^{TOGETHER WITH:}

Happy New Year STR Scout Members!

In today’s issue:

🔑 STR Classifieds: Top 10 Trending STR Homes for Sale!

⍰ Case-Shiller Report: Reading between the lines, what investors need to know.

📰 News Nuggets: Trending Airbnb, Housing, and Economic News to stay ahead in today’s market.

Happy New Year!

— The STR Scout Team

🏡 $368K | Atlanta, GA: Fully renovated 4BD/3BA in Hunter Hills near Westside Beltline & Mercedes Benz Stadium. Features open kitchen, quartz counters, custom accent wall, & fireplace. STR potential! View Post

🏡 $425K | DFW, TX: Profitable 3BD/2BA short-term rental on 0.25-acre lot with no HOA! Grossed $80K in 12 months. Features updated pool, new hot tub, outdoor bar, & turnkey furnishings. Ideal location near Dallas/Fort Worth. View Post

🏙️ $585K | Asheville, NC: Downtown condo with rare STR approval! Nets $2-$4K/mo, city-restricted rentals. Managed by local firm or self-manage to save fees. Prime investment in a hot market. View Post

🏖️ $589K | Norfolk, VA: 4BD/2.5BA, 2322 sqft home just 2 blocks from Chesapeake Bay! Features wrap-around porch, updated kitchen, private office, spacious backyard, & primary suite retreat. View Post

🔥 $520K | Tampa, FL: Fully renovated Airbnb near MacDill AFB! Projected $80K/yr net. New roof, AC, kitchen, appliances, fencing, & more. Includes pool house, fire pit, & $150K in upgrades. Investor fire sale! View Post

🌲 $715K | Lakeside, AZ: 4BD/3BA, 2398 sqft in Blueridge Estates! Successful Airbnb, no HOA, on 0.46-acre lot with Aspen & Pine trees. Features vaulted ceilings, gas fireplace, hot tub, RV/EV hookups, & upgrades galore. View Post

🏖️ $845K | Galveston, TX: Beachfront 3BD/2BA, 1380 sqft remodeled home with Gulf views; $50K price reduction! Sleeps 13, turnkey furnished. Open floor plan, spacious kitchen, & STR-ready. Neighborhood pool, marina, & more! View Post

🏡 $1.199M | St. Augustine, FL: Stunning 5BD/3.5BA, 2735 sqft historic home in the heart of the oldest city; $50K price drop! Fully furnished STR, $140K+ annual revenue potential. Features pool, Tesla charger, no flood zone. View Post

🌊 $1.35M | Isla Mujeres, MX: 6BR/5.5BA oceanfront villa with 4 apartments in prime El Centro Malecon. Airbnb Superhost/VRBO Premier Partner, grossing strong cash flow. Turnkey, walk to ferry & downtown. View Post

🏔️ $1.7M | Sevierville, TN: 5BD/6.5BA, 4340 sqft luxury cabin in the Great Smoky Mountains! Sleeps 18, $211.5K projected revenue. Features indoor pool, theater, fire suppression, & designer furnishings. View Post

Get an STR Loan Quote? 

Case-Shiller Report Summary

National Trends:

• Annual Growth: The Case-Shiller National Home Price Index rose 3.6% year-over-year in October 2024, continuing 21 consecutive months of price increases.

• Monthly Growth: On a seasonally adjusted basis, the National Index increased 0.35% month-over-month (MoM), equivalent to a 4.2% annualized rate.

• Regional Variability: Home prices increased in 18 of the 20 Case-Shiller cities on a seasonally adjusted basis. Tampa and Cleveland were the only cities to report declines.

Regional Insights:

• Top Performers: New York led the market with a 7.3% year-over-year increase, followed by Chicago (6.2%) and Las Vegas (5.9%).

• Underperformers: Tampa posted the smallest growth at 0.4%, with Phoenix (-3.0%) and San Francisco (-6.4%) still below their recent peaks.

• FHFA Index: The FHFA House Price Index showed a 4.5% annual increase in October, reflecting steady growth, though annual gains have stabilized around this level for the past three months.

Market Dynamics:

• Deceleration in Gains: Annual price gains have declined monthly since February 2024, when the index posted a 6.5% year-over-year increase.

• High Costs Impacting Affordability: Elevated mortgage rates and housing prices have limited affordability, contributing to reduced demand and historically low home sales figures.

• Inventory Constraints: A persistently low inventory of homes for sale continues to support price stability despite affordability challenges.

Seasonal Adjustments:

• Composite Index Performance:

  • Composite 10: Up 0.3% MoM (SA), with a 4.8% year-over-year increase.

  • Composite 20: Up 0.3% MoM (SA), with a 4.2% year-over-year increase.

  • National Index: Up 0.3% MoM (SA) and 3.6% year-over-year.

• Pre-Adjustment Trends: Without seasonal adjustments, the National Index and Composites saw slight MoM declines of -0.2% for October.

Market Challenges:

• Affordability Pressures: High mortgage rates continue to stifle buyer activity, pushing many potential homeowners out of the market.

• Demand Dampening: Limited affordability and elevated prices have reduced transaction volumes, contributing to one of the slowest sales years in recent history.

• Shifts in Regional Trends: Traditional high-growth markets like Florida and Arizona have slowed, allowing other markets, such as the Northeast and Midwest, to catch up.

Strategic Insights for Investors:

• Moderation in Growth: Slower appreciation provides an opportunity for more favorable entry points in certain regions.

• Regional Focus: Investors should prioritize high-performing markets like New York, Chicago, and Las Vegas while monitoring emerging opportunities in traditionally lower-performing areas.

