“Large rate increases from 2023 have mostly subsided for the broader market,” the New York-based insurance brokerage firm said in the report. “Rates are flat to up 10% for both natural catastrophe (CAT) and non-CAT property with minimal loss history and good risk quality.”

Widespread double- or triple-digit rate increases seen in 2023 have largely subsided for the broader market, USI reported, and most renewals “have seen single-digit increases, with some shared or layered placements seeing rate decreases due to the replacement of more expensive capacity from 2023.”

Commercial Property Insurance Trends

In the report, USI listed reinsurance market stabilization, expanded capacity on shared and layered programs, intensifying wildfire woes and updated catastrophe models that may impact insurer appetite or pricing as trends to watch in the second half of 2024.

On the catastrophe model point specifically, the insurance industry is awaiting potential pricing and capacity impacts following new releases from Moody’s RMS and Verisk, the report said. Both platforms included updates to the hurricane models for the U.S. Verisk is scheduled to release an additional update to its Wildfire model this month.

“The areas expected to be most impacted by the new hurricane models include the Gulf Coast and the Southeast, with average modeled losses expected to increase anywhere from 5% to 10%, and as high as 20% to 30% for certain portfolios,” the report said. “Insurers, reinsurers and state regulators are testing their current versions against the updated hurricane models to determine portfolio impact, potential pricing adjustments, additional surplus required and capacity needs.”

USI also noted that captive interest continues; the total number of captives worldwide increased from 5,879 in 2020 to 6,181 in 2023. That uptick was driven mostly by property insurance market conditions, USI said.

Commercial Casualty Insurance Trends

In the casualty insurance sphere, USI reported that the rate and pricing environment for workers compensation remains competitive in most states. Mental injury claims and catastrophic injuries were listed as trends to watch in the next six months.

“Broadening the criteria for compensable mental injury claims may lead to an increase in their frequency, severity and adjustments in WC insurance premiums overall,” the report said. USI later added that insurers are “closely monitoring” catastrophic injuries and could adapt their underwriting if they increase.

And, while USI described the GL/products market as “still challenging,” more flat renewals are being seen in some industry segments, the report said. Real estate and habitational risks “continue to be challenging to place, and insurers willing to cover the risks are typically increasing rates from high single digits to low double digits,” USI reported.

The report also shared that litigation is prompting the reassessment of approaches to per- and polyfluoroalkyl substances (PFAS) underwriting, coverage, risk management and claim handling.

“Most insurers are mandating exclusions on all renewal accounts regardless of industry or exposure to loss, but especially manufacturing, hospitality, retail and owners of real estate,” the report said. Along these lines, USI anticipates that finding PFAS coverage in the environmental insurance marketplace will be more difficult for product exposure, including supply chain/distribution risks and site-specific risks.

Source: Insurance Journal

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The big rise in mortgage rates during the past year has throttled the housing market, with sales of existing homes falling for 11 straight months to the lowest level in more than a decade.

The average rate on a 30-year fixed mortgage rose to 6.12% on Thursday from 6.09% last week, according to mortgage buyer Freddie Mac. A year ago, the average rate was 3.69%.

The 15-year fixed-rate mortgage averaged 5.25%, up from last week when it averaged 5.14%. A year ago at this time, the 15-year FRM averaged 2.93%.

Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate inched up to 6.12% this week from 6.09% last week. The average rate a year ago was 3.69%.

The average long-term rate reached a two-decade high of 7.08% in the fall as the Federal Reserve continued to raise its key lending rate in a bid to cool the economy and bring down stubborn, four-decade-high inflation.

“Following an interest rate hike from the Federal Reserve and a surprisingly strong jobs report, mortgage rates increased slightly this week,” said Sam Khater, Freddie Mac’s chief economist.

“The 30-year fixed-rate continues to hover close to six percent, and interested homebuyers are easing their way back to the market just in time for the spring homebuying season.”

The big rise in mortgage rates during the past year has devastated the housing market, with sales of existing homes falling for 11 straight months to the lowest level in more than a decade. Higher rates can add hundreds of dollars a month in costs for homebuyers, on top of already high home prices.

