WASHINGTON, DC – The Fannie Mae Home Buy Sentiment Index (HPSI) increased 2.2 percentage points in April to 86.7, rebounding following March’s dip. Five of the six components that comprise the HPSI were up. The net share of Americans who reported that now is a excellent time to buy a home increased 5 percentage points, while the net share reporting that now is a excellent time to sell a home decreased 5 percentage points.

Consumers also expressed greater confidence about the stability of their jobs, with the net share of that component jumping 7 percentage points. Additionally, on net, the share of respondents reporting that their household income is significantly higher than it was 12 months ago increased 2 percentage points.

The net share of Americans who say that mortgage rates will go down over the next twelve months rose 3 percentage points. Finally, the net share of those who reckon home prices will go up increased by 1 percentage point this month.

“The Home Buy Sentiment Index returned to its longer-term trend line after reclaiming ground lost last month. This is aligned with our market forecast of about 3 percent sales growth in 2017,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high. On balance, housing continues on a gradual growth track.”

HOME BUY SENTIMENT INDEX – COMPONENT HIGHLIGHTS

Fannie Mae’s 2017 Home Buy Sentiment Index (HPSI) increased in April by 2.2 percentage points to 86.7. The HPSI is up 3.0 percentage points compared with the same time last year.

• The net share of Americans who say it is a excellent time to buy a home rose 5 percentage points to 35%, reversing some of the decrease seen in March.
• The net percentage of those who say it is a excellent time to sell decreased by 5 percentage points to 26%, falling from last month’s all-time survey high.
• The net share of Americans who say that home prices will go up increased by 1 percentage point in April to 45%.
• The net share of those who say mortgage rates will go down over the next twelve months rose 3 percentage points from last month’s survey low to -57%.
• The net share of Americans who say they are not concerned about losing their job rose 7 percentage points to 77%, erasing most of last month’s decline.
• The net share of Americans who say their household income is significantly higher than it was 12 months ago rose 2 percentage points to 13% in April.

The Home Buy Sentiment Index (HPSI) distills information about consumers’ home buy sentiment from Fannie Mae’s National Housing Survey (NHS) into a single number. The HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and choice making.

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AUSTIN, TX – Independence Realty Trust announced that it sold a 320-unit apartment property located in Austin, Texas for $32.0 million. IRT received net cash proceeds of $23.7 million after transaction costs and full repayment of $7.0 million of underlying property specific debt.

IRT expects to recognize a gain of approximately $16.2 million associated with this sale, after transaction costs, in the quarter finished June 30, 2017.

IRT used $21.0 million dollars of the proceeds from this sale to reduce its outstanding borrowings on its line of credit.

The property sale is part of IRT’s previously announced strategy to sell its “C” class assets and reinvest the proceeds into “B” class assets located in IRT’s core geographic markets. This is the first of four sales, all expected to close during the second quarter.

Independence Realty Trust is an internally-managed real estate investment trust that seeks to own well-located apartment properties in geographic submarkets that it believes support strong occupancy and the potential for growth in rental rates. IRT seeks to provide stockholders with attractive risk-adjusted returns, with an emphasis on distributions and capital appreciation.

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CHICAGO, IL – QuadReal Property Group (QuadReal), CA Student Living (CASL) and GI Partners (GI) have formed a joint venture to buy, develop and manage student housing at select universities throughout the United States.

QuadReal has invested $600 million US of equity into the joint venture. CASL and GI are co-investors and general partners, with CASL serving as the operating partner. All three entities have established track records in residential real estate and manage multi-billion-dollar real estate portfolios. CASL has bought 5,000 university beds and developed another 20,000 new beds since its founding in 2004, making it one of the most active infill student housing developers in the country.

The joint venture provides QuadReal and GI with a compelling entry point into the growing US student housing market. The sector performs well throughout all economic cycles, and offers downside protection during periods of economic contraction.

“Much of the student housing stock in the US is aging and in need of repair or replacement, providing an opportunity to invest in long-term assets that provide an ongoing, dependable revenue stream and align with QuadReal’s desire for strong investment returns,” said Jonathan Dubois-Phillips, President, International Real Estate, QuadReal.

“We are very pleased to work with experienced partners such as CASL and GI as we build out our current portfolio of high-quality, income-producing properties and seek future investments in the resilient student housing sector.”

The joint venture’s initial portfolio includes 10 properties developed and managed by CASL. The properties are geographically diversified in 10 major US university markets across nine states. In addition, the joint venture will buy and develop additional student housing projects across the country to grow and diversify the portfolio.

Emerging fundamentals in the US student housing market are making change and opportunity. Students living in on- and off-campus housing increasingly demand walkable locations with modern amenities such as fitness centers, study lounges and communal areas, as well as features like high-speed internet.

“More than a decade ago, CA Student Living started as a pioneer of core infill, pedestrian-oriented developments with modern designs and amenities,” said Tom Scott, CEO of CASL. “Our unique site selection and product development skillset strongly align with the investment philosophy of the new joint venture. The long-term nature of this partnership with QuadReal and GI underscores our confidence in the continued growth of this burgeoning sector.”

“As long-term investors in high quality real estate platforms, GI Partners carefully seeks the right mix of property sectors with attractive growth attributes and experienced, successful partners capable of achieving scale,” said John Saer, Managing Director of GI. “We are delighted to partner with the accomplished team at CASL and to align with a strategic investor in QuadReal.”

Added Dubois-Phillips: “The new joint venture reflects QuadReal’s commitment to make places for people, provide peerless service to our residents, and broaden and deepen our partnerships around the globe.”

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