Title Source Blog Year in Review: Our 2015 Real Estate Recap

As 2015 draws to a close, there's plenty to ponder when it comes to the real estate and housing industry. Many sectors of the industry did well this year, technology brought about innovations, and new regulations caused a stir for some industry professionals. Here's a look back at the stories that shaped real estate in 2015.1. Top Markets Heat UpA recurring theme of strong growth characterized a number of housing markets and market segments in 2015. The Houston market topped Credit Suisse's Buyer Traffic Index for most of the summer months, followed closely by Dallas, Atlanta, Washington, D.C., and Phoenix. Indeed, Texas was at the center of a market upswing, with property values increasing 7.5 percent in Dallas County and prospective homebuyers camping out to snag buildable lots in McKinney, Texas.Elsewhere in the country, buyers struggled to snag the home of their dreams. Down payments dipped lower in the first quarter, according to RealtyTrac's Home Down Payment report, partially due to increasing home prices. One Portland, Ore. homeowner threw in a "pizza for life" bonus from her family restaurantto make her offer stand out to the sellers. It worked.A few high-priced home markets saw even more exaggerated growth. The Washington Post created a fascinating visualization showing the spread of million-dollar homes across San Francisco, while the Atlantic Magazine noted that neighborhoods with Apple employees had higher home values. Meanwhile, the Los Angeles market saw several stories on eye-watering property listings, including Beverly Hills' purported "billion-dollar hilltop."However, some of these well-known locales saw new competition. Huntsville, Alabama's low cost of living and growing STEM worker demographic has begun stealing away some tech businesses and residents from the Bay Area and Las Vegas. Meanwhile, the latest Housing Assistance Council data suggests rural-area home buying is increasing.2. Valuation Numbers UpIn valuation news, CoreLogic predicted home prices to climb across the board, albeit at a slower pace in 2015. With the available data to date, that prediction appears to have held true. Yet homeowners' and appraisers' ideas of what a home was worth became more out of sync, according to Quicken Loans' Home Price Perception Index, wich found homeowners overvaluing their homes. Not everywhere saw home prices increase in 2015. Pittsburgh, Baltimore, and Philadelphia were among a handful of metros where Zillow data showed a steep devaluation of homes.3. Emerging Tech InvigoratesEmerging technology affected nearly every area of the industry this year, from agents to investors and residential buyers. In January, Zillow announced its Data Dashboard product, aimed at MLS members and real estate brokerages. Another player in the home sales data market, Trulia, announced a new integration with Uber, connecting potential home buyers with a ride to the property listing through the Trulia app.The commercial sector also got its share of new tech toys. Placemeter turned old cell phones or inexpensive digital camera setups into location surveying equipment. Potential commercial property buyers could compare the foot traffic of several locations while landlords could demonstrate the value of their properties with hard statistics. Another story highlighted two software platforms hoping to capture the market with automation tools.Nationally, real estate agents got the go-ahead from the FAA regarding the use of drones for real estate purposes, and in China, one developer held a demonstration showing how his 3D-printed home could be assembled in three hours.Concerning homeownership, reporters explored how faster Internet speeds and smart home gadgets may help increase the value of a home. Elsewhere, critics noted the PACE solar energy financing initiative could be holding up home sales, even as it modernizes properties.4. Mortgage Lending BroadensIn mortgage lending, the story throughout 2015 was of an easing and broadening of real estate financing in some surprising corners of the market. Freddie Mac's new three-percent down payment program was unveiled earlier in the year. By August, the lender's chief executive was telling reporters the program was off to a good start following the summer homebuying season.Other programs to aid lower-income and first-time homebuyers were introduced, including an unprecedented program to help more Detroiters become homeowners, a new FHA policy to help homebuyers with below-par FICO credit scores, and a surprise move by the FHA to ease occupancy financing requirements for condo developments.The competition for mortgage customers between banks, credit unions, and non-bank lenders heated up. With credit unions outpacing other lenders in originations, and new, online non-bank lenders winning market share away from traditional lenders, it is no surprise that nearly half of home loans are now financed without banks. This has led some big banks to