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U.S. commercial real estate volume reached $167 billion during the second quarter, up 10% for the year, according to a CBRE report, Commercial Property Executive reported Aug. 10. While the greater New York and greater Los Angeles markets were tops among investors, cities in the Sun Belt performed well, with Houston reporting the largest year-over-year increase in total investment volume.
The Home Purchase Sentiment Index dropped in July to its lowest point since 2011, with only 17% of consumers indicating they think now is a good time to buy a home and just 67% believing it’s a good time to sell, Fannie Mae reported Aug. 8. Higher mortgage rates were cited as the primary reason for the declining sentiment.
The profit margins on single-family home and condo sales reached a record 55.5% during the second quarter, up from 48.3% during the first quarter, ATTOM reported Aug. 5. The greatest gross profits during the second quarter — a whopping $700,000 — were reported in California’s San Jose-Sunnyvale-Santa Clara metro area.
Mortgage rates shot up during the past week, remaining volatile even while the housing market shows signs of stabilizing, Freddie Mac reported Aug. 11 in its Primary Mortgage Market Survey. Home prices are expected to continue rising, but at a slower pace for the remainder of the summer.
The Federal Housing Finance Agency will require servicers to maintain data on borrowers’ age, race, ethnicity, gender and preferred language for all federally backed loans starting March 1, 2023, HousingWire reported Aug. 11. The mandate will remain in effect throughout the life of the loan, even if the servicing rights change companies.
The Appraisal Foundation’s Appraisal Standards Board announced Aug. 11 that the current edition of the Uniform Standards of Professional Appraisal Practice will be extended for an additional year. The 2020-2021 USPAP will now be effective until Dec. 31, 2023.
Stagflation likely will result in reduced valuations for commercial real estate and increased cap rates, according to analysts from Fitch Ratings, GlobeSt.com reported Aug. 11. High inflation, weak economic growth and changes to nominal net operating income were cited as the main drivers.
Inflation edged down in July after hitting a 40-year high in June, according to data released Aug. 10 by the Bureau of Labor Statistics; however, the Consumer Price Index for shelter was up 5.8% year-over-year. The data showed that rents continue to climb and are unlikely to decline anytime soon.
The sales price of the median single-family home increased by double digits in 80% of markets during the second quarter, the National Association of Realtors reported Aug. 11. The South saw the greatest price increase (up 18.2%), followed by the West (12.7%), the Northeast (10.1%) and the Midwest (9.7%). Nationally, the median single-family home costs $413,500.
There were 30,358 foreclosure filings in July, down 4% from June but up 143% from the same point a year ago, ATTOM reported Aug. 9 in its July 2022 U.S. Foreclosure Market Report. States with the highest foreclosure filings included Delaware (one in every 2,127 housing units); Nevada (one in every 2,609 housing units); and South Carolina (one in every 2,976 housing units).
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