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Office, Industrial and Apartment Values Down, Retail and Hotels Up: NCREIF

Originally published on April 28, 2023 by the Mortgage Banker's Association.

The National Council of Real Estate Investment Fiduciaries, Chicago, said its quarterly Property Index showed aggregate market values of properties declined for the third straight quarter; returns were negative for the second straight quarter.

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Lack of Homes for Sale Helping to Maintain High Prices: Redfin

Originally published on April 28, 2023, by Ally Braun for Redfin.

New listings are down more than 20% from a year ago as homeowners hang onto low mortgage rates, causing buyers to snap up homes quickly and keeping prices from falling further.

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Office Buildings in Big Cities Most at Risk: Goldman Sachs

Originally published on April 25, 2023, for Goldman Sachs.

Big office buildings in large U.S. cities are the most at risk from turmoil in commercial real estate, according to Goldman Sachs Research. There are signs that smaller offices in suburbs, as well as newer buildings in central businesses districts, could be more insulated from the stress.

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Banks Worried About Falling CRE Values, Officials Say

Originally published on April 28, 2023, by Henry Simpson for US Today.

US banks are increasingly concerned about falling commercial property valuations and the risk they pose to lenders’ balance sheets, senior officials said this week.

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Home Sales Decline in March Amid Tight Inventories: NAR

Originally published on April 27, 2023, by Lauren Cozzi for the National Association of Realtors.

Pending home sales decreased in March for the first time since November 2022, according to the National Association of REALTORS®. Three U.S. regions posted monthly losses, while the South increased. All four regions saw year-over-year declines in transactions.

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Cloud Computing, AI Tech Boosting Data Center Growth: JLL

Originally published on April 20, 2023, by Michael Tucker for the Mortgage Banker's Association.

Mass adoption of cloud computing and artificial intelligence is driving exponential growth for data centers, reported JLL, Chicago.

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Bipartisan Legislation Targets Appraisal Licensing Modernization

Originally published on April 26, 2023, by The Appraisal Institute. 

The Portal for Appraisal Licensing Act, known as the PAL Act, was reintroduced in the House of Representatives on April 20. The bipartisan legislation is intended to modernize the real estate appraisal licensing system to reduce costs and cut red tape for appraisers and those who use the services of appraisers. 

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FHFA Seeks Comments on Proposed Fair Housing Rule for GSEs

Originally published on April 19, 2023, for the Federal Housing Finance Agency.

Today, the Federal Housing Finance Agency (FHFA) announced that it is seeking comment on a proposed rule that would formalize many of the Agency’s existing practices and programs regarding fair housing and fair lending oversight of its regulated entities.

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Foreclosure Activity Climbs During First Quarter: ATTOM Data

Originally published on April 19, 2023, by the ATTOM Staff.

ATTOM, a leading curator of land, property, and real estate data, today released its Q1 2023 U.S. Foreclosure Market Report, which shows a total of 95,712 U.S. properties with a foreclosure filings during the first quarter of 2023, up 6 percent from the previous quarter and up 22 percent from a year ago.

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Concerns Over Small-cap vs. Large-cap CRE Performance Unwarranted: Boxwood Means

Originally published on April 17, 2023, by Michael Tucker for the Mortgage Banker's Association.

Small-cap commercial real estate appears to be in better shape than the larger CRE market, reported Boxwood Means LLC, Stamford, Conn.

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

Originally published on April 12, 2023, by the Boulder Group.

Cap rates in the single-tenant net lease sector increased during the first quarter, marking four consecutive quarters of growth, The Boulder Group reported April 6 in its Q1 2023 Net Lease Market report. Industrial cap rates rose to 6.77% while retail and office cap rates reached their highest level since the third quarter 2020 at 6.05% and 7%, respectively.

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AI Letter to FHFA Critical of Value Acceptance Program

Originally published on April 19, 2023, by the Appraisal Institute.

The Appraisal Institute on April 13 sent a letter to Federal Housing Finance Agency Director Sandra Thompson that was critical of Fannie Mae’s “value acceptance” program. AI expressed its concerns about the program's potential effect on the valuation profession. 
 
Specifically, AI said it was concerned that the value acceptance program is creating an alternative workforce of property data collectors that may negatively affect aspiring appraisers’ ability to enter the valuation profession. 
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Hospitality Recovery Clouded by Underperforming Upscale Properties, Data Shows 

Originally published on April 11, 2023, by Michael Tucker for The Mortgage Banker's Association.

U.S. hotels have performed well overall since the pandemic, but upscale properties report higher commercial mortgage-backed securities delinquencies than more modest hotels, reported KBRA, New York.

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Remote Work, Rising Home Prices Still Influence Population Migration, Data Reveals

Originally published on April 5, 2023, by Adam Ozimek and Connor O'Brien for the Economic Innovation Group.

Key Findings

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FHFA to Host Second ASC Hearing on Appraisal Bias

Originally published on April 6, 2023, by the Federal Housing Finance Agency.

The Federal Housing Finance Agency FHFA) will host the Appraisal Subcommittee (ASC) on Friday, May 19, 2023, for its second public hearing on appraisal bias in coordination with ASC member agencies. The intent of this hearing is to explore the current regulatory framework for the appraisal industry by focusing on appraisal standards, appraiser qualification criteria, barriers to entry into the profession, and appraisal practices.

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Baby Boomers Now Largest Generation of Homebuyers: NAR

Originally published on March 28, 2023, by Spencer High for the National Association of Realtors. 

The share of baby boomers has surpassed millennials and now makes up the largest generation of home buyers, according to the latest study from the National Association of Realtors®.

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US Bank and Supervisory Rules May be too Loose and Require Review, Yellen Says

Originally published on March 30, 2023, by David Lawder for Reuters.com.

 U.S. Treasury Secretary Janet Yellen said on Thursday that banking regulation and supervisory rules need to be re-examined in the wake of the Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) failures to ensure current banking system risks are addressed.

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CRE Values to Drop as Banks Dump Failed Assets: Report

Originally published on April 3, 2023, by Jack Rogers for GlobeSt.com.

With interest rates still rising, prices retreating, and credit evaporating—and a stressed-out banking system moving to shore up balance sheets—expect more fire sales of older CMBS loans and acceleration of plunging CRE values in markets across the US.

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Multifamily to Face Challenges This Year, Especially in the Sunbelt, Data Shows

Originally published on March 27, 2023, by Courtney Fingar for Globest.com.

Multifamily is facing negative headwinds this year and into the next in the form of outsized supply growth and weak demand drivers, according to PGIM Real Estate’s Quarterly Insights report.

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Resources Issued for Redesigned Uniform Appraisal Dataset

Originally published on March 29, 2023, by the Uniform Appraisal Dataset Advisory Group.

Uniform Appraisal Dataset Redesign Begins Rollout Phase

The Uniform Appraisal Dataset (UAD) and Forms Redesign has taken a big step by announcing the release of the implementation resources. Freddie Mac and Fannie Mae (the GSEs) have worked on the UAD redesign since 2018, leveraging extensive stakeholder input to update the appraisal dataset, align it with current mortgage industry data standards, and replace the GSE appraisal forms with a single data-driven, flexible, and dynamic appraisal report for any residential property type. To begin the multiyear rollout phase, the GSEs have posted an industry playbook, technical specifications, and sample appraisal reports.

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