Rise November Real Estate Portfolio Report

Rise real estate portfolio
Rise real estate portfolio

Report Summary 

The US housing market continued to maintain an upward trajectory despite housing inventory recording a 26% decline year on yearOur real estate holdings continued to grow and rental income for the month declined by 16% after some of the leases on our properties expired leading to lower rental income. However, profit shared to investors in the real estate plan grew by 32%.  

Booming US Housing Market

The housing market in November continued to tick upwards but at a slower pace as housing inventory recorded a 26% decline year on year. Newly listed homes are down 0.7% nationally compared to a year ago, and down 0.2% for large metropolitan cities over the past year and sellers are still listing at rates 13.3% lower than typical 2017 to 2019 levels. 

In November the national median listing price for active listings was $379,000, up 8.6% compared to last year and up 22.4% compared to 2019. In large metropolitan cities, average listing prices grew by 4.5% in the month compared to last year. Nationally, the typical home spent 47 days on the market in November, down 10 days from the same time last year and down 23 days from 2019. Signaling a growing demand and a much more valuable US housing market.  

Meanwhile, a number of factors have supported the boom in the real estate market and this trend is set to continue into the new year. These factors include logistics issues, labor shortages, travel restrictions, inflation and aggressive demand. 

In South Carolina where the majority of our holdings are, median home value stood at $184.799 and average market rent at $1200 for the month. About  32.5% of the homes in South Carolina are rental properties and a majority of 63.2% are single-family homes and 48.6% maintain a house size of 3 bedroom 

Meanwhile, our real estate portfolio is set to benefit from potential rate hikes as inflationary pressure piles up the odds that the Federal Reserve will raise interest rates, and thus mortgage rates, sooner than later. Leading to growth in rental income the average 30-year fixed mortgage rate, which is currently 3.09%, could rise near or above 4% in the coming weeks. 

The number of holdings in our real estate continued to grow and rental income for the month declined by 16% after some of the leases on our properties expired leading to lower rental income. However, profit shared to investors in the real estate plan grew by 32%.