offer new incentives, such as JPMorgan Chase's more relaxed jumbo loan requirements and the return of so-called "liar loans" from other banks to serve the needs of buyers with nontraditional finances.5. Foreclosure Rate FallsIn January, RealtyTrac posited that the foreclosure market may finally be finding a floor, after becoming a familiar part of the real estate landscape following the 2007 financial crisis. Stories that followed added weight to that theory, with reports from CoreLogic that inventory was down 25 percent by the second quarter and that only 10.3 percent of homes' mortgages were underwater. Nonetheless, an estimated 3.8 million homes remain vacant and in need of repairs.6. Consumer Confidence SagsWhile there was plenty of positive data on the housing industry and indeed the wider economy this year, that didn't always translate to confidence among American consumers. In May, a Gallup poll revealed a sharp, five-point drop in sentiment on whether now was a good time to buy a home. In the summer, the MacArthur Foundation's Housing Matters Survey found a majority of Americans were still feeling the effects of the housing crisis. Fannie Mae likewise found lower confidence in their Home Purchase Sentiment Index, leading the government lender to announce that it would be exploring new ways of assessing affordability issues affecting homebuyers.7. Builders' Confidence Turns CornerIn the world of homebuilding and development, 2015 was marked by a noted increase in builder confidence, despite ongoing obstacles hampering new construction. According to the Commerce Department in April, housing starts had reached a 7.5-year high and building permits had also "soared."Economists meanwhile leveled the charge that builders were neglecting the all-important entry-level market. However, builders told Fortune Magazine that EPA regulations were driving up the cost of construction, and condo builders told the Wall Street Journal that financing could be tricky. Builders also struggled with the problems created by California's record-setting droughtand a lack of available housing lots in desirable areas.8. Commercial, Investment Markets Stay StrongCommercial and investment real estate had a strong year on a number of fronts. Internationally, Dubai developers charged ahead with bold projects, including one development featuring a record-breaking residential tower complete with an indoor ski slope. Chinese investors were reportedly diving into London's commercial real estate market, while Wall Street was betting on India's real estate sector.Stateside, multifamily and commercial originations were up nearly 50 percent year-over-year in the first quarter, with tech-heavy cities leading the growth. Silicon Valley companies in particular were said to be buying up land for future expansions.While the number of home flips was down, gross profits for flippers were up in the first quarter. The Wall Street Journal wrote about the "booming" self-storage sector in October and Business Insider reported that malls were doing surprisingly well thanks to new tenancies from tech startups, medical practices, and gyms.Innovation also popped up in commercial sector stories, including a new 30-day lease concept from a San Antonio firm, innovative resident class offerings for wealthy condo buyers, and the expansion of micro-housing to unexpected markets such as Phoenix.9. Rental Rates Keep ClimbingWhile commercial rental increases may have been great news for owners and investors, it's less great news for renters. Prices are expected to keep rising next year as well. A recent Harris Poll survey discovered many renters have more pressing needs than saving for a down payment, such as student loan debt and recurring bills.It's no surprise then that the homeownership rate has reached a 48-year low. However, the Wall Street Journal reports that rent-to-own programs, popular in the 1990s, are returning to the market.10. The TRID Saga ContinuesFor lenders, brokers, title companies, and real estate agents, much of the focus was on the rollout of the TILA-RESPA Integrated Disclosure rule (TRID). In March, the American Land Title Association voiced their concern that the Closing Disclosure requirements were at odds with some states' regulations. Later, Diane Evans, the association's president, pointed out CFPB formulas would provide inaccurate info to consumers.In June, a number of organizations came together with legislators to ask the CFPB for a TRID grace period. The rule's effective date was eventually pushed back from August 1 to October 3, and a formal "hold harmless" grace period agreed.In the wake of the legislation, mortgage applications fell in the first week of implementation, after surging the week before. Initially, banks planned for closing delays of about 15 days until the industry adjusted to the new procedures, however, other industry professionals reported that mortgage originations hadn't slowed substantially because of the new requirements.11. Mortgage Rate