Developer Amir Peleg has secured $36.6 million of construction financing to build a new multifamily and single-family home development in suburban Atlanta, Commercial Observer can first report.
LFB Ventures provided the loan for Peleg’s planned two-phased Weatherstone development in Dallas, Ga.,to build 280 single family homes across four different models. A vast majority of the homes have already been sold to a single-family residential fund (SFRF) and individual investors.
Home prices have been on a rapid ascent: Depending on which gauge you look at, U.S. home prices have been rising at a pace of 15% to 20% a year. But pros say that rapid ascent is likely to slow through the next year or so, as mortgage rates continue to climb (see the lowest mortgage rates you can qualify for now here). Here’s what experts told us they expect to happen to home prices both in the short and longer terms.
Appreciation despite inflationary environment and fundamentals
There's no doubt about it: Soaring mortgage rates are an economic shock to the U.S. housing market. Over the past month alone, the average 30-year fixed mortgage rate has spiked from 3.11% to 5.11%. It's both pricing out some stretched homebuyers and causing some would-be borrowers to lose their mortgage eligibility.
The push comes as more Americans have the flexibility to work from anywhere and are looking for larger spaces with outdoor areas.
According to the National Association of Home Builders, there were 13,000 new single-family homes started as rentals in the first quarter of this year, up 63% from a year ago.
Homes-built-for-rent still represent just 5% of the home building market, but that's up from the 2.7% historical average, according to the association.
Gauges of new-home construction showed signs of a slowing housing market, according to preliminary data released Wednesday—but not every part of the market appears to have slumped.
Limited inventory offsetting some effect of inflationary environment
Sometimes too much of something can become a problem. Certain foods in excess are bad for your health. Too much wet or dry weather can damage crops. And too much of a housing scarcity can upend markets and require reconsideration of how markets are acting.
Increase in starts in the month of March
New U.S. home construction rose unexpectedly in March to the highest level since 2006, boosted by multifamily projects as builders seek to replenish housing inventory.
Price appreciation despite inflationary environment
Rising mortgage rates have historically put the brakes on home-price appreciation, but this housing market is like no other. Record-low supplies, years of conservative lending and other factors suggest that home prices should continue appreciating, though at a slower pace.
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