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The Federal Trade Commission announced June 11 that the Louisiana Real Estate Appraisers Board will stop setting compensation levels for residential real estate appraisal services, which the FTC said violates federal antitrust law. The proposed settlement prevents the LREAB from adopting a fee schedule for appraisal services or taking any action to raise, stabilize or fix compensation levels for appraisal services in Louisiana.
The Environmental Protection Agency and the U.S. Army announced June 9 that they intend to revise the definition of “waters of the United States” to better protect the nation’s resources. The regulatory effort will be guided by multiple stakeholders, including landowners, the agricultural community and local governments.
Investment in net-lease properties, which include office, industrial and retail, jumped 10% during the first quarter compared with the same point a year ago, according to the U.S. Net Lease Investment Report from commercial real estate firm CBRE, MBA NewsLink reported June 8. The report cited increased interested in office properties and “robust” institutional acquisition activity as key drivers.
Dedicated off-campus student housing is expected to be a more profitable long-term investment than other commercial real estate, especially post-pandemic, according to commercial real estate firm Cushman & Wakefield, Commercial Observer reported June 8. As students make their way back to campuses, net operating income for student housing is projected to grow nearly 2% after 2025.
The hospitality sector is improving, as gross operating profits for hotels increased to 60% of where they were in April 2019; profits in 2020 drastically dropped due to the worldwide coronavirus pandemic lockdown, according to hospitality analytics firm STR, MBA NewsLink reported June 8. Profits are anticipated to further increase this summer as travel picks up.
The number of residential construction loans increased 1.1% during the first quarter, ending a period of decline that started in 2019, the National Association of Home Builders reported June 7. However, overall residential construction loan volume ended the year lower due to accelerated sales growth, which reduced outstanding loans at a faster rate.
Carefully crafted language, both specific and standard, is key in appraisal reports. One insured appraiser recently avoided a potentially costly lawsuit by including well-thought-out language that addressed issues related to large rural properties.
The number of buyers who secured a mortgage for a second home in May was up 48% over the same period a year ago, and while the increase is significant, it’s the first time in more than a year that the increase was below 80%, indicating the demand for second homes is cooling off, online real estate marketplace Redfin reported June 10.
Only 35% of consumers believe now is a good time to purchase a home, which is an all-time low and reflective of the dearth of available homes and the resulting high prices, Fannie Mae reported June 7 in its Home Purchase Sentiment Index. Those who believe it’s a good time to sell a home remain unchanged from the last Index at 67%.
The median sale price for homes with a high flood risk was $402,010 during the first quarter while homes with a lower flood risk had a median price of $353,000, according to a report released June 9 by online real estate marketplace Redfin. The 13.6% premium is up from 10.1% last year and is driven by greater buyer interest in waterfront homes.
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