Data Finds Strength in Residential and Commercial Real Estate – NMP Skip to main content

Data Finds Strength in Residential and Commercial Real Estate

Phil Hall
Nov 24, 2015
As the nation gets ready for the Thanksgiving break, both the residential and commercial real estate industries received a healthy dose of pre-holiday good news

As the nation gets ready for the Thanksgiving break, both the residential and commercial real estate industries received a healthy dose of pre-holiday good news.

The latest S&P/Case-Shiller Home Price Indices found gains in housing prices. The S&P/Case-Shiller U.S. National Home Price Index saw a 4.9 percent annual increase in September versus a 4.6 percent increase in August. The 10-City Composite increased five percent year-over-year while the 20-City Composite’s year-over-year gain was 5.5 percent for the same period.

The greatest year-over-year increases were found in San Francisco (up 11.2 percent), Denver (up 10.9 percent) and Portland (up 10.1 percent). Seventeen cities reported greater price increases in the year ending September, while Phoenix’s September gain of 5.3 percent was that market’s tenth consecutive increase in annual price gains.

David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, predicted that housing will remain strong even if the Federal Reserve hikes rates next month.

“With unemployment at five percent and hints of higher inflation in the CPI, most analysts expect the Federal Reserve to raise its Fed Funds target range to 25 to 50 basis points, the first increase since 2006,” Blitzer said. “While this will make news, it is not likely to push mortgage rates far above the recent level of four percent on 30 year conventional loans. In the last year, mortgage rates have moved in a narrow range as home prices have risen; it will take much more from the Fed to slow home price gains.”

“The housing market’s fundamentals remain strong, and we expect moderate home price appreciation to continue—supported by moderate income growth and historically low interest rate," said Genworth Mortgage Insurance Chief Economist Tian Liu. "We’re glad to see the continued upward trajectory in home price carry into the latter half of the year.”

On the commercial real estate side, the National Association of Realtors’ (NAR) quarterly forecast is pointing to a decrease in office vacancy rates (a predicted 0.8 percent drop to 14.8 percent) and in industrial space (a predicted 1.4 percent drop to 9.7 percent). However, NAR forecasts a rise in multifamily vacancies over the next year, from 6.1 percent to 7.3 percent.

“The best days for multifamily housing could be winding down as new construction has already surpassed historical averages,” said NAR Chief Economist Lawrence Yun. “This sector has been the industry’s top performer over the past several years as a result of younger households struggling to become homeowners and the demand for apartments far exceeding supply in many markets.”

Nov 24, 2015
Manufactured Housing: The New Affordable Alternative

While the housing market is grappling with widespread affordability and supply, manufactured homes are gaining ground as a new alternative. 

Industry News
Dec 03, 2021
Angel Oak Home Loans Opens 3 New Branches

Continues expansion in Western U.S. with new branches in California, Nevada & Utah.

Industry News
Dec 02, 2021
Open Mortgage Names New President

Joe Stephenson, formerly of American Advisors Group, to lead daily operations.

Industry News
Dec 01, 2021
Homepoint Expands Refinance Program Offerings

Now offers Freddie Mac’s new refinance option, Refi Possible, making it easier for many homeowners with a Freddie Mac-owned mortgage to reduce their interest rate.

Industry News
Nov 30, 2021
Non-QM Lender Deephaven Hires Business Development VP

Dallas-based Tim Fisher charged with growing Deephaven’s correspondent business In Texas and surrounding states

Industry News
Nov 30, 2021
Biden Reappoints Powell As Federal Reserve Chairman

A signal that The Fed will continue its policies as inflation surges and economic uncertainty spikes due to an emerging variant of the coronavirus. 

Industry News
Nov 29, 2021