The National Association of Realtors reported earlier this month that existing U.S. home sales totaled 5.03 million last year, a 17.8% decline from 2021. That is the weakest year for home sales since 2014 and the biggest annual decline since 2008, during the housing crisis of the late 2000s.

source: foxbusiness

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Home buyers are spending more than $10,000 per square metre of land for property in Melbourne’s most sought-after, inner-city suburbs.

Those buying further away can get better bang for their buck, and pay less than $300 per square metre in far-flung neighbourhoods, Domain research shows.

Albert Park topped the list as Melbourne’s most expensive suburb per square metre, where buyers are paying a hefty $13,915 per square metre of land. Middle Park was close with a price tag of $12,730.

They were more expensive on this measure than traditional ultra-prestige neighbourhoods, such as South Yarra where the price per square metre is $10,082 and Toorak’s $7944.

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He adds that the new owner might “sub-divide and redevelop the freehold plot into three detached homes” subject to approvals. Since the site is elevated, the new development would be able to enjoy views of the surrounding landed estate.

“Landed private homes continue to be among the most coveted real estate properties in Singapore due to their scarcity, exclusivity and prestige. Freehold properties are also seen to be a good store of value,” says Lim. “Given the steady demand for such homes, we expect landed home prices to remain resilient this year.”

source: edgeprop

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This is according to FNB’s senior economist for commercial property, John Loos.

Speaking to RSG Geldsake this week, Loos said that South Africa’s property sector has experienced low house-price growth or commercial valuations that did not keep up with inflation and, in real terms, this resulted in a long slowdown.

He said only once the correction ends would it be a good time to buy property.

“In terms of investment in the commercial property sector in South Africa over the past five years, we have been on the weaker side when compared to elsewhere,” said Loos.

“When it comes to residential, for example, FNB home-price growth never went much above 4%, but the US sometimes swung into double digits during the period of lockdowns.”

He said that South Africa had faced long-term economic stagnation, and since 2012, there has been a broad slowdown. And despite significant anomalies such as the pandemic, the country is still experiencing stagnation.

Loos said that significant economic policy changes are required for the property sector to be turned around in the years to come.

“Policy will change; the private sector will be allowed to have a larger participation in many sectors, such as electricity, and then we could perhaps see the best part of the decade ahead perform significantly better economically, and property can turn around,” Loos added.

Recent data from property research firm Lightstone supports Loos’ assessment.

Lighstone said that residential property would continue to be shaped by local and international challenges; however, a stagnating domestic economy will be the toughest challenge.

The group said that the economy’s stagnation would see prices grow at a rate lower than inflation. Out of all three predictive forecasts, from baseline to positive, further interest rate hikes are expected – ranging from 50 basis points to 200 and GDP growth no higher than 1.1% in the most conducive scenarios.

Further rate hikes would hit home, making it harder to pay off monthly bond repayments.

When looking into the property market during a high inflationary period, Grant Smee from Only Realty Property Group said that it is best to look to buy at 70% – 80% of your affordability – thus ensuring a buffer for potential increases in rates, costs of ownership, taxes and levies.

source: businesstech

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The Shirebrook site, to be known as Pleasley View, will provide 265 homes and will form the final phase of Homes England’s Brookvale development.

Sixty-eight of the units will be built for Sigma, a provider of private rented housing, while 51 affordable homes will be built for and managed by registered provider Platform. The remaining 146 will be for open market sale and sold via Linden Homes (part of Vistry Group).

Stephen Teagle, chief executive of Countryside Partnerships, said: “Pleasley View builds on our established and successful relationship with Homes England in the North and we’re looking forward to delivering these new homes and creating a high-quality new community to live in.

“The development is a good example of our mixed-tenure approach; by working with quality partners like Sigma and Platform, we can offer a broad range of tenures giving more choice and the opportunity to either own or rent a quality new home in the local community.”

Jon Irvine, development director for the North at Homes England, added: “The completion of this deal with Countryside Partnerships is a significant milestone in the completion of our Brookvale development, continuing significant investment into the area.”

Work is expected to begin early in 2023, with the homes completed within four years

source: insidermedia

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HELOCs, as they’re called, let you borrow money against a portion of your home’s equity — the difference between your mortgage balance and the house’s appraised value — up to a certain amount. You can borrow from the HELOC over time as you need the money instead of getting it all at once as you would with a loan. They can also have lower interest rates than some options, and fewer upfront costs.

