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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.​

 
Mar 30, 2022 08:30 AM

Powell Says Federal Reserve Ready to be More Aggressive with Rate Hikes When Needed

Federal Reserve Chair Jerome Powell said that the central bank must move quickly and perhaps more aggressively to increase rates to combat rising prices, when needed, Reuters reported March 21. Financial experts anticipate the Fed will raise rates by a half-percentage point at one or more of its six remaining meetings this year.

 
Mar 30, 2022 08:30 AM

AI Offers White House Input on Task Force Action Plan

Following the release of the Property Appraisal and Valuation Equity Task Force Action Plan on appraisal bias, the Appraisal Institute on March 23 sent a letter to the White House stating that it looks forward to working with the Task Force to implement several of their regulatory initiatives and reiterating that the majority of appraisers strive to uphold high standards and maintain independence and objectivity in their work.

 
Mar 30, 2022 08:30 AM

White House Issues Action Plan on Bias in Appraisals

The Property Appraisal and Valuation Equity Task Force on March 23 published an Action Plan to address concerns about lower appraisals for properties owned by individuals of color. The Appraisal Institute provided input to the Task Force, whose Action Plan covers appraisal standards, diversity within the valuation profession and reporting requirements for violations of federal law.

 

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.

 
Mar 02, 2022 08:30 AM

Office Tenants Want New Construction: Cushman & Wakefield

Newly constructed office buildings are commanding rent premiums of around 64% over existing Class A properties and 20% over trophy office assets, Cushman & Wakefield reported Feb. 22. Tenants are reportedly seeking energy-efficient projects with state-of-the-art systems and buildings that offer “elevated experiences.” Around 48.5 million square feet of new space is forecast to be delivered this year. ​

 
Mar 02, 2022 08:30 AM

Lenders Renewing Interest in Retail Properties — Even Enclosed Malls, Report Shows

Following several years of heavy lending on multifamily and industrial properties, lenders are now turning their attention to retail properties, WealthManagement.com reported Feb. 22. Loan originations for retail properties increased 73% last year, second only to industrial, which saw originations up 140%. While interest is mainly focused on proven retail sectors and properties, even enclosed malls are getting a second look.

 
Mar 02, 2022 08:30 AM

CFPB Seeks to Prevent Algorithmic Bias in AVMs

The Consumer Financial Protection Bureau on Feb. 23 outlined several options it's considering to ensure that the computer models used to help determine home values are accurate. CFPB wants to protect against data manipulation, avoid conflicts of interest and institute random sample testing of automated valuation models.

 
Feb 23, 2022 08:30 AM

Non-bank Mortgage Servicers to See Greater Scrutiny: Fitch

The servicing practices of U.S. mortgage companies are expected to come under more regulatory scrutiny this year as pandemic-related government forbearance programs end and consumers move to other loss mitigation programs or default, according to Fitch, MBA NewsLink reported Feb. 8. Fitch anticipates that greater customer complaints will drive the closer evaluation.

 
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 16, 2022 08:30 AM

Foreclosure Activity Highest Since COVID Outbreak: Data

Residential foreclosures rose to their highest level in nearly two years, up 29% between December and January and 139% from one year ago, ATTOM reported Feb. 10. The increase in foreclosures follows a typical lull during the holiday season, but were still higher than usual due to the expiration of the foreclosure moratorium.

 
Feb 16, 2022 08:30 AM

FHFA Seeks Input on Fiscal Year 2022-26 Strategic Plan, Feedback Due in March

The Federal Housing Finance Agency announced Feb. 9 that it is seeking input on its Draft Strategic Plan, which details the agency’s 2022-26 fiscal year priorities for Fannie Mae, Freddie Mac and the Federal Home Loan Bank System. Affordable and sustainable housing are among the items under review. Input is due by March 11.

 
Feb 09, 2022 08:30 AM

USPAP Needs Clarity Regarding Bias, Federal Law: Agencies

Multiple agencies, including the National Credit Union Administration, the Federal Housing Finance Agency and the Federal Reserve Board, sent a letter to The Appraisal Foundation Feb. 4 saying there aren’t “clear warnings about the requirements of federal law in the standards it sets, and in the training it provides for appraisers” with regard to alleged bias. The agencies requested changes to the 2023 edition of the Uniform Standards of Professional Appraisal Practice.

 
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.

