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May 12, 2021 12:30 PM

Proposed Real Estate Tax Could Hit Smaller Investors: Report

President Biden is seeking higher taxes on real estate transactions with gains of more than $500,000 — so-called 1031 exchanges where investors defer paying taxes on real estate by rolling profits into their next property — but experts worry about the effect on smaller investors, in particular, CNBC reported May 3. The taxes would help fund the $1.8 trillion American Families Plan.

 
May 12, 2021 12:30 PM

Judge Tosses CDC Eviction Moratorium, Puts Ruling on Hold

A federal judge on May 5 threw out the Center for Disease Control and Prevention’s national moratorium on residential evictions, but agreed to hold the ruling while the government works to reverse the decision on appeal, Reuters reported. The judge said that a moratorium on evictions was not part of Congress’ intent to allow the CDC to help individuals during the coronavirus.

 
May 12, 2021 12:30 PM

Hospitality Sector Expected to Improve Over Summer as Part of Slow Recovery: Data

The occupancy rate for hotel properties remains flat, but the sector is expected to pick up once consumers start traveling this summer, according to analytics firms STR and Trepp, MBA NewsLink reported May 4. The number of hospitality properties delinquent on their loans or in some form of forbearance has declined, although the sector is expected to face a slow recovery.

 
May 05, 2021 12:30 PM

FHFA Low-income Refi Option Includes Appraisal Credit

The Federal Housing Finance Agency announced April 28 that Fannie Mae and Freddie Mac will implement a new refinance option for eligible low-income borrowers that is expected to save them $100-$250 per month. An appraisal credit of up to $500 from the lender will be included if a borrower doesn’t qualify for an appraisal waiver.

 
May 05, 2021 12:30 PM

CFPB Delays Required QM Rule Compliance Until Fall 2022

The Consumer Financial Protection Bureau announced April 27 that it will delay mandatory compliance of the General Qualified Mortgage final rule to Oct. 1, 2022. Compliance was set to begin this July, but the agency extended the deadline to help consumers who have been affected by the coronavirus pandemic.​

 
May 05, 2021 12:30 PM

Fed Keeps Interest Rates Near Zero, Bond Buying Steady as Growth and Inflation Rise

The Federal Open Market Committee announced April 28 that it will keep short-term interest rates close to zero and continue buying at least $120 billion per month in bonds, CNBC reported. The move comes as the economy stays strong and the Fed remains unconcerned about a slight rise in inflation.

 
Apr 28, 2021 12:30 PM

Homes in Black Neighborhoods Undervalued By $46,000: Data

The average property in a predominantly Black neighborhood in the U.S. is worth $46,000 less than a similar home in a primarily white neighborhood, according to a report published April 21 by online real estate marketplace Redfin. The research looked at value estimates for more than seven million properties sold between 2013 and February 2021.

 
Apr 28, 2021 12:30 PM

FHFA Extends Appraisal Loan Flexibilities Due to COVID-19

The Federal Housing Finance Agency announced April 21 that Fannie Mae and Freddie Mac will extend alternative appraisals on purchase and rate-term refinance loans until May 31. Importantly, the FHFA said that due to lack of use, this would be the final extension for alternative appraisals as well as for those pertaining to power of attorney, employment verification and condo review.

 
Apr 28, 2021 12:30 PM

Silicon Valley Has Lowest Office Vacancy Rate; Other Cities Face Surplus Space: JLL

The office vacancy rate for Silicon Valley was 11% during the first quarter, the lowest in the U.S., according to commercial real estate firm JLL, WealthManagement.com reported April 20. For comparison, the first-quarter office vacancy rate was 13% for New York City (the highest in 30 years) and 16% for both San Francisco and Seattle.

 
Apr 21, 2021 12:30 PM

House Approves Real Estate Valuation Fairness Legislation

The House Financial Services Committee on April 20 approved HR 2553, the Real Estate Valuation Fairness and Improvement Act, legislation that would establish an interagency task force to analyze federal collateral underwriting standards and guidance, and provide resources for promoting diversity within the valuation profession. The bill now moves to a full House vote, but no date has been set.

 
Apr 21, 2021 12:30 PM

Minority Households Face Affordability Issues: NAHB Analysis

Only 24% of Black households can afford the nation’s median new home price of $346,577, the National Association of Home Builders reported April 13. For comparison, 32% of Hispanic households can afford a median price home as can 44% of non-Hispanic white households and 56% of Asian households. The affordability gap is an issue across all states.

 
Apr 21, 2021 12:30 PM

Lack of Supply Drives Up Home Prices; Commercial Sector Still Stalled: Fed Beige Book

Strong demand for single-family homes continues to drive up prices, but builders are struggling to meet demand and reporting numerous production challenges and rising construction costs, the Federal Reserve reported April 14 in its newest Beige Book. On the commercial side, the hotel, retail and office sectors generally remain weak.

 
Apr 14, 2021 12:30 PM

Biden Seeks More Affordable Housing with $5B in Incentives

President Biden is seeking to increase affordable housing in the U.S. by providing $5 billion in financial incentives to local governments to allow apartment buildings in neighborhoods that are restricted to single-family homes, Reuters reported April 8. The incentives to change zoning laws are part of the president’s overall $2 trillion infrastructure proposal.

 
Apr 14, 2021 12:30 PM

CFPB Seeks to Ban Foreclosure Starts Until 2022

The Consumer Financial Protection Bureau on April 5 released a notice of proposed rulemaking that would prohibit servicers from initiating foreclosure proceedings until after Dec. 31, 2021. Current rules state that borrowers have to be delinquent for 120 days before the foreclosure process can start. Comments on the proposal are due May 11.

 
Apr 14, 2021 12:30 PM

Homebuyer, Seller Sentiment Up, Mortgage Outlook Down, Fannie Mae Index Shows

The Fannie Mae Home Purchase Sentiment Index released April 7 showed a month-over-month increase in the number of consumers who think it’s a good time to buy or sell a home, and the majority think home prices will increase this year. The mortgage rate outlook was the sole declining index, with just 6% of consumers believing that rates will drop during the year.

 
Apr 07, 2021 12:30 PM

$2.3T Infrastructure Plan Includes Billions for Real Estate

President Biden on March 31 announced a $2.3 trillion, eight-year plan focused on infrastructure and clean energy, and the plan would directly affect commercial and residential real estate with $213 billion allocated to building, preserving and upgrading two million homes and commercial buildings, the Real Estate Round Table reported.

 
Apr 07, 2021 12:30 PM

CFPB Rescinds Temporary Appraisal Flexibilities

https://www.consumerfinance.gov/about-us/newsroom/cfpb-rescinds-series-of-policy-statements-to-ensur​e-industry-complies-with-consumer-protection-laws/​

 
Apr 07, 2021 12:30 PM

Cap Rates In Single-tenant Net Lease Sector Reach Historic Lows: The Boulder Group

Cap rates in the single-tenant net lease sector reached historic lows for the retail and industrial sectors during the first quarter, commercial real estate firm The Boulder Group reported April 1 in its Net Lease Market report. Retail rates compressed by 9 basis points to 5.91%, and industrial rates compressed by 4 basis points to 6.71%.

