IRVINE, CA – CoreLogic, a leading global property information, analytics and data-enabled solutions provider, released the CoreLogic Home Price Index (HPI) and HPI Forecast for May 2018, which shows home prices rose both year over year and month over month. Home prices increased nationally by 7.1 percent year over year from May 2017 to May 2018. On a month-over-month basis, prices increased by 1.1 percent in May 2018 – compared with April 2018 – according to the CoreLogic HPI. (April 2018 data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results each month.)

Looking ahead, the CoreLogic HPI Forecast indicates that the national home-price index is projected to continue to increase by 5.1 percent on a year-over-year basis from May 2018 to May 2019. On a month-over-month basis, home prices are expected to rise 0.3 percent in June 2018. The CoreLogic HPI Forecast is a projection of home prices that is calculated using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“The lean supply of homes for sale is leading to higher sales prices and fewer days on market, and the supply shortage is more acute for entry-level homes,” said Dr. Frank Nothaft, chief economist for CoreLogic. “During the first quarter, we found that about 50 percent of all existing homeowners had a mortgage rate of 3.75 percent or less. May’s mortgage rates averaged a seven-year high of 4.6 percent, with an increasing number of homeowners keeping the low-rate loans they currently have, rather than sell and buy another home that would carry a higher interest rate.”

According to the CoreLogic Market Condition Indicators (MCI), an analysis of housing values in the country’s 100 largest metropolitan areas based on housing stock found that 40 percent of metropolitan areas have an overvalued housing market as of May 2018. The MCI analysis categorizes home prices in individual markets as undervalued, at value or overvalued, by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals (such as disposable income). Additionally, as of May 2018, 26 percent of the top 100 metropolitan areas were undervalued and 34 percent were at value. When looking at only the top 50 markets based on housing stock, 52 percent were overvalued, 14 percent were undervalued and 34 percent were at value. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10 percent higher than the long-term, sustainable level. An undervalued housing market is one in which home prices are at least 10 percent below the sustainable level.

In 2018, CoreLogic together with RTi Research of Norwalk, Connecticut, conducted an extensive consumer housing sentiment study, combining consumer and property insights. The study assessed attitudes toward homeownership and the drivers of the homebuying or renting choice process. Across the U.S., 15 percent of homeowners and 28 percent of renters have indicated a desire to buy a home in the next 12 months, while only 11 percent have indicated a desire to sell.

The research reported the long-term desire for homeownership is much stronger among renters in markets that have the highest home-price growth. Lagging supply in these markets is likely to continue as fewer current homeowners are considering putting their homes on the market. Over the next 12 months, 41 percent of renters are considering buying while only 11 percent of homeowners are considering selling over that same period. That is nearly four times as many renters than homeowners, which is the crux of the available housing-supply imbalance.

“The CoreLogic consumer research demonstrates that, despite high home prices, renters want to get out of their rental property and buy a home,” said Frank Martell, president and CEO of CoreLogic. “Even in the most expensive markets, we found four times as many renters looking to buy than homeowners willing to sell. Until more supply becomes available, we will continue to see soaring prices in cities such as Denver, San Francisco and Seattle.”

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DALLAS, TX – ZOM Living, in partnership with affiliates of Daiwa House Texas Inc. and Itochu Corporation, recently broke ground on a new luxury high-rise in the flourishing Dallas Arts District. ATELIER, a mixed-use community comprised of 364 luxury residential tower units with unmatched panoramic views of both Uptown and Downtown, will be the tallest rental tower in the Dallas area at 41 tales. Residents will delight in over 26,000 square feet of amenity space and 15,000 square feet of onsite retail. ATELIER will also be home to FLORA LOFTS, 52 affordable artist lofts developed by local architect Graham Greene to provide needed housing for the local arts community. In addition, there will be 157 hourly-fee public parking spaces in the underground structure and 553 resident spaces in a 10-tale parking garage. 

Situated in the Arts District directly ZOM between Uptown and Downtown, and only steps from Klyde Warren Park, ATELIER is perfectly located at the intersection of arts, culture, employment, shopping, dining, and transit. This architecturally stunning building will take advantage of the best urban lifestyle Dallas has to offer.

“We are proud to be part of the transformation of this evolving neighborhood,” said Greg West, ZOM Chief Executive Officer. “The Arts District, Downtown and Uptown are merging into a vibrant, highly desirable, 24-hour urban area and Atelier sits at the heart of this very vital intersection.”

“Daiwa House is excited to be part of this unique opportunity which will provide luxury and affordable housing to the Arts District,” stated Takeshi Wakita, President of Daiwa House Texas Inc.

Graham Greene added, “We celebrate the beginning of Atelier Luxury Residential development in the Dallas Arts District and have fantastic confidence in its success. The wonderful, adjacent companion element in the development — Flora Lofts, mixed income housing for working artists – is continuing in anticipation of closing on financing and advancing the project over the coming months. Flora Lofts vision remains strong and its supporters remain committed to realizing a project that helps fulfill our commitment to a vibrant inclusive arts community in Dallas. We encourage our supporters to stay strong with their desire to see the fulfillment of this Arts District affordable artists housing dream. We remain committed to its fulfillment.”

One, two and three bedroom units will range from 702 to 2,266 square feet and the 11th floor amenity deck will feature a lushly landscaped deck surrounding a resort-style pool, multiple spacious open lounge areas with wi-fi, membership-quality fitness center, yoga/spin room, e-lounge, conference room, co-working spaces, fire pits, dog salon, private wine lockers, BBQ grills, and an entertainment kitchen with indoor and outdoor dining areas. The amenity level is intended to foster interaction among residents and provide an urban oasis, a variety of social settings and activities without having to leave the community.

Construction financing was provided by Fifth Third Bank and SunTrust Bank. Architectural design provided by Stantec and the general contractor is Balfour Beatty. ZRS Management, LLC is providing leasing and property management services.

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NEW YORK, NY – Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has released its June 2018 US CMBS Delinquency Report.

The Trepp CMBS Delinquency Rate fell again in June, marking the eleventh time it has dropped in the last 12 months. The overall delinquency rate for US commercial real estate loans in CMBS shed 17 basis points to 3.95% in June. After reaching its lowest post-crisis level in May, the delinquency reading hit a new milestone by dropping below 4% for the first time since July 2009.

“For the second straight month, the delinquency rate hit a post-crisis low – a result of solid new CMBS issuance and a healthy pace of troubled assets meeting their resolution,” said Trepp Senior Managing Director, Manus Clancy. “In February, we predicted that the delinquency rate would hit a post-crisis low before the 4th of July. We now believe that a sub-3% rate is achievable before the ball drops to ring in the New Year.”

The CMBS 2.0+ delinquency rate went one basis point higher to 0.49% in June. The rate of 2.0+ debt now seriously delinquent clocked in at 0.41%, which is up two basis points from May. Similar to CMBS 2.0+, the CMBS 1.0 delinquency reading increased marginally in June as it rose two basis points to 47.19%. The rate of seriously delinquent CMBS 1.0 debt fell four basis points month over month to 47.09%. 

June’s largest month-over-month rate drop among major property types was observed in the lodging sector as it rate shed 60 basis points to 2.32%. Although the multifamily sector still boasts the lowest delinquency rate of the major property sectors, the lodging reading is not far behind. The office rate fell 36 basis points to 4.66% last month. Retail delinquencies increased six basis points to 5.78% in June.

The full report can be found here.

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