Appraisal Institute News

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May 31, 2023 08:30 AM

Home Values Decline in April, Redfin Reports

The median home price fell 4.1% year-over-year in April to $408,031, reflecting a loss of $17,603, the largest drop in dollar value on record, Redfin reported May 22. Pandemic boomtowns experienced the steepest declines, especially Oakland, California, where home values dropped 16.1% from the same point a year ago, and Austin, Texas, where prices dropped 15.3%.

May 31, 2023 08:30 AM

All Major Property Types Post Annual Declines: RCA Index

In April, all major property types posted annual declines — the first time that’s happened in a single month since September 2010, according to the RCA CPPI National All-Property Index, GlobeSt.com reported May 30. The apartment sector saw the largest monthly and annual declines among major property types, down 1.5% and 12.1%, respectively.

May 31, 2023 08:30 AM

Economic Uncertainty Remains High for Commercial Real Estate: JPMorgan Chase  

Commercial real estate will face increased uncertainty for the rest of the year, according to JPMorgan Chase’s Midyear Commercial Real Estate Outlook, MBA NewsLink reported May 24. While most sectors have been resilient the first half of the year, questions loom about the office sector and rising interest rates, which have increased 10 times between March 2022 and May 2023.

May 24, 2023 08:30 AM

AI PAREA Program Receives Approval from the AQB

The Appraisal Institute announced May 18 that its Practical Applications of Real Estate Appraisal program for the licensed residential path received approval from the Appraiser Qualifications Board. Appraisal Institute President Craig Steinley, MAI, SRA, AI-GRS, AI-RRS, said the program will create many opportunities for aspiring appraisers who might not currently have a pathway into the profession.

May 24, 2023 08:30 AM

FHFA Seeks Input on Single-family Pricing Framework

The Federal Housing Finance Agency on May 15 issued a Request for Input on the single-family pricing network for Fannie Mae and Freddie Mac and on the processes necessary to set single-family upfront guarantee fees for them. Comments are due by Aug. 14.

May 24, 2023 08:30 AM

Inflation Remains High but Shows Signs of Easing, Fannie Mae Reports

Concerns about inflation are easing, with data showing current annual rates trending as expected at around 2% to 5.5%, and small businesses no longer cite inflation as their biggest worry, Fannie Mae reported May 12. However, lenders are still tightening credit standards for both residential and commercial real estate loans.

May 17, 2023 08:30 AM

Retail Fundamentals on the Decline Due to Inflation, Banking Issues: JLL

Retail fundamentals have started to pull back as a result of continued inflation and banking troubles, JLL reported May 9. Major retailer bankruptcy announcements have increased, with nine already declared this year compared to 10 total in 2022. Net absorption totaled 9.1 million square feet for the quarter — a notable decline from the 20.1 million square feet in Q4. 

May 17, 2023 08:30 AM

FHFA Rescinds Upfront Fees for Mortgages Based on DTI Ratio

The Federal Housing Finance Agency announced May 10 that it has rescinded the upfront fees based on borrower debt-to-income ratio for loans purchased by Fannie Mae and Freddie Mac. The agency changed its original plan based on stakeholder feedback.

May 17, 2023 08:30 AM

Washington State Drops Single-family Zoning

Washington Gov. Jay Inslee on May 8 signed HB 1110, legislation that lifts zoning restrictions on duplexes and fourplexes — referred to as “middle housing” — in areas zoned for single-family properties. The law is intended to alleviate housing supply issues. The state’s Department of Commerce will provide guidance for implementing the new requirements and developing a model middle housing ordinance.

May 10, 2023 08:30 AM

Appraisal Standards Board Adopts New Edition of USPAP

The Appraisal Standards Board on May 5 voted to adopt the Fifth Exposure Draft of proposed changes to the Uniform Standards of Professional Appraisal Practice. The new edition will be available this fall and take effect Jan. 1, 2024. Unlike previous editions, it will not have an end date.

May 10, 2023 08:30 AM

Agencies Outline Enforcement Efforts Against Discrimination, Bias in Automated Systems

The Equal Employment Opportunity Commission, Federal Trade Commission, Consumer Financial Protection Bureau and the Department of Justice on April 25 issued a joint statement explaining their enforcement efforts to protect against discrimination and bias — including housing and lending — in automated systems, including machine learning, statistical models and artificial intelligence systems.

May 10, 2023 08:30 AM

Arizona Enacts Statute of Repose; Florida Close to Doing So

Efforts to limit real estate appraiser liability are advancing in the states as Arizona Gov. Katie Hobbs signed HB 2230 on April 18 and the Florida legislature sent HB 213 to Gov. Ron DeSantis to sign on May 2. Both bills limit the length of time during which a civil action can be initiated against an appraiser.

Apr 19, 2023 08:30 AM

Next 90 Days Critical for Multifamily, Will Set Expectations for 2023: CoStar

The spring leasing period is critical for multifamily, and performance over the next 90 days should set the tone for how the sector performs this year, according to CoStar Group, GlobeSt.com reported April 11. Multifamily conditions appear to be improving, but a record number of units under construction coupled with tightening financial conditions could delay a recovery.

Apr 19, 2023 08:30 AM

FHFA to Host Second ASC Hearing on Appraisal Bias

The Federal Housing Finance Agency will host on May 19 a second Appraisal Subcommittee hearing on appraisal bias in cooperation with ASC member agencies. The hearing will focus on the appraisal regulatory structure, including standards, qualification criteria, practices and entry into the profession.

Apr 19, 2023 08:30 AM

AI Letter to FHFA Critical of Value Acceptance Program

The Appraisal Institute on April 13 sent a letter to Federal Housing Finance Agency Director Sandra Thompson that was critical of Fannie Mae’s “value acceptance” program. AI expressed its concerns about the program's potential effect on the valuation profession.

Apr 12, 2023 08:30 AM

Single-tenant Net Lease Cap Rates Rise: The Boulder Group

Cap rates in the single-tenant net lease sector increased during the first quarter, marking four consecutive quarters of growth, The Boulder Group reported April 6 in its Q1 2023 Net Lease Market report. Industrial cap rates rose to 6.77% while retail and office cap rates reached their highest level since the third quarter 2020 at 6.05% and 7%, respectively.

Apr 12, 2023 08:30 AM

CRE Values to Drop as Banks Dump Failed Assets: Report

Following the failure of Silicon Valley Bank, $72 billion of commercial mortgage-backed securities sold at a discount of $16.5 billion, and more fire sales of older CMBS are expected, according to a MarketWatch report, GlobeSt.com reported April 3. Those quick sales could speed up a markdown of commercial real estate valuations by banks.

Apr 12, 2023 08:30 AM

Baby Boomers Now Largest Generation of Homebuyers: NAR

Baby boomers make up 39% of homebuyers — up from 29% last year — and now account for the largest generation of buyers, the National Association of Realtors reported March 28. Millennials had been the largest group of homebuyers since 2014, but their percentage dropped from 43% to 28% last year. Gen Z accounts for 4% of buyers.

