Posts Tagged ‘real estate’

CMBS Delinquency Rates, Loan Prices Trend Lower

Posted on November 06, 2017 by Laura Lam

Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, released its October 2017 U.S. CMBS Delinquency Report last week. The Trepp CMBS Delinquency Rate fell again in September, as more previously delinquent loans continue to be resolved. The delinquency rate for U.S. commercial real estate loans in CMBS is now 5.21%, a drop of 19 basis points from September. For the first time in 2017, the year-to-date level is lower than the final 2016 delinquency reading. “For the past few months, we’ve been saying that further declines in the…

Consumers Still Overly Optimistic of Home Values

Posted on September 20, 2017 by Laura Lam

Homeowners continue to overestimate their home values, however the gap continues to narrow, according to the latest National Home Price Perception Index (HPPI) from Quicken Loans.  The index, which compares homeowners estimates and the appraised home values, showed appraised home values came in 1.35% lower than homeowner estimates in August. This gap is smaller than July’s gap of 1.55%.  This closing gap is due, in part, by the increase in appraised values which ticked up 0.19% in August. This is up 2.64% from August of last year. “As the sun sets on the summer, some of the intense competition for housing also…

Home Flipping Volume Rises to 9-Year High

Posted on June 19, 2017 by Laura Lam

ATTOM Data Solutions’ Q1 2017 U.S. Home Flipping Report revealed that 43,615 single family homes and condos were flipped during Q1 2017, which was an 8% decrease from the previous quarter and a 6% decrease from a year ago. Home flips in Q1 2017 accounted for 6.7% of all single family home and condo sales during the quarter, up from 5.8% in the previous quarter and unchanged from a year ago. A home flip is defined as a property that is sold in an arms-length sale for the second time within a 12-month period.  One-third (33.3%) of all single family…

Property Cash Sales to Hit Pre-Crisis Levels

Posted on March 09, 2017 by Laura Lam

While previous estimates showed cash and distressed sales hitting their pre-crisis marks in 2018 or even 2019, the newest report estimates that the market could see pre-crisis levels as soon as this Summer, according to a new report from CoreLogic.  Cash sales accounted for 32.4% of total home sales in November, which, while up from October’s 31.8%, is down 4.5% annually.  Before the housing crisis, cash sales averaged about 25%, a rate cash sales could hit by mid-2017 if the rate continues to fall at the same pace it did in November. Real estate owned sales held the highest share of cash…

Housing Confidence Reaches All-Time High

Posted on March 08, 2017 by Laura Lam

The Fannie Mae Home Purchase Sentiment Index (HPSI)  increased by 5.6 percentage points in February to 88.3, a new all-time high. The report found that 5 of the 6 components that comprise the HPSI were up, and 3 hit record highs. The net share of Americans who reported that now is a good time to buy rose 11 percentage points, while the net share who believe that now is a good time to sell rose 7 percentage points. Consumers also demonstrated greater confidence about not losing their jobs, with the net share rising 9 percentage points. “The latest post-election surge…

Down Payments Eat Up Large Chunk of Income

Posted on January 31, 2017 by Laura Lam

To meet a 20% down payment, homebuyers on average have to spend more than two-thirds of the average annual income, according to a report from Zillow.  A 20% down payment for a median-price home valued at $192,500 will cost $38,500. In some of the larger and more expensive markets, including the San Francisco and Los Angeles metropolitan areas, buyers may need to pay more than 180% of the average annual income to afford a 20% down payment on a median-priced home. “Saving enough cash for a down payment is a major barrier to homeownership, especially in expensive markets, where a…

Luxury Apartment Boom to Cool Off in 2017

Posted on January 11, 2017 by Laura Lam

Landlords of upscale properties across the U.S. are bracing for rough conditions in 2017 that will likely force them to slash rents and offer deep concessions as a glut of supply brings a 7-year luxury-apartment boom to an end.  The turnaround follows a more-than-26% jump in U.S. apartment rents since early 2010, far outstripping inflation and income growth. But in 2016, rents rose a modest 3.8%, a significant drop from the recent high of 5.6% year-to-year growth in the third quarter of 2015, according to a recent report by MPF Research. MPF Vice President Jay Parsons said he expects little or no…

Existing Homes Fall to 7-Month Low

Posted on October 17, 2016 by Laura Lam

Contracts to purchase previously owned homes fell to a seven-month low in August, held back by a tight supply in the housing market, according to a recent report from the National Association of Realtors.   Pending home sales fell 2.4% (the median forecast was for no change) after a revised 1.2% increase in July. The index dropped to a seasonally adjusted 108.5, the lowest since January, from 111.2 in July. Contract signings rose 4% from August 2015 on an unadjusted basis. The fall in contract signings was the third in four months, adding to signs that a relative paucity of available homes…

Longest Time to Break Even on a Home?

Posted on June 21, 2016 by Laura Lam

It takes nearly 4 years to get to the point where it makes more sense to buy than rent a home in San Diego County, the longest time of any metro area in the nation, according to a recent Zillow study.  The real estate website ranked the top 35 metro areas for the time it takes to hit a break-even point – the number of years you need to own and live in a home until it becomes more financially advantageous than renting the same house. The average for the nation, in the first quarter of this year, was 1…

Multifamily Outlook: Rent Growth to Remain High

Posted on June 09, 2016 by Laura Lam

A new national market outlook from Yardi® Matrix forecasts that jobs and population growth will spur rent growth of about 5% in 2016.  The report, “Multifamily Votes for ‘More of the Same,’” predicts that long-term demographic forces in population growth, employment and demographic trends bode well for continued rent growth. The report predicts growth in 2016 will trail the 6.3% rate recorded in 2015 due to such factors as stock market volatility, depressed oil prices and weak economic growth outside the U.S. The capital markets could also be a factor, with a record total volume of multifamily debt. Yardi Matrix…