a $3.65 million funding round led by existing investors, including Second Century Ventures, the startup incubator backed by the National Association of Realtors.

• The funding round will be used for solutions such as Power Buying (cash offers), Modern Bridge (buy before you sell), Listing Concierge (presale renovations), Instant Sales (iBuyers), and Homeownership Accelerator (rent-to-own).

• According to Zavvie's CEO and co-founder Lane Hornung, the company has seen a significant increase in its business momentum and growth in 2022, with the total number of brokerage-assisted transactions increasing by more than 400% over 2021 transactions, with revenue increasing by more than three times.

RENTALS

Rent Growth Goes in Reverse, Apartment Hunters Brace for a Bumpy Ride. Read more

• Apartments.com, a costar Group company, published a report on Q4 2022 multifamily rent growth trends, showing a decline in fundamentals with limited absorption, significant imbalances between supply and demand, and ongoing economic uncertainty.

• The report predicts that with 2023's new supply totals expected to reach the highest levels since the 80s, vacancy rates will rise above 7% and rent growth will decrease.

• The report also highlights that the effects of new supply outstripping demand are best illustrated in the dramatic pullback of rents across the majority of the nation’s 40 largest markets.

REALTORS

Realtors, Diversify Your Portfolio with Commercial Condos: The Next Big Thing. Read more

• Residential real estate agents should consider working with commercial developers to make more money in 2023 and beyond by referring clients to them.

• Commercial/industrial condos and outside storage pads available in the Ancaster Business Park at 1620 Claybar Road in Ancaster, Ont., from Kingridge Developments are a great example of unique commercial/industrial developments at lower price points that could appeal to a broader range of clients as business purchases or investment opportunities, with units starting from $300's to $800's.

• The benefits of commercial vs residential condo purchases include longer-term passive investments with very low tenant turnover, landlords being able to review up to three years of audited company financials, and commercial condos offering a better value in terms of square footage costs, with an average cost of $450-600 per sqft compared to $800-1,200 per sqft for residential.

How was today's shake?

Send us your feedback, ideas, love at [email protected]