 
Mar 31, 2021 12:30 PM

Developers Turning Golf Courses into Logistics Hubs: Report

The demand for warehouse space continues to grow, and developers looking for large tracts of land on which to build logistics hubs are buying languishing golf courses, Bloomberg reported March 24. Interest in golf surged in the early 2000s, which led to overbuilding, and now that the sport is in decline, the vast acreage is being redeveloped to meet growing e-commerce needs.

 
Mar 31, 2021 12:30 PM

Industrial Property Values Up as Supply Hinders Market: Data

Industrial property values have increased 8.8% during the past year while warehouse property values rose 10%, according to a report from real estate data firm Real Capital Analytics, WealthManangement.com reported Mach 22. Values are expected to continue rising due to increased demand and constrained supply; facilities in large population centers should see the greatest increases.

 
Mar 31, 2021 12:30 PM

Demand For Office Space Improves a Year into Pandemic, Recovery Likely, Index Shows

Demand for office space remains 38% lower than just before the pandemic lockdown — but that’s an improvement from last May when demand was 85% lower than pre-pandemic levels, commercial real estate leasing firm VTS reported March 24 in its Office Demand Index. Significant gains in January and February indicate that a recovery is coming.

 
Mar 24, 2021 12:30 PM

Nearly 50% of Americans Missed Housing Payments: Data

Forty-six percent of Americans missed at least one mortgage or rent payment since the beginning of the coronavirus pandemic, and 25% missed more than one payment, according to survey results released March 11 by personal finance website GOBankingRates. The data showed that the missed payments likely were the result of layoffs and reduced work hours.

 
Mar 24, 2021 12:30 PM

Economy Likely to Grow, Housing to Remain Stable: Report

Gross domestic product and employment should expand during the coming months, and interest rates are expected to rise but have a nominal effect on home sales, Fannie Mae reported March 17 it its Economic & Housing Outlook report. Fannie expects single-family home sales to be slightly lower this year than last, and anticipates an uneven year for multifamily properties.

 
Mar 24, 2021 12:30 PM

Fed Says Financial Conditions Remain "Accommodative," No Rate Hikes Expected

The Federal Open Market Committee said that the country’s overall financial conditions remain “accommodative” and noted that they do not expect any increase in the federal funds rate until 2023, MBA NewsLink reported March 17. The FOMC is still concerned about the effects of the coronavirus pandemic on the economy, but acknowledged that activity is improving.

 
Mar 17, 2021 12:30 PM

FHFA Further Extends Alternative Appraisals Due to COVID-19

The Federal Housing Finance Agency announced March 11 that Fannie Mae and Freddie Mac will extend until April 30 flexibilities for alternative appraisals on purchase and rate term refinance loans. Other flexibilities that are being extended include alternative methods for income and employment verification, and expanded use of power of attorney.

 
Mar 17, 2021 12:30 PM

MISMO Seeks Comments on Commercial Appraisal Dataset

The Mortgage Industry Standards Maintenance Organization announced March 11 that it will accept comments until March 26 on proposed enhancements to the Commercial Appraisal Dataset. The new dataset aims to make exchange of commercial appraisal information more efficient, and will include new building level data points and additions for non-multifamily properties.

 
Mar 17, 2021 12:30 PM

Office Values Could Drop Significantly if Employees Continue to Work From Home: Fitch

If employees don’t go back to the office once the pandemic ends, there could be a permanent decline in the demand for space and a significant drop in commercial property values, according to the results of stress tests on how telecommuting might affect space demand, rent and net cash flow that data firm Fitch Ratings conducted and reported on March 10.

 
Mar 10, 2021 12:30 PM

Mall Values Drop 60% After Reappraisals, Data Shows

Mall values in the U.S. dropped an average of 60% last year after appraisals of 118 retail-anchored properties revealed nearly $4 billion in lost value, Bloomberg reported March 1. The properties all have commercial mortgage-backed securities debt, and the reappraisals were triggered by payment delinquencies, defaults or foreclosures.

 
Mar 10, 2021 12:30 PM

All Appraisers Must Take Fair Housing and Bias Course: TAF

The Appraisal Foundation will mandate that all appraisers take a 7-hour course addressing fair housing laws and bias, HousingWire reported March 3. The course will be released later this year and will focus on how the Uniform Standards of Professional Appraisal Practice addresses these issues and it will include test exercises and case studies.

 
Mar 10, 2021 12:30 PM

CRE Sector Sees Price Growth, but Fewer Deals in January: Real Capital Analytics

The prices for commercial properties in the U.S. grew again in January, reaching a level of growth that hasn’t been seen since before the coronavirus pandemic, according to data firm Real Capital Analytics, MBA NewsLink reported March 1. However, as prices grew, deal volume shrank, but the number of destressed sales remains low.

 
Feb 17, 2021 12:30 PM

FHFA Extends Appraisal Flexibilities Due to COVID-19

The Federal Housing Finance Agency announced Feb. 10 that Fannie Mae and Freddie Mac will extend until March 31 several loan origination flexibilities, including alternative appraisals on purchase and rate term refinance loans. The flexibilities were set to expire Feb. 28, but were extended due to the ongoing coronavirus pandemic.

 
Feb 17, 2021 12:30 PM

Foreclosure, Eviction Moratorium and Forbearance Extended

Fannie Mae and Freddie Mac are extending their moratoriums on single-family foreclosures and real estate-owned evictions until March 31, the Federal Housing Finance Agency announced Feb. 9. FHFA also noted that borrowers with a mortgage backed by the government-sponsored enterprises may be eligible for an additional three months of forbearance.

 
Feb 17, 2021 12:30 PM

Student Housing Sector Strengthens as Deals Increase During Q4 2020, Data Shows

Investor interest in off-campus student housing increased during the fourth quarter of 2020, with investors spending $3.9 billion to purchase both large portfolios of buildings and individual properties in strong markets, according to real estate research firm Real Capital Analytics, Wealth Management Real Estate reported Feb. 10. The end-of-year deals brought the student housing sector within range of a normal year of business.

 
Feb 10, 2021 12:30 PM

COVID-19 Could Close 10,000 Retail Stores This Year: Study

The coronavirus pandemic continues to ravage the retail sector, with estimates showing 10,000 stores could close this year, up from the 8,741 stores that closed in 2020, according to Coresight Research, Bisnow reported Jan. 28. Closures this year could foist 138.5 million square feet of retail space onto the market. However, 3,500 to 4,000 new stores are expected to open this year.

 
Feb 10, 2021 12:30 PM

33 Attorneys General Oppose Class Action Suit Against Ocwen

A group of 33 state attorneys general filed a motion Feb. 2 against PHH Mortgage and its predecessor Ocwen Loan Servicing opposing the proposed settlement for a class action lawsuit that alleged the firm charged nearly 1 million borrowers unlawful servicing fees, HousingWire reported. The attorneys general claim the proposed settlement was carried out too quickly in light of the coronavirus pandemic.

