Since the COVID-19 crisis began, the number of listings with price reductions has gone down across all cities compared to the same period in 2019. This may be due to homes being delisted or not listed at all as some homeowners would rather delist than reduce price by 10%. In the event of a price reduction, the avg. reduction in recent weeks is nearly twice as large as a year ago:6.2% in 2020 vs. 3.6%in 2019 for week ending April 18th. In the past two months, we have seen an acceleration in rent growth – May growth was on par with 2019 levels and June growth is both stronger than 2019 and 2020 budgeted expectations. Driving the performance in top line revenue has been consistently strong renewal rent growth in the first half of 2020 and a substantial increase in QoQ occupancy levels.
The comments provided herein are a general market overview and do not constitute investment advice, are not predictive of any future market performance, are not provided as a sales or advertising communication, and do not represent an offer to sell or a solicitation of an offer to buy any security.
Similarly, this information is not intended to provide specific advice, recommendations or projected returns of any particular product of Amherst Capital Management LLC (Amherst Capital). These views are current as of the date of this communication and are subject to rapid change as economic and market conditions dictate. Though these views may be informed by information from sources that we believe to be accurate and reliable, we can make no representation as to the accuracy of such sources nor the completeness of such information.
Past performance is no indication of future performance. Investments in mortgage related assets are speculative and involve special risks, and there can be no assurance that investment objectives will be realized or that suitable investments may be identified. Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial developments. An investor could lose all or a substantial portion of his or her investment. No investment process is free of risk and there is no guarantee that the investment process described herein will be profitable. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Amherst Capital is a registered investment adviser and is an indirect majority-owned subsidiary of The Bank of New York Mellon Corporation.