NAMB National is typically the big event of the year, and 2018 was no different. Attendees from Class Valuation are still talking about the exciting takeaways. Class has made great strides in creating new technology to revolutionize the appraisal process for the long term, but we’re still committed to focusing on the more immediate shifts that will affect the industry as a whole. We are predicting 2019 to be a year of sweeping change. Distilled from the buzz and clamor of the NAMB National Las Vegas event, we have the top four takeaways to expect during the upcoming year.
1. A Purchase Market
Many factors are at play for this one, but the one I find the most exciting is the growing inventory. USA Today’s recent article on home sales lends some interesting figures to support this: Manufactured home production rose by over 7% last year, a number that is expected to grow even more in 2019. As far as traditional homes, the author had this to say:
“The supply crunch is expected to ease some in 2019 with inventory rising 10 percent to 15 percent… But the increase will be skewed toward the mid- to high- end of the market – houses priced $250,000 and higher – especially when it comes to newly built houses…”
2. Non-QM Will Continue to Grow
We’ll continue to beat this drum – if non-QM has not entered in your conversations, you’re not talking to the right people. In a recent article, Rob Chrisman wrote, “Non-QM origination volume continues to grow at a robust pace, and as we near the finish line for 2018, the velocity of growth, interest in the product, and capital investment are at an all-time high”.
Chrisman also noted how Deephaven Mortgage (a recent addition to Class’ partners) is “…committed to helping the industry continue its upward trajectory”.
Catch up. “More than 70% of lenders are currently integrating or investigating next-generation technology services…” according to National Mortgage News. From the same article, “Technology is no longer a choice; it’s purely a business decision. If someone tells you digital adoption is a marathon, it’s because they’re trying to sprint past you”.
4. Lender Mergers, Acquisitions and Closings
We’ve had a taste of this already in 2018, but this is a trend that is expected to continue. Housingwire touched on how common these lender mergers and acquisitions have become in a recent article, while also suggesting a few ideas for how lenders can stay profitable and competitive. The author writes, “There were a total of 11 deals announced in 2016, but that quickly sped up, rising to 28 transactions by November 2018, and more expected to come by the end of the year…”.
At Class Valuation, we are excited for everything 2019 will bring, and are confident in our partnerships in the new year. Continue to check in to stay up-to-date on our plans to help you close more loans and get borrowers in homes.