 
Feb 10, 2021 12:30 PM

Cap Rates in Net-lease Big-box Sector Drop Year-over-Year: The Boulder Group

Cap rates in the single-tenant net-lease big-box sector dropped 25 basis points to 6.75% between fourth quarter 2019 and fourth quarter 2020, commercial real estate firm The Boulder Group reported Feb. 1 in its Net Lease Big Box report. The decrease was mainly the result of greater interest among investors in grocery and home improvement businesses.

 
Feb 03, 2021 12:30 PM

Biden: Government Had Role in Undervaluation of Property

The Biden administration on Jan. 26 released a memorandum to the Department of Housing and Urban Development acknowledging that federal, state and local governments systematically implemented racially discriminatory housing policies during the 20th century, and noted a persistent undervaluation of properties owned by families of color. The administration directed HUD to examine the effects of such policies.

 
Feb 03, 2021 12:30 PM

AI Offers White House Help on Fair Housing Issues

The Appraisal Institute on Jan. 27 sent a letter to President Biden expressing support for the administration’s actions to address the federal government’s history of housing discrimination. AI pledged assistance in addressing fair housing issues and outlined how it’s seeking solutions to appraisal equity, diversity and inclusion.

 
Feb 03, 2021 12:30 PM

Silicon Valley Office Market Bucks the Trend with Favorable Conditions, JLL Reports

As other major office markets contract, Silicon Valley thrives, with positive net absorption, stable rents and ongoing investor activity, according to real estate services firm JLL, WealthManagement reported Jan. 25. Buildings are selling for an average of $630 per square foot, led by newly built class-A products and older assets occupied by tenants with long-term leases.

 
Jan 27, 2021 12:30 PM

FHFA Extends Moratorium on Single-family Foreclosures

The Federal Housing Finance Agency announced Jan. 19 that it will extend until Feb. 28 the moratorium on single-family foreclosures and real estate-owned evictions; the current moratorium was set to expire at the end of this month. FHFA cited the need to keep families safe and in their homes during the ongoing coronavirus pandemic.

 
Jan 27, 2021 12:30 PM

Input Sought on Natural Disaster Risks to Housing Finance

The Federal Housing Finance Agency on Jan. 19 issued a Request for Input on current and future natural disaster risks that could affect the housing finance system, Fannie Mae, Freddie Mac and the Federal Home Loan Banks. Feedback is due to the agency by April 19.

 
Jan 27, 2021 12:30 PM

Colliers Survey Shows "Surge" in Commercial Property Investment Expected This Year

A 50% surge in global investment activity is expected in the second half of the year, indicating a renewed confidence in real estate as a result of vaccine developments and continued government stimulus, investment management firm Colliers reported Jan.18. Offices in top-tier cities, logistics properties and residential buildings are expected to be top targets among investors.

 
Jan 20, 2021 12:30 PM

GSEs Extend Flexibilities for Appraisals, Employment Verification

The Federal Housing Finance Agency announced Jan. 14 that Fannie Mae and Freddie Mac will extend their flexibilities pertaining to both property appraisals and employment verification through Feb 28. The flexibilities were initially put in place in March 2020 and extended throughout last year in an effort to facilitate liquidity in the mortgage marketplace during the coronavirus outbreak.

 
Jan 20, 2021 12:30 PM

Essential Worker Status May Help Appraisers Get Early Vaccination

The Appraisal Institute on Jan. 20 advised its professionals to check with state and local government agencies where they reside to see if the real estate appraiser profession falls into an essential workforce category that will give them early access to a COVID-19 vaccine.

 
Jan 20, 2021 12:30 PM

SBA Re-opens Paycheck Protection Program for New and Some Current Borrowers

The Small Business Administration, in consultation with the Department of the Treasury, on Jan. 11 re-opened the Paycheck Protection Program for new borrowers and select current ones. The latest round of funding authorizes up to $284 billion for small business owners to aid in job retention for their employees and to assist with other expenses.

 
Jan 13, 2021 12:30 PM

Democrat-controlled Congress Could Mean More Rent Relief

With Democrats controlling both the House and Senate, there may be additional relief coming for renters facing eviction, CNBC reported Jan. 6. While the current stimulus package extended an eviction ban through January and allocated $25 billion for rental assistance, additional measures could provide renters with additional financial assistance and guarantee those facing eviction the right to seek counsel.

 
Jan 13, 2021 12:30 PM

COVID-19 Led to Most Corporate Bankruptcies Since 2009: Data

Retail, consumer and energy companies led the list of 244 companies that filed for bankruptcy in 2020, the most since 2009 when 293 companies sought protection, Bloomberg reported Jan. 5. More bankruptcies are expected as retail continues to struggle. Real estate was hit hard, with 22 large firms filing for bankruptcy — the most since 2011.

 
Jan 13, 2021 12:30 PM

Fed Officials Unanimously Support Bond-buying Strategy, Meeting Minutes Show

Federal Reserve officials during their December meeting unanimously agreed to maintain the current pace of asset purchases while remaining open to future adjustments, Bloomberg reported Jan. 6. The Federal Open Market Committee kept interest rates near zero and pledged to continue $120 billion in monthly purchases of mortgage-back securities.

 
Jan 06, 2021 12:30 PM

Single-tenant Net Lease Cap Rates Hit Historic Lows in Q4: The Boulder Group

Cap rates in the single-tenant net lease sector hit historic lows in all three major subsectors (retail, office, industrial) during the fourth quarter of 2020, real estate firm The Boulder Group reported Jan. 4. Industrial cap rates dropped 13 basis points to 6.75%, retail was down 6 basis points to 6% and office remained at 6.9%.

 
Jan 06, 2021 12:30 PM

Supreme Court Denies Further Stay in FTC Case Against LREAB

The U.S. Supreme Court on Dec. 18 declined to intervene or issue a further stay of the administrative proceedings brought by the Federal Trade Commission against the Louisiana Real Estate Appraisers Board, making it the first case concerning real estate appraisers to reach the Supreme Court in almost 60 years.

 
Jan 06, 2021 12:30 PM

FHFA Seeks Input on Appraisal Policies, Practices, Procedures

The Federal Housing Finance Agency on Dec. 28 issued a Request for Input on policies and processes related to appraisal modernization, the Uniform Appraisal Dataset, automated valuation models, appraisal waivers and valuation differences by borrower and neighborhood ethnic makeup. Feedback is due to the FHFA by Feb. 26.

 
Dec 09, 2020 11:30 PM

Net-lease Medical Sector Cap Rates Up in Q3: Report

Third-quarter cap rates for the single-tenant net lease medical sector rose to 6.50%, up 5 basis points from the same point a year ago, commercial real estate firm The Boulder Group reported Dec. 3 in its Q3 Net Lease Medical report. The increase is primarily attributed to a higher concentration of non-investment grade tenants in the sector.

