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NC Chapter Off To A Busy 2022

Members and nonmembers wasted no time kicking off the new year and starting completing their 2-year USPAP requirement with an in-person USPAP class in Raleigh this past January. The Chapter has held 4 education classes so far and has 5 upcoming classes planned for the Spring and Summer.

 Earlier this month, members met up for a breakfast meeting with NCDOT Area 5 Appraiser Randy Guess who spoke with attendees about eminent domain appraising and working for the NCDOT as a fee appraiser. And last week, over 80 members and guests gathered via zoom to hear Residential Certified Appraiser, Joyce Pusey, SRA, AI-RRS, go over the basics of the ANSI requirements and rules that will be required on April 1 by Freddie Mac and Fannie Mae. 

Conflict in Ukraine Likely to Effect US Housing: Fannie Mae

Originally published on March 17, 2022, by Matthew Classick for Fannie Mae.

The Russian invasion of Ukraine, and its implications for the global economy, have added to growing inflation pressures and ongoing supply chain difficulties as monetary policy tightening begins, according to the March 2022 commentary from the Fannie Mae (FNMA/OTCQB) Economic and Strategic Research (ESR) Group. The ESR Group now projects full-year 2022 real GDP growth of 2.3 percent, down from last month’s projected 2.8 percent, but acknowledges that many of its forecast’s base assumptions, including a near-term resolution to the acute global economic effects of the Russian invasion of Ukraine, represent substantial downside risks to both the macroeconomic and housing outlooks. Prior to the conflict, inflation, as measured by the Consumer Price Index, hit a 40-year high and the Federal Reserve was poised to begin a course of significant monetary tightening. According to the ESR Group, the central bank’s already difficult task of enacting a “soft landing” – that is, raising rates to combat inflation without precipitating economic contraction – has been further complicated by the recent geopolitical developments. Despite the substantial uncertainty, the ESR Group continues to expect the Federal Reserve to raise the federal funds rate five times in 2022 and eight times total through 2023.

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Negative Equity for US Homeowners Hits 12-year Low, CoreLogic Report Reveals

Originally published on March 10, 2022, by MBA NewsLink Staff for Mortgage Bankers Association.

CoreLogic, Irvine, Calif., said just 2.1% of U.S. homeowners with a mortgage were underwater as of the fourth quarter, the lowest level since 2010, as borrowers gained more than $3.2 trillion in equity in 2021.

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Lenders Concerned About Profits Amid Higher Rates, Fewer Refis: Fannie Mae Survey

Originally published on March 10, 2022 by Matthew Classick for Fannie Mae.

A majority of mortgage lenders continue to expect near-term profitability to decrease amid rising mortgage rates and declining refinance activity, according to Fannie Mae's (FNMA/OTCQB) Q1 2022 Mortgage Lender Sentiment Survey® (MLSS). According to the survey, 75% of mortgage lenders believe profit margins will decrease in the next three months, up from 65% in the prior quarter, while 17% believe profits will remain the same and 9% believe profits will increase. Competition from other lenders, market trend changes, and consumer demand were the top reasons cited for the decline in profitability expectations. Mortgage lenders also grew more pessimistic about the larger economy in Q1 2022, with 59% now reporting that the economy is on the wrong track, compared to 29% in Q1 2021.

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CRE Prices Soar; Industrial Properties Set Record: Report

Originally published on March 6, 2022 by Michael Tucker for Mortgage Bankers Association.

Real Capital Analytics, New York, reported U.S. commercial property price growth continued to appreciate at a double-digit pace in January.

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'Alarming' Obsolescence Drives Office Building Repricing: Data

Originally published on March 9, 2022 by Randall Zisler, Ph.D. for Zisler Capital Associates.

A new economic analysis of the state of U.S. office buildings reveals that as much as 70% of the total inventory faces an alarming period of repricing due to fast-paced obsolescence, accelerated by COVID but exacerbated by evolving environmental and health standards. The underlying factors, that will get stronger over the long term, are strict new government standards for energy efficiency and growing tenant demands for healthy, safe, and energy-efficient office environments with ample modern amenities.

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Many Homes Sell for More than $100,000 Over Asking: Redfin

Originally published on March 8, 2022, by Isabelle Novak for Redfin.

Nationwide, 5,897 homes sold for at least $100,000 over asking price at the beginning of this year, up from 2,241 during the same period last year, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

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Mortgage Rates Fall Amid Global Tensions and Inflationary Concerns: Freddie Mac

Originally published on March 3, 2022, by Angela Waugaman for the Freddie Mac.

Freddie Mac today released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.76 percent.

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‘Zombie’ Properties Increase as Foreclosures Rise: Data

Originally published on February 24, 2022, by ATTOM Staff for ATTOM Data.

