February 2024

Principal's Corner

New Listings Increase but Rates Continue to Temper Purchases

In a recent report from Redfin, new listings of U.S. home sales rose 13% year-over-year in February. This marked the most significant increase in home availability in nearly three years. For the first time in nine months, the active listings count did not experience a drop, staying flat year-over-year. This development provides a glimmer of hope for homebuyers who have been navigating the challenging landscape of limited inventory coupled with persistently higher mortgage rates.

Despite the increase in inventory, buyers are still grappling with higher housing costs. The average mortgage payment hovers at $2,671, about $47 below the peak reached last October. These rising costs have led to an 8% drop in pending home sales, a leading indicator of housing activity. This is the sharpest decrease in five months, alongside a continued downturn in mortgage-purchase applications over the past four weeks.

However, the market is seeing a surge in buyer activity, buoyed by the incremental growth in home listings. According to Redfin’s Homebuyer Demand Index, which tracks requests for tours and other services from Redfin agents, there has been a 10% uptick from the previous month, reaching the highest point since last September. This rebound in buyer interest suggests that pending sales may see improvement in the coming months, contingent on mortgage rates remaining stable or declining.

“House hunters are out there, and competition picks up every time mortgage rates decline a bit,” said Brynn Rea, a Redfin Premier agent in Spokane, WA. “I’m telling buyers who can afford it to look now while they have more breathing room and less competition. They have a good chance of negotiating the price down or getting some concessions from the seller, which could make up for getting a 7% mortgage rate instead of 6%.” 

Like much of the economy, it’s all about interest rates right now.

Edward M. Aloe

President and CEO


Latest Headlines...

Record number of 65-year-olds will reshape the age milestone: WSJ

More than 11,000 people per day will reach 65 in 2024, and The Wall Street Journal explores the implications of a U.S. population that is quickly getting older

“Not only are older workers increasing in number, but their earning power has grown in recent decades. In 2022, the typical worker age 65 or older earned $22 per hour, up from $13 in 1987,” Pew reported. “Earnings for younger workers haven’t grown as much. As a result, the wage gap between older workers and those ages 25 to 64 has narrowed significantly.”

The driving factor behind a senior’s decision to remain in the workforce primarily comes down to addressing a monetary need, or continuing to work simply because they enjoy it, according to a representative of AARP. There is also a social component in which older workers want to continue to build connections and relationships.

There is also more wealth for the current cohort of 65-year-olds, according to the data.

View Article Here

Rent growth shows little fluctuation in January: Redfin

Midwest and Northeast states posted the steadiest rent price growth

An abundance of new apartments recently hit the market, giving renters more options to choose from. Meanwhile, more apartments are under construction. Redfin chief economist Daryl Fairweather expects apartment completions to peak in 2024. As a result, vacancies ticked up to a rate of 6.6% in the fourth quarter.

Rents have stopped surging, but they also have not posted any significant declines. Amid the high mortgage rate environment, many prospective home seekers chose to postpone their purchase plans and rented an apartment instead. 

Elevated demand for rental units has kept rent prices afloat, due in part to the fact that home prices have been increasing at a much faster pace than rents. Additionally, some landlords are still offering one-time price incentives to attract renters.

“There’s not a huge incentive for renters to buy right now,” Fairweather said in the report. ”Asking rents are stable, and while mortgage rates have dipped in recent months, they haven’t fallen enough to make the financial equation of homebuying feasible for many people. If you’re a renter who’s interested in buying but isn’t in a rush, there’s not much downside to waiting for mortgage rates to fall and your savings to grow.”

View Article Here

Cost Effective Multifamily Apartment Upgrades That Save Money

If you're a multifamily property owner, you know that keeping your buildings up-to-date and attractive is critical to attracting and retaining tenants. However, with so many different upgrades and renovations to choose from, it can be challenging to determine which ones will provide the most significant return on investment. Fortunately, there are many cost-effective cosmetic enhancements, energy efficiency improvements, and amenity additions and upgrades that can make your property more appealing without breaking the bank.

Cost-effective cosmetic enhancements are an excellent place to start when looking for cheap upgrades for your multifamily apartments. Things like fresh paint, new light fixtures, and updated hardware can make a big difference in the appearance of your units and common areas. Additionally, simple landscaping improvements like planting flowers or adding mulch can improve your curb appeal and make your property more inviting.

Another area where you can make a significant impact with relatively low cost is energy efficiency improvements. Upgrading to energy-efficient appliances, installing low-flow showerheads and toilets, and adding weather-stripping to doors and windows can all help reduce your energy bills and attract tenants who are environmentally conscious. By making these upgrades, you'll not only save money in the long run but also improve your property's overall value. 

View Article Here

On the lighter side...

About CALCAP Advisors


California Capital Real Estate Advisors, Inc., and its affiliate entities (CALCAP Asset Management, CALCAP Properties, CALCAP Lending, CALCAP Senior Healthcare, and CALCAP Strategic Opportunities, collectively known as “CALCAP”), is a California-based investment company founded in 2008 and headquartered in Pasadena, California. The Company sponsors alternative real estate investment opportunities focused on demographically driven housing. CALCAP has been able to consistently provide both individual and institutional investors with outstanding returns over the last 14 years. The Company uses a highly selective and disciplined investment approach, focused on delivering superior risk-adjusted returns. CALCAP currently has over $650mm in Assets Under Management. To learn more visit

Social Mission

CALCAP CARES is a 501(c)(3) private foundation organized to encourage employees to find a way to give back to the neighborhoods where we invest. CALCAP has created "GiveTime4Autism" as its initial program which gives employees the opportunity to donate unused vacation and sick days for a very worthy cause.


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Pasadena, CA 91106


12626 High Bluff Drive, Suite 360

San Diego, CA 92130 


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1309 State Street, Suite A

Santa Barbara, CA 93101

Edward M. Aloe, Founder & CEO

(626) 229-9057

Patrick A. Wakeman, Principal

(858) 764-4890

Drew Buccino, Principal and COO

(602) 419-3381

Greg Blix,Dir. of Investor Relations

(805) 896-8500

Mark A. Mozilo, Principal
(626) 229-9056

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