 
Feb 02, 2022 08:30 AM

Report Finds No Undervaluation of Black-owned Homes in Refis

A review of 1.8 million appraisals from 2019 and 2020 found that Black-owned properties were not undervalued during refinance transactions, Fannie Mae reported Jan. 20 in its Appraising the Appraisal report. Homes owned by white borrowers were more frequently overvalued than homes owned by Black borrowers, and six Southeastern states accounted for nearly 50% of overvalued properties.

 
Feb 02, 2022 08:30 AM

Lower-income Households of Color Struggle With Rent: Study

The nation’s overall vacancy rate for rental housing dropped to 5.8% in 2021, and asking rents jumped 13.8% during the third quarter, according to America’s Housing 2022 report from the Harvard Joint Center for Housing Studies, MBA NewsLink reported Jan. 23. Increased rents and lack of inventory has particularly affected lower-income households, especially those of color.

 
Feb 02, 2022 08:30 AM

Market Sentiment Concerning CRE Slips, Optimism Remains Strong, Survey Reveals

While market sentiment concerning commercial real estate dropped toward the end of 2021, it remains strong, according to real estate executives who participated in RCLCO’s newest Real Estate Market Sentiment survey, MBA NewsLink reported Jan. 26. More than half the respondents said they expect conditions to become moderately or significantly better during the next 12 months.

 
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.

 
Jan 13, 2022 08:30 AM

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

Cap rates in the single-tenant net lease sector increased slightly during the fourth quarter to 5.88% for retail and 6.77% for industrial, while net lease office remained unchanged at 6.80%, according to the Q4 2021 Net Lease Market Report released Jan. 6 by The Boulder Group. A limited supply of properties primarily drove the increase.

 
Jan 13, 2022 08:30 AM

State Attorneys General Target FHA Loan Violations

Attorneys general from 20 states have accused mortgage servicers employed by Federal Housing Administration-approved lenders of failing to properly implement loan modification options, including options to reduce principal and interest, that the agency introduced in July, according to a Dec. 21 letter sent to the Department of Housing and Urban Development, HousingWire reported Jan. 5.

 
Jan 13, 2022 08:30 AM

Nation’s Large Office Markets Stable and Active, Boston Tops for Leasing: CBRE

The nation’s 12 largest office markets showed stability toward the end of 2021, with normal levels of leasing activity despite uncertainty about COVID-19, according to CBRE’s Pulse of U.S. Office Demand survey, MBA NewsLink reported Jan. 4. The most active markets were Boston; Dallas-Fort Worth; Los Angeles; Manhattan; and Washington, D.C.

 
Dec 22, 2021 08:30 AM

Residential Sector Sets 10 Records in 2021, Redfin Reports

Housing was hot in 2021, breaking 10 records, including highest median sale price, lowest inventory of for-sale properties and strongest demand for second homes, Redfin reported Dec. 13. The pandemic changed the residential sector, creating a seismic shift in how people live and work and why and where they purchased homes.

 
Dec 22, 2021 08:30 AM

Residential Appraisals Shouldn’t Reference Neighborhood Demographics: FHFA

The Federal Housing Finance Agency on Dec. 14 reported that its analysis of millions of property valuations found many residential appraisal reports that contained improper references to a neighborhood’s racial demographics. Examples include the percentages of an area's racial and ethnic makeup; the languages spoken in an area; and amenities specifically geared to a race, ethnic, or religious group.​

 
Dec 22, 2021 08:29 AM

Lenders Expect ‘Normal’ Housing Market in 2022: Fannie Mae

Sixty-five percent of mortgage lenders said they expect profit margins will drop during the next quarter, up from 46% who said so last quarter, Fannie Mae reported Dec. 15 in its Q4 2021 Mortgage Lender Sentiment Survey. The shifting expectations suggest that the housing market may return to a more 'normal' state after a couple of boom years.

 
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 08, 2021 12:30 PM

Agencies Raise Appraisal Exemption Threshold

The Consumer Financial Protection Bureau, the Federal Reserve Board and the Office of the Comptroller of the Currency announced Dec. 1 that the 2022 threshold for exempting mortgage loans from special appraisal requirements will be $28,500, up from $27,300 this year. The increase takes effect Jan. 1.​

 
Dec 08, 2021 12:30 PM

Value of Farm Properties Up Sharply in Q3: Report

The value of non-irrigated cropland jumped by at least 12% during the third quarter, and the increase was consistent across most states, according to the Federal Reserve Survey of Agricultural Credit Conditions released Nov. 23. Interest rates on farm loans remain historically low and agricultural credit conditions saw further improvement.

