Real Estate

Investors to build affordable housing units in Phoenix Opportunity Zones

Three projects worth $61 million are being built
Investment company Pacific Oak Capital and Defer Gain, an Arizona-based real estate development company specializing in Opportunity Zone investments, have announced their joint venture to develop, finance, and operate multi-family, commercial, and industrial income producing properties in Arizona Opportunity Zones.
Read More

Fannie Mae lowers existing home forecast, says sales will decline this year

Mortgage giant blames limited supply as builders stay on the sidelines
Fannie Mae lowered its housing forecast on Friday, saying existing home sales will decrease this year compared with 2018. It was the first time the mortgage giant projected a 2019 decline. The projection comes at a time when mortgage rates are near three-year lows and housing optimism is at an all-time high. But, there’s something that trumps low rates and elevated optimism, the mortgage giant said: Supply shortage.
Read More

HUD proposes changes to fair housing rules

Rule changes would make it more difficult to prove housing discrimination
The Department of Housing and Urban Development on Friday proposed making changes to the nation’s fair housing rules, a move that fair housing advocates claim is part of a Trump administration effort to “gut” federal protections against housing discrimination. The changes to the disparate impact rule will likely make it more difficult to prove unintentional housing discrimination. Click the headline for the full story.
Read More

Housing starts fall for third consecutive month

July housing starts fall 4%, led by a 17% plunge in multifamily
Housing starts fell 4% in July to a seasonally adjusted annual rate of 1.191 million, led by a 17% plunge in multifamily starts, according to the Department of Housing and Urban Development and the Department of Commerce. TIAA Bank Executive Vice President John Pataky said the number missed expectations for the third month in a row, extending what has been a disappointing run for the housing market.
Read More

NAR: Cheap mortgage rates are improving home affordability

Affordability jumped 10% in June from a year earlier as financing costs fell
The cheapest financing in almost three years is making it easier for Americans to buy homes. The Housing Affordability Index from the National Association of Realtors increased to 151.9 in June from 137.7 a year earlier in June. That’s a jump of 10%. A higher reading means homes are getting more affordable, per NAR’s magic sauce that measures prices, incomes and financing costs.
Read More

Has the market peaked? Builders cut new home prices to meet demand for cheaper housing

In Q2, home-sale prices for newly built homes fell 0.5% from 2018
In the second quarter of 2019, prices for newly built homes fell 0.5% from 2018 levels. This means prices for new homes reached a median of $372,900 in Q2, remaining largely unchanged from the first half of this year, according to data from Redfin. Redfin chief economist Daryl Fairweather said the moderation of new home prices is expected and confirms that builders are now shifting their focus toward offering smaller, more affordable homes.
Read More

Real estate startup Flyhomes secures $141 million and promises to buy your house

Proptech company offers "Trade Up" guarantee with Goldman Sachs-backed funding
Flyhomes, the four-year-old startup that lets people make cash offer on homes while they work to secure a mortgage, announced a new round of funding and a new service for buyers on Thursday. The Seattle-based company said it raised $141 million in debt and equity that it’ll use, in part, to grow a new part of its business that targets trade-up buyers. Some of the funding comes from Goldman Sachs’ Genesis Capital.
Read More

Forget waiting on Millennials, Gen Z is starting to buy homes

Number of Gen Z mortgage borrowers doubled in one year
Despite the general narrative surrounding the Millennial generation and home buying (that they would rather rent because they don’t want to be tied down by a mortgage), Millennials have officially entered the housing market. And now that the housing market is done waiting for Millennials, the focus shifts to what’s next, or more aptly, who’s next. Generation Z is who’s next, and there’s good news for the housing economy on that front, because new data from TransUnion shows that home buying among Gen Z is skyrocketing.
Read More