Fed Raises Interest Rates to Highest Level Since 2001, More Increases Possible

Originally published on July 26, 2023 by Jeff Cox for CNBC.com.

The Federal Reserve on Wednesday approved a much-anticipated interest rate hike that takes benchmark borrowing costs to their highest level in more than 22 years.

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Fed Beige Book Reveals Elevated Home Purchase Demand Stymied by Lack of Inventory

Originally published on July 12, 2023, by the Board of Governors of the Federal Reserve System.

Demand for residential real estate remains high, but low inventories of available properties continue to dampen sales, according to the latest Beige Book released by the Federal Reserve on July 12. Construction of both residential and commercial buildings declined during the same timeframe.

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COVID-19 Has Lasting Effect on Urban Real Estate: McKinsey

Originally published on July 13, 2023, by the McKinsey Global Institute.

When the COVID-19 pandemic began, it dramatically changed the way people worked, lived, and shopped in cities around the world. The starkest change was where and how they worked. Obeying lockdowns and office closures, tired of uncomfortable masks, and enabled by remote-work technology, many employees abruptly retreated from traditional offices to home offices. Many of those employees, newly freed from their daily commutes, chose to move out of urban cores. And now that fewer of them were working and living near urban stores, fewer of them shopped there. In recent months, some of those behavioral shifts have slowed. Others persist, particularly among office employees continuing to engage in hybrid work (that is, a combination of remote and in-office work).

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Supply of Low-cost Rental Apartments Drops by Nearly 4 Million: Harvard Report

Originally published on July 6, 2023, by Sophia Wedeen for the Joint Center for Housing Studies of Harvard University.

The supply of low-cost rentals fell by 3.9 million units over the last decade, according to our latest State of the Nation’s Housing report. As a new interactive tool (Figure 1) released in conjunction with the report shows, the supply of low-cost rentals decreased in every single state, leaving lower- and middle-income renters with even fewer housing options they can afford.

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Member Profile: Claire Aufrance, MAI, SRA

  • Where do you live and who do you work for?
    Greensboro, NC at Aufrance Valuations, LLC
  • How long have you been appraising?
    20+ years
  • Who was your supervisor as a Trainee and how did you meet them?
    Paul Snow, MAI (Chapel Hill, NC). I was hired right out of college (Chapel Hill) by Cody Jetton, MAI, and Paul worked for Cody. He was a tremendous supervisor, very patient and knowledgeable. I feel very fortunate to have started my career with such a fantastic supervisor.
  • What is the most unique property you’ve appraised?
    Hmm..So many unique ones. Really, all properties are unique, but several come to mind, including a fish hatchery, winery, megachurch, convention center, and on and on. I have done a lot of weird ones! Some of my favorite unique properties are industrial because I learn about all the products made in this area that I had no idea came from NC. I have also appraised unique residential properties. All of these property types certainly keep things interesting, and keep me on my toes!
  • What is a fact about you, outside of work-life, that people would be surprised to know?
    I used to be an EMT!
  • Anything else you wish to share about yourself and/or your experience as a member? 
    I was welcomed into the AI with open arms from the time of my very first meeting. I love my NCAI family and feel strongly that chapters are "the lifeblood" of the organization. I was recently at a chapter meeting and am proud to say that the traditions of our chapter are alive and well. The meeting had new faces, and I witnessed my peers being welcoming and friendly. We are all in this together, and I am proud to be part of such an outstanding chapter!

Agencies Update Policies on CRE Loan Accommodations

Originally published on June 29, 2023, by the Federal Reserve.

Federal financial institution regulatory agencies today jointly issued a final policy statement on commercial real estate loan accommodations and workouts. The updates reinforce and build on existing supervisory guidance calling for financial institutions to work prudently and constructively with creditworthy borrowers during times of financial stress.

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Home Prices Show First Annual Decline Since 2017: Realtor.com

Originally published on June 29, 2023, by Realtor.com.

The U.S. median home listing price slipped -0.9% annually in June, posting the first yearly decline since 2017, the start of Realtor.com®'s trends data, according to its June Monthly Housing Trends Report released today. At the same time, while home shoppers had more homes to choose from this month, improvement stalled as the active inventory growth rate slowed for the fourth month in a row (+7.1%) and came in well below May's +21.5% rate. 

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Participate in the Meet the Member Series

Want to be featured on the Chapter’s social media? Share a little bit about yourself through our Meet the Member (MTM) series! Reach out to PR Committee Chair Erica Butler at [email protected] if you want to participate. Check out some MTM posts here: Mike Elwell (blog); Laura Gourlay (blog); Jonathan Jones (blog).

Welcome New Members

We’d like to welcome our newest members to the Chapter!

  • Nate Feeley
  • Wendell Helms
  • William Holden-Wingate
  • Corey Lewis
  • Robin Perry

Newly Designated Members

Congratulations to our members who recently earned new designations! 