 
Dec 08, 2021 12:30 PM

Cap Rates for Medical Sector Squeezed, Overall Net Lease Down: The Boulder Group

Cap rates for the single-tenant, net lease medical sector compressed 55 basis points during the third quarter to 5.95% when compared to the same point a year ago, The Boulder Group reported Dec. 2 in its Q3 Net Lease Medical Report. The overall net lease market, comprised of retail, office and industrial, was down 23 basis points year-to-year.

 
Dec 01, 2021 08:30 AM

VA Increasing Appraisal Fees, Turnaround Times

The Department of Veterans Affairs announced Nov. 19 that it will raise appraisal fees and extend turnaround times in certain markets in response to “unprecedented demand,” HousingWire reported. The fee increases, which take effect Dec. 1, will vary by state and county; for example, $25 in Minnesota and $400 in select parts of California.

 
Dec 01, 2021 08:30 AM

FHFA Conforming Loan Limits for 2022 Approach $1M

The Federal Housing Finance Agency on Nov. 30 announced that the conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2022 will be $647,200 for single-family homes and increase to $970,800 for homes in higher-cost areas. Loan limits are adjusted annually to reflect changes in the average U.S. home price.

 
Dec 01, 2021 08:30 AM

Strong Demand and Plummeting Vacancy Cause Multifamily Rents to Spike: Report

The multifamily sector was strong during the third quarter, with growing demand and low vacancy rates pushing rents 13.9% higher than at the same point a year ago, according to a report from Walker & Dunlop, Benzinga reported Nov. 24. New completions are 20% below the average pace of the past four years, and new construction costs are up 11%.

 
Nov 17, 2021 08:30 AM

AI Board of Directors Approves Strategic Priorities for 2022

The Appraisal Institute Board of Directors at its Nov. 11-12 meeting in Chicago approved the Strategic Plan strategies that will guide the organization’s efforts in 2022, and beyond.

 
Nov 17, 2021 08:30 AM

Many Homeowners Plan to Sell Soon, Skip Appraisals: Report

Nearly two thirds of prospective home sellers say they plan to enter the market within the next six months, signaling hope for would-be buyers who have struggled with limited inventory, Realtor.com reported Nov. 11. Most sellers anticipate competitive bidding wars for their homes, including offers above-asking and foregoing contingencies such as appraisals and inspections.

 
Nov 17, 2021 08:30 AM

Appraisal Institute Receives $500,000 Pathway to Success Grant from TAF

The Appraisal Foundation’s Board of Trustees announced Nov. 16 that it awarded the Pathway to Success Grant to the Appraisal Institute for the development of a Practical Applications of Real Estate Appraisal program. The competitive grant application was reviewed, scored and recommended for approval by a team representing Foundation trustees, sponsoring organizations and the Appraiser Qualifications Board.

 
Nov 10, 2021 08:30 PM

Housing Market at Peak, Correction May be Coming: Analyst

Wall Street analyst, Ivy Zelman, who correctly predicted the 2007 housing crash, views the historic increase in home values during the pandemic as a potential precursor to a correction, not necessarily a crash, WealthManagement.com reported Nov. 3. Her biggest concern: the investors who drove up prices beyond the reach of many buyers may now start unloading their holdings, overloading the market with supply.

 
Nov 10, 2021 08:30 AM

High Inflation ‘Transitory,’ Jobs Recovery Expected, MBS Purchases Slowed: Fed

The Federal Reserve believes the current high rate of inflation — about twice the 2% target — is “transitory” and that price pressures will ease and help with jobs recovery, Reuters reported Nov. 3. The Fed also announced a reduction in its monthly purchases of Treasuries and mortgage-backed securities at a pace of $15 billion per month, with a plan to end purchases in mid-2022.

 
Nov 10, 2021 08:30 AM

Small-cap Commercial Real Estate Booms, Data Shows

The nation’s economic rebound has vastly improved conditions for small businesses, boosting small-cap commercial leasing and investment markets, according to the Boxwood Means Q3 Small-Cap Commercial Real Estate Trends report, MBA NewsLink reported Nov. 3. The demand for space is surging, with net absorption across the industrial, office and retail sectors positive for four consecutive quarters.

 
Oct 20, 2021 12:30 PM

Report: 20% of Commercial Properties, 25% of Critical Infrastructure Face Flood Risk

About 20% of U.S. commercial properties and 14% of residential properties are at risk of flooding, according to the 3rd National Risk Assessment: Infrastructure on the Brink report published Oct. 11 by nonprofit First Street Foundation. Additionally, 25% of critical infrastructure and 23% of roads are vulnerable. States with the greatest risk are Louisiana, Florida, Kentucky and West Virginia. ​

 
Oct 20, 2021 12:30 PM

Foreclosures Spike During Q3 as Moratorium is Lifted: Data

Foreclosure activity significantly increased in September as the moratorium was lifted, with 19,609 filings reported for the month, up 24% from August and up 102% from September 2020, ATTOM reported Oct. 14 in its latest Foreclosure Market Report. Lender foreclosures also increased, up 32% quarter-to-quarter. Florida, Illinois and Delaware reported the highest foreclosure rates.

