Choose your path
The Trump administration on Sept. 5 shared its plan for releasing Fannie Mae and Freddie Mac from more than 10 years of government control, including the creation of new competitors, Bloomberg reported. The plan involves cooperation from multiple federal agencies and calls for reforms that protect the government-sponsored enterprises from another housing crash.
Home sales through the end of August remained slow in most fed districts due to ongoing housing inventory shortages and flat new home construction, the Federal Reserve reported Sept. 4 in its newest Beige Book. On the commercial side, construction and sales activity held steady, and leasing increased slightly.
The office market shows the weakest growth among commercial real estate sectors — despite strong job reports, according to real estate marketplace Ten-X, MBA NewsLink reported Sept. 5. The number of new office projects in the pipeline is expected to eclipse absorption and push vacancies up to 17.3% by the end of the year.
The commercial real estate sector has made significant progress over the past 10 years in reducing carbon emissions and energy consumption while increasing building values, the Urban Land Institute’s Greenprint Center for Building Performance reported Aug. 28. Among the most effective projects: green leasing, net-zero energy investment and high-efficiency water fixtures.
Student housing at colleges with elite football programs attract greater interest from investors and trade at lower cap rates than housing serving schools with less successful football programs, real estate firm CBRE reported Aug. 27. The reason being: great football programs draw large and consistent enrollment, which results in stable cash flow.
Charleston, South Carolina, is expected to be the nation’s hottest multifamily market, based on number of units under construction, according to analytics firm Yardi Matrix, HousingWire reported Sept. 4. Charleston is on track to deliver more than 3,600 units this year and close to that amount next year. Other hot multifamily markets: Colorado Springs, Colorado, and Salt Lake City.
Renters would pay an additional $225 per month and homeowners an additional $125 per month for the privilege to choose their neighbors, according to a Rent.com survey reported Aug. 30. Millennials were willing to pay more than four times what baby boomers would spend. The results were similar for rural, suburban and urban residents.
Nearly 56% of active homebuyers said they would put their housing hunt on hold if a recession hits, Realtor.com reported Aug. 28 in its Home of Home survey. Active buyers are those currently house hunting. More than 36% of active buyers said they expect a recession next year.
Pending home sales nationwide fell 2.5% between June and July, as economic uncertainty and a shortage of moderately priced homes kept would-be buyers from the market, the National Association of Realtors reported Aug. 29. Homes sales in the Northeast showed the smallest decline while sales in the West experienced the greatest decline.
Home price gains are expected to increase 5.4% by next July, according to a forecast from analytics firm CoreLogic, HousingWire reported Sept. 3. That level of growth would be faster than the 3.6% annualized price gains reported in July. Key factors driving the growth: low mortgage rates and inventory shortages.
Home prices in car-dependent neighborhoods are rising faster than those in walkable neighborhoods, a trend likely the result of many homebuyers getting priced out of the most walkable neighborhoods, real estate site Redfin reported Aug. 29. Philadelphia and Cleveland saw the greatest annual growth in car-dependent neighborhoods.
Mortgage rates during the past week dropped to their lowest levels in nearly three years due to weakening economic data, namely ongoing pressure on manufacturing and trade, Freddie Mac reported Sept. 5 in its Primary Mortgage Market Survey. However, the survey noted that economic fundamentals are still solid.
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