Yet experts say there are some aspects of HELOCs that you should consider before getting one.

“It’s like a credit card against your home’s value,” said Seth Bellas, a branch manager with Churchill Mortgage.

HELOC use rose as cash-out refis dropped

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Repossessions by landlords hit 5,409 between 1 October and 31 December last year, which was almost double the number in the same period in 2021, according to new Ministry of Justice figures for England and Wales.

The department said the number of mortgage and landlord repossessions increased steadily last year, and that compared with the same quarter in 2021, the October to December 2022 volumes “show a marked increase”. It added that “we cannot yet say whether these increases will continue at the same pace through 2023”, and that in general, the numbers had not reached pre-pandemic levels.

There has also been a “significant” increase in landlords taking action against tenants in the county courts of England and Wales, said the MoJ.

When compared with a year earlier, landlord repossession claims were up 42%, orders for possession by 135%, warrants by 103% and repossessions by 98%.

In recent months a string of surveys have shown that typical private rents in the UK have hit record highs. Experts say that severe shortages of rental properties have led to intense competition for what is available, with queues for viewings and desperate renters paying over the odds.

In December, a survey by homelessness charity Crisis indicated that nearly 1 million low-income households across Britain feared eviction in the coming months.

Ahead of the spring budget on 15 March, the charity is urging the government tobetter fund housing benefit “so that it covers the true cost of rent”.

Matt Downie, its chief executive, said: “The devastating impact of the cost of living crisis, rising rents and low wages has once again been laid bare as thousands more renters are faced with eviction and the very real threat of being left with nowhere to go.”

The MoJ data shows that private landlord repossessions were highest in Merthyr Tydfil in Wales, with 151 per 100,000 households within that sector. Social landlord repossessions were highest in Preston, Lancashire, with 146 per 100,000 households.

Meanwhile, Pendle in Lancashire had the highest overall rate of mortgage repossessions: 66 per 100,000 households.

source: theguardian

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Are you a would-be buyer sitting on the sidelines? A buyer negotiating over price? A seller weighing up your options? Or someone with a fleeting interest in what’s happening in the housing market? Whatever your circumstances, there’s a lot to digest right now.

Let’s start with house prices in January. Halifax shows that house prices remained stable at 0% last month, while Nationwide reveals that they dropped 0.6%. It comes after both lenders reported monthly house price falls at the end of last year.

Elsewhere, Royal Institution of Chartered Surveyors (RICS) says that buyer demand, agreed sales, new sales instructions and house prices in January all remain on a downward trend. The sentiment survey shows the most widespread fall in house prices since 2009, as covered here in the FT.

Simon Rubinsohn, chief economist at RICS, cautions against jumping to conclusions too quickly. ‘Although some respondents have noted a little more interest in the housing market as the new year got underway, the overall tone of the feedback still remains subdued,’ he said, ‘which is not altogether surprising given the jump in mortgage rates since the autumn.’

“Stress tests on mortgages are becoming harder to pass…  which is disproportionately felt by younger and poorer people”

It seems clear that economic headwinds have taken their toll on the housing market. Yet there are notes of optimism. Mortgage rates have stabilised, pre-existing buyers are ‘cautiously’ reactivating plans and new buyers are coming to terms with the ‘new normal’ in the lending market, according to Tom Bill, head of UK residential research at Knight Frank.

He adds: ‘Some of the house price growth that took place during the pandemic will unwind but as the shock of the mini-Budget fades, demand is proving more resilient than expected.’

Buyer demand in the first few weeks of the year has rebounded to pre-pandemic levels and is in line with 2018 – although it is well below levels seen in recent years, says Zoopla.

Meanwhile, on the mortgage front, fixed-rate pricing is continuing to drop from the highs seen last autumn despite the Bank of England unveiling a succession of rate rises.

‘While the days of sub-1% fixes are long gone, rates are beginning to look more palatable for borrowers, which should be a welcome boost for the housing market and encourage more to take the plunge,’ explains Mark Harris, chief executive of mortgage broker SPF Private Clients.

