Appraisal Institute News

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.

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AI News

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

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

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

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

Pace of Interest Rate Hikes May Increase: Fed

Washington State Seeks to Drop Single-family Zoning

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

US Supreme Court Takes Case that Could Shutter CFPB

Fannie Mae: Appraisals No Longer the ‘Default Requirement’

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