 
Dec 09, 2020 12:30 PM

NYC Residential Real Estate Valued Highest in US: Data

New York City’s residential real estate is cumulatively valued at $2.8 trillion, the highest in the nation, according to data published Dec. 1. by investor-focused media outlet Visual Capitalist. Los Angeles comes in second at $2.3 trillion followed by San Francisco at $1.3 trillion. Nationwide, residential real estate has a cumulative value of $32.6 trillion.

 
Dec 09, 2020 12:30 PM

Fannie, Freddie Need "Significant Capital" to Exit Conservatorship, Mnuchin Says

Treasury Secretary Steven Mnuchin told the House Financial Services Committee Dec. 2 that Fannie Mae and Freddie Mac need “significant capital” to get out of conservatorship, but noted that no definitive plans have been made for the government-sponsored enterprises, HousingWire reported. The Federal Housing Finance Agency plans to stay its course even with the incoming Biden presidency.

 
Dec 02, 2020 12:30 PM

Millions Expect to Lose Homes in Next 2 Months: Survey

Around 5.8 million adults said they expect to face eviction or foreclosure over the next two months due to economic hardships wrought by the coronavirus pandemic, according to a U.S. Census Bureau survey, Bloomberg reported Nov. 23. That’s 33% of the 17.8 million adults behind on rent or mortgage payments.​

 
Dec 02, 2020 12:30 PM

Sun Belt Cities Tops for Retail Property Investment: Report

Sun Belt cities, including Atlanta and Dallas/Fort Worth, are expected to be the top markets for retail real estate investment next year, according to the Emerging Trends in Real Estate 2021 report released Nov. 19 by PwC and the Urban Land Institute, online commercial real estate firm CREXI reported. These markets are growing faster than average, and attracting more residents and businesses.

 

CMBS Outlook for 2021 Appears Slow and Steady; Some Assets Remain Solid: Data

Around $60 billion in commercial mortgage-backed securities is expected to be issued next year, slightly higher than the projected $53 billion to $55 billion this year, according to Kroll Bond Rating Agency, the Associated Press reported Nov. 20. Multifamily, industrial and essential retail assets are expected to remain solid, as should office space that attracts tenants with good credit.

 
Nov 25, 2020 12:30 PM

Agencies Maintain Appraisal Threshold for Smaller Loans

The Consumer Financial Protection Bureau, Office of the Comptroller of the Currency and the Federal Reserve Board announced Nov. 18 that the threshold for exempting loans from special appraisal requirements for higher-priced mortgages will remain at $27,200 next year. The threshold is based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers. ​

 
Nov 25, 2020 12:30 PM

FHFA Raises 2021 Conforming Loan Limits for Fannie, Freddie

The Federal Housing Finance Agency on Nov. 24 announced that the maximum conforming loan limits for single-family mortgages acquired by Fannie Mae and Freddie Mac next year will be $548,250, a 7.5% increase from this year’s limit. In high-cost areas, where 115% of the median home value exceeds the baseline, the maximum loan limit will be $822,375.

 
Nov 25, 2020 12:30 PM

Federal Housing Finance Agency Finalizes Capital Rule for Fannie Mae, Freddie Mac

The Federal Housing Finance Agency on Nov. 18 released its final rule that establishes a new regulatory capital framework for Fannie Mae and Freddie Mac. Key changes include reduced capital requirements for single-family mortgage exposures subject to COVID-19 forbearance, and an increased exposure level risk floor for single-family and multifamily mortgages to 20%.

 
Nov 18, 2020 12:30 PM

Voters in Multiple States Approve Real Estate Legislation

Voters in several states approved real estate-related measures on Nov. 3, HousingWire reported. In California, eligible homeowners can transfer their tax assessments anywhere within the state, while in Florida, residents can transfer their homestead exemption from one property to another. In Georgia, Habitat for Humanity and similar groups are now exempt from paying taxes on certain properties under development.

 
Nov 18, 2020 12:30 PM

Report Shows Solid Grocery Store Sector, but Questions Long-term Performance

Grocery stores have benefitted from COVID-19 stay-at-home orders, but the sector faces challenges from increased online shopping, according to a report released Nov. 9 by consultant Bain & Company. The report noted that profits through 2030 could grow as little as 1.2%. Additionally, some landlords said they avoid having grocery stores anchor their shopping centers because they can hurt performance.​

 
Nov 17, 2020 12:30 PM

Industrial Sector Shows Some Signs of Weakness: Moodys

While the industrial sector is resilient, it likely won’t remain unscathed as a surge in COVID-19 cases could slow manufacturing, data firm Moody’s Analytics reported Nov. 11. The vacancy rate for industrial properties is expected to rise to 11.8% next year, and the sector is expected to see its biggest drop in effective rents in 10 years.

 
Nov 11, 2020 12:30 PM

Real Estate Economists See Short Recession, Strong Recovery

Real estate economists surveyed by the Urban Land Institute for its Real Estate Economic Forecast said they expect a recession to be short-lived and foresee above-average GDP growth in 2021 and 2022, MBA NewsLink reported Nov. 9. Real estate conditions should be better than what was predicted six months ago, with the industrial and single-family residential sectors performing best.

 
Nov 11, 2020 12:30 PM

CRE Prices Up Overall During Q3: Real Capital Analytics

Commercial real estate prices increased at a 1.4% annualized rate during the third quarter, with gains in the apartment and industrial sectors offsetting declines in the retail and office sectors, according to data firm Real Capital Analytics, MBA NewsLink reported Nov. 4. The industrial sector is the most stable, with price growth in the mid-7% range.

 
Nov 11, 2020 12:30 PM

Tech Sector Scales Back on Office Space, but Still Leads Leasing Activity: CBRE

The tech sector is driving the nation’s office-leasing activity, but even this sector is scaling back on office space — although only slightly, according to real estate firm CBRE, MBA NewsLink reported Nov 4. Tech markets best positioned for resiliency include Atlanta; Dallas-Fort Worth; Raleigh-Durham in North Carolina; San Diego; Silicon Valley in California; and Washington, D.C.

 
Nov 04, 2020 12:30 PM

CRE Experts See Poor Conditions for next 12 Months: NAIOP

Commercial real estate professionals expect unfavorable conditions for the sector during the next year, according to the NAIOP Sentiment Index for September released Oct. 26. Respondents were particularly concerned about occupancy rates, face rents, effective rents and employment. They were less concerned about construction costs and the availability of financing.

 
Nov 04, 2020 12:30 PM

Cap Rates Rise for Single-tenant Drug Stores, Data Shows

Cap rates for the single-tenant drug store sector jumped to 6.39% in the third quarter, up 17 basis points from one year ago, according to The Net Lease Drug Store Report released Nov. 1 by real estate services firm The Boulder Group. Cap rates for Rite Aid and Walgreen’s increased 19 and 15 basis points, respectively.

