Condo sales rebound as buyers snatch up deals

A new report from Redfin revealed that condo sales rose 22.7% in October from a year earlier on a seasonally adjusted basis, after seeing a 50% drop in the spring. Single-family home sales grew 23.3% last month.

“Condos sales are rebounding because buyers are finding great deals,” said Redfin’s Chief Economist Daryl Fairweather. “Families are fleeing cities in search of more space in the suburbs, which has presented an opportunity for Millennials who are looking to become homeowners but don’t need extra bedrooms or a backyard.”

The average single-family home in the U.S. sold for an average of 17.3%, or $58,000 more than the typical condo, Redfin said. This is up from last year’s 15.4% and is the largest premium since at least 2013, when Redfin began recording this data.

In October, the median sale price of single-family homes rose 15.5% year over year, while condo sale prices rose 9.9%. Redfin also said that condos are taking longer to sell, as the average days on the market was 36. Single-family homes were on the market for 27 days.

Bidding wars on single-family homes aren’t unusual these days – 36.6% of single-family homes sold more than their listing price in October. Meanwhile, only 22.8% of condos sold over listing price.

In the metro area of Fort Lauderdale, Florida, single-family homes sold for an average of 38.3% more than condos did in October, the largest premium out of the metros in Redfin’s analysis.

In addition, Bakersfield, California had a 35.8% premium; Lakeland, Florida had a 34.3% premium; and there was a 30.3% premium in both Tucson, Arizona and Oklahoma City.

In San Antonio, single-family homes sold at a lower price than condos did, by 12.9%. In Omaha, Nebraska, single-family homes sold for 6.2% less than condos did, while in Salt Lake City single-family homes sold for 1.7% less.

The post Condo sales rebound as buyers snatch up deals appeared first on HousingWire.

Source: HousingWire Magazine

New York mutual seeks commercial bank charter

Though it is unclear why Rhinebeck Bancorp is looking to form Rhinebeck Commercial Bank, other mutual banks have pursued the strategy to work around a state law barring them from working with municipalities.
Source: American Banker

CFPB gives go-ahead to firms seeking advisory opinions

The agency finalized a policy allowing companies to submit formal requests for clarification on a regulatory issue. The bureau said it will publish the advisory rulings in the Federal Register.
Source: American Banker

The Mortgage Collaborative launches emerging technology fund

The Mortgage Collaborative, an independent cooperative network in the mortgage industry, today announced the launch of TMC Emerging Technology Fund LP, a venture capital program funded by a self-selected segment of TMC members to capture opportunities driven by the rapid pace of technological change in the mortgage sector.

Inspired by member suggestions during a CEO Roundtable session last year, the fund will pool member resources to level the playing field with the largest lenders in the mortgage industry who enjoy a scale advantage in sourcing, vetting, acquiring and adopting new technology. 

“To stay competitive in today’s market, technology adoption and integration is key.  However, the cost of customized technology solutions for small and mid-sized lenders can be prohibitive and can be difficult to scale,” TMC COO Rich Swerbinsky said. “By launching TMC Emerging Technology Fund, we are providing our members with a mechanism to get ahead of the technology adoption curve so they can reduce the cost of manufacturing loans and protect their competitive positioning.”

The fund is designed as a pledge fund to give TMC members maximum flexibility to determine their participation in each transaction based on their specific needs. TMC members will be encouraged to provide hands-on advice and direction to the fund’s portfolio companies. The Fund will seek commercial leverage by organizing and leading a syndicate of fintech-focused venture capital and private equity funds to create significantly more investing capacity – an important aspect of the program’s design.

To help facilitate the launch and management of the fund, TMC concurrently announced the appointment of Asia West, led by Sandy Selman, fund manager for TMC Emerging Technology Fund LP.

Selman previously founded and managed the Asia West Environment Fund LP – a $100 million venture capital program with a unique focus on investing in early-stage environmental technology companies in North America and Europe and growing those businesses into Asia. In his capacity as fund manager, he was responsible for deal origination, leading all due diligence activities and reporting to an Investment Committee based in Hong Kong. In addition to his venture capital experience, Selman has 15 years of investment banking experience and, more recently, spent 10 years as a tech entrepreneur. 

