REAL ESTATE ADVICE
Redfin | June 27, 2022
Demand for vacation homes has fallen below the pre-pandemic baseline for the first time in two years, with mortgage-rate locks for second homes down 4% from before the pandemic in May, according to a new report from Redfin, the technology-powered real estate brokerage. That’s down from a revised rate of 3% above pre-pandemic levels a month earlier, and 70% above pre-pandemic levels a year earlier.
Demand for second homes is declining due to high home prices, mortgage rates that have rapidly risen to nearly 6% and a slumping stock market–factors that are also cooling the rest of the housing market. Another deterrent to second-home buyers is the fact that the federal government increased loan fees for second homes in April, adding roughly $13,500 to the cost of purchasing a $400,000 home.
Skyrocketing monthly payments, along with higher loan fees, have priced many second-home buyers out of the market. Many would-be second-home buyers are also deterred by turmoil in the stock markets, high inflation and recession fears, and they can be quicker to pull back from the market because vacation homes aren’t a necessity the way primary homes are. The cooldown in the second-home market is likely to continue as long as mortgage rates are elevated and the stock market is slumping.”
Taylor Marr,Redfin Deputy Chief Economist
The drop in vacation-home demand marks a drastic change from the second half of 2020 and 2021, when mortgage-rate locks for second homes skyrocketed due to record-low mortgage rates and the flexibility to work from anywhere thanks to remote work. Demand peaked in March 2021, when it was about 90% above pre-pandemic levels.
Interest in vacation homes started declining sharply in February as mortgage rates began their ascent. The average 30-year fixed mortgage rate reached 5.81% in the week ending June 23.
Redfin is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
REAL ESTATE TECHNOLOGY
Aventon Companies | May 21, 2022
Aventon Companies, a prominent, vertically integrated multifamily developer with active projects throughout the mid-Atlantic and Southeast, announced it has begun construction on its fourth apartment community within the Orlando metropolitan market. Aventon Opal will be a 308-unit, Class A, multifamily development, meeting Orlando's rapidly growing housing demand.
Situated on nearly 12.4 acres and standing tall with four and five-story buildings, Aventon Opal will offer top-of-the-line one, two and three-bedroom units, and amenities designed for luxury living including a resort-style pool with private cabanas, summer kitchen with grills and outdoor pizza oven, and a social lounge housing a wet bar, TV, and poker table. Residents will also enjoy a micro market, around-the-clock fitness center, and clubroom with a remote working lounge encompassing five private offices, numerous booths and communal workspaces as well as a conference room. The pet-friendly community also boasts a pet spa and dog park.
With home values in Orlando continuing to skyrocket and the market becoming one of the most desirable in the country given its year-round seasonable temperatures and proximity to the nation's entertainment capital, the need for high-quality housing is at an all-time high. We are excited to deliver another Aventon community which residents are able to proudly call home."
Burk Hedrick, Vice President of Development for Aventon Companies
The buildings comprising Aventon Opal were designed locally by Scott + Cormia Architecture & Interiors, based in Orlando, while the interiors were created by Beasley & Henley of Winter Park, Florida. Since 2019, Aventon Companies has assembled an impressive $1.5 billion portfolio of ground-up developments expected to bring nearly 6,000 Aventon-branded apartment homes to Florida, Georgia, the Carolinas, and the Mid-Atlantic. Aventon Opal will debut in 2023.
To realize the development Aventon Companies has elected to partner with PPF Real Estate, a subsidiary of PPF Group, as a co-investment partner. This investment will be the second by PPF Real Estate in the Orlando area, having acquired the SouthPark Center for $315 Million in December 2021. "PPF Real Estate is enthusiastic about the creation of a joint venture with Aventon Companies, a development firm with a strong track record of success. We look forward to replicating this partnership in other investments in the Sun Belt region," said Aaron Smith, Managing Director for PPF Real Estate.
About Aventon Companies
Aventon Companies acquires, develops, and manages multifamily communities in Florida, Georgia, the Carolinas and the Mid-Atlantic with regional offices in West Palm Beach, FL, Orlando, FL, Raleigh, NC and Bethesda, MD.
PPF Group operates in 25 countries in Europe, North America and Asia. It invests in multiple sectors, including financial services, telecommunications, media, biotechnology, real estate and engineering. The Group owns assets to the value of EUR 40.3 billion and employs 80,000 people worldwide (as of 30 June 2021).
REAL ESTATE TECHNOLOGY
LightBox | July 13, 2022
LightBox, a leading information and technology platform for commercial real estate and location-based intelligence, announced the launch of the LightBox Data Platform. The platform serves as the most complete, connected data solution in the market bringing together third-party, public and customer data with LightBox proprietary content in a consistent data model for straightforward onboarding and integration. Clients can now use the newly launched Developer Portal to discover and connect to the full breadth and depth of LightBox data using a unified API and the LightBox ID, a permanent identifier that creates powerful connections to LightBox’s information model and allows users to easily identify relationships across LightBox’s property graph.
LightBox’s expanding suite of APIs, data solutions and professional service offerings provide companies the flexibility to determine what solutions scale best to enable businesses and industries to make strategically sound decisions in broadband modeling, site selection, property research, portfolio management, risk analysis and more.
LightBox SmartFabric™ will serve as the foundational dataset for the platform. SmartFabric brings together geospatial and non-geospatial datasets in a proprietary connected model. It provides customers with the insights and relationships across LightBox’s core parcel, building footprints, addressing, property characteristics, transactions, and other datasets for a complete view of a property.
“The LightBox Data Platform builds on our strong data management capabilities and demonstrates the openness and connectivity we need to develop as an industry, The demand for data remains unabated, clients continue to look for a competitive edge through data, and we are innovating to meet the demand. Our new APIs coupled with LightBox’s identifier and geocoder provides customers with the connected data solution that they are looking for.”
-Eric Frank, Chief Executive Officer at LightBox.
The real estate industry’s desire to access and append more data has been growing at an exponential rate. Data management is a difficult process in the era of big data and a one size approach does not fit all, said Adam Cardarelli, Vice President of Product Management at LightBox. Users need the technological components to access and manage data according to their own specifications. The LightBox Data Platform will consistently deliver a diverse body of APIs and data in a usable fashion. It will meet the needs of everybody in the industry—buyers, sellers, lenders, appraisers, environmental professionals, and more—who can scale it according to need.
LightBox’s APIs are now available through the LightBox Developer Portal allowing users to explore the catalog, discover new solutions, access sample code, and connect with other LightBox users in forums to gain input and insight about their business challenges. Developers will be able to discover LightBox APIs and LightBox data, with enough documentation and samples to put the system to immediate use however they require. The portal features over 75 endpoints with more being continuously added.
LightBox is a leading real estate information and technology platform. Through operational excellence and a passion for innovation, LightBox facilitates transparency, efficiency, insight, and prediction for real estate investment and location analytics. LightBox customers include commercial and government agencies requiring definitive real estate data and powerful workflow solutions, including brokers, developers, investors, lenders, insurers, technology providers, environmental consultants, and valuation professionals. LightBox is backed by Silver Lake and Battery Ventures.