ru - Residential Update

November 2021

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.

November 2021

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.

November 2021

Home Prices May Rise Another 16% by End of 2022, Goldman Sachs Economists Predict

While home prices are already 20% higher than at the same point last year, they may grow another 16% by the end of 2022, according to predictions from Goldman Sachs economists, HousingWire reported Oct. 13. Low interest rates, reduced inventory and increased millennial homeownership are all cited as reasons for the continued growth.

November 2021

Indiana, South Dakota, Kansas, Have Top Housing Markets: WSJ/Realtor.com Index

Elkhart-Goshen in Indiana; Rapid City, South Dakota; and Topeka, Kansas, are the top U.S. housing markets, according to the Wall Street Journal/Realtor.com Emerging Housing Markets Index published Oct. 19. Raleigh, North Carolina, and Jefferson City, Missouri, rounded out the top five, based on housing market, economic vitality and quality-of-life metrics.

November 2021

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.

November 2021

Home Prices Grow at Slower Rate in Areas Previously Ravaged by Wildfires: Data

A study of home prices in California revealed that properties in areas devastated by wildfires grew 21% in the three years following a major blaze compared with 33% for homes in areas outside of fire zones, Redfin reported Oct. 6. Also, home purchases in effected areas decreased 38% in the three years following a fire.

November 2021

Housing Inventory Reaches Yearly High: Realtor.com September Housing Report

The inventory of for-sale homes in September reached 646,053, a new high for the year and a 10% increase over the same point a year ago, Realtor.com reported Sept. 30. The largest number of new listings was reported in Austin, Texas (+19.9%); Portland, Oregon (+16.3%); Jacksonville, Florida (+15.1%); and Washington, D.C. (+10.7%).

November 2021

Single Female Homeownership a Challenge, Some Think Buying is Improbable: Survey

The dream of homeownership among single female head of households has become more of a challenge following the pandemic, with 60% saying they feel homeownership is out of reach indefinitely and more than half reportedly feeling “cost burdened,” meaning they spend more than 30% of their income on housing, Freddie Mac reported in a survey released Oct. 13.

November 2021

Buyer Interest in Second Homes Climbs in September Following Summer Slump: Redfin

Demand for second homes jumped in September, up 60% over pre-pandemic levels after slightly slowing during the summer months, Redfin reported Oct. 20. Rising mortgage rates could be spurring consumers to purchase a second home before rates climb further.