“I am especially excited about this partnership with TMC as their members are the actual consumers of the technology in which we plan to invest,” Selman said. “Having the market at the table when we’re vetting deals and helping portfolio companies scale is the key differentiator for this program and positions us to be a sought-after partner by funds with much greater resources thus allowing this fund to punch considerably above its weight.”

The post The Mortgage Collaborative launches emerging technology fund appeared first on HousingWire.

Source: HousingWire Magazine

Comment on Home Inspector Sued By the Seller by Sandra

We’re selling our condo in a 200 year old house and the inspector noted that the original wide pine floor in the kitchen “squeaked” when you walked on it. He also advised our buyer that the furnace was a certain age, because of the “series date” on the furnace. There were at least 50 other questionable comments on his report, including a hole in the ceiling (where we had changed the location of a swag light). How do you make a big deal out of replacing drywall in a laundry closet “as a fire-stop” when said closet is adjacent to a 6-8 foot open doorway?? Sorry, but you guys are the used car salesmen of the realty world.

Source: Working RE Magazine

What PNC has in mind for BBVA's technology

BBVA USA was one of the first U.S. banks to deploy a real-time core system and to purchase a neobank. Here’s what PNC may keep, and what it may jettison, after it acquires the U.S. unit of the Spanish banking giant.
Source: American Banker

NCUA bans two for embezzlement, larceny

The regulator issued prohibitions for former credit union employees in Virginia and Connecticut.
Source: American Banker

Banks, borrowers bristle at SBA questionnaire on large PPP loans

Lenders are worried that the Small Business Administration could use borrower responses to deny forgiveness for many Paycheck Protection Program loans that exceed $2 million.
Source: American Banker

Regulators warn banks against using Libor in new contracts

The OCC, Federal Reserve and FDIC said that a failure to adequately prepare for the transition away from Libor could undermine banks’ safety and soundness, but also extended the sunset date for many iterations of the interest rate benchmark to July 2023.
Source: American Banker

The downside of the hot 2020 housing market: rapid home-price growth

house-row-HW

Demand for housing was strong in early 2020, before the COVID-19 crisis hit. Mandated shut-down measures and the fear of what COVID would do to our economy temporarily immobilized the housing market, evinced by nine weeks of declines in the weekly purchase applications data on a year-over-year basis. Then it was as if the Housing Demographic God exerted her chronokinetic powers to snap demand back to pre-COVID levels of growth. The frozen market thawed and resumed its steady pace of growth, even making up for lost time. 

Instead of a housing crash, as many others predicted would be the lasting consequence of shut-down policies and massive job losses across the nation, the opposite happened as the 2020 U.S. housing market has been the most out-performing economic sector in the world.

However, we now have another issue to worry about — that home prices will accelerate too quickly, unrestrained by an increase in mortgage rates. As you can see below, we have deviated from the normal price growth that had been the trend in recent years.

chart-1-LM

My biggest fear for the housing market in years 2020-2024 was never a lack of demand, as the housing bubble boys have been trolling about the last eight years — it was an unhealthy rate of price growth due to demographics and low mortgage rates.
 
When demographics are good for housing, meaning we have a large number of our populace at home-buying age, demand — and thus home prices — can be moderated by higher interest rates. We were witness to this in 2018 when mortgage rates increased to 4.75%-5%, demand fell and the rate of growth of real home prices went negative, year over year.

That was then and we can clearly see this isn’t the case anymore.

Screen-Shot-2020-11-30-at-10.47.14-AM
The rest of this content is for HW+ members. Join today with an HW+ Membership! Already a member? log in

HW+ includes weekly long-form digital content, HousingWire Magazine, access to HousingStack, and free admission to all HousingWire virtual events.

Get $75 off your initial membership with coupon code “intro75”.

The post The downside of the hot 2020 housing market: rapid home-price growth appeared first on HousingWire.

Source: HousingWire Magazine