Mar 29, 2023 08:30 AM

GSE: Climate Risk Should Factor into Mortgage Underwriting

Fannie Mae has hired climate risk modeling firms to assess risk to its balance sheet since it backs more than 40% of all residential mortgages, according to Tim Judge, Fannie Mae’s chief climate officer, CNBC reported March 20. Judge said climate risk should be incorporated into mortgage underwriting, but only after understanding potential property damage and how it could affect property values.

Mar 29, 2023 08:30 AM

Existing-home Sales Jump 14.5% in February: NAR

Sales of existing homes spiked 14.5% in February following 12 consecutive months of declines, the National Association of Realtors reported March 21. Home prices fell slightly, with the median price dropping 0.2% from the previous year to $363,000.

Mar 29, 2023 08:30 AM

Fannie Revises Policy for Appraising Some Manufactured Homes

Appraisers generating an opinion of value for MH Advantage manufactured homes must use other MH Advantage properties as comparables in their report rather than other manufactured homes, and if no such comparables are available, they should instead include two site-built comparables, according to revised policy included in Fannie Mae’s March Appraiser Update.

Mar 22, 2023 08:30 AM

Opportunity to Purchase Assets at Reduced Cost Could be Fleeting: CBRE Survey

With cap rates and interest rates expected to peak later this year, the opportunity to buy real estate assets at lower prices likely won’t last long, according to CBRE’s H2 2022 Cap Rate survey, GlobeSt.com reported March 14. CBRE expects federal fund rates to surpass 5% this year and drop to about 2% by 2025.

Mar 22, 2023 08:00 AM

FHFA Delays Fee for Buyers with Higher Debt-to-income Ratios

The Federal Housing Finance Agency on March 15 announced that it will delay by three months the implementation of the DTI ratio-based fee, which is a new upfront fee for Fannie Mae and Freddie Mac borrowers with higher debt-to-income ratios. The fee has been controversial amongst some industry groups that say it could hurt middleclass buyers and increase overall costs.

Mar 22, 2023 08:00 AM

Industrial Sector Shows Signs of Softening, Stabilizing, According to Moody’s

The industrial sector is starting to show signs of softening, despite elevated manufacturing and consumer goods production, according to a report from Moody’s Analytics, GlobeSt.com reported March 13. The report does not signal a sense of urgency, but notes that the sector is moving away from a period of significant growth and toward stabilization.

Mar 15, 2023 08:30 AM

Hotels Located in Business Districts See Values Drop, Struggle to Refinance: Data

Central business district hotels that cater to business travelers and conference attendees are struggling to refinance loans because their property values have plunged due to the pandemic, GlobeSt.com reported March 9. Approximately $31 billion of CMBS loans backed by hotels are set to mature by 2024, and properties can’t refinance because lenders are demanding more capital.  

Mar 15, 2023 08:30 AM

Pace of Interest Rate Hikes May Increase: Fed

Federal Reserve Chair Jerome Powell told the Senate Banking Committee March 7 that policymakers may have to accelerate the pace of interest rate increases to help keep inflation in check, CNBC reported. Powell noted that getting inflation down to 2% is going to take time and likely will be challenging.

Mar 15, 2023 08:30 AM

Washington State Seeks to Drop Single-family Zoning

The Washington state House of Representatives passed a bill March 6 that would legalize duplexes and fourplexes in virtually every city in Washington, the Seattle Times reported. If enacted, the legislation, which aims to alleviate housing supply issues, likely would end local zoning rules that only allow single-family properties.

Mar 08, 2023 08:00 AM

CRE Prices Fall at Fastest Rate Since 2010; Multifamily Sees Biggest Drop: Report 

Commercial property prices in January fell at an annual rate not seen since late 2010 — down 6.9% year-over-year, according to an MSCI report, GlobeSt.com reported Feb. 24. A spike in mortgage costs last year undermined the completion of deals and pushed prices lower; multifamily prices took the biggest percentage loss, down 4.6% from the previous year.  

Mar 08, 2023 08:00 AM

US Supreme Court Takes Case that Could Shutter CFPB

The Supreme Court agreed to hear a case that might threaten the existence of the Consumer Financial Protection Bureau and potentially the Federal Reserve and other agencies, National Public Radio reported Feb. 27. The 5th Circuit Court of Appeals ruled last fall that CFPB’s funding is unconstitutional because the agency receives its funding from the Fed, which is funded by bank fees.

Mar 08, 2023 08:00 AM

Fannie Mae: Appraisals No Longer the ‘Default Requirement’

Fannie Mae on March 1 updated its Selling Guide to include a range of options for property valuations as the government-sponsored enterprise moves away from suggesting that an appraisal is a “default requirement.” Fannie notes that home valuation options include value acceptance, value acceptance plus property data and hybrid appraisals.

Mar 01, 2023 08:30 AM

Hotels Deemed 'Hottest Asset Class’ for 2023, According to JLL Report 

Hotel investors are enjoying record sales for quality assets in highly desirable markets, and growing momentum is making these properties the “hottest asset class,” according to a report from JLL Hotels & Hospitality Group, GlobeSt.com reported Feb. 23. Investors are reportedly buying hotels at cap rates lower than the cost of debt because growth trends are so strong.

Mar 01, 2023 08:30 AM

Existing-home Sales Fall for 12th Consecutive Month: NAR

The sales of existing homes fell 0.7% month-over-month in January, marking the 12th consecutive month of declines, the National Association of Realtors reported Feb. 21. Results varied throughout the country, with home sales increasing in the South and West but decreasing in the East and Midwest.

Mar 01, 2023 08:30 AM

Economy Surprisingly Strong but Weaker Conditions Loom: Data

The overall economy is performing better than expected this year and the housing market is doing well, but weakening conditions are anticipated, Fannie Mae’s Economic and Strategic Research Group reported Feb. 21. They noted that the economy could fall into a modest recession during the second quarter.

Feb 08, 2023 08:30 AM

Federal Reserve Bumps Interest Rates a Quarter Point, Anticipates Further Increases

The Federal Reserve on Feb. 1 raised interest rates another quarter point to a target range of 4.5%-4.75%, the highest since October 2007, CNBC reported. This is the eighth increase since March 2022 as the Fed works to keep inflation in check.

Feb 08, 2023 08:30 AM

Waters of the US Rule Could Affect Property Rights, Appraisals

A new rule from the Environmental Protection Agency and the Corps of Engineers that defines “waters of the United States” will take effect Feb. 28 and define the boundary between waters that are subject to federal jurisdiction and those that are subject to state, tribal and local control. The rule has the potential to change real property rights and affect opinions of highest and best use.

