Author: admin

By Susanne Dwyer

Commercial real estate is on solid footing, with the National Association of REALTORS®’ (NAR) quarterly commercial forecast projecting continued stability in 2017. National vacancy rates in the office sector are set to decrease to 12.1 percent, while those in the industrial space and retail sectors are set to decrease to 7.1 percent and 11.2 percent, in order. The national vacancy rate in the multifamily sector is set to stand at 6.5 percent.

“Last year was the 11th year in a row of subpar GDP growth, but renewed corporate optimism leading to a focus on investment and a desperately needed boost in residential construction should pave the way for modest expansion this year of around 2.4 percent,” says Lawrence Yun, NAR chief economist. “Steady hiring and low local unemployment levels are finally supporting higher wages and increased spending, which in turn bodes well for sustained demand for all commercial property types.”

The apartment sector, according to the forecast, will continue as a top performer, as ongoing affordability and supply challenges are stalling the homeownership rate.

“Especially in the costliest metro areas, higher home prices and mortgage rates are squeezing the budget for many renters looking to buy and inevitably forcing them to sign a lease for at least another year,” Yun says.

Commercial property prices, especially those in Class A assets in larger markets, surpassed pre-crisis levels in 2016 because of aggressive bidding and lower inventory—but, according to Yun, the market could see a minor price correction as the Federal Reserve moves on the key interest rate throughout the year.

“Similar to the biggest ongoing challenges in the residential market, supply and demand imbalances continue to put upward pressure on commercial property prices as investors search for yield in smaller markets,” says Yun. “REALTORS® are increasingly citing inventory shortages as their top concern as the pace of new projects slows in large cities and middle-tier and smaller markets see a growing appetite for space.

“The positive direction for commercial real estate this year will be guided by the steadily expanding U.S. economy, which has legs to grow and continues to be one of the top economic performers and safest bets in the world,” Yun says.

For more information, please visit www.nar.realtor.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Commercial Real Estate Sector on Solid Footing appeared first on RISMedia.

…read more

From:: Finance and Economy

By Susanne Dwyer

Commercial real estate is on solid footing, with the National Association of REALTORS®’ (NAR) quarterly commercial forecast projecting continued stability in 2017. National vacancy rates in the office sector are set to decrease to 12.1 percent, while those in the industrial space and retail sectors are set to decrease to 7.1 percent and 11.2 percent, in order. The national vacancy rate in the multifamily sector is set to stand at 6.5 percent.

“Last year was the 11th year in a row of subpar GDP growth, but renewed corporate optimism leading to a focus on investment and a desperately needed boost in residential construction should pave the way for modest expansion this year of around 2.4 percent,” says Lawrence Yun, NAR chief economist. “Steady hiring and low local unemployment levels are finally supporting higher wages and increased spending, which in turn bodes well for sustained demand for all commercial property types.”

The apartment sector, according to the forecast, will continue as a top performer, as ongoing affordability and supply challenges are stalling the homeownership rate.

“Especially in the costliest metro areas, higher home prices and mortgage rates are squeezing the budget for many renters looking to buy and inevitably forcing them to sign a lease for at least another year,” Yun says.

Commercial property prices, especially those in Class A assets in larger markets, surpassed pre-crisis levels in 2016 because of aggressive bidding and lower inventory—but, according to Yun, the market could see a minor price correction as the Federal Reserve moves on the key interest rate throughout the year.

“Similar to the biggest ongoing challenges in the residential market, supply and demand imbalances continue to put upward pressure on commercial property prices as investors search for yield in smaller markets,” says Yun. “REALTORS® are increasingly citing inventory shortages as their top concern as the pace of new projects slows in large cities and middle-tier and smaller markets see a growing appetite for space.

“The positive direction for commercial real estate this year will be guided by the steadily expanding U.S. economy, which has legs to grow and continues to be one of the top economic performers and safest bets in the world,” Yun says.

For more information, please visit www.nar.realtor.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Commercial Real Estate Sector on Solid Footing appeared first on RISMedia.

…read more

From:: Real Estate News

By Susanne Dwyer

Mortgage rates showed minimal movement this week, marking the fourth week in a row of negligible change, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage averaged 4.16 percent with an 0.5 point, a one point increase from 4.15 percent the previous week.

“In a short week following Presidents Day, the 10-year Treasury yield fell about eight basis points; however, the 30-year mortgage rate rose one basis point to 4.16 percent,” says Sean Becketti, Freddie Mac chief economist. “This week’s survey once again displays the disconnect between mortgage rates and Treasury yields—a result of continued uncertainty.”

According to the survey, the 15-year fixed-rate mortgage averaged 3.37 percent with an 0.5 point, a two-point increase from 3.35 percent the previous week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.16 percent with an 0.4 point, a two-point decrease from 3.18 percent the previous week.

Source: Freddie Mac

For the latest real estate news and trends, bookmark RISMedia.com.

The post Mortgage Rates Show Minimal Movement appeared first on RISMedia.

…read more

From:: Finance and Economy

By Susanne Dwyer

Mortgage rates showed minimal movement this week, marking the fourth week in a row of negligible change, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage averaged 4.16 percent with an 0.5 point, a one point increase from 4.15 percent the previous week.

“In a short week following Presidents Day, the 10-year Treasury yield fell about eight basis points; however, the 30-year mortgage rate rose one basis point to 4.16 percent,” says Sean Becketti, Freddie Mac chief economist. “This week’s survey once again displays the disconnect between mortgage rates and Treasury yields—a result of continued uncertainty.”

According to the survey, the 15-year fixed-rate mortgage averaged 3.37 percent with an 0.5 point, a two-point increase from 3.35 percent the previous week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.16 percent with an 0.4 point, a two-point decrease from 3.18 percent the previous week.

Source: Freddie Mac

For the latest real estate news and trends, bookmark RISMedia.com.

The post Mortgage Rates Show Minimal Movement appeared first on RISMedia.

…read more

From:: Real Estate News

Fannie Mae announced Friday that it executed its second front-end credit risk-sharing deal through its Credit Insurance Risk Transfer program. The deal provides insurance coverage on a maximum coverage of approximately $375 million from pools of single-family mortgages that carry a combined unpaid principal balance of approximately $15 billion. …read more

From:: Real Estate Wire

After nearly 10 years under conservatorship, reforming Fannie Mae and Freddie Mac is finally high up on the President’s priority list. However, there is still no official plan around what exactly this reform will look like. The CEO of the largest trade group in the mortgage finance space gives his take on what the future for reform will likely look like. …read more

From:: Real Estate Wire