ru - Residential Update

June 2023

Appraisal Standards Board Adopts New Edition of USPAP

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

June 2023

Home Values Decline in April, Largest Drop on Record, Redfin Reports

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

June 2023

Arizona Enacts Statute of Repose; Florida Close to Passing Similar Legislation

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

June 2023

Washington State Drops Single-family Zoning

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

June 2023

FHFA Rescinds Upfront Fees for Mortgages Based on DTI Ratio

The Federal Housing Finance Agency announced May 10 that it has rescinded the upfront fees based on borrower debt-to-income ratio for loans purchased by Fannie Mae and Freddie Mac.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

June 2023

Real Estate Investors Losing Money on Home Sales at Near Record Rate: Redfin

About one in seven homes (13.5%) sold by a real estate investor in March closed for less than its purchase price, a slight improvement from February where 14.5% of homes sold at a loss — the highest rate since 2016, Redfin reported April 21. For comparison, only 4.8% of overall homes sold in March at a loss.

June 2023

US Only Has 4 Metros Where Buying a Home is Cheaper Than Renting: Redfin

Detroit, Philadelphia, Cleveland and Houston are the only U.S. metros where it’s more affordable to buy a home than to rent one, Redfin reported May 19. In the most populous metros, the typical home costs an average 25% more to purchase than to rent.

June 2023

Top 20 Housing Markets in the US are in Northeast and Midwest: Realtor.com

Concord, New Hampshire, topped the list of the nation’s hottest housing markets — its second time atop the list, Realtor.com reported May 23. The 20 hottest housing markets are spread across 11 states, with Connecticut and Massachusetts both landing three metros on the list. No metros in the South or West made the list.

June 2023

AI PAREA Program Receives Approval from the AQB

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