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what's next Financial Headwinds Buffet Housing Projections Though annual industry forecasts highlighted positive trends, predictions were tempered by marked reserve as the mortgage marketplace responded to macroeconomic factors. Now vs. next Releasing results from the company's 2013 U.S. Markets Construction Overview, North Carolina-based FMI noted near-term projections, predicting that construction-put-inplace (CPIP) would hit $826 billion to $884 billion to end 2012. Looking into the year ahead, FMI's forecast called for the CPIP growth rate to remain "slightly ahead" of gross domestic product (GDP) expansion rates in 2013, and the company anticipates improvement in residential CPIP that will push growth back into the double digits this year. According to FMI's findings, the industry is on track to generate more than $1 trillion in CPIP in 2014. Commenting on the construction sector's long-term future, FMI added that though residential CPIP will continue to rise, "excitement over the double-digit growth in residential construction is also balanced with the disappointment that by 2016 residential CPIP will still only be at 65 percent of the record high in 2006." Comparing actual sales prices to asking prices, the number of days home listings spent on the company's site, and the percentage of properties on the market with a price cut, Zillow rolled out its latest research brief covering U.S. housing from the seller's perspective. Finding that homeowners in the West boast the greatest advantage when it comes to negotiation, the report also revealed that sellers the Midwest and Mid-Atlantic areas are more likely to come out of a sale in a stronger financial position. Which metropolitan areas will offer the best benefits for those seeking to sell their home in 2013? San Jose, California, is on track to lead the nation, earning a 0.1 according to Zillow's Buyer-Seller Index; the market currently boasts a median market stay of 50 days for listed properties, and the sale-to-list price ratio is 1.012. San Francisco and Sacramento took the second and third spots on Zillow's roster respectively. Humphries credited investor interest for driving advantages for sellers in Zillow's top-ranking metros. Citing the importance of "ensuring a vibrant and stable multifamily finance system," the Mortgage Bankers Association (MBA) launched a new unit and correlating white paper focused on the multifamily market. The MBA's report addressed the future of the government-sponsored enterprises' (GSEs) role, with Brian Stoffers, chairman of the GSE Multifamily Task Force, stating, "Policies enacted going forward should . . . encourage private capital to enter and remain in the market as the primary source of financing for multifamily." Laying out a five-point plan for the future of the GSEs in the multifamily market, the MBA called for a broader range of capital sources, a limited government-backed insurance program, more regulation for related securitization, a redistribution of GSE resources, and a plan for determining if the GSEs' multifamily businesses should function independently of their single-family businesses that reflects efforts toward long-term liquidity rather "than whether existing multifamily business lines could survive as ongoing business." In a move that was described as "unexpected" by U.S. Bancorp CEO Richard Davis, Freddie Mac informed the bank and other large servicers that it will now require them to buy back defaulted loans originated in years prior to the housing crisis. Freddie's spokesman, Brad German, stated that "repurchase policies for non-performing loans have not changed," but Davis countered, noting that up until now, both GSEs have only reviewed loans from 2006 or later in assessing repurchases. Servicers have been put on notice that Freddie will begin reviewing non-performing loans originated in 2004 and 2005 during 2013, according to German; he added that even after expanding the pool of non-performing loans subject to examination by two years, Freddie expects to request fewer loan files this year than it did in 2012. As for Davis, he said U.S. Bancorp will set aside "another $0.01 or $0.02 worth" for 2004 and 2005 originations in addition to what it anticipates in repurchase demands from 2006 and forward. Results from Winans Investments' most recent Real Estate Index indicate that housing's "bear market" is over. According to the company's report, new home sales have risen by 26 percent nationwide from December 31, 2010, through the present. However, the firm's founder, Ken Winans, was quick to temper the survey's positive findings, noting, "While new housing price advances and high sales activity are encouraging, credit conditions are still problematic." The company elaborated on market pressures in the year ahead, expressing concern regarding tax laws that could slow or stop the market's recovery trends. Winans explained that "the possible loss of the mortgage tax deduction could further limit credit to potential buyers of higher-end properties." He went on to conclude that even with improving home sales, the company doesn't anticipate a "robust nationwide housing boom anytime soon" due to the "financial headwinds." The M Report | 19