 ATTOM, a leading curator of real estate data nationwide for land and property data, today released its first-quarter 2022 Vacant Property and Zombie Foreclosure Report showing that 1.4 million (1,354,579) residential properties in the United States sit vacant. That represents 1.4 percent, or one in 73 homes, across the nation.

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Office Tenants Want New Construction: Cushman & Wakefield

Originally published on February 16, 2022, by Michael Boonshoft for Cushman & Wakefield.

Cushman & Wakefield, a leading global real estate services firm, today released a construction report, surveying 24 select office projects currently under construction in 12 major U.S. markets and Toronto. The report finds that new construction is commanding a significant rent premium of 64% over average Class A submarket rents, and 20% over existing top-tier trophy assets. 

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Nearly 1 in 10 US Homes Affected by Natural Disasters in 2021: CoreLogic Report

Originally published on February 17, 2022, by the Hazard HQ Team for CoreLogic.

Natural disasters are increasing in frequency and severity, impacting regions underprepared to handle an economic disruption, job displacement, and the destruction of real estate assets.

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Mortgage Rates on the Rise Amid High Inflation, Freddie Mac Reports

Originally published on February 17, 2022, by Angela Waugaman for Freddie Mac.

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.92 percent.

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Investment in Life-science Real Estate Surges: CBRE

Originally published on February 16, 2022, by Cole Mortland for CBRE.

    Investment in U.S. life sciences real estate increased by 62 percent last year, with further growth of at least 10 percent expected in 2022, according to a CBRE research report.

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    Tertiary Markets Lure Investors Due to High Yields and Growth Opportunities: Data

    Originally published on February 14, 2022, by Beth Mattson-Teig by WealthManagement.com.

    Apartment investors are jumping at the chance to buy properties in Manhattan at 6 percent cap rates—Manhattan, Kansas, that is. Buyers that used to dismiss such tertiary markets as “flyover country” are now stopping to take a second look.

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    Foreclosure Activity Highest Since COVID Outbreak: Data

    Originally published on February 10, 2022 by the ATTOM Staff for ATTOM.

    ATTOM, licensor of the nation’s most comprehensive foreclosure data and parent company to RealtyTrac (www.realtytrac.com), the largest online marketplace for foreclosure and distressed properties, today released its January 2022 U.S. Foreclosure Market Report, which shows there were a total of 23,204 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 29 percent from a month ago and 139 percent from a year ago.

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    Women, Millennials Driving Black Homeownership: Realtor.com

    Originally published on February 9, 2022, Jiayi Xu for Realtor.com.

    Highlights

    Black homebuyers:

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    Supply Chain, Interest Rates Put Home Affordability at 10-year Low: NAHB Index

    Originally published on February 8, 2022 by Rose Quint for NAHB.

    Supply-chain bottlenecks that put upward pressure on home prices along with rising interest rates contributed to housing affordability falling to a 10-year low.  The likelihood of higher interest rates in the months ahead (as the Federal Reserve moves to tighten interest rates) along with ongoing production challenges threaten to drive housing affordability even lower in 2022.

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    Fannie Mae Settles Suit Over Homes in Minority Neighborhoods

    Originally published on February 7, 2022, by Lester Davis for NFHA.

    Today, the National Fair Housing Alliance (NFHA) and 20 fair housing organizations throughout the country reached a landmark $53 million agreement with Fannie Mae (formally known as the Federal National Mortgage Association). The settlement resolves the groups’ claims that Fannie Mae treated homes it owned in majority-Black and Latino communities unfavorably. The settlement will help rebuild and strengthen communities of color in 39 metropolitan areas. In the case, the plaintiffs alleged that Fannie Mae maintained and marketed its foreclosed homes in predominantly White neighborhoods while allowing homes in predominantly Black and Latino neighborhoods to fall into disrepair and that this differential treatment exacerbated the damage caused by the 2008 mortgage crisis and impeded recovery from the crisis in neighborhoods of color. The case was the first time a federal court confirmed the nation’s fair housing laws cover the maintenance and marketing of Real Estate Owned (REO) properties.

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    Single-tenant Net Lease Cap Rates Tick Up in Fourth Quarter: The Boulder Group

    Originally published by The Boulder Group on February 2, 2022.

    Cap rates in the single-tenant net lease retail and industrial sectors increased to 5.88% and 6.77%, respectively, during the fourth quarter, a slight increase from the historically low rates reported during the previous quarter, The Boulder Group reported Feb. 3 in its Q4 2021 Net Lease Market Report. Cap rates for net lease office properties remained at 6.8%.

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    US Hotel Recovery Continues, Data Shows

    Originally published on January 20, 2022, by Haley Luther for STR Global.

    The U.S. hotel sector reported an average daily rate of $124.67 per available room in 2021, which is still 4.8% lower than what was reported pre-pandemic, but an improvement over 2020, STR reported Jan. 20. In terms of occupancy, Tampa, Florida, reported the nation’s highest annual rate of 68.4% while Minneapolis had the lowest rate of 44.4%

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