‘The markets have reacted favourably to the Prime Minister’s inflation-cutting pledge and while there may be further rate rises to come, base rate appears to be nearing its peak, which will be a comfort to borrowers.’

This week, five-year fixed-rate mortgages fell below 4% for the first time since last autumn, according to media reports.

Yet even at sub-4% mortgage rates are considerably higher than those we have become accustomed to in recent years, points out Marcus Dixon, director of UK residential research at JLL, commenting on last week’s bank rate increase.

There is an argument to suggest that factors such as settling rates and lower house prices could allow some would-be buyers to get onto or up the housing ladder. But as budgets are squeezed, saving for a deposit remains a challenge.

Avinav Nigam, co-founder of real estate investment platform, IMMO, argues: ‘Higher borrowing costs are dampening demand, and therefore house price growth. From a price-income ratio, this might look like good news on the affordability of homes.

‘However, it’s the opposite because at the same time, stress tests on mortgages are becoming harder to pass. The impact of this is disproportionately felt by typically younger and poorer people who are renting and aspire to home ownership.’

So are we seeing something of a false dawn – or is a soft landing possible? It’s early days, of course. The resilience of house prices and sales volumes will be put to the test in the spring when larger numbers of transactions take place, says Bill.

source: countrylife

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ROCKVILLE, Md., Dec. 8, 2022 /PRNewswire/ — The Windsor Hotel is the latest addition to the growing Ascend Hotel Collection, a global portfolio of resort, boutique, and historic hotels that reflect their surrounding communities. Situated in the heart of downtown Americus, Georgia, the five-story Victorian-style hotel provides visitors with convenient access to the city’s popular attractions, while paying homage to its unique charm and rich history.

Originally built in 1892, the boutique Windsor Hotel is a historic masterpiece—architecturally designed with tower and turret, balconies, and a three-story open atrium lobby. It occupies nearly an entire city block and was the site of numerous balls and celebrations. Following a multi-year transformation, the property–which still retains its stunning original style–now features lavish guest rooms, distinctive design, and modern amenities. Highlights include a state-of-the-art fitness and business center, two on-site restaurants and bars, and a private veranda.

“Now more than ever before, guests are seeking opportunities for authentic experiences in both new and familiar destinations. We’re thrilled to debut the Windsor Hotel in Americus, Georgia for travelers looking to immerse themselves in the abundant local history,” said Janis Cannon, senior vice president, upscale brands, Choice Hotels. “With more than 200 distinct locations nationwide, we look forward to welcoming even more guests at Ascend hotels, so they can experience our exceptional service and upscale offerings that enhance their one-of-a-kind stay. We always enjoy collaborating with new and existing Choice owners such as the Edgewater Group LLC, who also own and operate the Wyvern Hotel, Coombs Inn & Suites, and the Water Street Hotel & Marina within the Ascend Hotel Collection

The brand’s newest addition is owned and operated by longtime Choice franchise owner, Edgewater Group LLC, further underscoring the brand’s continued appeal and commitment to growth-minded hoteliers. Ascend appeals to franchisees who seek better upscale positioning in guests’ favorite markets while tapping into the core philosophy of providing unforgettable experiences.

As a part of the Ascend Hotel Collection by Choice Hotels International, Inc. (NYSE: CHH), guests can participate in the award-winning Choice Privileges loyalty program. Choice Privileges membership is free and offers fast rewards and exclusive member rates for those who book directly at www.choicehotels.com.

Ascend Hotel Collection^®: Let the Destination Reach You.
The Ascend Hotel Collection global portfolio of independent resort, historic and boutique hotels is part of Choice Hotels, one of the world’s largest leading hotel companies. Recognized as the hotel industry’s first “soft brand” concept, there are more than 315 Ascend Hotel Collection properties worldwide, including in France, the United Kingdom, Denmark, Finland, Ireland, Norway, Spain, Sweden, Turkey, Australia, Canada, Ecuador, and throughout Mexico, the Caribbean and Central America. Membership with the Ascend Hotel Collection enables distinctive, independent properties to gain a global presence while maintaining their local charm. For more information, visit www.choicehotels.com/ascend.

Source : PRNewsWire

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