  • John Palmer, MAI, AI-GRS
  • Vanessa M. Hall, MAI, AI-GRS
  • Caitlin McCain, MAI
  • Alden Mueller, MAI
  • Keith P. Bolte, Jr., MAI, AI-GRS

NC Meets DC

In May, members Richard Early, Mike Elwell, Peter Hitchens, and Greyson Morgan attended AI’s 2023 Leadership Development and Advisory Council conference in Washington, DC. LDAC is an annual conference that brings together a group of dedicated appraisers who come together to formulate solutions to problems and challenges faced by the appraisal profession. As part of the conference, NC members met with lawmakers to discuss current and upcoming legislation topics that impact the North Carolina appraisal industry. 

Rep. Waters Reintroduces Bills to Address Homeownership Gap, Affordable Housing

Originally published on June 21, 223 by the Novogradac.

Rep. Maxine Waters, D-California, and several members of the House of Representatives today reintroduced three bills that target the affordable housing crisis, homelessness and the racial wealth and homeownership gaps in the nation. Similar versions were all introduced in 2021. The Housing Crisis Response Act of 2023 would expand U.S. Department of Housing and Urban Development (HUD) rental assistance, invest in public housing and more to provide more than $150 billion in affordable housing investments, creating 1.4 million affordable, accessible homes, helping 300,000 households afford their rent and make a national investment in homeownership for first-generation, first-time homebuyers.

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Purpose-built Student Housing Outperforms Multifamily for the First Time, Data Shows

Originally published on June 20, 2023, by Barbara Ballinger for GlobeSt.com.

The purpose-built student housing segment has been a steady winner for many developers for years, faring well even in recessionary and down periods. Students needed a place to live and didn’t always want to reside on campus, especially after freshman year. These off-campus dwellings long offered a robust list of attractive amenities seen in conventional multifamily housing, as well as comfortable apartment layouts with living and sleeping spaces typically furnished. Students are leased by a “bed” rather than a room.

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Owning Costs About $1,000 More Per Month Than Renting: Data

Originally published on June 14, 2023, by Danielle Nguyen for John Burns Research & Consulting.

One year ago, we published a piece highlighting demand shifting from owning to renting—and we’d like to give you an update. The monthly premium to own versus rent has now hit $1,030 per month, compared to $884 per month at this time last year (see note)—increasing demand for rental homes while reducing demand for homeownership.

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Artificial Intelligence Expected to Reshape Real Estate: JLL

Originally published in June 2023 by JLL.

The potential for artificial intelligence (AI) to transform businesses, industries and society has been mounting for decades. But recent advancements, have moved the science from niche to mainstream. The technology’s proficiency in writing, drawing, coding and composing has compelled corporate leaders to consider both the opportunities and threats that AI presents for their future.

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Summertime in NC

On June 22, members and guests gathered in Raleigh for the Q2 Chapter Business Meeting. Held at the StateView Hotel, Miles Hamrick, Sr., MAI, AI-GRS presented "Tax Appeal Appraisal Assignments (Some of the Do's and Do Not's)”, members approved the 2024 Slate of Nominees for Officers, leadership members provided chapter updates, and attendees enjoyed dinner and drinks while mingling with old and new friends. Check out all the photos from the event (click here!). Couldn’t make it to Raleigh? We have a fun and casual summer meet-up scheduled for July 20th in Charlotte (sign up). 

Agencies Want to Update Reconsideration of Value Process

Originally published on June 8, 2023, by the Consumer Financial Protection Bureau.

Five federal regulatory agencies today requested public comment on proposed guidance addressing reconsiderations of value (ROV) for residential real estate transactions. The proposed guidance advises on policies that financial institutions may implement to allow consumers to provide financial institutions with information that may not have been considered during an appraisal or if deficiencies are identified in the original appraisal. ROVs are requests from a financial institution to an appraiser or other preparer of a valuation report to reassess the value of residential real estate. An ROV may be warranted if a consumer provides information to a financial institution about potential deficiencies or other information that may affect the estimated value.

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Houston Top Performing Industrial Market, Cushman & Wakefield Reports 

Originally published on June 15, 2023, by Richard Berger for GlobeSt.com.

Houston was named the overall “winner” when it comes to market attractiveness when evaluated for five key tenant types, according to a new report from Cushman & Wakefield.

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300,000 Affordable Homes Needed in the US for Middle-income Buyers: NAR Report

Originally published on June 8, 2023 by Troy Green by the National Association of Realtors. 

The U.S. housing market is short more than 300,000 affordable homes for middle-income buyers, according to a new analysis from the National Association of Realtors® and Realtor.com®. The country's persistent housing inventory crunch impacts middle-income buyers more than any other income bracket.

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Agencies Seek Comments on AVM Quality Control Standards

Originally published on June 1, 2023, by the Federal Housing Finance Agency.

Six federal regulatory agencies today requested public comment on a proposed rule designed to ensure the credibility and integrity of models used in real estate valuations. In particular, the proposed rule would implement quality control standards for automated valuation models (AVMs) used by mortgage originators and secondary market issuers in valuing real estate collateral securing mortgage loans.  

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