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Work From Home Drives Vacation Real Estate

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The vacation rental market has caught fire in counties across the country as vacation home sales have risen 16 percent since 2020 – almost tripling profits on existing homes, up 5.6 percent according to the National Association of Realtors.

That push is another work-from-home effect, according to Bloomberg, that has been seen since the COVID-19 pandemic began 16 months ago and workers moved from offices on large subway trains to offices in their private homes can log in remotely.

And once they started logging in remotely, reports found that urban consumers with funds realized they could do it just as well, if not better, from Aspen, Martha’s Vineyard or Miami Beach. And as these urban shoppers flocked to town, the county’s average vacation home sales prices rose 14 percent, compared to a 10 percent increase in non-vacation districts, according to a NAR report last week.

“Vacation rentals and second homes will continue to be popular choices with buyers,” said Lawrence Yun, chief economist for the National Association of Realtors.

Limits to the holiday home boom

A popular choice, but one that may ultimately be limited. An analysis by Redfin Corp. showed that while last month’s purchases were up year-on-year, they had cooled from the frenzied levels of some markets that spiked massive peaks at various points in 2020. Crystal Bay, Nevada, in one example: saw its price per square foot increase 72.2 percent. Similarly, Aspen, Colorado saw prices per square foot increase 31.9 percent while Chilmark, Massachusetts on Martha’s Vineyard saw prices increase 30.6 percent.

In addition, the surge has created tension in local communities, so vacation communities like Nantucket are now considering local restrictions like Article 90, a proposal to significantly reduce the number and duration of short-term rentals on the island. That rule was overturned in a public vote, but most agree that as long as the tourism boom continues in places like Nantucket, the issue will come back – fueled by workers who can do business almost anywhere they have an internet connection to have.

The bigger shift that WFH created

In addition, the sudden surge in vacation home values ​​is a small part of a larger story of the changes the employee shift to home work has made in the past 16 months, and which of those changes are likely to stay close when office buildings come back open for operations and employees return to their desks.

Will consumers return to the weekly walk to the grocery store, as was their pre-pandemic habit? According to PYMNTS research, some will but many will not, and those who don’t will be the coveted millennial demographic who represent what the future of shopping will be like.

PYMNTS consumer studies of US consumers’ grocery shopping habits show that while around 80 percent of consumers say they still go to the grocery store to buy their groceries, 20 percent of consumers now buy more of their groceries online than they did in the past the US physical store. And of these digital shifters, 60 percent are millennial and bridge millennial cohorts whose purchasing power supermarkets want to win and grow. In addition, other PYMNTS data showed that 62 percent of consumers who shop less frequently than they did before the pandemic say that when they are no longer bound by a 9-to-5 work schedule, they are no longer bound by one 9-to-5 work schedules are bound just as they were before the pandemic broke out.

And if you look at the data more broadly, employees are not that excited about going back. Work from home consumers have liked it more and more over time and are less interested in ever returning to their physical workplace. Seventy-nine percent of teleworkers said they don’t want to return to a physical office, and statistically put that behind meeting friends, traveling abroad, and shopping at a grocery store on their list of things to do again earlier this year would do.

Which means the housing boom that homeworkers have sparked over the past 16 months may cool off. But the shifts caused by the WFH economy could stay with us for some time, especially if the shift back to the office is much slower and less robust than originally expected.

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NEW PYMNTS DATA: AI IN FOCUS: THE BANKING TECHNOLOGY ROADMAP

About the course: The AI ​​In Focus: The Bank Technology Roadmap is a research- and interview-based report examining how banks are using artificial intelligence and other advanced computer systems to improve credit risk management and other aspects of their business. The playbook is based on a survey of 100 bank managers and is part of a larger series evaluating the potential of AI in finance, healthcare and other sectors.

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San Diego City Council Reviews Audit Of Troubled Real Estate Deals

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Photo by Shalina Chatlani

Above: 101 Ash Street in Downtown San Diego. August 21, 2020.

An examination of the string of bad San Diego real estate deals received its first public hearing on Wednesday, with city council members saying major changes are needed to regain public confidence.