 
Nov 04, 2020 12:30 PM

New Work Patterns Will Shrink Office Footprints, Increase Lease Flexibility: Survey

More than 60% of office workers are expected to work remotely within the next three to five years, which will increase the need for flexible office footprints and lease contracts, and spur the use of satellite offices at the edge of cities, according to the “Future of Work 2020: a Global Real Estate Players Point of View” survey released Oct. 29 by the Urban Land Institute.

 
Oct 28, 2020 12:30 PM

Election Will Not Change ROI On CRE Investments: Report

Regardless of who wins the presidential election, long-term returns on commercial real estate investments aren’t expected to be affected, according to a report released Oct. 20 by real estate firm Cushman & Wakefield, Commercial Observer reported. The report noted that investment returns have been positive under both Republican and Democratic administrations since the late 1970s.

 
Oct 28, 2020 12:30 PM

Young Americans Say Election Could Spur Move: Realtor.com

Forty-eight percent of Americans between the ages of 18 and 34 would consider moving to be surrounded by like-minded individuals if their preferred candidate loses the presidential election, according to a Realtor.com survey released Oct. 21. Across all age groups, only 20% of respondents said they’re considering such a move.

 
Oct 28, 2020 12:30 PM

US Commercial Real Estate Prices Inch Up in Third Quarter: Real Capital Analytics

Commercial real estate prices in the U.S. ticked up 1.4% during the third quarter, but investment volume was down 57% from a year ago, according to data firm Real Capital Analytics, National Real Estate Investor reported Oct. 21. The bright spots: industrial property prices increased 7.4% annually while apartment prices grew 6.7%.

 
Oct 20, 2020 12:30 PM

Banks Reduce FHA Loans as Delinquencies Skyrocket: Report

A record 15.7% of FHA borrowers were behind on their mortgages as of mid-2020, according to the Mortgage Bankers Association, and that has caused some lenders to tighten credit standards and restrict loan availability, Bankrate.com reported Oct. 14. During the same period, only 6.7% of borrowers with conventional loans were late with their payments.

 
Oct 20, 2020 12:30 PM

Mall Conversions Reduce Property Values: Barclays

Hundreds of the nation’s roughly 1,100 malls are expected to close in the next few years, but converting the properties for other uses, such as fulfillment centers, apartments, schools or medical offices, could reduce their property values anywhere from 60% to 90%, according to a report from financial firm Barclays, CNBC reported Oct. 15.

 
Oct 20, 2020 12:30 PM

Retail Sector Continues to Struggle Even as US Economy Improves: Wells Fargo

The vacancy rate in the retail sector jumped to 4.8% during the second quarter, marking its highest level since 2016, and asking rents fell for the first time since 2013, down 0.3% from the previous quarter, according to the Retail After the Pandemic report released Oct. 13 by Wells Fargo Securities, MBA NewsLink reported.

 
Oct 14, 2020 12:30 PM

US Economic Outlook Depends on Spread of COVID-19: Fed

The U.S. economic outlook is still uncertain and depends on controlling the spread of the coronavirus, Federal Reserve Chair Jerome Powell told attendees at the National Association for Business Economics annual meeting Oct. 6, ABA Banking Journal reported. Powell warned that a long period of slow economic progress could worsen current disparities in the economy.

 
Oct 14, 2020 12:30 PM

Commercial Deals, Rent Relief Requests on the Rise: NAOIP

More deals were struck in the industrial, office and multifamily sectors in September than in August, but building owners and managers also saw an increase in rent relief requests, NAOIP revealed Oct. 2 in its monthly survey on the effects of the coronavirus pandemic on commercial real estate. Only 74.1% of respondents reported on-time rent collections in September, compared with 83.4% in August.

 
Oct 13, 2020 12:30 PM

Student Housing Deals Stymied by Campus Closings, But Sector Looks Strong: Colliers

Investment in student housing properties has slowed considerably since the coronavirus has affected in-person education, but many properties are fully-leased — if not occupied — and continue to generate income, according to real estate firm Colliers International, National Real Estate Investor reported Oct. 6. Top-tier assets are commanding prices commensurate with what they would receive before the lockdown.

 
Oct 06, 2020 12:30 PM

Hotel, Retail Appraisals Show "Atrocious" Loss in Value: Data

An analysis of appraisals for 116 hospitality and retail properties conducted by lender Wells Fargo showed an “atrocious” loss in values, dropping about 27% since the loans were originated, PhillyNow reported Oct. 1. The appraisals show how some sectors have suffered under COVID-19 restrictions, and even as they ease, the public is reluctant to travel and spend money.

 
Oct 06, 2020 12:30 PM

Life Insurers to Face Loan Losses 50% Higher Than During Financial Crisis: Fitch

Life insurers in the U.S. are expecting their losses on commercial real estate loans to be 50% higher than they were during the 2007-08 financial crisis, according to the U.S. Life Insurers’ Mortgage Update released Oct. 1 by ratings agency Fitch Ratings, Commercial Property Executive reported. The report said losses could extend into 2021 because of regulatory forbearance actions.

 
Sep 30, 2020 12:30 PM

Home Values, Owner Equity Up in Q2: Federal Reserve

The aggregate value of the nation’s residential mortgages at the end of the second quarter was $10.6 trillion, an $80 billion increase from the first quarter, according to the Q2 Federal Reserve Flow of Funds report released Sept. 21, the National Association of Home Builders reported. The aggregate value of household market values reached $30.8 trillion, an increase of $450 billion.

 
Sep 30, 2020 12:30 PM

Sales of Existing Homes at Highest Level Since 2006: NAR

The sales of existing homes climbed for the third consecutive month in August, reaching the highest level since December 2006, the National Association of Realtors reported Sept. 22. Home sales are expected to continue their upward trajectory through the end of the year.

 
Sep 30, 2020 12:30 PM

Homebuyers are Flocking to Affordable Counties Just Outside Major Metros: Redfin

El Dorado Country in California, near Sacramento and the Bay Area, is the nation’s hottest market as homebuyers seek more affordable areas outside of major metros but still within driving distance of them, real estate marketplace Redfin reported Sept. 21. Homebuyer interest is also heating up in Camden County, New Jersey, and Columbia Country, Oregon.

 
Sep 23, 2020 12:30 PM

GSEs Need Help Recovering Funds From COVID-19 Relief ProgramS

Government-sponsored enterprises Fannie Mae and Freddie Mac may face insolvency if they can’t recover some costs connected to their COVID-19 mortgage relief programs, Federal Housing Finance Agency Director Mark Calabria told lawmakers Sept. 16, ABA Banking Journal reported. Calabria said the GSEs would recover some fees through the controversial adverse market fee, which would apply to certain mortgage refinance transactions.

 
Sep 22, 2020 12:30 PM

Most Cities Not Seeing "Mass Exodus" Due to COVID-19: Data

Reports about the COVID-19 pandemic causing a mass exodus from major cities are generally unfounded, with most states seeing fewer people moving between March 11 and June 30 this year than last year, according to data from moving company platform Hire A Helper, Bloomberg reported Sept. 16. Those who did leave big cities relocated to other large metros.