 
Oct 20, 2021 12:30 PM

Desktop Appraisals Are Here to Stay, FHFA Announces

The option to perform desktop appraisals will become permanent, the Federal Housing Finance Agency announced Oct. 19. Starting early next year, appraisals for purchase loans can be remotely conducted using public records, such as listings and tax appraisals. Desktop appraisals were intended as a temporary response to the coronavirus pandemic, allowing appraisers to safely perform their job amid lockdowns and social distancing.

 
Oct 13, 2021 12:30 PM

Wyoming, Idaho at Major Risk of Wildfire: CoreLogic Report

Wyoming and Idaho top the list of states with the greatest risk of economic damage due to wildfire, CoreLogic revealed in its latest Wildfire Report released Sept. 29. Rounding out the top five are New Mexico, Utah and Nevada. The report looked at property-related risk and the availability of reconstruction resources, among other factors.

 
Oct 13, 2021 12:30 PM

Indoor, Outdoor Mall Visits Down in September as Retail Recovery Slows: Index

Indoor and outdoor malls both saw visits drop this fall, a reversal of the steady recovery these properties have experienced this year, according to the Placer.ai Mall Index released Oct. 6. Visits to indoor malls were down 6.5% in September compared with September 2019, while visits to outdoor malls dropped 5.2%. Increasing coronavirus cases and differing return-to-school actions contributed to the decline.

 
Oct 13, 2021 12:30 PM

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

Cap rates in the single-tenant net lease sector reached a historic low in all three asset classes during the third quarter, The Boulder Group reported Oct. 1 in its Q3 2021 Net Lease Market Report. Cap rates for retail, office and industrial properties dropped to 5.8%, 6.8% and 6.7%, respectively. ​

 
Oct 06, 2021 12:30 PM

New California Appraiser Requirements Focus on Bias

California Gov. Gavin Newsom on Sept. 28 signed into law AB 948, legislation that contains multiple provisions related to appraisal bias. Beginning July 1, 2022, all residential sales contracts must include a statement promising that appraisals are unbiased and not influenced by improper or illegal considerations. Refinance transactions must include the same statement in loan documents provided to borrowers.

 
Oct 06, 2021 12:30 PM

Fannie Mae, Freddie Mac Extend Multifamily Forbearance

The Federal Housing Finance Agency announced Sept. 24 that Fannie Mae and Freddie Mac will extend coronavirus forbearance to owners of qualifying multifamily properties. The previous extension was set to expire Sept. 30 and is subject to existing tenant protections.

 
Oct 06, 2021 12:30 PM

Consumer Confidence Index Down in September Marking 3rd Consecutive Monthly Drop

The Consumer Confidence Index published Sept. 28 by the Conference Board showed a decline in September, following drops in both July and August. The decline was attributed to the spread of the coronavirus Delta variant, which has dampened optimism and caused concerns about the economy and short-term growth prospects.

 
Sep 29, 2021 12:30 PM

Federal Reserve Expected to Pull Back on Major Stimulus

If the economic recovery continues to progress, the Federal Reserve is likely to reduce its pace of asset purchases, which include $120 billion in Treasury and mortgage-backed securities each month, according to the Fed’s banking policy updated released Sept. 22, CNN reported. The Fed also could increase interest rates early next year instead of waiting until 2023.

 
Sep 29, 2021 12:30 PM

FHFA: More Than 200,000 Foreclosures Prevented During Q2

The Federal Housing Finance Agency announced Sept. 23 that Fannie Mae and Freddie Mac completed 217,000 foreclosure prevention actions during the second quarter, bringing the number of consumers who have been assisted during conservatorship to 6.03 million. The report also noted that 47% of loan modifications lowered borrower monthly payments by more than 20%.

 
Sep 29, 2021 12:30 PM

Nearly Half of US Companies Likely to Downsize Office Footprint, Survey Reveals

Around 44% of U.S. companies said they plan to downsize their office footprint when the pandemic ends, according to a Gensler survey, Bisnow reported Sept. 17. However, companies that were categorized as “high-performing” were nearly as likely to downsize their footprint as they were to expand it. Only 17% of high-performers said they would maintain the same amount of space.