The reason for the audit was the city’s catastrophic attempt to lease the high-rise office building at 101 Ash Street and buy it later. The city had hoped to hire hundreds of employees to consolidate its workforce in the downtown area. The move-in date, however, kept being postponed as the city discovered more and more problems with asbestos and the building’s HVAC and electrical systems. The latest estimate of the cost of repairs and improvements is $ 115 million.

The report found that former Mayor Kevin Faulconer and his staff were not following best practices such as: B. require independent appraisals and building inspections, and withhold important information from the city council.

RELATED: San Diego Audit Mistakes in Real Estate Deals under Faulconer

“My 500-square-foot condominium has had more inspections than these city buildings,” said city council member Vivian Moreno, who chairs the city council’s audit committee. “Having seen all of this in this review, it is absolutely critical that any proposed property purchase is moved forward before the council is required to prepare a due diligence checklist.”

A checklist to ensure that every real estate transaction is in line with best practices is one of the main recommendations of the audit. Mayor Todd Gloria has agreed to implement it.

RELATED: NBC7 admits the 101 Ash Street story is based on a forged document

In addition, the audit found that city officials were not giving council members enough time to review complex contracts, nor were they showing real alternatives. Councilor Joe LaCava acknowledged that the security measures recommended in the audit could slow the process of the city’s property acquisition process.

“We can lose some good home purchases because we need extra time to make sure we’re getting things right and a seller may not be willing to wait,” said LaCava. “And I think that’s fine. As I said, it’s more important to protect the city and the taxpayers than to close a real estate deal.”

City attorney Mara Elliott announced last month that the city would order a judge to suspend leases at 101 Ash Street and another downtown office building that is currently occupied by several city departments. Both deals were crafted with the advice of commercial real estate agent Jason Hughes.

The city’s amended lawsuit followed revelations exposed through subpoenas that Hughes, who claimed he was acting as an unpaid volunteer, actually paid $ 9.4 million in fees from the sellers of the buildings.

While the audit focused on 101 Ash Street, it also looked at other questionable real estate transactions. This includes the purchase of a closed indoor skydiving facility through the city in the East Village and a piece of land in Kearny Mesa that is intended as a repair yard for fire engines and is also uninhabitable.

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Doma, the Company Architecting the Future of Real Estate Transactions, Completes Business Combination with Capitol Investment Corp. V

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SAN FRANCISCO – (BUSINESS WIRE) – Doma Holdings, Inc. (formerly known as States Title Holding, Inc.) (“Doma”), a leading force in disruptive change in the real estate industry, and Capitol Investment Corp. V (NYSE: CAP) (“Capitol”), a publicly traded special purpose vehicle, today completed its previously announced business combination. Doma leverages machine intelligence and its proprietary technology solutions to create an easier, more efficient and more affordable real estate deal experience for current and potential homeowners, lenders, title agents and real estate professionals. The combined company’s common stock and warrants are expected to trade on July 29, 2021 on the New York Stock Exchange under the symbol DOMA and DOMA.WS, respectively.

The proceeds from the transaction will be used by Doma to drive growth, both through market expansion and new product development aimed at expanding the strategic advantage customers receive from Doma’s machine intelligence platform. Capitol shareholders approved the transaction at a special meeting instead of the 2021 annual general meeting on July 27, 2021. CEO Max Simkoff and the rest of the Doma management team will continue to lead the combined company.

“For us, this transaction is about accelerating our ability to penetrate and revolutionize first the antiquated $ 23 billion title, escrow and closure market, and finally the broader $ 318 billion home ownership services market.” said Simkoff. “Ultimately, our vision is to have many of the most important experiences when buying a home, instantly and digitally. Today’s milestone is evidence of Doma’s impressive growth to date and the strength of our business. We look forward to this next phase as a stock corporation. ”

Citigroup Global Markets Inc. acted as financial advisor and Davis Polk & Wardwell LLP acted as legal advisor to Doma. JP Morgan Securities LLC acted as financial advisor and Latham & Watkins LLP acted as legal advisor to Capitol. Deutsche Bank Securities Inc. also acted as capital markets advisor to Capitol. Citigroup Global Markets Inc. and JP Morgan Securities LLC acted as PIPE placement agents with JMP Securities LLC, Oppenheimer & Co. Inc. and DA Davidson & Co. acted as co-placement agents.

