The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

A real estate professor weighs in on the future of MLSs

According to research done by Sonia Gilbukh, a real estate professor at Baruch College, there are some reasons to be concerned about the current number of real estate agents and the future of MLSs.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Mortgage

20% of nationÕ homes are now losing value

Where are the strongest and weakest markets going forward?

The nation’s home prices are still on the rise, but the rate of growth is slowing considerably. According to VeroFORECAST from Veros Real Estate Solutions, home prices are expected to rise 2.5% in the nation’s 100 top metro areas between now and June 1, 2015.

That’s down from the last VeroFORECAST, released in May, which projected homes to appreciate by 3.4% for the 12-month period ending March 31, 2015.

This marks the eighth consecutive quarter where the index has shown forecast appreciation, but the pace has continued to slow down, according to Eric Fox, Veros’ vice president of statistical and economic modeling and developer of VeroFORECAST.

In Veros’ previous forecast, the rate of home price appreciation dropped to 3.4% from 5.1% in the previous quarter.

According to Veros’ data, homes in approximately 80% of the country’s real estate markets are expected to appreciate in value in the next 12 months. The remaining 20% of the markets are expected to depreciate in the next 12 months.

Additionally, all but the most upbeat markets are slowing in their value improvements, Veros said.

All five of the markets that Veros projects to the strongest in terms of price appreciation over the next 12 months are in either California or Texas.

“San Jose housing supplies are down and San Francisco is seeing a serious housing shortage,” Fox said. “Inventories in both are down 70% from their peak in 2008 and demand is outstripping supply, leading to price run-ups and decreased affordability despite low interest rates. There just aren’t enough houses available that people can afford to buy, so those that remain are hotly contested.”

Here are the five markets that Veros thinks will appreciate the most in the next year:

1.     San Jose-Sunnyvale-Santa Clara, California – 10.6% increase

2.     San Francisco-Oakland-Fremont, CA – 10.5% increase        

3.     Austin-Round Rock, Texas –10% increase

4.     San Diego-Carlsbad-San Marcos, CA – 9% increase

5.     Houston-Sugar Land-Baytown, TX – 8.9% increase

On the other end of the spectrum, markets in parts of Illinois, New Jersey and Pennsylvania are forecast to be among the poorest performers. Here are the five markets that Veros expects appreciation to be the weakeast in the next year:

1.     Rockford, Illinois – 3.4% decrease

2.     Trenton-Ewing, New Jersey – 2.9% decrease

3.     Scranton-Wilkes-Barre, Pennsylvania – 2.6% decrease

4.     Poughkeepsie- Newburgh-Middletown, New York – 2.5% decrease

5.     Atlantic City, NJ – 2.2% decrease

In the previous quarter’s update, the weakest market, Atlantic City, tracked at -2.5%, faring better than this quarter’s weakest, Rockford, Illinois, at -3.4%.

“Rockford real estate is experiencing hard times, going from -2.6% to -3.4% in a single quarter,” Fox said. “The culprit is its 10.4% unemployment rate coupled with a flat population growth trend.

“These are familiar and persistent themes among the weakest markets. In summary, we are still seeing good appreciation in the top markets, but there is definite slowing overall.”

Most Popular Articles

Lenders mandated to use FHA Catalyst for appraisals

Starting March 14, 2022, the Federal Housing Administration will require all lenders to use FHA Catalyst for appraisals.

Sep 21, 2021 By

Latest Articles

Existing home sales pop the 2021 housing bubble boys

So far this year, every existing home sales print has been higher in 2021 than the closing level of sales in 2020, which was 5,640,000. Even with the unhealthy home price gains that we have seen in the last two years, more Americans have bought homes with mortgages in 2020 and 2021 than any single year from 2008-2019, and this looks perfectly normal with our current demographics. HW+ Premium Content

Sep 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please