 
Sep 22, 2020 12:30 PM

Housing Factors into Improved Economic Forecast: Fannie Mae

The full-year 2020 real GDP is forecast to contract by only 2.6%, down from the previous month’s forecast of 3.1%, Fannie Mae’s Economic and Strategic Research Group reported Sept. 15. The pace of existing home sales, which increased in July to a level not seen since 2006, was cited as one of the main reasons for the improved forecast.

 
Sep 16, 2020 12:30 PM

HUD Finalizes Revised Rule for "Disparate Impact" Claims

The U.S. Department of Housing and Urban Development on Sept. 4 finalized its revised standard for bringing “disparate impact” claims under the Fair Housing Act, ABA Banking Journal reported. The final HUD rule now is aligned with the Supreme Court’s 2015 decision in Texas Department of Housing and Community Affairs vs. Inclusive Communities Project.

 
Sep 16, 2020 12:30 PM

Hotel Firm Works with Facebook to Develop Property, Expects More Business Travel

Banking on the return of business travel, the lodging firm CitizenM signed a deal with Facebook to open a 240-room hotel adjacent to the tech giant’s campus in Menlo Park, California, National Real Estate Investor reported Sept. 4. CitizenM, which targets cities with significant tech and financial firms, is also planning properties in Seattle, Boston and San Francisco.

 
Sep 09, 2020 12:30 PM

AI Releases New Edition of Leading Appraiser Textbook

The Appraisal Institute on Sept. 2 announced the availability of “The Appraisal of Real Estate," 15th edition, in both hard copy and PDF formats. The comprehensive textbook includes updated content and new chapters on market analysis, highest and best use, identifying property rights and allocating value.

 
Sep 09, 2020 12:30 PM

California Legislation Clarifies Status of Appraisers as Independent Contractors

California Gov. Gavin Newsom on Sept. 4 signed AB 2257, legislation that clarifies how the state’s employment laws apply to services provided by state-licensed and state-certified real estate appraisers, allowing them to work as independent contractors.

 
Sep 09, 2020 12:30 PM

AI Project Team to Review VP Election Process, Seeks Input

The Appraisal Institute announced Sept. 10 that President Jefferson L. Sherman, MAI, AI-GRS, has appointed a project team to examine the organization’s vice presidential election process. The project team is chaired by Richard L. Borges II, MAI, SRA, AI-GRS, AI-RRS; and comprised of Ken P. Wilson, MAI, SRA; James L. Murrett, MAI, SRA; Heather M. Placer, MAI, SRA; and Lindel D. Schulze, MAI, AI-GRS.

 
Sep 02, 2020 12:30 PM

GSEs Maintain Appraisal Flexibilities, Forbearance Purchases

The Federal Housing Finance Agency announced Aug. 26 that government-sponsored enterprises Fannie Mae and Freddie Mac will extend its purchases of qualified loans in forbearance and loan origination flexibilities until Sept. 30. The extended flexibilities include alternative appraisals on purchase and rate-term refinance loans.

 
Sep 02, 2020 12:30 PM

All US Homes Have Flood Risk Scores; Results Are Alarming

The nonprofit research and technology group First Street Foundation launched an interactive website that offers flood risk data for more than 142 million U.S. properties, and Realtor.com will includes the scores in its listing information, CNBC reported Aug. 26. The forward-looking First Street data shows that 70% more homes are prone to flood risk that what’s reported by FEMA.

 
Sep 02, 2020 12:30 PM

Nearly 80% of Surveyed Economists Say a Double-dip Recession is Possible

Close to 80% of economists surveyed by the National Association for Business Economics said there’s at least a one-in-four chance of a double-dip recession, according to survey results released Aug. 24, HousingWire reported. Further, nearly 40% of respondents said that the fiscal response from Congress to the COVID-19 pandemic is insufficient.

 
Aug 26, 2020 12:30 PM

AI Seeks to Work with TAF on Alleged Bias in Valuation

The Appraisal Institute on Aug. 20 sent a letter to The Appraisal Foundation offering its support to reinforce existing requirements to help combat potential bias in the appraisal process, specifically citing a need to make the AQB criteria and USPAP more illustrative on such matters.

 
Aug 26, 2020 12:30 PM

FHA Unveils Tech Module for Single-family Appraisals

The Federal Housing Administration on Aug. 18 announced the release of its FHA Catalyst: Electronic Appraisal Delivery module, which will allow lenders to electronically submit, track and manage single-family property appraisals. FHA-approved lenders may begin using the module Sept. 4, at which time lenders can submit appraisal reports and updates for FHA Single-Family Title II forward mortgages.

 
Aug 26, 2020 12:30 PM

Economy Down in Q2, but Q3 Looks Better, and Housing Forecast Upgraded: Fannie Mae

The U.S. economy dropped 32.9% during the second quarter, its largest decline since the aftermath of World War II, but the third quarter should experience a significant rebound, according to commentary released Aug. 17 by Fannie Mae’s Economic and Strategic Research Group. Their expectations for home sales were revised upwards based on overall strength of the sector.

 
Aug 19, 2020 12:30 PM

Ability to Repay Commercial Mortgages Often Overstated: Data

Many commercial mortgage borrowers are struggling to make loan payments, but the coronavirus pandemic is only partly to blame; aggressive lending practices may have overstated borrowers’ ability to repay in 28% of the nearly 40,000 commercial mortgage loans originated between 2013-2019 and totaling $650 billion, according to a University of Texas at Austin study, research firm SSRN reported Aug. 10.

 
Aug 19, 2020 12:30 PM

Confidence in Survival Doubles Among Small Business Owners

Sixty-four percent of small business owners are confident they can survive under current economic conditions compared with only 34% who felt confident in April, according to the Q3 CNBC/Survey Monkey Small Business Survey, CNBC reported Aug. 11. Government relief efforts, community support and technology were cited as key reasons for the renewed optimism.

 
Aug 19, 2020 12:30 PM

Investors Stay Clear of Commercial Property Deals During Second Quarter: CoStar Group

Transaction volumes for commercial properties remained depressed during the second quarter as investors continued to pull back, according to analytics firm CoStar Group, Mortgage Professional America reported Aug. 10. Deals for the second quarter could be down as much as 70% compared to the same point a year ago.

 
Aug 12, 2020 12:30 PM

CRE Recovery on the Horizon, According to CBRE Report

Commercial real estate is expected to recover slower than the overall economy, but most sectors should see gains later this year and through next year, according to the Global Real Estate Market Outlook 2020 Mid-Year Review from real estate firm CBRE, National Real Estate Investor reported Aug 4. The industrial and multifamily sectors are expected to see the fastest recoveries.