About Doma

Doma (formerly States Title Holding, Inc.) is shaping the future of real estate transactions. The company uses machine intelligence and its patented technology solutions to transform residential real estate and make closures instant and affordable. Doma and its family of brands – States Title, North American Title Company (NATC), and North American Title Insurance Company (NATIC) – provide solutions for current and potential homeowners, lenders, title agents and real estate professionals that greatly simplify and efficiently close deals, reduce costs and increase customer satisfaction. Doma customers include some of the largest bank and non-bank lenders in the United States. To learn more, visit www.doma.com.

Legend for forward-looking statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995. “plan”, “project”, “predict”, “intend”, “will”, “expect.” “,“ Anticipate, ”“ believe, ”“ seek, ”“ seek, ”or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. The absence of these words does not mean that a statement is not forward-looking. Such statements are based on beliefs and assumptions about the information currently available to Doma’s management.

These forward-looking statements include, among other things, statements regarding estimates and projections of financial and performance metrics, projections of market opportunities, total addressable market (“TAM”), market share and competition, and potential benefits of the transactions described herein. These statements are based on various assumptions, whether or not mentioned in this press release, and current expectations of Doma management and are not predictions of actual performance. These forward-looking statements are presented for illustrative purposes only and are not intended as a guarantee, assurance, prediction or final determination of fact or probability and should not be relied upon as such by any investor. Actual events and circumstances are difficult or impossible to predict, differ from assumptions, and are beyond Doma’s control.

These forward-looking statements are subject to a number of risks and uncertainties, including changes in business, market, financial, political and legal conditions; Failure to achieve the expected benefits of the business combination; Risks related to the uncertainty in the forecast financial information relating to Doma; future global, regional or local economic, political, market-related and social conditions, including due to the COVID-19 pandemic; the development, impact and enforcement of laws and regulations, including those related to the title insurance industry; Doma’s ability to manage its future growth or to develop or acquire improvements to its platform; the impact of competition on Doma’s future business; the outcome of potential legal disputes, governmental and regulatory proceedings, investigations and investigations; and the other factors described in the “Risk Factors” section of Doma’s filings with the SEC from time to time.

Should any of these risks materialize, or should Doma’s assumptions prove incorrect, actual results could differ materially from those implied in these forward-looking statements. There may be additional risks that Doma is not currently aware of or that Doma currently considers to be immaterial and which could also mean that the actual results differ from those contained in the forward-looking statements. Additionally, forward-looking statements reflect Doma’s expectations, plans or projections of future events and beliefs as of the date of this press release. Doma assumes that subsequent events and developments will lead to a change in Doma’s assessments. Although Doma may update these forward-looking statements at some point in the future, Doma expressly disclaims any obligation to do so, unless required by law. These forward-looking statements should not be taken as a representation of Doma’s opinion at any time after the date of this press release. Accordingly, you should not place undue reliance on any forward-looking statements.

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What Would Equitable Real Estate Finance Look Like? – Non Profit News

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“The Art of RE Membership, How To Be Human,” Lola Audu

“Real estate is a big issue in America,” noted Avery Ebron, who runs The Guild’s Atlanta business. Ebron made these remarks last month at a press conference to mark the release of the Inclusive Capital Collective’s (ICC) first “black paper” entitled Building Community Wealth: Shifting Power and Capital in Real Estate Finance. Ebron co-authored this paper with The Guild CEO Nikishka Iyengar and Chicago Trend CEO Lyneir Richardson. The report provides an important framework not only to identify how structural racism is penalizing real estate development by and for BIPOC communities, but also to identify specific changes that could significantly reduce these barriers.

ICC defines itself as “a growing network of community fund managers and entrepreneurship support organizations that have designed and developed a common technical and financial infrastructure for the aggregation and delivery of financial capital and other resources to entrepreneurs and colored communities in the United States.” The group was formed at a meeting in Denver in the fall of 2019 and is incubated by the 2015 Zebras Unite Cooperative, which aims to promote access to capital for socially minded companies, especially women-owned and black-owned companies.