Feb 08, 2023 08:30 AM

FinCEN: Be Wary of CRE Purchases from Sanctioned Russians

The Financial Crimes Enforcement Network on Jan. 25 sent an alert to financial institutions warning them to look out for potential commercial real estate purchases made by Russian investors who have been sanctioned. FinCEN specifically warned against vulnerabilities based on a review of the Banking Secrecy Act.

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.

Dec 07, 2022 08:00 AM

Salt Lake City Tops for Multifamily Investors: CBRE  

Salt Lake City and California’s Orange County and Inland Empire are becoming favorite markets for multifamily investors seeking less competition and better returns than what’s available in the hot Sun Belt markets, CBRE reported Nov. 30. While year-to-date multifamily investment is up 22% through the third quarter, activity has slowed.

Dec 07, 2022 08:00 AM

Housing Costs Up, Competition Down in 2023: Realtor.com

Home prices are expected to moderate next year, increasing only about 5% while mortgage rates could reach 7.4%, two actions that may result in fewer buyers for a growing inventory of for-sale properties, Realtor.com reported Nov. 30 in its 2023 Housing Forecast. Additionally, rents are likely to go up 6.3%, outpacing home prices.

Nov 16, 2022 08:00 AM

Commercial and Multifamily Mortgage Loan Originations Decline in Q3: Survey

After a strong start to the year, commercial and multifamily mortgage loan originations during the third quarter were down 13% from the same point a year ago, MBA NewsLink reported Nov. 10. Originations in the commercial mortgage-backed-securities market were down nearly 75% from a year earlier, but originations by banks and other depositories were up 25%.

Nov 16, 2022 08:00 AM

Housing Key Concern as Military Return to Civilian Life: Report

Sixty-four percent of active duty servicemembers returning to civilian life expect their search for affordable housing to be extremely or somewhat challenging, Freddie Mac reported Nov. 10 in its Active-Duty and Veteran Housing Landscape survey. However, 87% of respondents are aware of the benefits of VA home loans, and 90% plan to use one to buy a property.

Nov 16, 2022 08:00 AM

Minority Homeownership up Sharply During Pandemic: Fed Data

The pandemic housing boom showed significant increases in homeownership rates among Black, Asian and Latino households, according to an analysis of federal data, The Washington Post reported Nov. 1. The fact that millennials were able to save money during the pandemic was cited as a key factor.

Oct 12, 2022 08:30 AM

Property Damage from Hurricane Ian Could Reach $47 Billion, CoreLogic Reveals

Wind and storm surge damage from Hurricane Ian is expected to total between $28 billion and $47 billion, making it the costliest Florida storm since Hurricane Andrew, CoreLogic reported Sept. 29. Wind damage for both commercial and residential properties is expected to total between $22 billion and $32 billion while storm surge damage could total $6 billion to $15 billion.

Oct 12, 2022 08:30 AM

Most States Prepared to Handle a Recession: Moody’s Study

A record 43 states have the necessary funds to weather a recession without resorting to significant spending cuts or tax increases, according to a study published Sept. 29 by Moody’s Analytics. The states in the worst revenue position are Illinois, Alaska, Arizona, Mississippi and New Hampshire.

Oct 12, 2022 08:30 AM

Single-tenant Cap Rates Up in Q3: The Boulder Group

Cap rates in the single-tenant net lease sector were up slightly in all sectors during the third quarter, the first time in two years with consecutive quarterly increases, The Boulder Group reported Oct. 6 in its Q3 2022 Net Lease Market report. Retail reached 5.86%, office hit 6.8% and industrial came in at 6.61%.

Sep 28, 2022 08:30 AM

Fannie Mae Data Shows Modest Recession Likely in 2023

The economy is expected to grow during the second half of the year, but high inflation, tightening monetary policy and reduced housing activity likely will result in a modest recession next year, Fannie Mae’s Economic and Strategic Research Group reported Sept. 21. The forecast was lowered for both single-family home sales and multifamily starts due largely to higher mortgage rates.

Sep 28, 2022 08:30 AM

CFPB Seeks Public Input on New Refinance Mortgage Products

The Consumer Financial Protection Bureau announced Sept. 22. that it is seeking input on potential new products with a particular focus on improving mortgage refinancing for homeowners with smaller loan balances. Refinancing volume has dropped dramatically, down almost 70% from last year as interest rates have risen.

Sep 28, 2022 08:30 AM

Institutional Investors Lower Expectations on Real Estate Holdings, Survey Shows

Institutional investors said they anticipate lowering-than-expected returns on real estate holdings, according to a Pension Real Estate Association survey, MBA NewsLink reported Sept. 19. Investors said they now anticipate an 8.8% return across all property types for the year whereas six months ago they expected a 9.5% return. Next year they’re predicting only a 4.4% return.  

Sep 21, 2022 08:30 AM

House Passes ‘Concerning’ VA Appraisal Legislation

The House on Sept. 14 passed HR 7735, the Improving Access to the VA Home Loan Benefit Act of 2022, legislation that proposes to overhaul the Department of Veterans Affairs' appraisal requirements, including when an appraisal is necessary, how appraisals are conducted and who is eligible to conduct an appraisal. The Appraisal Institute opposes this legislation.

Sep 21, 2022 08:30 AM

Single-tenant Net Lease Sector to Face Trouble: Colliers

The single-tenant net lease sector had a strong first half of the year, with a record $40.1 billion in investment sales, but volume dropped 35% during the second quarter, and is down 17% from the same point a year ago, GlobeSt.com reported Sept. 15. The number of deals also declined, down 42% year-over-year primarily due to rising interest rates.

Sep 21, 2022 08:30 AM

Apartment Construction Hits 50-year High: New York Takes Top Position, Report Shows 

Multifamily construction is at a historic 50-year high, with 420,000 new units expected to be completed this year, RentCafé.com reported Sept. 8. The New York metro area is projected to take the lead with 28,153 new apartment units, beating Dallas-Fort Worth for the first time since 2018.   

Sep 14, 2022 08:30 AM

Hotel Sector Outlook Raised for Second Half of 2022, According to CBRE  

CBRE has revised its forecast for hotel performance for the second half of the year, anticipating growth in revenue per available room, MBA NewsLink reported Sept. 7. While room demand has slowed, the sector outperformed expectations during the second quarter despite an economic contraction and the highest inflation in more than 40 years.

Sep 14, 2022 08:30 AM

Home Sales Worse than Expected: Goldman Sachs

Sales of new and existing homes dropped more than previously reported, down almost 30% from their October 2020 high — and the downward trend likely will continue, according to a report published Sept. 1 by Goldman Sachs, The Hill reported. The report cited reduced affordability, diminished pandemic tailwinds and a drop in purchase plans as primary factors for the decline.

Sep 14, 2022 08:30 AM

Office Market Likely Changed Forever: MBA White Paper

Labor market conditions will play a big role in the demand for office space and how that space is used and valued, the Mortgage Bankers Association reported Sept. 8 in its white paper, “A Framework for Considering Office Demand in a Post-pandemic World.” The white paper presents lease demand and valuation scenarios for two office-use models: a hybrid work schedule and a greater return to the office.

