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Midland, Texas is the hottest housing market in U.S.

Midland, Texas is the hottest housing market in the nation for the second month in a row, according to data from Realtor.com, knocking California heavyweights like Los Angeles and San Francisco from their traditional perches atop the thermometer.

It looks like California finally overheated, registering only four markets in the top 20 as opposed to two months ago when more than half of the list was located in the Golden State.

“The California housing market has been hot for a long time – but maybe too hot. Our May hotness index further confirms we’re seeing that as prices in California continue to soar, people are increasingly looking elsewhere,” Realtor.com Director of Economic Research Javier Vivas said in the report.

“As we continue into what we expect to be the hottest home-buying season in history, look for a wide variety of locales to remain red-hot,” he added.

The report also indicates spillover demand in more affordable metros. Seven Midwest metros made it in the top 20, which is the highest number since Realtor.com started taking temperatures (see full list below).

May 2018 Realtor.com hotness ratings

(Courtesy of Realtor.com)

Realtor.com compiled this list by analyzing housing market supply and demand using listing views as an indicator of demand and median days on market as an indicator of supply.

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Fitch: Multifamily REOs on the rise in CMBS 2.0 deals

CMBS 2.0 defaults are on the rise, with multifamily REOs making up 30% of that increase.

According to a report from Fitch Research, though the volume of CMBS 2.0 defaults is low, the yearly increase remains significant, and of that increase, multifamily and hospitality properties in North Dakota and Texas, harried by the energy downturn, made up the majority of the defaults.

Graph of Growing Volume of REO in CMBS 2.0 Transactions

“These loans defaulted due to the decline in the oil and gas industries, with the top two geographic concentrations in North Dakota (28%) and Texas (26%). These two properties types have been hard hit by dried up demand for housing and lodging, especially in the tertiary markets surrounding the Bakken and Eagle Ford shales,” the report states.

Chart of REO Property Type Distribution

Fitch predicts that this trend of increasing defaults on CMBS 2.0s will continue. From year-end 2016 to year-end 2017, the volume of CMBS 2.0 defaults increased by $221 million, from $82 million to $303 million.

That represents a 269% increase in the volume of CMBS 2.0 defaults.

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CoreLogic: Home values increase in all 50 states

Home prices showed yet another surge in April as year over year values increased for all  50 states, according to the latest Home Price Index report from CoreLogica global property information, analytics and data-enabled solutions provider.

Home prices increased 6.9% nationally from April 2017 to April 2018, and increased 1.2% from the prior month, according to the report.

The chart below shows home prices have been steadily increasing at the same rate for the past several years. 

CoreLogic- April Home Prices

(Source: CoreLogic)

“The best antidote for rising home prices is additional supply,” CoreLogic Chief Economist Frank Nothaft said. “New construction has failed to keep up with and meet new housing growth or replace existing inventory. More construction of for-sale and rental housing will alleviate housing cost pressures.” 

An analysis of home values in the country’s 100 largest metropolitan areas based on housing stock, indicates 40% of metropolitan areas had an overvalued housing market as of April 2018, CoreLogic reported.

Another 28% of the top 100 metropolitan areas were undervalued while 32% were at value. When looking at only the top 50 markets, 52% were overvalued, 14% were undervalued and 34% were at-value.

The national home-price index is projected to increase by 5.3% from April 2018 to April 2019, according to the CoreLogic HPI Forecast.

The forecast is an econometric model that projects calculations from analyzing state level forecast, which are measured by the number of owner-occupied households for each state.

 As of April, Florida’s recovery is promising, but experts say another natural disaster could hinder its growth.

“Florida continues to show price resiliency after Hurricane Irma in 2017. Despite the impact of the hurricane, prices were up 5.8% across the state compared to a year ago,” CoreLogic President and CEO Frank Martell said. “CoreLogic data projects continued gains to home prices in Florida for the remainder of 2018. However, gains could be erased if a significant storm makes landfall again.”

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LRES hires Frank Obregon as commercial appraisal manager

LRES Corp., a national residential and commercial real estate services company, hired Frank Obregon as commercial appraisal manager.