 
Aug 12, 2020 12:30 PM

Banks Tightened CRE Loan Standards in Q2: Fed Survey

Lenders tightened their standards on commercial and industrial business loans to firms of all sizes amid weaker demand during the second quarter, the Federal Reserve reported Aug. 3 in its newest Senior Loan Officer Opinion Survey. The tightened standards and reduced demand also applied to construction and land development loans, nonfarm residential loans and multifamily loans.

 
Aug 12, 2020 12:30 PM

Multifamily Fundamentals to Slow for Remainder of the Year and Into 2021: Freddie Mac

The multifamily sector is expected to slow through the end of the year and possibly into next year, with rents decreasing 1.2% to 1.7% and vacancy rates rising as high as 7.2%, Freddie Mac reported July 31 in its Midyear Outlook Report. Freddie also noted that multifamily origination volume could plummet 20% to 40% by the end of the year.

 
Aug 05, 2020 12:30 PM

Federal Reserve Extends Lending Facilities Until Year-end

The Federal Reserve will extend several of its lending facilities through the end of the year due to concerns about how quickly the U.S. economy will recover from the coronavirus pandemic, Reuters reported July 28. The extensions were set to expire Sept. 30, but the Fed wants to maintain credit availability for businesses and consumers.

 
Aug 05, 2020 12:30 PM

Investors See New Risk in Net-lease Properties, Expect Cap Rates to Rise: Poll

Commercial real estate investors anticipate net-lease properties to become generally riskier and expect cap rates to rise because of the ongoing coronavirus pandemic, according to a poll from brokerage firm The Boulder Group, CoStar reported July 23. Forty-three percent of respondents think cap rates could rise up to 19 basis points, while 37% said they may go even higher.

 
Jul 29, 2020 12:30 PM

Commercial Appraisal Data Standards Released for Comment

The Mortgage Industry Standards Maintenance Organization, known as MISMO, on July 24 released for comment its proposed commercial appraisal data standards. The standards are intended to facilitate the exchange of commercial appraisal information, which is critical for underwriting and loss mitigation, between multiple industry participants. Comments are due Sept. 21.

 
Jul 29, 2020 12:30 PM

Economic Recovery Ending, Another Slowdown Expected: JLL

The U.S. economy expanded in May and June, but by some measures it already is slowing down, according to data released July 20 by real estate firm JLL. Advance retail sales rose 7.5% between May and June, and industrial production jumped 5.4% during the same period, but consumer sentiment declined in July over fears of increasing COVID-19 cases.

 
Jul 29, 2020 12:30 PM

Office Net Absorption in Q2 Sees Largest Decline in 11 Years: Cushman & Wakefield

Office net absorption during the second quarter turned negative, falling from 5.2 million square feet during the first quarter to negative 22.8 million square feet during the second quarter, real estate firm Cushman & Wakefield reported July 23 in its U.S. Office MarketBeat report. The report noted that it was the largest quarterly decline since the Great Recession.

 
Jul 21, 2020 12:30 PM

AI Urges Swift Passage of Appraisal Portal Legislation

The Appraisal Institute on July 9 sent a letter to Reps. David Kustoff, R-Tenn., and Ed Perlmutter, D-Colo., urging swift passage of HR 7688, the Portal for Appraisal Licensing Act of 2020. The legislation would amend the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to establish a portal for appraisal credentialing and appraisal management company registration information.

 
Jul 21, 2020 12:30 PM

Federal Reserve Expects Recession Despite Initial Optimism

Following initial optimism that the COVID-19 slump would be over after the second quarter, Fed policymakers are now preparing for a longer recession due to high unemployment and increased risk of corporate bankruptcies, Forbes reported July 14. A greater chance for a second wave of infections also is contributing to the Fed’s new stance.

 
Jul 21, 2020 12:30 PM

Big Banks Have Set Aside $28 Billion to Cover Pandemic-related Losses, Data Shows

JPMorgan Chase, Citigroup and Wells Fargo have so far collectively set aside $28 billion to cover an expected wave of consumer and business loan defaults, Morningstar reported July 15. The banks increased the amount they had previously set aside due to growing concerns about the length and severity of the coronavirus pandemic.

 
Jul 14, 2020 12:30 PM

Net Lease Cap Rates Vary During Q2: The Boulder Group

Net lease cap rates increased for the retail sector during the second quarter, but held steady for the office sector and dropped for the industrial sector, according to commercial real estate firm The Boulder Group, MBA NewsLink reported July 2. The firm reported that higher cap rates are anticipated in most sectors by the end of the year.

 
Jul 14, 2020 12:30 PM

Legislation Extends Paycheck Protection Program Deadline

President Trump on July 4 signed legislation extending the deadline to Aug. 8 for small businesses to apply for assistance from the Paycheck Protection Program, National Public Radio reported. The fund has $130 billion remaining after $520 billion in loans was provided to nearly five million businesses.​

 
Jul 14, 2020 12:30 PM

Expert Says "Exodus" of Central Business Districts to Continue, But Rebound Expected

The residential “exodus” from city centers, led by millennials, is expected to last 18-24 months, the president and CEO of real estate advisory firm Marcus & Millichap told CNBC July 7. The demand for commercial space in the suburbs has also increased, but central business districts appear to be on a three-year recovery track.

 
Jul 08, 2020 12:30 PM

Data Confirms Q2 CRE Downturn Due to Coronavirus

Commercial real estate executives confirmed a downturn in market conditions during the second quarter because of COVID-19-related job losses and business shutdowns, according to The Real Estate Roundtable’s 2020 Q2 Economic Sentiment Index released June 30. The index showed an expectation that the market will improve by next year, dependent on jobs and business data.

 

COVID-19, Economy Top Real Estate Concerns: Report

The COVID-19 pandemic, economic renewal and capital market risk are among the biggest concerns affecting the real estate industry through next year, according to the Counselors of Real Estate, which released its list of the top 10 issues on June 25. Also on the list: public and private debt and affordable housing.

 
Jul 08, 2020 12:30 PM

Millions of Properties at Greater Flood Risk Than Previously Estimated, Data Reveals

The number of U.S. properties in danger of flooding this year is 70% higher than government data suggests, according to a study released June 29 by the nonprofit research group First Street Foundation. The data shows around 14.6 million properties are at risk of flooding, compared with Federal Emergency Management Agency data showing 8.7 million properties at risk.

 
Jun 24, 2020 12:30 PM

Economy and Housing are Recovering: Freddie Mac

An increase in homebuyer demand and a decrease in mortgage rates is expected to propel the housing sector forward this year, but the overall outlook is still uncertain due to concerns about the coronavirus and the nation’s fiscal policies, Freddie Mac reported June 16 in its Quarterly Forecast. Improvements in home price growth, sales and loan originations are expected next year.

 
Jun 24, 2020 12:30 PM

CFOs Target More Real Estate Cuts This Year: Survey

Real estate expenses likely will be further reduced during the second half of the year because remote working appears to be here to stay, according to a survey of chief financial officers conducted by research firm Gartner, Forbes reported June 15. Real estate budgets already have been cut about 8% this year, and an additional 8% is anticipated.