Sep 07, 2022 08:30 AM

Office Sector Down, Not Out as Firms Seek Changes, Short Leases: Cushman & Wakefield

While the office sector has experienced negative absorption for eight of the past nine quarters, there are some bright spots, especially the life sciences sector, according to the Office MarketBeat report from Cushman & Wakefield, MBA NewsLink reported Aug. 30. The report also revealed that many firms anticipate making “significant changes” to their office space and will seek shorter leases.

Sep 07, 2022 08:30 AM

Construction Costs to See Largest Gain in 15 Years: CBRE

Construction costs are expected to end the year 14.1% higher due to labor shortages, inflation, supply chain disruptions and other ongoing pressures, according to CBRE’s U.S. Construction Cost Trends report, MBA NewsLink reported Aug. 30. The projections outpace the historical average increase of 2-4% per year, and is the largest since CBRE began projecting costs in 2007. 

Sep 07, 2022 08:30 AM

CRE Expected to Avoid Worst Case Scenario: Trepp Survey

Commercial real estate and the broader financial markets are expected to encounter adverse market conditions but avoid a worst-case scenario, according to the Trepp 2022 CRE Sentiment Survey, GlobeSt.com reported Aug. 31. An increase in CRE and CMBS delinquencies is anticipated during the next six months, as is a drop in net effective rents, with the office sector seeing the biggest fall.

Aug 31, 2022 08:30 AM

Economic Concerns, Housing Shortage Stressing Low-income Households: ULI

Economic uncertainty, increasing inflation and lower housing production are putting millions in the U.S. at risk of not being able to afford a home, the Urban Land Institute’s Terwilliger Center for Housing reported Aug. 17 in its 2022 Home Attainability Index. The data also revealed that in most regions of the country, few housing units are affordable to low-wage workers.

Aug 31, 2022 08:30 AM

Housing Activity to Drop Through 2023: Fannie Mae

Home sales are expected to decline 16.2% this year, and mortgage originations are projected to total $2.47 trillion for 2022 — down from $4.47 trillion last year — and then drop to $2.29 trillion in 2023, Fannie Mae’s Economic and Strategic Research Group reported Aug. 22. The downgraded forecast is based on both outsized home prices and rapidly expanding mortgage rates.

Aug 31, 2022 08:30 AM

FHFA to Create Committee on Affordable, Equitable Housing

The Federal Housing Finance Agency announced Aug. 23 its intent to create a Federal Advisory Committee on Affordable, Equitable and Sustainable Housing that will provide advice on regulatory and policy changes. The committee also will provide input on barriers to access to housing.

Aug 24, 2022 08:30 AM

Cap Rates Equalizing Nationwide: Moody’s Analytics

Cap rates in major U.S. markets are becoming increasingly similar, even in cities such as New York and San Francisco, which usually trail other major metros, according to Moody’s Analytics, GlobeSt.com reported Aug. 16. The average cap rate spread for Dallas; Atlanta; Austin, Texas; Nashville, Tennessee; and Miami have narrowed to less than 100 basis points.

Aug 24, 2022 08:30 AM

Both Sales, Prices of Existing Homes Drop in July: NAR

Sales of existing homes fell for the sixth consecutive month in July, down 5.9% from June and 20.2% from the same point a year ago, the National Association of Realtors reported Aug. 18. Median sales prices were 5.9% higher than one year ago, but $10,000 lower than the record high of $413,800 in June.

Aug 24, 2022 08:30 AM

Industrial Sector Slowing to Pre-pandemic Levels: NAIOP

The industrial sector is showing signs of cooling due to such factors as lower pressure on global supply chains, increasing inventory carrying costs, a cooling economy and a decrease in e-commerce expansion, NAIOP reported Aug. 16 in its newest Industrial Space Demand Forecast. Net absorption of industrial space is expected to decline until it returns to pre-pandemic levels.

Aug 17, 2022 08:30 AM

Stagflation Could Cause Lower CRE Valuations, Elevated Cap Rates: Fitch Ratings

Stagflation likely will result in reduced valuations for commercial real estate and increased cap rates, according to analysts from Fitch Ratings, GlobeSt.com reported Aug. 11. High inflation, weak economic growth and changes to nominal net operating income were cited as the main drivers.

Aug 17, 2022 08:30 AM

FHFA to Require GSE Servicers to Keep Fair Lending Data

The Federal Housing Finance Agency will require servicers to maintain data on borrowers’ age, race, ethnicity, gender and preferred language for all federally backed loans starting March 1, 2023, HousingWire reported Aug. 11. The mandate will remain in effect throughout the life of the loan, even if the servicing rights change companies.

Aug 17, 2022 08:30 AM

Appraisal Foundation Extends 2020-21 USPAP Through 2023

The Appraisal Foundation’s Appraisal Standards Board announced Aug. 11 that the current edition of the Uniform Standards of Professional Appraisal Practice will be extended for an additional year. The 2020-2021 USPAP will now be effective until Dec. 31, 2023.

Aug 03, 2022 08:30 AM

Economy is Slowing, Housing Starts and Home Sales Both Decline, Data Reveals

The Conference Board Leading Economic Index, which assesses the 3-6-month economic outlook, dropped 0.8% in June, the fourth consecutive monthly decline, Fannie Mae reported July 22. Existing home sales were down 5.4% in June, the lowest point in two years, and housing starts dropped 2% to the lowest level since last October. Consumer pessimism, labor conditions and stock prices drove the decline.

Aug 03, 2022 08:30 AM

Federal Reserve Planning More Rate Increases to Curb Inflation

Federal Reserve Chair Jerome Powell on July 27 raised the benchmark U.S. interest rate 75 basis points to a range of 2.25% to 2.5%, and noted that the Fed will continue tightening monetary policy, including additional interest rate hikes, to help curb inflation, Bloomberg reported.

Aug 03, 2022 08:30 AM

US Needs 4 Million More Apartments by 2035, Research Shows

Nearly 4.3 million new apartments will be needed across the U.S. by 2035 to meet housing demand, according to research released July 28 by the National Multifamily Housing Council and the National Apartment Association. Currently, there is a shortage of around 600,000 units, and the number of affordable apartments — those with rents less than $1,000 per month — has declined by 4.7 million between 2015-20.

Jul 20, 2022 08:30 AM

Residential Sector Cools, Bay Area Sees Biggest Chill: Redfin

Housing markets in Northern California are cooling faster than any other area in the U.S., with the San Francisco Bay Area seeing the greatest drop in demand — led by San Jose where housing supply has increased by 10% year over year, Redfin reported July 8. Buyers are also giving a cold shoulder to the Sacramento and Oakland markets.