“Frank’s advanced knowledge and proven success in the commercial real estate industry make him a valuable addition to our team as LRES continues to expand offerings and create efficiencies in the commercial valuation industry,” said LRES President Mark Johnson said in a statement.

Frank Obregon, LRES Corp. commercial appraisal manager

Obregon has been in the commercial real estate industry for nearly 40 years, and before joining LRES, he was the director of commercial valuation at PCV Murcor. Before that, he was regional manager with Ameriquest Mortgage.

“I look forward to collaborating with the LRES team and establishing highly modernized processes for LRES’ growing commercial valuation division,” Obregon said in a statement.

In his new role, Obregon will be responsible for establishing, staffing and managing LRES’ commercial appraisal department.

Need help getting hired or looking to hire? HousingWire wants to help. Our new service, HousingJobs, lists the latest gigs in the housing industry for loan officers, underwriters, processors, loan servicers, and tech and marketing pros.

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Century Communities appoints Keith Hurand president of its Atlanta Division

The acquisition, entitlement and development homebuilding company, Century Communities, appoints Keith Hurand as president of its Atlanta Division.

Hurand’s 28 years of experience extend to more than 15 U.S. markets, where he held leadership positions in residential, commercial, multi-family, high-rise and industrial real estate development and construction, Century Communities explained in a press release.

Hurand began his career in 1989 as a field engineer, eventually becoming a project manager at General Electric. Prior to joining Century Communities he served as chief operating officer and president at Newland Real Estate Group’s U.S. east coast operation, and also held executive roles at WCI Communities and John Wieland Homes & Neighborhood.

 “Keith is known for his collaborative approach, and is well-respected for his strategic thinking,” said Rick Carruthers, regional president southeast region. “We are thrilled to have Keith on board and look forward to harnessing his strategic skills to help our Atlanta division continue to grow and thrive.”

Keith Hurand

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2018 Rising Stars: Calier Russell

broch

Calier “CJ” Russell recently joined ServiceLink as senior vice president of REO operations and client management of ServiceLink’s auction business. Russell is responsible for internal operations as well as oversight of ServiceLink Auction’s growing market share by supporting clients in their loss mitigation and disposition strategies. Russell has introduced and implemented technology, systems and process enhancements that increased the company’s monthly revenue by over 600% in less than six months using Salesforce.com.

He also developed multiple loss mitigation and quality control business models to meet the needs of several clients across the United States while also developing strategic relationships to broaden business opportunities. Russell managed the architecture, development and integration of Salesforce.com solutions across multiple companies to synchronize BAC Short Sale Process with Auction.com. Russell is both a Salesforce certified administrator and a Salesforce certified developer.

brochWHAT’S THE BEST PIECE OF ADVICE YOU’VE EVER RECEIVED?

There is nothing more powerful than employee engagement. The greatest leader is not necessarily the one who does the greatest things, but rather the one who inspires his/her people to achieve the greatest things.

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2018 Rising Stars: Pat Kinsel

coleman

Pat Kinsel is founder and chief executive officer of Notarize, the first company in the country to digitize the entire real estate closing process. Notarize allows anyone to legally notarize a document from their iPhone or computer 24 hours per day, seven days a week.

Notarize is valid nationally and connects customers with licensed Virginia electronic notaries by live video call. Notarize is the only platform with approval from and successful delivery to both Fannie Mae and Freddie Mac and receive the support of national title underwriters, etc. Partners include United Wholesale Mortgage, Stewart Title, Westcor Title, ValueAmerica, Florida Agency Network, Realogy, Lennar and more.

Kinsel has built a team that is leading the industry forward, with members serving as co-chair of the PRIA Interstate Recognition Committee, co-chair at MBA’s MISMO Online Mortgage Standards Committee and chairman at ESRA eNotary Policy Committee. He is also a partner at Polaris Partners, a leading venture capital firm, where he has led Series A financings in Lob and Drizly and serves on the boards of both companies. Previously, Kinsel was the founder and CEO of Spindle, which was acquired by Twitter in 2013

patWHAT’S THE BEST PIECE OF ADVICE YOU’VE EVER RECEIVED?

