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Illinois once again tops the list of states with the highest foreclosure rate, with one in every 2,221 households encumbered with a foreclosure filing in April, ATTOM reported May 12. Nationwide, the ZIP code with the highest foreclosure rate is Conroe, Texas, followed by Harleysville, Pennsylvania.
Total commercial and multifamily mortgage borrowing and lending is expected to drop to $654 billion this year — a 20% decrease from the $816 billion in 2022, MBA NewsLink reported May 15. A rebound is predicted for 2024, although it may take until 2025 for loan volume to normalize.
The Appraisal Institute announced May 18 that its Practical Applications of Real Estate Appraisal program for the licensed residential path received approval from the Appraiser Qualifications Board. Appraisal Institute President Craig Steinley, MAI, SRA, AI-GRS, AI-RRS, said the program will create many opportunities for aspiring appraisers who might not currently have a pathway into the profession.
Owners and operators of self-storage properties saw modest monthly rental gains in April, Yardi Matrix reported May 17 in its National Self Storage report. Street rates increased for all unit sizes, but metro-level street rates are negative year-over-year. Overall occupancy has declined from pandemic highs, but demand remains firm.
Construction of single-family homes rose 2.2% in April, marking the highest rate of production for the year, the National Association of Home Builders reported May 17. However, builders continue to grapple with high construction costs, labor shortages and tightening credit conditions.
Many family offices are increasing their investment in commercial real estate, especially warehouses and logistics centers, according to a Goldman Sachs survey of institutional family offices with a net worth of at least $500 million. On average, the offices are allocating about 9% of their funds to real estate and infrastructure.
Rent growth in April was slow, up only 0.3% year-over-year in the nation’s top 50 metros and marking the ninth consecutive month of single-digit growth, Realtor.com reported May 18. Rents increased the most in the Cincinnati metro area, up 9.9% from the same point a year ago. The New Orleans-Metairie, Louisiana, metro saw the greatest decrease, with rents down 15.4%.
Concerns about inflation are easing, with data showing current annual rates trending as expected at around 2% to 5.5%, and small businesses no longer cite inflation as their biggest worry, Fannie Mae reported May 12. However, lenders are still tightening credit standards for both residential and commercial real estate loans.
The Federal Housing Finance Agency on May 15 issued a Request for Input on the single-family pricing network for Fannie Mae and Freddie Mac and on the processes necessary to set single-family upfront guarantee fees for them. Comments are due by Aug. 14.
Sales of existing homes fell 3.4% between March and April, down 23.2% from one year ago, the National Association of Realtors reported May 18. The inventory of homes for sale rose 7.2% in April, the equivalent of a 2.9-month supply at the current sales pace.
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