Jul 20, 2022 08:30 AM

Appraiser Provisions Part of Legislation Approved by House

The House of Representatives on July 14 passed the National Defense Authorization Act, which approved $840 billion in defense spending for 2023. The 329-101 vote came after hundreds of amendments were considered, including a couple that focused on valuation issues.

Jul 20, 2022 08:30 AM

FHA Expands Appraisal Validity Period for Certain Mortgages

The Federal Housing Administration announced July 12 that it would expand from 120 days to 180 days the validity period for Single Family Title II forward and Home Equity Conversion Mortgage transactions, Reverse Mortgage Daily reported. FHA is making the change to streamline the administrative process and reduce costs.

Jun 22, 2022 12:30 PM

Commercial Real Estate Investment During First Quarter Sets Record, JLL Reports   

Investment in commercial real estate is off to a strong start with a record $292 billion during the first quarter, according to JLL, MBA NewsLink reported June 15. Office sector investment was $81 billion, the most in 15 years, while hotel investment reached $16 billion, a 127% increase from the same point a year ago.

Jun 22, 2022 12:30 PM

‘Little Evidence’ Housing Bubble is About to Burst: Moody’s

There is little evidence that a housing bubble is about to burst, according to Moody’s Analytics, GlobeSt.com reported June 13. Higher mortgage rates coupled with expensive housing should slow demand and cause prices to moderate. Moody’s also noted a lack of extreme speculation and overbuilding, two issues that contributed to the housing bubble in the mid-2000s.

Jun 22, 2022 12:30 PM

Inflation Causing Global Drop in Property Values: Report

Inflation and rising interest rates have caused real estate values to drop 5-10% year-over-year in some areas of the U.S. and Europe, according to the global chief investment officer of Hines, Bloomberg reported June 13. The market for office space has been hardest hit in the U.S., with the demand for rental housing also starting to wane.

Jun 01, 2022 12:30 PM

Pending Home Sales at Slowest Pace in Nearly a Decade: NAR

Pending home sales fell 3.9% in April, marking the sixth consecutive monthly decline and 11 months of year-over-year declines, the National Association of Realtors reported May 26. The Midwest was the only region to see a monthly increase in April. Overall, pending contracts are at their slowest pace in nearly a decade.

Jun 01, 2022 12:30 PM

Interest Rate Hikes Could Go Further than Expected: Fed

The Federal Reserve is ready to proceed with multiple 50-basis-point interest rate hikes, and may transition its policy from “neutral” to “restrictive,” CNBC reported May 25. The Fed’s actions are intended to address ongoing inflation concerns.

Jun 01, 2022 12:30 PM

Proposed VA Bill to Allow Some Desktop Appraisals, Waivers

Legislation introduced last month in the Senate would change the Department of Veterans Affairs’ valuation requirements to permit desktop appraisals and, in some cases, appraisal waivers, HousingWire reported May 23. Currently, all VA appraisals must be handled in-house, a process that has garnered complaints about taking too long and being too expensive.

May 25, 2022 08:30 AM

Growing Leisure and Business Travel Boosts Hospitality Recovery, Data Reveals  

The hospitality sector continues its recovery, with more than three-quarters of U.S. hotel markets reporting higher revenue per available room (RevPAR) than was reported in May 2019, before the pandemic put a halt to most travel, STR reported May 23. Leisure travel accounts for most of the gains, but business travel is increasing and boosting the performance of hotels in central business districts.

May 25, 2022 08:30 AM

MISMO Seeks Input on Commercial Appraisal Dataset Standards

MISMO is inviting the public to comment on Phase 2 of its proposed Commercial Appraisal Dataset Standards, MBA NewsLink reported May 17. The current standards would add retail-, industrial- and office-related data points. Comments are due by July 12.

May 25, 2022 08:30 AM

White House Addresses Rising Housing Costs, Supply Issues

The Biden administration on May 16 released its Housing Supply Action Plan to increase the supply of quality housing by closing the supply shortfall in five years, starting with the creation and preservation of hundreds of thousands of affordable units during the next three years. Rental and down payment assistance also are part of the plan.

May 04, 2022 12:30 PM

CRE Sector Looks Healthy; Potential Recession to Have Limited Effect: ULI Forecast

Regional markets and the build-to-rent sector are expected to drive commercial real estate growth this year, the Urban Land Institute reported April 22 in its Spring 2022 Real Estate Economic Forecast. Both prices and transaction volume are expected to moderate this year, but remain strong. And while the prospects of a recession have increased, the impact on real estate should be limited.

May 04, 2022 12:30 PM

FHFA Duty to Serve Plans Focus on Affordable Housing

The Federal Housing Finance Agency on April 27 published its 2022-24 Underserved Markets Plan for Fannie Mae and Freddie Mac, and the focus is on manufactured housing, affordable housing preservation and rural housing. In May 2021, the FHFA determined that Fannie and Freddie’s plans did not meet the DTS Non-Objection standard, but this proposal addresses those issues.

May 04, 2022 12:30 PM

Small-cap CRE Prices Jump but Aren’t Overinflated: Data

Small-cap commercial real estate prices have increased at an unprecedented pace, but are not considered overinflated, according to Boxwood Means, MBA NewsLink reported April 26. The Boxwood National Small Commercial Price Index posted double-digit annual price growth for eight consecutive months as of January, the longest streak since 2006.

Apr 27, 2022 08:30 PM

Foreclosure Activity at Post-pandemic High in Q1: Data

Foreclosure filings during the first quarter jumped, rising 39% from the previous quarter and 132% from the same point last year, ATTOM reported April 21 in its Q1 2022 U.S. Foreclosure Market Report. Despite the increase, foreclosure filings remain 57% below where they were during the first quarter 2020.

Apr 27, 2022 08:30 AM

Self-storage Sector in Strong Position Heading into Leasing Season: Yardi Matrix

The self-storage sector heads into the prime spring leasing season in a strong position, Yardi Matrix reported April 21 in its newest National Self Storage report. The overall national street rate for self-storage remains unchanged from July 2021 at $145, which means the sector maintained high rents through the winter months and many consumers renewed their leases.

Apr 27, 2022 08:30 AM

Housing, Economic Output to Slow, Fannie Mae Forecasts

The Federal Reserve is expected to tighten monetary policy through 2023, which could further soften economic output, Fannie Mae’s Economic and Strategic Research Group reported April 19. The projected downturn is not expected to mirror the severity of the Great Recession due to higher mortgage credit quality and a stronger real estate and mortgage finance system, among other things.

Apr 13, 2022 08:30 AM

Home Prices Not Aligned with Economic Indicators: Report

Home prices are out of step with economic fundamentals such as the price-to-rent ratio and price-to-income ratio, according to the Denver Fed, GlobeSt.com reported April 4. The fear of missing out is spurring homebuyers and investors to purchase now, which contributes to inflated home prices and a future correction — but likely not a bust.