 
Sep 22, 2021 12:30 PM

HUD Disproportionately Sells Homes in Flood Zones: NPR

Homes sold by the U.S. Department of Housing and Urban Development between January 2017 and August 2020 were 75 times more likely to be located in flood zones than other homes sold during the same period, NPR reported Sept. 13. Buyers of HUD homes received less information about flood risks and the cost of flood insurance than those who bought from private sellers.

 
Sep 22, 2021 12:30 PM

Freddie Mac Report Reveals Appraisal Valuation Gap

Freddie Mac on Sept. 20 released a report based on data from the Uniform Collateral Data Portal that showed appraisal values are more likely to fall below the contracted sale price of a home in areas with a higher share of minority households. Appraisal Institute President Rodman Schley, MAI, SRA, said that he supports study on this important issue in order to promote equity in homeownership for everyone. ​

 
Sep 22, 2021 12:30 PM

Fannie Mae and Freddie Mac Capital Requirements Set to Become Less Restrictive

The Federal Housing Finance Agency announced Sept. 15 proposed amendments to rules governing credit risk transfer securities, which involve transferring the risk of mortgage defaults to private investors, Bloomberg reported. Under the proposal, Fannie and Freddie would receive additional capital relief when issuing securities that would allow them to better support the housing market.

 
Sep 15, 2021 12:31 PM

FHFA Announces Equitable Housing Plans for Fannie, Freddie

The Federal Housing Finance Agency announced Sept. 7 that Fannie Mae and Freddie Mac will submit Equitable Housing Finance Plans to the agency by the end of the year. The plans will identify and address barriers to sustainable housing and outline ways to increase equity in housing finance. The public can provide input by Oct. 25.

 
Sep 15, 2021 12:30 PM

OCC Seeks to Rescind 2020 Community Reinvestment Act Rule

The Office of the Comptroller of the Currency announced Sept. 8 that it’s seeking comments on proposed rules to rescind the Community Reinvestment Act rule issued in 2020 and replace it with rules jointly adopted by the federal banking agencies in 1995, as amended. The rules primarily focus on lending for the nation’s underserved communities. Public comments are due by Oct. 29.

 
Sep 15, 2021 12:30 PM

Life Insurers Have Ability to Manage Commercial Mortgage Defaults: Fitch Ratings

U.S. life insurance companies with considerable commercial mortgage portfolios should be able to absorb significant stress and prevent ratings from dropping given the industry’s strong capitalization, current loan quality and historical loss experience, according to Fitch Ratings, MBA NewsLink reported Sept. 8. Commercial mortgage loans comprise about 13% of insurers’ total invested assets.

 
Sep 08, 2021 12:30 PM

Biden Seeks Immediate Increase in the Affordable Housing

The Biden administration announced Sept. 1 efforts to add an additional 100,000 homes to the affordable housing supply, with a focus on the lower and middle segments of the market. Part of the plan involves making more single-family properties available to individuals and nonprofits instead of residential investors.

 
Sep 08, 2021 12:30 PM

Cap Rates in Quick-service Sector at Historic Low: Report

Cap rates in the net lease quick-service sector reached a historic low of 5.26% during the second quarter, down 39 basis points from last year, according to the Q2 2021 Net Lease QSR Market Report released Sept. 1 by The Boulder Group. Cap rates for corporate-leased QSR properties dropped 20 basis points to 5%, while properties leased to franchisees dropped 43 basis points to 5.4%.

 
Sep 08, 2021 12:30 PM

FHFA Extends Length of Time Investors are Prevented from Purchasing Foreclosed Homes

The Federal Housing Finance Agency on Sept. 1 extended to 30 days the time that investors are locked out of purchasing foreclosed properties. Investors previously were locked out for 20 days, but the extension should give potential owner-occupants, public entities and nonprofits a greater chance at buying a property and aiding neighborhood preservation.

 
Sep 01, 2021 12:30 PM

3D-printed Homes Appeal to Two-thirds of Consumers: Report

Sixty-six percent of all consumers, and 75% of millennials, said they would consider living in a 3D-printed home, according to a survey released Aug. 20 by Realtor.com. Results also revealed that 30% of all consumers and 43% of millennials think 3D properties will eventually replace traditional ones.​

 

People Moving to Areas with High Disaster Risk: Redfin

More residents are moving into the nation’s most disaster-prone areas, boosting population in counties with the greatest risk of high heat, drought, fire, flood and storm damage, Redfin reported Aug. 25. These disaster-prone areas are generally more affordable and offer lower property taxes, making them more desirable despite the risks.