 
Jun 24, 2020 12:30 AM

SBA Releases 2 New PPP Loan Forgiveness Applications for Qualified Borrowers

The U.S. Small Business Administration and the Department of the Treasury on June 17 issued two new Paycheck Protection Program loan forgiveness applications, a full version and an EZ version that requires less documentation for borrowers who meet certain conditions. Both versions give borrowers the option of using the original eight-week covered period or the extended 24-week period.

 
Jun 17, 2020 12:30 PM

Federal Reserve Plans to Keep Buying Assets and Hold Benchmark Rate Steady Until 2023

The Federal Reserve said it plans to continue purchasing Treasuries and mortgage-backed securities at its current weekly pace of around $22 billion in order to stimulate the economy, MarketWatch reported June 10. The Fed also said that it expects to maintain its benchmark interest rate until 2023.

 
Jun 17, 2020 12:30 PM

States Could See Double-digit Property Value Drops: Report

Alaska, Nevada, New Mexico, Oklahoma and Wyoming likely will be hardest-hit due to the coronavirus pandemic and could see double-digit drops in commercial property valuations, according to a report from data firm Reonomy, National Real Estate Investor reported June 8. The economies in those states are heavily dependent on the struggling travel, entertainment or energy sectors.

 

FHFA Extends Appraisal Loan Processing Flexibilities

The Federal Housing Finance Agency announced June 11 that it is extending until at least July 31 several loan origination flexibilities offered by Fannie Mae and Freddie Mac to assist borrowers during the ongoing COVID-19 pandemic. Alternative appraisals on purchase and rate term refinance loans are among the extended items.

 
Jun 10, 2020 12:30 PM

7.4M Properties at Risk to Summer Storm Surge: CoreLogic

More than 7 million single-family homes and 250,000 multifamily residences along the Atlantic Seaboard and the Gulf Coast are at risk for storm damage this year, according to the Storm Surge Report from analytics firm CoreLogic, MBA NewsLink reported June 3. The reconstruction cost value could top $1.7 trillion for single-family homes and $95 billion for multifamily properties.

 
Jun 10, 2020 12:30 PM

US Economy Expected to Begin Recovery in Q3: ABA Forecast

The U.S. economy is expected to drop about 6% this year, but will start to recover in the third quarter, according to a forecast released by the American Bankers Association on May 29. Predicting a recovery is difficult, however, because consumers typically account for 70% of the U.S. economy, and it’s unknown when their normal activity will resume.

 
Jun 10, 2020 12:30 PM

Industrial Sector Demand Grows Due to COVID-19-related E-commerce Boost: Report

The transition from bricks-and-mortar retail to online shopping has accelerated due to the coronavirus pandemic, with e-commerce growing at an annual rate of 20% and driving demand for as much as 400 million-square-feet of new industrial space, according to real estate firm Confluent Development, National Real Estate Investor reported June 1.

 
Jun 03, 2020 12:30 PM

COVID-19 Less Damaging to CRE than Great Recession: ULI

Commercial real estate markets and property values are expected to be less affected by a COVID-19-related recession than they were by the Great Recession, with the exceptions being hospitality and retail, according an Urban Land Institute survey, GlobeSt.com reported May 26. The survey noted an expected $275 billion drop in real estate transaction volume this year.

 
Jun 03, 2020 12:30 PM

San Jose, California, to Fare Best During Pandemic: Data

San Jose, California, tops the list of U.S. cities expected to best withstand the effects of the coronavirus, according to real estate investment firm Nuveen, GlobeSt.com reported May 27. Nashville, Tennessee, and Raleigh, North Carolina, also topped the list. However, Detroit and Louisville, Kentucky, were among cities expected to fare the worst.

 
Jun 03, 2020 12:30 PM

Some CRE Sectors Were Suffering Before Coronavirus Made Things Worse: Moodys

A new report revealed that retail, office and apartment construction was down before the coronavirus pandemic made conditions even worse, according to data firm Moody’s Analytics, GlobeSt.com reported May 27. Retail construction in the first quarter was at a 20-year low, while office construction was down 85% and apartment construction was down 38%.

 
May 27, 2020 12:30 PM

Fed Warns of "Substantial Repricing" for CRE Properties

Elevated valuation pressures on commercial real estate assets and a bleak outlook for the sector could cause “substantial repricing,” according to the Federal Reserve’s Financial Stability Report released May 18, GlobeSt.com reported. CRE prices were high before the pandemic, and disruptions in the hospitality and retail sectors, in particular, have been severe.

 
May 27, 2020 12:30 PM

FHFA Rereleases Proposed Capital Rule for Fannie, Freddie

The Federal Housing Finance Agency on May 20 announced that it is seeking comments on a notice of proposed rulemaking that sets a new regulatory capital framework for Fannie Mae and Freddie Mac. The proposed rule is a re-proposal of the rulemaking previously published in July 2018, and comments are due 60 days after the rule’s publication in the Federal Register.

 
May 27, 2020 12:30 PM

Mnuchin Says US Economy to "Bottom Out" in Q2, See "Gigantic Increase" in Q4

U.S. Treasury Secretary Steven Mnuchin told attendees of an online conference May 21 that he expects the nation’s economy to “bottom out” during the second quarter, but then experience a “gigantic increase” during the fourth quarter, Reuters reported. Mnuchin noted that a lower level of activity in one quarter increases the chances for activity in other quarters.

 
May 20, 2020 08:15 PM

FHFA Gives Homeowners in Forbearance Payment Options

The Federal Housing Finance Agency announced May 13 that homeowners who are in forbearance due to the coronavirus pandemic can defer repayment of their missed monthly mortgage payments until their home is sold or refinanced or at loan maturity. Servicers will begin extending the payment deferral option July 1.

 
May 20, 2020 12:15 PM

HUD Extends Appraisal Inspection Options Until June 30

The U.S. Department of Housing and Urban Development announced May 14 that it has extended the Federal Housing Administration’s single-family exterior-only or desktop-only appraisal inspection options until June 30, enabling appraisers to limit face-to-face contact during the coronavirus pandemic. The guidance is included in Mortgagee Letter 2020-14.

 
May 20, 2020 12:15 PM

CoStar to Acquire Ten-X Digital Commercial Real Estate Platform for $190 Million

Commercial real estate analytics firm CoStar Group announced May 13 that it will acquire digital commercial real estate transaction platform Ten-X for $190 million in cash, Business Wire reported. The Ten-X platform has transacted about $7 billion in retail properties, $6 billion in office properties, $4 billion in multifamily properties and $3 billion in hotel properties.

 
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

Treasury Council Report Covers Market, Regulatory Progress

The Treasury Department’s Financial Stability Oversight Council released its annual report Dec. 4, which showed significant financial market and regulatory developments and revealed potential threats to U.S. financial security. The report also noted that federal and state regulators are collecting data, identifying risks and strengthening oversight of nonbank financial companies that originate and service residential mortgages.

 
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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