Apr 13, 2022 08:30 AM

Single-tenant Net Lease Cap Rates at Historic Lows: Data

Cap rates in the single-tenant net lease sector reached historic lows in all three asset classes during the first quarter, The Boulder Group reported April 7 in its Q1 2022 Net Lease Market Report. Cap rates compressed for the retail, office and industrial categories by 13, 10 and 17 basis points, respectively.

Apr 13, 2022 08:30 AM

Senior Housing in Full Recovery Amid Renewed Interest: JLL

The senior housing sector is experiencing strong demand and greater interest among investors, putting it in full recovery mode, JLL’s Valuation Advisory Group Senior Housing Investor Survey and Outlook shows, MBA NewsLink reported April 5. An influx of retiring baby boomers and a housing supply shortage are behind the recovery.

Apr 06, 2022 08:30 AM

LEED Multifamily Properties Require Higher Rents, Cushman & Wakefield Says

LEED-certified multifamily properties are seeing higher rents than non-LEED properties, specifically in the aftermath of the pandemic, according to an analysis from Cushman & Wakefield, GlobeSt.com reported March 31. In fourth-quarter 2021, LEED rent premiums averaged 3.1%. Across core property sectors, LEED assets are surpassing their non-LEED counterparts, demanding a 21.4% higher average market sales price per square foot over the past three years.

Apr 06, 2022 08:30 AM

Retail Foot Traffic Falls Amid Spike in Gas Prices, Report Shows

Visits to retail stores dropped 4.3% during the week of March 7, as high gas prices led consumers to change their spending habits, according to a report from Placer.ai, Bisnow reported March 30. Foot traffic increased slightly during the week of March 14, but the overall downward trend continued.

Apr 06, 2022 08:30 AM

The Appraisal Institute Has Rejoined TAF as a Sponsor

The Appraisal Foundation announced March 31 that the Appraisal Institute has rejoined TAF as a Sponsor. Appraisal Institute President Jody Bishop, MAI, SRA, AI-GRS, said, “The Appraisal Institute is very pleased to rejoin TAF as a Sponsor during this exciting and challenging time for the valuation profession. Returning as a Sponsor allows our organization to immediately strengthen its ongoing collaboration with TAF in recent years and to amplify our joint efforts with other key stakeholders now.

Industrial Property Transactions See Price Growth for 5 Consecutive Quarters: Report

At least $3.6 billion in industrial property transactions closed in January as more than 400 properties changed hands — an unusual amount of activity for the start of the year, according to CommercialEdge, MBA NewsLink reported March 15. The average sales price for industrial properties has increased for five consecutive quarters, reaching $135 per foot in January, up from $119 during the fourth quarter.

Conflict in Ukraine Likely to Effect US Housing: Fannie Mae

The conflict in Ukraine could result in significant risks to the U.S. housing market, Fannie Mae’s Economic and Strategic Research Group reported March 17. The 30-year fixed rate is expected to rise to 3.8% this year and 3.9% next year. Meanwhile, housing sales are expected to decline 4.1% this year.

Mar 23, 2022 08:30 AM

Freddie Mac Phasing Out Automated Appraisal Waivers

Freddie Mac announced March 16 that it is phasing out automated collateral evaluation appraisal waivers for cash-out refinance mortgages and certain no-cash-out refinances. Effective July 17, ACE+ PDR will be utilized, allowing the aforementioned refinancing to be completed without appraisals. The new offering requires the on-site collection of property information by trained data collectors using Freddie Mac’s proprietary dataset.

Mar 09, 2022 08:30 AM

Washington, D.C., Property Tops List of Largest Delinquent Office Loans, Trepp Reports

The delinquency rate for office properties has not climbed above 3% for the past year, although it increased slightly in December to 2.53% before dropping to 2% in January, Trepp reported Feb. 23. However, some properties are in significant distress, with the $155 million Portals I office complex in Washington, D.C., atop the list of the largest delinquent CMBS loans.

Mar 09, 2022 08:30 AM

FHFA Allots Record $1.1B for Affordable Housing Programs

The Federal Housing Finance Agency announced Feb. 28 that the Housing Trust Fund and the Capital Magnet Fund will receive $1.138 billion for use toward affordable housing programs administered by Fannie Mae and Freddie Mac. The amount is the most ever allotted to Fannie and Freddie. The Housing Trust Fund will receive $740 million and the Capital Magnet Fund will receive $398 million.

Mar 09, 2022 08:30 AM

Single-tenant Auto Sector Sees Annual Cap Rate Drop: Data

Cap rates for the single-tenant net lease auto sector dropped 49 basis points between the fourth quarter 2020 and fourth quarter 2021, The Boulder Group reported March 3 in its Q4 Net Lease Auto report. Overall market conditions in the sector led to the decline. Over the course of last year, the net lease retail sector experienced a 12 basis point decline.

Feb 23, 2022 08:30 AM

The Rich Spent $40 Billion on Luxury Homes in 2021: Report

Sales of ultra-luxury real estate totaled around $40 billion in 2021, with more than 2,300 transactions for properties valued at $10 million or more, a 112% increase from the year before, according to a report from Compass, Inc., WealthManagement.com reported Feb. 11. Los Angeles led the way, followed by Manhattan and Palm Beach, Florida.

Feb 09, 2022 08:30 AM

Fannie Mae Settles Suit Over Homes in Minority Neighborhoods

Fannie Mae reached a $53 million settlement with the National Fair Housing Alliance and 20 other organizations on Feb. 7, resolving allegations that it treated homes it owned in majority-Black and Latino communities unfavorably. Fannie Mae was accused of maintaining foreclosed homes in predominantly white neighborhoods while allowing those in predominantly Black and Latino neighborhoods to fall into disrepair.

Feb 09, 2022 08:30 AM

Biden Administration Creates Coalition to Improve Building Performance Standards

The Biden administration announced Jan. 21 that it launched the Building Performance Standards Coalition, which is comprised of state and local governments and labor and industry leaders to deliver healthier and more affordable buildings. The coalition builds on the administration’s effort to retrofit four million buildings and two million homes for energy efficiency during the president’s first term.

Jan 26, 2022 08:30 AM

Report Explores USPAP, AQC Inclusiveness and Objectivity

The National Fair Housing Alliance, under contract by the Appraisal Subcommittee and the Council on Licensure, Enforcement and Regulation, on Jan. 19 released its report on whether the Uniform Standards of Professional Appraisal Practice and Appraiser Qualifications Criteria support or promote fairness, equity, objectivity and diversity in both appraisals and the training and credentialing of appraisers. The findings and recommendations are far reaching, and some will require legislative action.

Jan 26, 2022 08:30 AM

Fannie Mae to Allow Desktop Appraisals Starting March 19

Starting March 19, Fannie Mae will allow desktop appraisals for select properties based on property tax records and past sales, HousingWire reported Jan. 19. To be eligible, a loan must be a purchase transaction on a single-unit principal residence with a loan-to-value ratio not to exceed 90%.

