March 2022 – Page 2

Homebuyer Competition Ticked Up in February, Hitting Record High

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Bidding Wars Are Intensifying at a Slower Pace Than They Were at the Start of the Pandemic By Lily Katz, Senior Data Journalist at Redfin Nationwide, 68.6% of home offers written by Redfin agents faced bidding wars on a seasonally adjusted basis in February—the highest level in Redfin’s records, which date back to April 2020. That’s up slightly from a revised rate of 68% in January and 60.2% a year earlier. On an unadjusted basis, February’s bidding-war rate was 71.4%. “It’s the most competitive time in history to purchase a home because mortgage rates are rising from historic lows amid a worsening supply shortage,” said Redfin Chief Economist Daryl Fairweather. “Bidding wars intensified this year after rates started spiking, which lit a fire under buyers. Competition will likely plateau or even decline if rates keep increasing as expected. Monthly mortgage payments for new buyers are already at a record high. As they continue to creep up, some buyers will move to the sidelines.” Mortgage rates have increased as the government seeks to combat inflation. The Federal Reserve raised interest rates for the first time in four years this week. That caused the average 30-year fixed mortgage rate to jump past 4% for the first time since 2019, hitting 4.16% during the week ending March 17. That’s up from a record low of 2.65% roughly two years ago. The Fed forecast six more rate hikes this year despite economic uncertainty stemming from the war in Ukraine. El Paso, Denver and Minneapolis Are the Most Competitive Housing Markets El Paso, TX had the highest bidding-war rate of the 50 U.S. metropolitan areas in this analysis, with 87.5% of offers written by Redfin agents facing competition in February. Next came Denver at 83% and Minneapolis at 81.1%. Raleigh, NC and San Francisco/San Jose rounded out the top five, with bidding-war rates of 80% and 79.9%, respectively. “Housing inventory in El Paso is ridiculously low—especially for new-construction homes—which is brewing up bidding wars,” said local Redfin real estate agent Salvador Palos. “Buyers here have always loved new, turn-key homes, and those are nearly impossible to find because builders are delayed due to supply-chain issues and labor shortages. A lot of homeowners are also staying put because they’re worried about finding their next home at a time when the economy is so uncertain. It’s not uncommon for newer homes to get 10 to 15 offers and sell for $20,000 over the asking price.” Townhouses Are the Most Competitive Property Type Three-quarters (75.3%) of Redfin offers for townhouses faced competition in February—a higher share than any other property type. Next came single-family homes, with a bidding-war rate of 72.9%. Multi-family properties and condos/co-ops essentially tied for third place, with respective rates of 64.8% and 64.6%. Many homebuyers have sought out townhouses because they’ve been priced out of the market for single-family homes due to surging housing prices. Homes in the $1 Million to $1.5 Million Range Are the Most Competitive Homes listed in the $1 million to $1.5 million range were the most likely to face competition, with a bidding-war rate of 76.6% in February. Next came homes in the $600,000 to $800,000 range (73.8%), followed by homes listed for more than $1.5 million (73.1%). The least competitive were homes listed for less than $200,000 (62.7%), followed by homes in the $200,000 to $300,000 range (67.9%). All other list-price buckets had bidding-war rates of more than 70%. To view the original report, please go to: https://www.redfin.com/news/real-estate-bidding-wars-february-2022/.

WORD OF THE DAY: Autodidact

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[aw-toh-DIE-dakt] Part of speech: Noun Origin: Greek, late 18th century Definitions: A self-taught person; a person who learned through methods outside of formal education Examples of Autodidact in a sentence “He loves being homeschooled and proudly calls himself an autodidact.” “Thanks to unlimited how-to videos and courses on the internet, anyone can be an autodidact.” About Autodidact An autodidact is a self-taught person who hasn’t received any formal education or training in their chosen skill or field (although, to be fair, you could have a college degree in economics, but be an autodidact when it comes to the guitar). Anyone who has learned a topic or skill outside of a formal education environment is an autodidact. You’re an autodidact just by learning new vocabulary! Did you Know? Anyone who has learned outside of formal education can be considered an autodidact, including some of history’s most famous writers, musicians, and artists. William Faulkner dropped out of college and went on to win the Nobel Prize in Literature. Keith Moon, the drummer in The Who, taught himself how to bang the drums. David Bowie, Kurt Cobain, and Jimi Hendrix all taught themselves to play the guitar. Architect Frank Lloyd Wright never received a college degree.

