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The likely replacement for the North American Free Trade Agreement is expected to increase the demand for U.S. commercial property, according to a special report from commercial real estate firm CBRE, MBA NewsLink reported Oct. 11. Industrial real estate should most benefit from the new trade agreement.
Freddie Mac announced Oct. 10 that it will allow up to 12 months of mortgage forbearance for homeowners impacted by Hurricane Michael. The Category 4 storm was the third-most intense Atlantic hurricane ever to make landfall in the United States. Some analysts estimate property damage could cost the insurance industry up to $5 billion.
While the stock market remains volatile and another recession is possible, experts say that real estate likely won’t be the cause this time around, MarketWatch reported Oct. 10. Home prices have seen large gains in the last year, more renters are becoming buyers and builder confidence continues to increase.
HSBC will pay $765 million to the U.S. Justice Department to settle allegations it sold faulty residential mortgage-backed securities leading up to the financial crisis, National Mortgage News reported Oct. 9. Officials said the bank wasn’t a major player in the market so its fine is lower than the billions paid by other lenders.
Mortgage rates saw a large jump during the past week, rising to their highest level since April 2011, Freddie Mac reported Oct. 11 in its Primary Mortgage Market Survey. Rising rates paired with already high home prices has put downward pressure on purchase demand.
Residential foreclosure activity is at its lowest point since 2005, with 177,146 properties listed as foreclosures during the third quarter — down 6 percent from the second quarter and down 3 percent from the same point last year, analytics firm ATTOM Data Solutions reported Oct. 11.
The student housing market continues to perform well, with rising rents and fewer open beds — and the sector still has room for growth, according to American Campus Communities, a student housing REIT, National Real Estate Investor reported Oct. 8.
The national average rent in September took a minor dip — down $1 from August — marking the first time in eight months that rents did not increase, according to the monthly rent report released Oct. 10 by property management software firm Yardi, HousingWire reported. Year-over-year rent growth remained 3 percent.
The office REIT sector may see significant change as interest rates rise and investors seek new opportunities in which to place large amounts of available capital, according to commercial real estate firm Transwestern, National Real Estate Investor reported Oct. 9. Private equity funds likely could supplant REITs.
A growing number of e-commerce retailers are turning to bricks-and-mortar stores, with 850 new outlets expected to open in the next five years, according to the “Clicks to Bricks” report from real estate firm JLL, MBA NewsLink reported Oct. 11. One-third of online retailers opened their first physical location in New York City.
Average daily room rates and advanced bookings have boosted the hotel sector this year, but analysts caution that future booking activity could be less consistent and prove troublesome for the marketplace, according to hotel analytics firm TravelClick, MBA NewsLink reported Oct. 11.
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