Market Insights

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.

 

 

IMPORTANT DISCLOSURES

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.


Tag: BNY Mellon

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