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The invasion of institutional investors in the housing market

Sacramento Appraisal Blog

A couple weeks ago a viral story came out about a fund called BlackRock who was reported to be buying everything in sight and paying 20-50% above market value. Let’s talk about this as well as other institutional investors right now. Market update on […].

Investors 455
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Weiss Analytics launches AVM powered by geospatial AI

Housing Wire

It could also have big implications for appraisers, who are already nervous about the continued rise of automated valuation models. Cape Analytics’ AI system instantly extracts property condition from images, which is then run through Weiss’ valuation model, Raj Dosaj, Cape Analytics’ head of real estate, explained.

Valuation 459
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Auction.com: Demand for distressed housing returning

Housing Wire

Steve Price, senior vice president of trustee operations at Auction.com, said this is likely because of the shift to vacant or abandoned properties that often come with more deferred maintenance – but the average price relative to estimated full market value increased to a 6.5-year year high in September.

Buyers 533
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Zillow Zinged

Cleveland Appraisal Blog

One big one is their Zestimate’s inaccuracy at predicting market value, and more specifically, they were relying on their own Zestimates to make important decisions like buying & selling homes. However, I believe that they’ve put too much value in their “valuesValuation is not their expertise.

Valuation 369
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FHFA’s RFI on appraisals is a critical inflection point

Housing Wire

Under this framework, mortgage investors like the GSEs would secure valuable data to inform their critical risk models that keep our housing ecosystem safeguarded. In the traditional appraisal model, we ask appraisers to perform every single component of the valuation process. And appraisal waivers would be informed, not blind.

Appraisal 370
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DataDigest: Office debt is stressing banks. That matters for mortgages.

Housing Wire

The rapid collapse of four regional banks that began last March shocked regulators and investors alike. 1, the company had lost 45% of its market value. Investors were shocked by NYCB’s $252 million net loss in the fourth quarter and outraged that the bank slashed its dividend from 17 cents a share to 5 cents a share.

Mortgage 468
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Smaller nonbanks facing “come to Jesus moment” as MSR values dip 

Housing Wire

The year ahead for the mortgage-servicing rights market is shaping up to be a lucrative play for investors, lenders and others looking to purchase MSR assets. Independent mortgage banks (IMBs) leaning on MSR sales, however, now face a supply-demand imbalance, market observers say. These differences can cause volatile MSR values.

Sellers 321