Appraiser News Online

The Federal Reserve’s Board of Governors said it believes the banking sector remains sound overall but noted concern about commercial real estate loans in its newest Supervision and Regulation Report, GlobeSt.com reported Nov. 13. The delinquency rates for CRE loans continue to grow, with the largest increase in the office property sector.

Commercial real estate prices have declined quarter over quarter since interest rate hikes began in March 2022, but with rates starting to moderate, prices are stabilizing, according to the Trepp Property Price Index, GlobeSt.com reported Nov. 16. In the industrial sector, 14.2% of properties sold at a loss during Q1 but only 10.5% did so in Q2. Meanwhile, 23.7% of office properties sold at a loss in Q1, while 20.4% did so in Q2.

The 2024 multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $70 billion each, with a combined total of $140 billion, the Federal Housing Finance Agency announced Nov. 14. The combined total cap is down from the $150 billion allocated this year and the $156 billion in 2022. However, the amount is much higher than pre-pandemic caps of $70 billion in 2018 and 2019.

Raleigh, North Carolina; Madison, Wisconsin; and Colorado’s Front Range towns are among the markets primed to soar because they have top research universities, a highly skilled tech workforce, diverse local economies and other demographics working in their favor, according to a CBRE report released Nov. 6 that focused on cities with the potential to become “the next Austin.”

Raleigh, North Carolina; Madison, Wisconsin; and Colorado’s Front Range towns are among the markets primed to soar because they have top research universities, a highly skilled tech workforce, diverse local economies and other demographics working in their favor, according to a CBRE report released Nov. 6 that focused on cities with the potential to become “the next Austin.”

The Federal Housing Administration said that despite a challenging housing market, it facilitated access to mortgage credit for more than 765,000 homebuyers and homeowners in fiscal year 2023, according to its annual report to Congress. The report was released Nov. 15 and outlines the work of its single-family mortgage insurance programs and the performance of the FHA Mutual Mortgage Insurance Fund.

Median single-family home and condo prices rose in 54% of designated opportunity zones, with nearly half experiencing an increase of at least 5%, ATTOM reported Nov. 16. The price growth continued a long-term trend where home values inside opportunity zones keep pace with the broader market, signaling economic recovery in some of the country’s most distressed communities.

Investor home purchases during the third quarter were down 29.7% on an annual basis for a total of 48,667 homes, the lowest amount since 2016, Redfin reported Nov. 9. The decline was attributed to rising mortgage rates, high home prices and a lackluster rental market, and was most pronounced in the Sun Belt, with Atlanta experiencing the steepest drop at 49.7%.

Thirty-two percent of homes sold between July 2022 and July 2023 were purchased by first-time homebuyers, up from last year's historic low of 26%, the National Association of Realtors revealed Nov. 13 in its annual Profile of Home Buyers and Sellers report. The median household income for buyers jumped to $107,000 from $88,000 as both home prices and mortgage rates soared.

Foreclosure activity fell 6% between September and October but is still 6% higher than at the same point a year ago, ATTOM reported Nov. 14. There were 34,472 foreclosure filings in October, and while activity is expected to decline during the holiday season, it should tick up in the new year as filings progress through the pipeline.

Mortgage rates fell again during the past week, marking three weeks of decline as inflationary pressures continue to recede, Freddie Mac reported Nov. 16 in its Primary Mortgage Market Survey. The combination of lower rates, falling inflation and a growing economy are expected to bring homebuyers back to the market.