Appraisal Institute News

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%.