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The Federal Reserve on June 13 increased interest rates a quarter of a percentage point, indicating it would tolerate inflation above 2 percent and was dropping crisis-era guidance, Reuters reported. Low unemployment and inflation were key factors in the decision.
Ohio Gov. John Kasich on June 14 signed Substitute House Bill 213, legislation that establishes the state’s appraisal management company licensing and oversight program and makes minor changes to the state’s existing appraiser licensing and certification law.
The U.S. Department of the Treasury and the IRS announced June 13 that they have selected Opportunity Zones in all 50 states and the District of Columbia; the Opportunity Zones program provides federal tax incentives to spur investment in distressed communities. Nearly 35 million people live in the selected zones.
Interest rates and the economy are expected to have the biggest impact on real estate over the next year, as demand for commercial properties decreases and residential mortgage rates continue to increase, according to the Top Ten Issues Affecting Real Estate report released June 13 by The Counselors of Real Estate.
Hypervacancy — defined as areas where at least one in five properties is vacant — is a growing problem that can devastate local real estate, according to a Lincoln Institute of Land Policy report, MBA NewsLink reported June 7. Homes rarely sell in these neighborhoods, which become areas of concentrated poverty and crime.
E-commerce demands are forcing warehouse construction to go vertical in dense urban markets like Chicago, New York, San Francisco and Seattle because land zoned for industrial is in short supply and property values are at a premium, according to real estate services firm JLL, National Real Estate Investor reported June 12.
Small-balance multifamily lending could increase 4 to 6 percent this year as loan disbursement for properties under $5 million reached $49.8 billion — the highest level since the financial crisis, according to analytics firms Chandan Economics, MBA NewsLink reported June 12.
Eighty-nine percent of mortgage loans for millennials in April were for new home purchases, up 1 percentage point from March and the highest rate since May 2017, according to the Millennial Tracker released June 6 by software firm Ellie Mae. The average loan totaled $188,171, down from $192,055 the previous month.
Home equity during the first quarter increased by 13.3 percent over the same point last year, revealing an average gain of $16,300 per homeowner and totaling more than $1 trillion for the quarter, according to analytics firm CoreLogic, HousingWire reported June 8. Homes in Washington state saw the largest equity gains.
Mortgage lenders said they expect a negative profit margin for the seventh consecutive quarter due to a shortage of housing supply and rising home prices, Fannie Mae reported June 12 in its Mortgage Lender Sentiment Survey. Lenders also reported lower demand for Fannie and Freddie-eligible loans and refinance mortgages.
Mortgage rates during the past week changed course and rose to their second highest level this year, Freddie Mac reported June 14 in its Primary Mortgage Market Survey, which noted that borrowing costs are inching higher due to rising inflation.
The Appraisal Institute on June 19 released a guide on how to use and complete its Residential Green and Energy Efficient Addendum. The guide is intended to help appraisers, real estate agents, lenders, builders and other users understand how each section of the addendum applies to property valuation and marketing.
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