 
Sep 01, 2021 12:30 PM

Manufacturing Hits Pre-pandemic Levels, Housing and Retail Slip: Fed Minutes Show

Industrial production, a gauge of the manufacturing sector’s performance, increased 0.9% in July, the largest jump since March, according to the Federal Open Market Committee meeting minutes, Fannie Mae reported Aug. 20. Meanwhile, housing starts dipped 7% and retail fell 1.1%. The Fed also announced plans to start reducing asset purchases this year.

 
Aug 25, 2021 12:30 PM

New FHFA Housing Goals Focus on Affordable Housing

The Federal Housing Finance Agency on Aug. 18 released proposed 2022-24 housing goals for Fannie Mae and Freddie Mac that are primarily designed to promote equitable access to affordable housing with a specific focus on low- and moderate-income borrowers, minority communities and rural areas. FHFA also is proposing new single-family subgoals.

 
Aug 25, 2021 12:30 PM

Global CRE Investment at Pre-pandemic Levels in Q2: JLL

Global investment in commercial real estate totaled nearly $250 billion during the second quarter, more than double the amount invested at the same point last year, according to commercial real estate firm JLL, MBA NewsLink reported Aug. 17. Total global CRE investment activity is now back at 2019 levels. ​

 
Aug 25, 2021 12:30 PM

Hotel Forecast Shows Improvement, but Lower Growth is Projected in 2022: Analysis

The forecast for U.S. hotels this year has been upgraded, but projections for next year call for reduced growth, according to analytics firms STR and Tourism Economics, MBA NewsLink reported Aug. 17. Room demand is expected to fully recover in 2023, but revenue per available room likely won’t reach pre-pandemic levels until 2024.

 
Aug 18, 2021 12:30 PM

AI Board of Directors Adopts Strategic Plan

The Appraisal Institute Board of Directors adopted a Strategic Plan at its Aug. 12-13 meeting in Orlando, Florida.

 
Aug 18, 2021 12:30 PM

Sandra Adomatis Elected 2022 AI Vice President

Sandra K. Adomatis, SRA, of Punta Gorda, Florida, was elected 2022 vice president of the Appraisal Institute Aug. 12 by the AI Board of Directors during its meeting in Orlando, Florida. Adomatis’ one-year term as vice president will begin Jan. 1, followed by one year each as president-elect, president and immediate past president.

 
Aug 18, 2021 12:30 PM

AI Board of Directors Adopts 45-Day Notice Items During August Meeting

The Appraisal Institute Board of Directors voted to adopt three 45-Day Notice items during its Aug. 12-13 meeting in Orlando, Florida. The 45-Day Notice items address Audit Committee powers and duties, the Candidate for Designation program, and Life Status and Designated Member readmission.

 
Aug 04, 2021 12:30 PM

Record Low Cap Rates for Single-tenant Dollar Stores: Data

Cap rates in the single-tenant net-lease dollar store sector reached a historic low during the second quarter, according to the Net Lease Dollar Store report released Aug. 1 by commercial real estate firm The Boulder Group. Dollar General’s cap rate was 5.75%, while Dollar Tree reached 6.50%.

 
Aug 04, 2021 12:30 PM

Fannie Mae: Appraisers Should Avoid "Problematic Phrases"

Fannie Mae in its July Appraiser Update newsletter has requested that appraisers avoid using phrases in their reports that can be viewed as problematic because they represent subjective judgments and not objective facts. Examples of phases that should be avoided are “desirable neighborhood,” “crime-ridden area,” “affordable neighborhood” and “Integrated community.”

 
Aug 04, 2021 12:30 PM

Smaller Cities Poised to Become Top Tech Markets, Led by Dayton, Ohio, CBRE Reports

Dayton, Ohio, could be the next top tech market, according to a report from real estate firm CBRE, WeathManagement.com reported July 26. Market determinations are based on labor fundamentals and costs, growth opportunities for companies and high concentrations of tech workers. The list contains mostly smaller markets, and also includes Huntsville, Alabama, and Colorado Springs, Colorado.

 
Jul 14, 2021 12:30 PM

CFPB Issued $124M in Remediation over Mortgage Servicing

The Consumer Financial Protection Bureau in 2020 assessed more than $124 million in consumer remediation and civil penalties related to mortgage foreclosures, credit “redlining” and unreliable use of consumer data, MBA NewsLink reported July 1. Examiners discovered several violations of mortgage servicing rules in Regulation X.

