|DSNews Names Tim Rood Key 2018 Policy Maker
Collingwood Group’s Chairman, Tim Rood, was featured in this month’s issue of DSNews, in “The Policy Makers” – a look at housing industry leaders’ takeaways from the crisis and their positions on housing policy. Rood weighed in on his stance on current housing proposals.
Rood advises that the housing finance reform proposed is an “old wine in a new bottle” approach. “We need to look no further than the housing crisis to see how private-label securitizers with similar product sets, pricing and capital standards found themselves all rising together during the boom times, and then all crashing to the ground when the rug got pulled out from underneath them,” Rood said. “I fear that some of the things being proposed would set us up for that sort of outcome.”
Policymakers need to take into consideration that the GSEs are designed to be countercyclical, which, according to Rood, is critical to the housing market. In bad times, the GSEs will be in every market, every day, with competitive pricing, which comes from their borrowing advantage and implicit guarantee by the federal government.
The GSEs can be borrowing competitively, freely all the time. Conversely, some argue that the newly proposed guarantor model would be procyclical – the model will work great during strong markets, but when there’s a shock to the system, the GSEs will struggle to borrow and effectively compete and provide financing.
Read more: DSNews
Bank Regulatory Actions Under Trump Fall to Historic Lows
The issuance of financial regulations has dropped to a 40-year low, new data shows, a sign that the Trump administration is fulfilling its deregulatory agenda.
Companies that track financial regulations started to see a slight drop in the volume of regulations last year with a major drop-off in issuances and revisions in the first quarter.
Regulators now are issuing or revising two to four items a week, a dramatic drop from the five to seven items a week, on average, that companies have had to comply with for years, according to Continuity. The new range is the lowest that the compliance management provider has found since tracking the issuance of regulations dating back to the 1970s.
Read more: National Mortgage News
The Home Appreciation Trade-OffWho wouldn’t want to trade off their jobs for an option where their long-term investment, in this case, a home, works to earn the homeowner the same amount of money? According to an analysis by Zillow, the rapid pace of home value appreciation in many of the country’s large markets could present homeowners with this interesting dilemma.
The analysis found that a typical U.S. home appreciated by 7.6 percent last year from a median value of $195,400 in February 2017 to $210,200 by the end of February 2018. This increase in value meant a gain in home equity of $7.09 for every hour that the average U.S. homeowner was at the office last year, and translated to a little less than the federal minimum wage of $7.25 per hour.
Using these numbers as the base, the analysis found that while owners of the median-valued homes in 24 of U.S.’ 50 largest cities earned more equity per hour last year than the local minimum wage in those cities. In some cases, homeowners made much better in home equity than they would in hourly wages.
Read more: MReport
How Amazon HQ2 will Impact the Housing Market
The real estate market is bound to change for whichever city lands the coveted second headquarters for Amazon, known as HQ2.
Amazon HQ2 promises to bring 50,000 jobs and billions of dollars to its new home. While this is a large number of jobs, it’s also relative to the population. For smaller markets, homebuyers, sellers and renters are likely to be more sensitive to Amazon HQ2’s presence than larger ones, experts say.
The smaller the city, the bigger the dent
Twenty cities or regions remain in contention for the new headquarters:
- Austin, Texas
- Columbus, Ohio
- Los Angeles
- Montgomery County, Maryland
- Nashville, Tennessee
- Newark, New Jersey
- New York City
- Northern Virginia, Virginia
- Raleigh, North Carolina
- Washington, D.C.
While megacities like New York and Los Angeles could more easily absorb 50,000 jobs without sending property prices sharply higher, it would be much more difficult for the smaller cities, says Bill Wheaton, economics professor at MIT. Rents and home prices would likely rise more in a smaller city than they would in in a larger city.
“So you put all those workers there and you’re going to need office space and houses,” Wheaton says. “If you’re in smaller cities like Indianapolis and Austin, those extra office spaces and houses represent a 5 to 10 percent increase in your stock. And what happens when you start to build stuff like that is prices and rents start to rise.”
Read more: Bankrate
The Most Expensive Housing Market in Every State
The U.S. economic recovery and continued growth have had many positive effects on the nation and the population. For at least one group, however, the improving economy has had a negative impact — for potential homebuyers.
Along with incomes and low unemployment, the housing market continues to grow. The median sale price of a U.S. home is now close to a third of a million dollars, or over $100,000 more than it was just a decade ago.
Of course, housing markets are different from one another. While some might still be relatively inexpensive, others are well out of range for most Americans.
To determine the county with the most expensive housing market in every state, 24/7 Wall St. reviewed median home values of 3,119 counties and county equivalents as of the second quarter of 2017 from the National Association of Realtors. In the most expensive markets in states like New York, Massachusetts, California, and Virginia, the typical home is valued at well over $750,000. In California, the most expensive market has a median value in excess of $1 million. In other states, the most expensive market barely tops $200,000.
Read more: 24/7 Wall St.
The San Francisco Housing Market is So Dire that People are Leaving in Droves — Here’s Where They’re Headed
The San Francisco Bay Area is on the brink of an exodus as a low supply of homes and high demand drive housing prices— and the cost of living — to new heights.
A recent report from the real-estate site Redfin found that San Francisco lost more residents than any other US city in the last quarter of 2017.
But where are they going?
Over 146 million American workers have LinkedIn profiles, and more than 20,000 companies in the US use LinkedIn to recruit, giving the social network an inside look at workforce trends.
One of the trends the company is watching: where people leaving San Francisco are headed.
LinkedIn crunched its data to identify the US cities where the most LinkedIn members moved to from the San Francisco Bay Area in the past year. These are the top 10 destinations:
- Seattle, WA
- Portland, OR
- Sacramento, CA
- Denver, CO
- Austin, TX
- Las Vegas, NV
- Phoenix, AZ
- Salt Lake City, UT
- Stockton, CA
Read more: Business Insider
Ahead This Week: FHFA Oversight Hearing
Tune in for the House Financial Services Committee’s Subcommittee on Oversight and Investigations Hearing on Thursday, April 12, 2018, at 10:00 am. Video coverage of the hearing will be available on the Committee’s website. The hearing, “Oversight of the Federal Housing Finance Agency,” will feature testimony from Laura Wertheimer, FHFA Inspector General. Members of Congress will examine FHFA’s performance as the regulator of the GSEs.
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