Choose your path
A final rule exempting community banks (those with consolidated assets less than $10 billion) from the Volcker Rule was adopted July 9 and jointly announced by the Federal Reserve Board, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Securities and Exchange Commission.
A new partnership between real estate brokerage Redfin and homebuying service Opendoor will purchase properties directly from homeowners who list with Redfin, MarketWatch reported July 14. Sellers who accept the iBuyer offer avoid having to make pre-sale repairs and can skip some closing procedures — including, potentially, the appraisal — but risk receiving less than market value.
Single-tenant net lease cap rates during the second quarter declined in the retail, office and industrial sectors, according to real estate firm The Boulder Group, MBA NewsLink reported July 11. New construction 7-Eleven properties — considered resistant to both recession and e-commerce challenges — showed the highest cap rate compression, dropping 12 basis points.
Multifamily properties continue to be favorites among investors, with the sector named one of the most attractive by those who were participated in research conducted by National Real Estate Investor and reported by them July 8. The industrial sector, another favorite, dropped slightly in favorability.
Apartment demand jumped during the second quarter, with occupancy increasing 11% compared to the same point last year — reaching nearly 96% — and average rents increasing 3%, according to property management company RealPage, MBA NewsLink reported July 11. Experts think a slowdown is possible because it’s difficult to maintain this level of growth.
Investor interest in senior housing is expected to stay strong through the middle of next year, with two-thirds of investors who responded to the U.S. Seniors Housing & Care Investor Survey from real estate firm CBRE said they will add to their portfolios, MBA NewsLink reported July11.
The retail sector overall appears to be in decent shape despite high-profile store closures, and rental rates are trending slightly higher — although at a slowing rate, according to real estate services firm JLL, National Real Estate Investor reported July 11. However, JLL notes that if the economy takes a downturn, the sector could be hard hit.
Foreign investment in the U.S. hotel sector is down $18.8 million compared to the same point last year, marking the first decline in six years, according to commercial real estate firm Ten-X, National Real Estate Investor reported July 9. Among the factors cited for the decline: pricing near all-time highs and little upward momentum to make the properties attractive to investors.
A USA Today analysis of data from Experian’s State of Credit Report and the Census Bureau revealed that California homeowners have the most mortgage debt in the U.S., averaging $347,652, HousingWire reported July 8. Rounding out the top 5: Hawaii, Maryland, Massachusetts and Washington.
Consumer confidence in the housing market dipped slightly in June, with the number of people believing now is a good time to buy a home dropping by 4%, according to the Home Purchase Sentiment Index released July 8 by Fannie Mae. Potential homebuyers in the South and Midwest expressed the most confidence.
Pop up content here.