 
Jul 14, 2021 12:30 PM

REIT Merger and Acquisitions May Set Annual Record: JLL

Merger and acquisition activity in real estate investment trusts has already reached $70 billion this year, and could reach an all-time high by year-end, according to commercial real estate firm JLL, MBA NewsLink reported July 6. The previous annual record for REIT activity was set in 2006 and totaled $103 billion.

 
Jul 14, 2021 12:30 PM

Strong Industrial Sector to Get Stronger as Demand Increases: Cushman & Wakefield

The industrial sector saw robust leasing activity last year, and that growth continues this year with net absorption of 2.3 million square feet through the first quarter, according to commercial real estate firm Cushman & Wakefield, WealthManagement.com reported July 6. The national average vacancy rate is 4.9% and the annual rent growth rate is 7.8%.

 
Jul 07, 2021 12:30 PM

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

Single-tenant retail cap rates increased by 11 basis points to 6.02% during the second quarter, while industrial cap rates rose 18 basis points to 6.89% after reaching historic lows the previous quarter, commercial real estate firm The Boulder Group reported July 1 in its Q2 Net Lease Market Report. ​

 
Jul 07, 2021 12:30 PM

FHFA Makes Significant Updates to Mortgage Database

The Federal Housing Finance Agency on June 30 released new and expanded statistical products from the National Mortgage Database for new residential mortgage originations. New offerings include a monthly, quarterly and annual series focused on home purchase and refinance mortgages and national mortgage performance and a series of national- and state-level statistics for outstanding residential mortgages. ​

 
Jul 07, 2021 12:30 PM

Federal and Local Eviction Moratoria Prevented Foreclosures: Freddie Mac

Federal and local moratoria on foreclosures during the coronavirus pandemic prevented an eviction crisis among renters, but back rent is still a looming issue, Freddie Mac said in its Transitioning to Post-Pandemic Normal white paper published June 30. Freddie noted that a sufficient amount of rental assistance is still available.

 
Jun 30, 2021 12:30 PM

Supreme Court Rules FHFA Structure Unconstitutional

The Supreme Court on June 23 ruled that the Federal Housing Finance Agency’s structure violates the Constitution’s separation of powers principles and unlawfully limits a president’s ability to remove the head of an agency with a single top officer, the Associated Press reported. The justices sent the case back to a lower court for additional proceedings.

 
Jun 30, 2021 12:30 PM

Biden Appoints Sandra Thompson as Acting FHFA Director

The White House on June 23 announced Sandra L. Thompson as acting director of the Federal Housing Finance Agency. Thompson, formerly the FHFA’s deputy director of the Division of Housing Mission and Goals, said she will focus on affordable housing, especially in communities of color. President Biden removed Mark Calabria as FHFA director following the Supreme Court ruling allowing him to do so.

 
Jun 30, 2021 12:30 PM

Supreme Court Decision on Private Property "Takings" Seen as a Victory for Owners

The Supreme Court on June 23 ruled on a Fifth Amendment “takings” decision, upholding a provision requiring the government to compensate landowners when private property is taken, even if the taking is short-term, the National Association of Home Builders reported. The ruling noted that a “central importance” of property ownership is the “right to exclude” others.

 
Jun 23, 2021 12:30 PM

MISMO Approves Updated Commercial Appraisal Dataset

Real estate finance industry standards group MISMO announced June 17 the availability of its updated Commercial Appraisal Dataset standard and accompanying package of resources to help facilitate an exchange of appraisal information across the CRE finance industry. The dataset achieved “Candidate Recommendation” status, meaning a thorough review by industry participants.

 
Jun 23, 2021 12:30 PM

Housing Supply Crisis Requires Immediate Action: NAR

Decades of reduced investment in the housing sector and significant underbuilding have caused a dire shortage of homes that urgently needs to be addressed, the National Association of Realtors stated in its June 16 report Housing is Critical Infrastructure: Social and Economic Benefits of Building More Housing. The report revealed an “underbuilding gap” of 5.5 to 6.8 million housing units since 2001.​

 
Jun 23, 2021 12:30 PM

Firms Rethink Plans to Shrink Office Portfolios as Employees Return to Work: CBRE

Many U.S. firms are rethinking plans to scale back their real estate portfolios and instead expect workers to return to a “relatively normal” office environment, according to the Spring 2021 Occupier Survey from real estate firm CBRE, MBA NewsLink reported June 16. Only 9% of firms said they anticipate shrinking their office footprint, down from 39% in September.