Jan 26, 2022 08:30 AM

Office Sector Now Reporting More Expansion than Contractions: CBRE

Companies are expanding their current offices or relocating to a better space within their market rather than renewing an expiring lease, according to CBRE’s new office leasing report, MBA NewsLink reported Jan. 17. Office expansions are up 24% in the six major markets featured in the report and relocations are up 33%; contractions, meanwhile, are down 5%.

Jan 19, 2022 08:30 AM

Inflation at 40-year High, Rates Could Rise: Labor Report

Consumer prices increased 0.5% in December causing inflation to reach its highest level in nearly four decades and creating an expectation that the Federal Reserve will raise interest rates as soon as March, according to a Labor Department report released Jan. 12, Reuters reported. Rents showed some of the largest increases, up 0.4% for the month and 4.1% for the year.

Jan 19, 2022 08:30 AM

Smaller Beats Bigger in Small-cap CRE Space: Data

Smaller markets outperformed larger ones in the small-cap commercial real estate space, with price growth in smaller markets up 13.2% for the year compared with 12.3% price growth in larger markets, according to Boxwood Means, MBA NewsLink reported Jan. 12. Top secondary market include Wilmington, Delaware; Hartford, Connecticut; and Springfield, Massachusetts.

Jan 19, 2022 08:30 AM

CRE Price Growth Up Last Year; 2022 Could See Double-digit Increases, Index Shows

Commercial property prices increased 24% in 2021, with significant price increases in nearly every sector, and especially strong showings in the multifamily and industrial sectors, according to the Green Street commercial property price index, MBA NewsLink reported Jan. 11. Property price growth for 2022 is not expected to match last year’s but could still achieve double-digit increases.

Dec 15, 2021 12:30 PM

White House Mulls Restrictions on All-cash Property Sales

The U.S. Department of the Treasury will start to develop regulations that could expand reporting requirements for all-cash real estate purchases, Bloomberg reported Dec. 6. The effort aims to reduce global corruption, and could mandate that title insurance companies turn over information about cash purchases made through shell companies.

Dec 15, 2021 12:30 PM

Drop in Office Space Demand No Cause for Concern: Report

New demand for office space fell in October, the second consecutive monthly drop, according to the VTS Office Demand Index, MBA NewsLink reported Dec.7. However, the report noted that the decline isn’t indicative of labor market softness, and office demand remains nearly 70% above its level from one year ago.

Dec 15, 2021 12:30 PM

Commercial Property Price Growth Rises at Extraordinary Rate: Real Capital Analytics

Commercial real estate prices grew at their fastest annual rate in years this fall amid intense investor demand, according to Real Capital Analytics, MBA NewsLink reported Dec. 7. Investors acquired nearly $525 billion in CRE assets through October, a 70% increase from the year prior.

Dec 11, 2019 12:50 PM

FHA Raises Loan Limits Following Fannie, Freddie Action

The Federal Housing Administration on Dec. 5 announced that its loan limit for much of the U.S. will increase about $17,000 to $331,760 for 2020, HousingWire reported. The FHA loan limit is calculated as a percentage of the conforming limit established by Fannie Mae and Freddie Mac, which will increase to $510,400 next year.

Dec 11, 2019 12:50 PM

Odds of US Recession Decrease, But Slowdown is Likely, Bankrate Survey Reveals

The chances of an economic recession in the U.S. next year are decreasing, but experts said there’s a 35% chance of a downturn before the presidential election and they expect job growth to slow and unemployment to increase, according to Bankrate’s Fourth Quarter Economic Indicator survey released Dec. 4.

Oct 16, 2019 01:56 PM

FEMA May Buy Millions of Properties in Flood-prone Areas

Only 43,000 properties at high risk of flooding have been sold to the government since 1989, but data released Oct. 9 by the Federal Emergency Management Agency showed that millions more may need to be purchased due to climate change, Bloomberg reported. The data also revealed that FEMA is unprepared for a massive, government-subsidized real estate buyout.

Oct 16, 2019 01:54 PM

CoStar to Acquire Hospitality Analytics Firm STR for $450M

CoStar Group announced Oct. 1 that it will acquire global hospitality and benchmarking firm STR for $450 million in cash, allowing CoStar to provide data and analytics on the $3 trillion hotel asset class. The deal is expected to close during the fourth quarter.

Oct 16, 2019 01:53 PM

Cap Rates for Commercial Properties Drop in the Second Quarter: The Boulder Group

Cap rates for retail, industrial and office properties in the single-tenant net lease investment sector fell for the second consecutive quarter, according to the Net Lease Market Report released Oct. 8 by investment services firm The Boulder Group, GlobeSt.com reported. The Federal Reserve's interest rate reduction was cited as a key factor for the second-quarter drop.

Oct 09, 2019 12:30 PM

Residential Appraisal Threshold Increase Becomes Official

The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency on Sept. 27 announced the official adoption of a final rule that increases the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000. Transactions exempt from the appraisal requirement must instead obtain an evaluation.

Oct 09, 2019 12:30 PM

FHFA, Treasury to Allow Fannie, Freddie to Retain Capital

The Federal Housing Finance Agency and the Treasury Department announced Sept. 30 that Fannie Mae and Freddie Mac will be allowed to retain up to $45 billion in capital as they prepare to exit conservatorship, HousingWire reported. The Trump administration previously indicated that it opposed a profit sweep of the government-sponsored enterprises.

Oct 09, 2019 12:30 PM

CRE Performs Inconsistently, But Should Thrive Through Year-end, Report Shows

A review of mid-year commercial real estate showed spreads and divergence in property sectors, but performance for the rest of the year should thrive, according to the U.S. Real Estate Summary report released Oct. 1 by UBS Asset Management, Commercial Property Executive reported. The report showed minimal movement in cap rates and a drop in 10-year Treasury rates.

Oct 02, 2019 02:39 PM

Banking Committee Leaders Seek Answers on Appraisal Waiver

Rep. Maxine Waters, D-Calif., and Sen. Sherrod Brown, D-Ohio, on Sept. 24 submitted a letter to the Appraisal Subcommittee seeking answers about its July decision to grant a waiver of appraiser certification and licensing to the state of North Dakota. The letter expressed “surprise and concern” about the “unprecedented” waiver.

Oct 02, 2019 02:38 PM

Investors Push Down Industrial Cap Rates, CBRE Survey Shows

Investors in search of yield are putting money into industrial properties in secondary and tertiary markets, which is causing cap rate compression there, according to the first half 2019 cap rate survey released Sept. 24 by real estate firm CBRE, National Real Estate Investor reported.

Oct 02, 2019 02:35 PM

Rise in Co-working Spaces May Make Next Recession Worse, Boston Fed Reports

The increase in co-working space could be a source of financial instability and make the next recession worse by sparking a run on commercial real estate, Eric Rosengren, president of the Boston Federal Reserve, told an audience at New York University Sept. 20, Reuters reported. Rosengren expressed concern that the financial strength of the co-working model hasn’t been tested.

