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THE FINANCIAL SERVICES AND REAL ESTATE WEEKLY FOR MASSACHUSETTS BY THE NUMBERS
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IN PERSON
County close-up: Hampden Spotlight: West Springfield
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After studying history, architecture and economics, David Dixon discovered his talent for design by chance and has been following that passion ever since. He’s won numerous awards for his planning and architecture work and has written several books; he co-edited the recently released “Suburban Remix: Creating the Next Generation of Urban Places.”
WEEK OF MONDAY, FEBRUARY 19, 2018 RESIDENTIAL REAL ESTATE BY THE NUMBERS
+30, -30 Tolland in Hampden County had a 30 percent rise in the median sale price year over year in 2017; it also had a 30 percent drop in the number of homes sold. See page 6 for more information about sales in Hampden County. Source: The Warren Group
$100 million See page 3 for Scott Van Voorhis’ analysis of why the bridge to Long Island will cost upwards of $100 million – and how that money could be better spent elsewhere.
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A U T O M O T I V E A U T O M AT I O N
DRIVERLESS CARS WILL RADICALLY CHANGE REAL ESTATE Disruption is Coming to Commutes, Land Use and Urban Design
The most expensive home sold in the Bay State last week has five fireplaces. See the Gossip Report on page 8 for more. Source: The Warren Group
2,500 A new report has found a record high number of assistance programs – more than 2,500 – are now available for today’s homebuyers. Source: Down Payment Resource Q4 2017 Homeownership Program Index
#3 LoanDepot.com took the third highest share of the mortgage market in Hampden County last year; the company’s originator David Valino was also number three in the county. See page 6 for more information about sales in Hampden County. Source: The Warren Group’s Mortgage Market Share Module
$185 million Four Massachusetts community development organizations will receive $185 million in the latest round of new markets tax credits awarded by the U.S. Department of the Treasury.
$1.1 billion Internet juggernaut Zillow Group Inc. posted record earnings of nearly $1.1 billion in 2017. Source: Zillow
Unless otherwise noted, all data is sourced from The Warren Group’s Mortgage Market Share Module, Loan Originator Module, Statistics Module and/or proprietary database. For more information please visit www.thewarrengroup.com/business/ datasolutions.
BY JIM MORRISON BANKER & TRADESMAN STAFF
F
lying cars might still be a ways off, but driverless cars are much closer to reality than most consumers realize – and it’s difficult to overstate how much they’re going to impact the economy, perhaps most dramatically real estate. “The belief that this is harebrained is not very reflective of how other changes like this have happened,” said Jason Schreiber, senior principal at Stantec Urban Places. “The thing the public doesn’t appreciate is this was originally being planned by Federal Highway Administration for no later than 1990. The technologies that existed then aren’t very different than what we have now. The biggest difference is in processing powers and the fact that it is scalable at an affordable cost.”
To begin, shared autonomous vehicles (SAV) will destroy the current business model of ride-hailing apps like Uber and Lyft, which is why both companies are trying to get in on the ground floor through various partnerships. An SAV works rather like a ride hailed via Uber or Lyft – except there’s no driver, currently a major part of the companies’ business models, and one of the most expensive. The driver accounts for approximately 50 to 60 percent of the cost on those rides, according to Stantec’s research. But that’s just the beginning of the savings, Schreiber said. “It will be safer for people,” he said. “That’s always been the number one thing the federal and state governments have been pushing for, because of all the health and safety costs and emergency costs. I don’t know what firefighters will do when nine out of 10 of their calls go away. Same thing with the police.” Consider just a few statistics: there were 37,461 highway fatalities in the U.S. in 2016, according to the Insurance Institute for Highway Safety. The institute estimates that at least 81 percent of all crashes are Continued on Page 8
AGAINST THE TIDE
C R E C O N C E N T R AT I O N
Non-Traditional Designs Drive Develoment Activity
Will Banks Continue to Grow Once CRE Lending Dries Up?
BY STEVE ADAMS | BANKER & TRADESMAN STAFF
BY BRAM BERKOWITZ | BANKER & TRADESMAN STAFF
The Death and Life of Bank CRE Concentrations Suburban Office Space Remain High
Commercial Real Estate PAGE 9
Banking & Lending PAGE 10