 
Jun 16, 2021 12:30 PM

EPA, Army Plan to Revise Definition of the National Waters

The Environmental Protection Agency and the Department of the Army announced June 9 that they intend to revise the definition of “waters of the United States” to better protect the nation’s resources. The regulatory effort will be guided by multiple stakeholders, including landowners, the agricultural community and local governments.

 
Jun 16, 2021 12:30 PM

Investment in Net-lease Properties Inches Closer to Pre-pandemic Levels: CBRE

Investment in net-lease properties, which comprise office, industrial and retail, jumped 10% during the first quarter compared with the same point a year ago, according to the U.S. Net Lease Investment Report from commercial real estate firm CBRE, MBA NewsLink reported June 8. The report cited increased interested in office properties and “robust” institutional acquisition activity as key drivers.​

 
Jun 16, 2021 12:30 PM

LREAB, FTC Settle Appraisal Services Price Fixing Charges

The Federal Trade Commission announced June 11 that the Louisiana Real Estate Appraisers Board will stop setting compensation levels for residential real estate appraisal services within the state, which the FTC alleged is a violation of federal antitrust law. The proposed settlement prevents the LREAB from adopting a fee schedule for appraisal services or taking any action to raise, stabilize or fix compensation levels for appraisal services.

 
Jun 09, 2021 12:30 PM

Biden Administration Looks at Appraisals as Part of Effort to Reduce Wealth Gap

The Biden administration announced June 1 that as part of its efforts to increase Black wealth, Department of Housing and Urban Development Secretary Marcia Fudge will lead an interagency taskforce to address inequity in home appraisals. The Appraisal Institute supports the task force, which is consistent with congressional legislation backed by the organization (H.R. 2553 the Real Estate Valuation Fairness and Improvement Act).

 
Jun 09, 2021 12:30 PM

Home Builders Cannot Keep Up with Homebuyer Demand, Fed Beige Book Says

Demand for new homes outpaced homebuilders’ capacity to construct in many fed districts, according to the latest Beige Book released June 2 by the Federal Reserve. Non-residential construction advanced at a moderate pace in many districts, while some reported that supply chain disruptions pushed costs higher and delayed some projects.

 
Jun 09, 2021 12:30 PM

Pent-up Demand for Leisure, Healthcare Properties to Drive Recovery: Forecast

Pent-up demand for leisure, healthcare, hospitality and recreation will lead to greater consumption and help drive an economic recovery according to the June 2021 forecast released June 2 by the UCLA Anderson School of Management. Employment levels also are expected to recover to previous peaks. ​

 
Jun 02, 2021 12:30 PM

White House Executive Order Reinstates Flood Risk Standards

President Biden on May 20 signed the Executive Order on Climate-Related Financial Risk, which reinstates the 2015 Federal Flood Risk Management Standard that was revoked under the Trump administration, the National Association of Home Builders reported. The FFRMS significantly expands floodplain areas without congressional oversight and mandates that climate-related financial risk be factored into underwriting standards.

 
Jun 02, 2021 12:30 PM

Biden Seeks $318 Billion for Housing in Infrastructure Plan

The Biden Administration announced May 26 that the American Jobs Plan will include $318 billion to produce or preserve more than two million affordable housing units around the country, Bloomberg CityLab reported. The proposal includes $105 billion in new tax credits, which should boost the number of affordable homes built and maintained every year.

 
Jun 02, 2021 12:30 PM

US Office Lease Growth Stalls Year-over-year While Vacancies Rise, Data Reveals

The average U.S. office lease rate was up just 0.2% year-over-year in April while the vacancy rate in the top 50 office markets hit 16%, according to data released May 24 by commercial research firm CommercialEdge. The data also showed that more than two-thirds of office space under construction is in urban submarkets.

 
May 26, 2021 12:30 PM

House Passes Legislation Addressing FHA Appraisals

The House on May 18 passed HR 3008, the Homebuyer Assistance Act, legislation reintroduced by Reps. Brad Sherman, D-Calif., and Van Taylor, R-Texas, that would amend the National Housing Act and allow state-licensed appraisers to perform appraisals for mortgages insured by the Federal Housing Administration. The legislation would require compliance with existing appraiser education requirements.

 
May 26, 2021 12:30 PM

FHFA Submits Proposed Plan for Underserved Markets

The Federal Housing Finance Agency on May 19 published its proposed 2022-24 Underserved Markets Plan that outlines how Fannie Mae and Freddie Mac will serve the manufactured housing, affordable housing preservation and rural housing markets through increased liquidity of mortgage investments, MReport reported. The Duty to Serve also aims to facilitate a secondary market for low-income financing.

 
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.

 
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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