Sep 25, 2019 12:30 PM

Trump Asks Supreme Court for More Authority Over CFPB

The Trump administration on Sept. 17 asked the Supreme Court to take up a pending appeal and rule that the president has constitutional authority to fire the director of the Consumer Financial Protection Bureau, Bloomberg reported. The 2010 law that established the CFPB states the director can only be removed for “inefficiency, neglect of duty, or malfeasance in office.”

Sep 25, 2019 12:30 PM

Multifamily Cap Rates Rise in Cities with Rent Control: RCA

More than 80% of markets with rent-control regulation saw an increase in cap rates on multifamily properties during the past year as investors pay less for properties, according to analytics firm Real Capital Analytics, National Real Estate Investor reported Sept. 17. In many markets, investors are spooked by the potential for additional regulation.

Sep 25, 2019 12:30 PM

Life Insurance Companies Want to Increase Multifamily Lending, Holdings, MBA Reports

Life insurance companies said they want to increase their multifamily lending volume by approximately $10 billion next year, and ultimately hold between $50 billion and $120 billion in loans backed by multifamily properties over the next five years, the Mortgage Bankers Association reported Sept. 16.

Sep 18, 2019 11:45 AM

NCREIF Issues Agricultural Appraisal Guidelines

The National Council of Real Estate Investment Fiduciaries released its Agricultural Appraisal Guidelines Sept. 11. Developed by members of the NCREIF Farmland Committee with input from organizations such as the Appraisal Institute, the guidelines are intended to provide clearly defined standards for appraisers, but are not intended to replace any current valuation requirements.

Sep 18, 2019 11:44 AM

Flex Office Space to Claim Bigger Market Slice: CBRE

The U.S. market for flexible office space is expected to boom during the next 10-plus years, according to a report released Sept. 12 by real estate firm CBRE. By 2030, flex space is expected to account for 13% of overall office space, up from 1.8% today, and total 600 million square feet, up from 71 million square feet.

Sep 18, 2019 11:42 AM

New York, Indiana Boast Top Office Construction Markets, According to Yardi Matrix

South Bend, Indiana, and the New York City boroughs of Brooklyn and Queens are top metros for office construction in terms of supply as a percentage of existing stock, according to analytics firm Yardi Matrix, Commercial Property Executive reported Sept. 11. Brooklyn and Queens benefit from proximity to Manhattan while South Bend benefits from an expanding downtown.

Jul 24, 2019 11:53 AM

AI Condemns NCUA Action Quadrupling Appraisal Threshold

The Appraisal Institute on July 18 condemned as irresponsible and dangerous the National Credit Union Administration’s decision to increase the appraisal threshold for nonresidential real estate loans from $250,000 to $1 million, effectively reducing the number of appraisals required for commercial loans and challenging the safety and soundness of the system.

Jul 24, 2019 11:51 AM

FHA Delays Digital Signature Requirement for EAD System

The Federal Housing Administration is delaying its requirement for XML Digital Signatures on all appraisals uploaded to the Electronic Appraisal Delivery System, the agency announced July 11. The requirement was to have taken effect Aug. 5; no new date has been set, and XML Digital Signature Hard Stops remain eligible for automatic overrides.

Jul 24, 2019 11:47 AM

White House Plans September Release for Proposed Reforms for Fannie, Freddie

The Trump administration’s plan to overhaul Fannie Mae and Freddie Mac likely will wait until September due to other priorities within the Treasury Department, Reuters reported July 17. The Federal Housing Finance Agency hasn’t set a timeline for releasing the government-sponsored enterprises from conservatorship, which means the issue may not be resolved before the 2020 election.

Jul 10, 2019 12:30 PM

Energy Sector Caused Office Market Downturn; Houston Showing Improvement: JLL Report

The 2019 energy outlook report released July 1 by commercial real estate firm JLL indicated that the office sector in North American energy markets like Houston are still feeling the effects of the 2014-17 oil downturn, but the situation is improving, Commercial Property Executive reported. In Houston, the vacancy rate marks a 140 basis-point decline from its mid-2018 peak figure.

Mar 23, 2018 11:16 AM

North Carolina Supreme Court Allows Brokers’ Fair Market Value Testimony

The North Carolina Supreme Court in an opinion filed March 2 held that real estate brokers may legally testify regarding the fair market value of real property in condemnation cases. The case involved the state's condemnation of approximately two acres of commercial property for a highway construction project.

Mar 23, 2018 11:14 AM

AI Backs Revisions as Senate OKs Banking Reform Bill

The Appraisal Institute led nearly three dozen valuation organizations in supporting revisions to a bipartisan Senate bill that passed March 14. The measure, which now goes to the House, rolled back many post-financial-crisis banking rules found in the Dodd-Frank Act.

Mar 23, 2018 11:12 AM

Appraisal Institute Partners with RESNET to Create Appraisal Portal

The Appraisal Institute on March 13 announced its partnership with the Residential Energy Services Network to launch an appraiser portal that allows AI professionals to access data for properties with Home Energy Rating System Index scores.

FHFA to Increase Conforming Loan Limits for 2018

The Federal Housing Finance Agency announced Nov. 28 that the maximum conforming loans limits for mortgages purchased by Fannie Mae and Freddie Mac next year will be $453,100 for most single-unit properties, up from $424,100 this year. The limit is based on the average U.S. home price.

Aug 10, 2016 12:30 PM

CFPB Publishes 900-page Mortgage Lending Final Rule

The Consumer Financial Protection Bureau on Aug. 4 finalized mortgage servicing regulations to ensure borrowers are treated fairly, HousingWire reported. Included in the 900-page final rule are mandates that certain borrowers receive foreclosure protections more than once during the life of the loan and that foreclosure protections cover those inheriting property.

Jul 27, 2016 02:42 PM

Court Revives Freddie Mac Subprime Suit

A federal appeals court on July 20 revived a lawsuit filed by the Ohio attorney general that accuses Freddie Mac of defrauding the state’s $87.3 billion pension fund by failing to disclose risk to subprime mortgages, Reuters reported. A lower court had ruled that disclosure shortfalls didn’t prove monetary loss.

Jul 27, 2016 02:39 PM

‘Down-and-Out’ Neighborhoods Make a Rebound

Many so called “rough-and-tumble” neighborhoods have bounced back in recent years, as tight inventory and new construction has helped convince homebuyers to consider such neighborhoods, analytics firm RealtyTrac reported July 20 in its best of the “bad” neighborhoods report.

Jul 27, 2016 02:32 PM

White House Unveils Clean Energy Initiative

The White House on July 19 announced the Clean Energy Savings for All Initiative, a joint effort from the Environmental Protection Agency and the departments of Energy, Agriculture, Veteran’s Affairs, Housing and Urban Development and Health and Human Services to increase access to solar energy, promote energy efficiency and ensure homeowner access to solar options.

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