• Long-Term Considerations: Persistently low inventory levels are likely to sustain price growth, even as demand softens in the short term.

• Navigating Affordability: Buyers should consider income-generating properties in areas with strong rental demand to offset the impact of high financing costs.

Key Takeaway:

The Case-Shiller data underscores a transitioning market where price growth is slowing but remains positive due to constrained supply. For investors, this is a time to focus on regional opportunities and strategic acquisitions, leveraging the moderation in price increases and high-performance markets to build resilient portfolios.

^{TOGETHER WITH HOST FINANCIAL}

Banks Don’t Get Airbnb Loans, Host Financial Does

If you’ve ever had to explain Airbnb revenue to a loan officer, you know the frustration. Traditional banks just don’t get it. That’s where Host Financial comes in.

Host Financial specializes in loans for STR investors, focusing on what truly matters: your property’s earning potential.

• No W2s or tax returns required

• Get approved in just 60 seconds

• Custom-tailored STR loan options to suit your needs

Sarah M. scaled from 1 to 5 properties with Host Financial loan solutions. Will you be next?

Start your STR success story today. Click for a 60-second quote.

Mortgage Rate Watch

Effective December 30, 2024. Freddie Mac reported the following average mortgage rates to close out the year:

Rates continue trending upward, with the 30-year fixed approaching its 52-week high and marking the steepest monthly increase since July.

For competitive DSCR loan interest rates contact Host Financial.

Short Term Rental

💼 Casago to acquire Vacasa for $128 million in a bold move to go private. The short-term rental platform Casago is buying Vacasa, signaling a shift in the STR industry toward consolidation. The deal reflects growing competition among STR platforms and highlights the challenges of operating in a volatile market. Industry watchers see this as a strategic effort to streamline operations and focus on profitability in a post-pandemic world. Learn about the acquisition.

🌟 Short-term rentals shine as rural escapes become top picks. Post-pandemic travelers are flocking to countryside destinations, lured by peaceful settings and unique accommodations. Rural STRs are thriving as people prioritize serenity and exclusivity in their getaways. Explore rural escapes.

🏛️ Heritage homes and boutique properties drive STR demand. Historic buildings and small-scale hotels are reinventing themselves as vacation rentals, offering travelers rich stories along with comfort. These stays blend local culture with modern hospitality. Discover historic stays.

🔑 Luxury meets convenience as STR platforms up their game. Companies like Airbnb and VRBO are introducing upscale experiences, aiming to rival traditional hotel offerings. Features like concierge services and curated stays are redefining the STR market. Learn about luxury options.

Housing

🏠 Overpriced homes are piling up as buyers hold back. U.S. housing supply hit a four-year high, but affordability issues and high mortgage rates keep many buyers on the sidelines. Sellers are facing a reality check in this evolving market. Explore housing trends.

📉 Housing market mirrors the 2008 bubble, experts warn. Analysts see worrying signs in inflated prices, slowing sales, and rising defaults, echoing dynamics of the previous housing crash. The question remains: can a major correction be avoided? Learn about market risks.

🏘️ San Francisco home prices drop but remain America’s priciest. The Bay Area’s real estate struggles continue, with falling values driven by rising interest rates and a dwindling tech workforce. Yet, it’s still the costliest market in the U.S. Dive into SF housing.

🔨 Builders are slashing prices to move inventory. Florida’s housing market is a prime example, where desperate developers are cutting costs to entice buyers amidst slowing demand. The strategy highlights how supply is outpacing interest. Understand builder strategies.

🛠️ Renovations rise as older U.S. homes get a modern facelift. With a median home age of over 40 years, many buyers are opting to remodel instead of move. The trend is fueling demand for skilled contractors and sustainable materials. Explore renovation growth.

Economy

📈 Credit card debt soars as Americans grapple with holiday splurges. Nearly 36% of U.S. consumers took on an average of $1,181 in holiday debt, with credit card defaults reaching a 14-year high. Rising interest rates are compounding repayment challenges. See debt concerns.

📊 Treasury yields defy Fed cuts, shaking markets. Despite the Federal Reserve’s rate reductions, the 10-year Treasury yield climbed by 100 basis points since September. The divergence is creating uncertainty across economic sectors. Unpack yield trends.

🚨 Elon Musk warns of looming U.S. bankruptcy. In a bold statement, Musk highlighted unsustainable debt levels and urged swift action to prevent economic disaster. Critics say his remarks reflect growing fears about federal spending. Read Musk's alarm.

💳 U.S. credit card defaults hit highest level since 2010. With balances growing and delinquencies rising, the credit card crisis could spell trouble for consumer spending in 2025. Analysts fear a ripple effect on the broader economy. Review credit trends.

💡 U.S. cities rethink commercial real estate as office vacancies rise. Markets like Austin and Chicago face challenges turning empty offices into vibrant, usable spaces. The push for mixed-use developments could redefine downtowns. Understand office trends.

Destinations

🌍 Google data shows Gili Islands trending for 2024 travel. These serene Indonesian islands are drawing attention for their eco-friendly charm and pristine beaches. Travelers are embracing their slower pace and sustainable focus. Explore Gili Islands.

🏝️ Mexico remains a retirement favorite for North Americans. Affordable living, friendly residency policies, and warm climates make Mexico a top pick for retirees seeking a balance between adventure and relaxation. Consider Mexico living.

✈️ Remote workers fuel vacation home demand. Scenic spots like Lake Tahoe and Asheville are seeing an influx of buyers looking for dual-purpose homes. The trend highlights how work-from-anywhere lifestyles are reshaping housing markets. Discover vacation trends.