Often the discussion about real estate focuses on home ownership and the gap between black and white ownership rates. Here, however, the focus is less on residential properties and more on the actual real estate development business. As Amanda Abrams wrote in the New York Times earlier this year, “Commercial real estate remains an area where the vast majority of developers are white.” Abrams found that a 2013 industry survey found that only 4.4 percent of the commercial real estate professionals were blacks. A recent 2020 survey by the Urban Land Institute found that only five percent of its members were black, while 82 percent were white.

In their paper, the authors state that “current community development practices and institutions tend to focus on outcomes (especially affordable housing) rather than outcomes that drive structural change.” In their report, Iyengar and her co-authors claim that a commercial Real estate industry, in which blacks and other colored real estate entrepreneurs played a bigger role, would not only be more diverse and inclusive, but would also focus on the goal of collective wealth creation. According to the authors, a “community-centered” real estate market would:

  • Prioritize affordable operating space for local BIPOC businesses
  • Be more democratic and involve community organizers, small business owners and local residents in the development process
  • Focus on providing space for important common goods like groceries and common areas
  • Leverage infill development to support affordable rents and home ownership that stabilize existing BIPOC neighborhoods
  • Create opportunities for blacks, indigenous peoples and other colored residents to have a stake in commercial real estate
  • Better connect residents and businesses to public resources such as technical assistance, basic financial literacy programs and business grants

Real estate redesign for equity

An important contribution of the report is that it provides a thoughtful list of both the barriers to equitable real estate development and potential solutions. As Joe Neri, CEO of IFF, a leading Chicago-based community development financial institution (CDFI), explained, one of the many effects structural racism has on real estate is that BIPOC neighborhoods are valued lower than white neighborhoods, what it is makes it more difficult to fund projects (as the credits are drawn up to a percentage of the appraised value), which means that a developer has to raise more money.

As Neri put it, “Old government-sanctioned banking regulations have depreciated property for decades, and now current banking regulations prevent investment in areas where appraisals are low.” Building on Neri, the ICC report calls for one “Income-based lending” (ie, lending based on a percentage of the income the project is expected to generate), which is forward-looking, not ratings that bake in past discrimination.

The authors describe specific loan products that could lower financing costs for BIPOC real estate developers. These include “patient justice,” which the authors of the report describe as a long time horizon (e.g. 10 years), low interest rates (zero to five percent), and provisions to protect development projects from early costs (e.g. payments for the first 12 to 24 years of age) Months of the loan). Foundations, according to the authors, are the most likely providers of such funding, and that funding could be five percent of the project’s value. Another 20 percent of the financing structure could be “friendly debt”, such as low-interest loans from CDFIs. The remaining 75 percent could be standard bank loans. In other words, while the need for philanthropic assistance is clear, the report also shows how limited philanthropic dollars can enable more common commercial funding.

The authors also describe additional steps in overcoming barriers – for example, easier access to credit lines, reducing zone restrictions, loan guarantees (possibly from CDFIs or foundations) to reduce interest costs, and partnering with public land banks to help BIPOC real estate developers get low-cost land.

In the report’s conclusion, the authors note that “there is an abundance of black developers creating equitable and contextualized real estate solutions for their communities – transforming the way real estate development is done and transforming them into a vector for creating Transforming Prosperity for All Americans ”. In the appendices to the report, the authors document this through case studies of BIPOC-owned real estate companies in four cities – Philadelphia, Chicago, Atlanta and Fort Myers in Florida.

When the report was released, Kevin Williams, a member of the Black Squirrel Collective in Philadelphia, spoke about the urgency of the work. “You see a lot of study and research into the plight of minorities in America,” noted Williams. “But you don’t see any follow-up. Someone writes a newspaper and says black people are poor. Yeah we know that. But has anyone followed up to see what was being done to address this issue? … We have to keep being vocal … and we have to keep pushing the point that justice has to happen. “

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