“Be someone people want to work with.” I love that advice because it’s all-encompassing. Be a star performer, a great leader, and someone people enjoy and respect.

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2018 Rising Stars: Sophie Kim

coleman

Sophie Kim built and leads Wedgewood’s learning and development efforts across the entire organization as director of learning and development. Kim created leadership development for front line managers up to C-suite leaders. She’s evolved the employee handbook to be engaging and up to date while addressing new company requirements.

Kim created, trained, administered and tracked Wedgewood’s Annual Performance Review process in 2016 and integrated it in to HRIS for the 2017 season. Kim also created a training program to support CIVIC Financial Services’ growth plant called Top Gun Program.

colemanWHAT IS ONE HABIT THAT HAS HELPED YOU SUCCEED?

Looking inward. Whether something was wildly successful, or a down-in-flames failure; I have a “real talk” session with myself first for everything big and small. With my customer always being people and their careers, that’s a huge responsibility I take very seriously. I’ve been often told that I have a much higher than average EQ, so that — coupled with looking inward — has allowed me to candidly scrutinize my thoughts and actions to draw takeaways in order to rapidly improve on each future step my team and I make to create positive experiences and effective learning for all. Looking inward keeps me exceedingly accountable which in turn drives me to push the boundaries and effort levels when providing support to everyone.

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2018 Rising Stars: Zvi Band

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Zvi Band is cofounder and CEO of Contactually, an intelligent CRM platform for real estate brokerages and agents. Band led Contactually from an idea in 2011 to a company approaching $10 million in revenue, 70 employees and $12 million in capital raised by 2017. As CEO, Band maintains alignment on strategic direction of the company.

Contactually serves top agents in the country and works with dozens of the leading brokerage houses, including the largest RE/MAX brokerages in the country, the largest Sotheby’s affiliate and leading brokerages like CLIMB, Pacific Union, Zephyr, Elliman and more.

Band, a software developer and entrepreneur, has won awards such as the Washington Tech Titan for six years running, the Swanepoel SP200 Trendsetter for two years running and DC Trending40 Top Startup. Band also is the cofounder and creator of ProudlyMadeInDC, a flagship site promoting and celebrating Washington, D.C. as a startup hub where it serves and supports marketers, connectors and ambassadors in the greater D.C. tech community.

zviWHAT IS ONE THING YOU WOULD TELL A YOUNGER VERSION OF YOURSELF?

Focus is one of the most powerful tools you have at your disposal. 

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Californian exodus? Kind of

Amid cries of hellish prices and low supply, many expect a mass exodus in the Golden State, but new data from Trulia shows the exodus is more like a robust restlessness than a true exodus.

What the numbers show is that though many are indeed seeking to leave the most expensive markets in California, (San Francisco, Los Angeles, San Jose and San Diego), almost as many non-Californians are looking to move to California such that the ratio of potentially outgoing to potentially incoming residents remains mostly steady (see graph below).

Inbound to Outbound Search Ratio, Coastal California Metros

To create this report, Trulia looked at search data, tracking the incoming searches and the outgoing searches.

So where do Californians feel the grass is greenest? Las Vegas, Phoenix, New York, Dallas and Seattle were the five most searched destinations for Californians.

In terms of actual moves, Las Vegas received 8.1% of those who moved from California, New York took 7.3%, Phoenix took 7%, Dallas got 5.5% and Seattle saw 5.1% of outgoing Californians end up on its doorstep as of Q1 2017 (see graph below).

Where coastal Californians are moving

The big determinants in these numbers are job opportunity and affordability. In the four markets Trulia’s report covers the average home price was $720,000 in March 2017 as opposed to the national average of $250,000.

The markets Californians are gravitating toward had median prices of $439,000 or less.

The Trulia report suggests keeping an eye on Tucson which was in the top 10 most searched list in the first half of 2017. The reason Trulia gives as to why Tucson isn’t in the top 10 cities Californians migrated to is because it is a city that attracts retirees whose moves take longer to manifest.