News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
The New York Times / August 12, 2013
In a speech in Phoenix last Tuesday, President Obama finally entered the debate over the future of United States housing policy. But his talking points offered few details about how to reduce the government’s giant footprint in the mortgage market.
Mr. Obama vowed to keep mortgage costs affordable for first-time home buyers and working families, pleasing those who think that the government should have a large role in this arena. His call for investment in rental housing was a welcome change from past mantras that focused solely on increasing homeownership across the country.
Diana Olick / CNBC / August 5, 2013
As mortgage rates rise and refinancings fall dramatically, banks are in search of new business. That, in turn, has them easing lending standards for some borrowers, according to a new monthly survey from the Mortgage Bankers Association.
Credit availability rose 2 percent in July and is up 3 percent from May, when interest rates began their climb, according to the MBA index.
“The increase was primarily driven by increases in product offerings that allow cash-out refinancing, and some increase in offerings for borrowers with higher LTVs, or lower credit scores,” according to
John Caulfield / MULTIFAMILY EXECUTIVE / June 20, 2013
Builders and developers benefit from rising competition among financing sources.
Banks are more readily opening their wallets again to provide debt financing for multifamily for-sale and rental projects. But some banks still view this space cautiously, as they see competition now coming from an expanding host of non-bank capital sources. Other banks, while eager lenders, nonetheless are watching for signs of overbuilding, particularly on the luxury side of the spectrum, and looking for clues of where rents might be headed.
“We are guardedly optimistic about this product type,”Read More
Randyl Drummer / CoStar / June 12, 2013
Pricing Improvements Signify ‘Virtuous Cycle’ Encouraging Lending, Capital Inflows
Commercial real estate prices resumed broad-based gains in April, shaking off the effects of a seasonal slowdown in the first quarter, according to the latest CoStar Commercial Repeat Sale Indices (CCRSI) release.
The equal-weighted and value-weighted U.S. Composite Indices posted solid monthly gains in April of 1.9% and 1.1%, respectively, as market fundamentals continued to improve across all the major CRE property types.
The value-weighted U.S. Composite Index, comprisedRead More
Mark Heschmeyer / CoStar / June 3, 2013
Early Recovery Benefiting Large Developers and Larger Regional Banks
With the continued strength of the housing sector, banks are again seeing growth in demand for construction and development (C&D) loans and are starting to respond in kind.
The total amount of C&D loans on banks books at the end of the first quarter declined from $203.7 billion at the end of 2012 to $201.6 billion, however, 42% of the nation’s banks reported increases in C&D loans, according to CoStar analysis of FDIC numbers.
There were other signs of improvement as well. Noncurrent real estate constructionRead More