Category Archives: Market Update

REUTERS | U.S. housing bill passes Senate panel but unlikely to become law | Reuters

BY Margaret Chadbourn, Reuters

(MAY 15, 2014) – A Senate panel on Thursday approved legislation to wind down Fannie Mae and Freddie Mac and redesign the U.S. mortgage finance system, but sparse support among Democrats means the measure is unlikely to make it into law.

via U.S. housing bill passes Senate panel but unlikely to become law | Reuters.

Apartment REITs returned to 12.75% in Q1

[CNBC, 04/02/2014]  a lot of folks thought that the housing recovery would weaken rental demand and in fact, that sentiment hit the apartment reits pretty hard last year. investors were concerned about overbuilding. fast forward to the first quarter of this year. rental demand is still very strong. vacancies down 20 basis points to just 4% according to reit. rents continue to grow up over 3% from a year ago. they would be higher but landlords say that weak income growth is holding them in check. so with all that, it seems that investors have come back to apartment reits this quarter with a vengeance. the sector returned 12.75% in q-1 making it the top yielding of all commercial reit sectors.

via Apartment REITs returned to 12.75% in Q1.

How Proposed Johnson/Crapo Legislation Could Affect Multifamily | Multi-Housing News Online

By Jessica Flur, Senior Editor

MULTI-HOUSING NEWS ONLINE

Washington, D.C.—Recently Senate Banking Committee Chairman Tim Johnson (D) and Ranking Member Mike Crapo (R) drafted the Federal Housing Administration Solvency Act of 2013. If passed, this bill would have a direct impact on Fannie Mae and Freddie Mac and calls for the creation of a new enterprise called the Federal Mortgage Insurance Corporation (FMIC).

MHN talks to Willy Walker, CEO of Walker & Dunlop, about this new proposed legislation and how the bill could affect multifamily if it passes.

via How Proposed Johnson/Crapo Legislation Could Affect Multifamily | Multi-Housing News Online.

Economy Watch: Home Sales Edge Down in February | Multi-Housing News Online

By Dees Stribling, Contributing Editor

MULTI-HOUSING NEWS

Existing home sales dropped by 0.4 percent month-over-month in February, according to the National Association of Realtors on Thursday, to an annualized rate of 4.6 million units, compared with 4.62 million in January. The February 2014 rate is also 7.1 percent lower than the same month last year. In fact, it was the lowest monthly rate since July 2012.

via Economy Watch: Home Sales Edge Down in February | Multi-Housing News Online.

December Existing-Home Sales Rise, 2013 Strongest in Seven Years | realtor.org

WASHINGTON (January 23, 2014) – Existing-home sales edged up in December, sales for all of 2013 were the highest since 2006, and median prices maintained strong growth, according to the National Association of Realtors®.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 1.0 percent to a seasonally adjusted annual rate of 4.87 million in December from a downwardly revised 4.82 million in November, but are 0.6 percent below the 4.90 million-unit level in December 2012.

via December Existing-Home Sales Rise, 2013 Strongest in Seven Years | realtor.org.

Fannie, Freddie profits give little reason to shut them down | Reuters

(Reuters) – A drive to enact legislation to dismantle Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) has stalled after the government-run companies chalked up a string of quarterly profits and groups banking on their survival rallied to their cause.

via Fannie, Freddie profits give little reason to shut them down | Reuters.

US Real Estate Market Ripening

A new report from Fannie Mae shows that everyone in the real estate market is primed for action, from buyers and sellers to the banks that make the deals possible. Fannie Mae’s latest survey indicates banks are easing up on lending restrictions, while buyers and sellers are becoming more engaged as prices and values increase and the market strengthens. A majority of survey takers believe home prices will continue to rise, although not as fast as the current pace, but even so the sentiment is expected to help keep the recovery on track.

via US Real Estate Market Ripening.

Special Report: The Leading and Lagging Apartment Markets Around the Country | Multi-Housing News Online

Three sluggish markets that Witten advises to be careful of include Virginia Beach, Va., which has demand challenges; Metro D.C., where developers are building for a demand that isn’t there; and Raleigh/Durham, N.C., which is also demand challenged. But Witten made sure to mention that developers and investors shouldn’t write off these metros completely.

via Special Report: The Leading and Lagging Apartment Markets Around the Country | Multi-Housing News Online.

Risks to Multifamily Overbuilding Averted, For Now | ReisReports

 

 

Earlier this year, there were signs that construction would spike in 2013, in the order of 150,000 to 200,000 units. Developers have since postponed many projects to 2014, so that 2013 figures hover closer to 130,000 units – not far off from the pre-recession 10-year annual average of around 125,000 units. The “bubble” now shows up in 2014, but if economic growth ramps up, then additional supply will most likely be absorbed relatively painlessly.

via Risks to Multifamily Overbuilding Averted, For Now | ReisReports.