Appraisal Institute News

Jan 25, 2023 08:00 AM

Office Vacancy Gap Expected to Widen This Year as Firms Seek Newer Properties: JLL

The vacancy gap between older and newer office buildings is widening due to companies seeking new properties that are more sustainable and have higher-quality amenities, JLL reported Jan. 16. The occupancy rate for new properties in the U.S. has held steady at around 16% while vacancies in older buildings rose from 13.5% to 19%.

Jan 25, 2023 08:00 AM

Apartment Demand Negative for the First Time Since ’09: Data

Net demand for apartments went negative in 2022 — the first time since 2009 — due to lower consumer confidence and higher inflation, according to data from RealPage, MBA NewsLink reported Jan. 17. Rental demand was also weakened by historically low renter turnover, a smaller percentage of people behind on rent and no flight to affordability.

Jan 25, 2023 08:00 AM

CRE Distress Market Unlikely to Materialize in 2023: Analysts

Conditions are not ideal for the distressed commercial real estate debt market to take off this year, dashing the hopes of investors who want to cash in, according to an analyst with RSM US, GlobeSt.com reported Jan. 13. Federal Reserve data showed that defaults on CRE loans stayed below 1% through Q3 2022, and that reaching the 9% default rate seen during the Global Financial Crisis is unlikely.

Jan 11, 2023 08:00 AM

Federal Reserve Expected to Push Rates Past 5% in 2023, Survey Results Reveal

Ongoing inflation concerns likely will cause the Federal Reserve to raise interest rates to 5.25-5.5% this year, according to Bankrate’s Fourth-Quarter Economic Indicator poll published Jan. 4. The average rate projection of 5.35% is up from the 4.71% forecast in the third-quarter survey.

Jan 11, 2023 08:00 AM

FHFA Must Step Up Efforts to Combat Appraisal Bias: Report

A report from the Federal Housing Finance Agency’s Office of the Inspector General found that the FHFA isn’t doing enough to stop appraisal bias, HousingWire reported Dec. 23. The report suggested changes the FHFA should make, including alerting state regulators and licensing authorities when cases of appraisal bias are discovered and when complaints are filed about appraisals.

Jan 11, 2023 08:00 AM

Biden Signs Bill Revising Valuation Process for VA Mortgages

President Biden on Dec. 27 signed HR 7735, the Improving Access to the VA Home Loan Benefit Act of 2022, which streamlines the valuation process for U.S. Department of Veterans Affairs mortgage loans by allowing desktop appraisals and appraisal waivers in some situations. Critics have complained that the VA homebuying process can be unnecessarily slow due to appraisals having to be handled in-house.

Dec 14, 2022 11:30 AM

Some Conservation Easement Transactions Abusive: IRS

The IRS and Treasury Department on Dec. 6 proposed regulations listing certain syndicated conservation easement transactions as abusive tax transactions that must be reported to the IRS. The announcement said, in part, that investors typically acquire an interest in a partnership that owns land and then claim an inflated charitable contribution deduction based on a grossly overvalued appraisal.

Dec 14, 2022 08:30 AM

Medical Office Sector Resilient Amid Slowdown: Colliers

Medical office buildings remain investor favorites despite the sector seeing lower transaction volume, according to Colliers, GlobeSt.com reported Dec. 6. Investors are eyeing outpatient surgery centers and behavioral health facilities, and are targeting cities in Sun Belt states where the need for hospital beds, medical office space and other ancillary healthcare real estate is growing.

Dec 14, 2022 08:30 AM

Housing Forecast Shows Slowing Sales, Lower Prices: Redfin

The housing market is expected to remain sluggish next year, likely dropping to its slowest sales pace since 2011, Redfin reported Dec. 6 in its 2023 Housing Outlook. The outlook forecasts a 16% decline in existing home sales, a 4% drop in the median home price and mortgage rates that gradually decline to around 5.8%.

Pending Home Sales Fall for 5th Consecutive Month: NAR

Pending home sales fell 4.6% between September and October, dropping for the fifth consecutive month, the National Association of Realtors reported Nov. 30. Sales activity fell in three of the nation’s four major regions, rising only in the Midwest.