ResView Partners With RhinoWare Strengthening SFR Oversight

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Both Groups Are Poised To Lead The Industry With Forward Thinking And Innovation ResView is a technology-based company that assists large property managers and institutional investors in the Single Family Residential (SFR) space with software to run and operate their businesses. This includes construction oversight, vendor management, real estate purchasing software, broker licensing, and home warranty products. ResView has announced its partnership with RhinoWareIT, a technology company for the real estate industry that combines go-to-market platforms and techniques to create business management solutions that help transform how an organization manages workflow, logistics, services, operations, properties, and people. The strategic partnership offers clients a more affordable and efficient software platform; by simplifying user, staff, and contractor experience to the benefit of the resident and platform. As the SFR space grows in popularity, so does the overwhelming need for better technology. With merging these two all-star teams and the current enhancements, more convenience will be available for the homeowner, tenant, property management company, and investors through the newly released SFR PropTek system. “This partnership will translate very well for advancing technology needs while improving construction oversight and vendor services for large institutional SFR groups, as well as options for the smaller investor with just a few properties. We are also tackling initiatives on the international stage and filling unaddressed gaps across the property management spectrum,” said Shane Mitchell, COO of ResView. In addition, Mitchell shared: “With the sheer amount of capital pouring into the space lately, there are increased challenges with dispatching contractors to properties around the country to complete renovations and maintenance in a timely manner. If we can knock down turn-times, on average across a portfolio, it equates to millions of dollars more on the bottom line for investors. We are simply here to fill a gap and make sure that the transition is equitable for everyone involved in the ecosystem. The partnership will provide a unique solution to industry leaders that will truly redefine technology success in this asset class.” Quote from Executive at ResView SFR Client: “With the amount of money and players entering the SFR marketplace, companies like ResView help deploy capital and logistics management from taking ownership of title to putting residents into the properties and continued maintenance. Instead of using multiple software platforms, we can use ResView for just one, which is a major time and money savings for us.” ABOUT RESVIEW: A technology, service-based company. ResView’s mission statement is Making Communities Stronger. “Every city we do business in, we will add value by improving the local neighborhoods, while striving to hire firefighters, police, military, and front-line healthcare as our handymen and repair help,” said Mitchell. ABOUT RHINOWAREIT: RhinoWareIT is real estate software for solving nationwide property, people, process, or problem-based needs, leveraging Microsoft, Amazon, and other industrial-strength toolsets to your advantage. Contacts ResView & RhinoWareIrma Sera (or Ben Kubicki)info@MyResView.cominfo@RhinoWareIT.com

WORD OF THE DAY: Fatuous

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[FA-tchoo-əs/] Part of speech: Adjective Origin: Latin, early 17th century Definitions: Silly and pointless; Lacking intelligence Examples of Fatuous in a sentence “He thought the decorative pillows were fatuous, but they made his mom happy.” “The teacher got frustrated by the fatuous questions that showed the students hadn’t been paying attention.” About Fatuous The word fatuous is a clever adjective used to describe someone lacking in intelligence, or something that is just plain pointless. You might use fatuous with a tone of condescension or irritation. Be careful — just because you know the meaning of fatuous doesn’t mean it’s always a nice word to use. Did you Know? The “fat” in this adjective is misleading — fatuous has nothing to do with your weight. Instead the origin can be traced back to the Latin word “fatuus,” meaning foolish. You might recognize this root in the word infatuation — a silly, foolish crush.

ServiceLink Welcomes Jamie Rey-Hipolito as Vice President of Single-Family Rental

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Industry veteran brings decades of real estate operations and asset management experience to mortgage leader ServiceLink is expanding its leadership team to better meet the needs of single-family rental investors by appointing Jamie Rey-Hipolito as vice president of single-family rental. An accomplished real estate operations and asset management veteran, Rey-Hipolito brings more than 20 years’ experience in multifamily, single-family and iBuyer asset management. In this role, Rey-Hipolito will be responsible for expanding ServiceLink’s single-family rental solutions for investors and clients – bringing to market the highest quality technology driven products and solutions to reduce cycle times, and best-in-class customer service. “Jamie is an industry trailblazer – bringing a wealth of knowledge, experience and a strong passion for delivering first-rate customer service,” said Amy Daniel, senior vice president, title and close at ServiceLink. “Jamie will play a vital role in expanding our business and delivering innovative solutions and services to meet our client’s needs.” Prior to joining ServiceLink, Rey-Hipolito served as vice president of operations for Afton Properties, a full-service real estate investment and management company, and vice president of operations for Invitation Homes, a top home leasing company. “The industry is rapidly changing, with build-to-rent, vacation rental real estate and second home shares, creating more opportunities for investors to enter the market,” said Jamie Rey-Hipolito. “It’s an exciting time to join ServiceLink and this incredibly talented and passionate team. I look forward to helping our clients and investors navigate this growing space and delivering unparalleled service and solutions to meet their portfolio needs.” ServiceLink provides a full suite of services to the single-family rental market including title, inspections and rehab, auction and valuations. To learn more about how we’re helping our clients grow and manage their residential property portfolio, visit svclnk.com.

Your house probably made more than you did last year

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Skyrocketing home values and rent make the jump to ownership even more challenging 2021 home value growth exceeded median income in 25 of 38 major metros studied. Appreciation on the typical home ranged from the equivalent of an oral surgeon’s annual wages in San Jose to that of a food preparation worker in St. Louis. Annual rent payments grew by more than $3,000, while down payments increased by more than $10,000. The term “household income” was given new meaning in 2021 as a banner year for home appreciation found houses themselves earning more than the median worker in major metros across the country, according to a new study by Zillow®. “More than anything, 2021 was a year of haves and have-nots, and the chasm between the two widening throughout,” said Zillow economist Nicole Bachaud. “Those who owned a home saw their household wealth increase dramatically. But many renters witnessed that dream either soar out of reach or had to drastically adjust their expectations and plans.” Home value appreciation in 2021 was higher than median incomes in 25 of 38 major metropolitan areas studied by Zillow, with appreciation reaching higher than $100,000 in 11 of them. Though San Jose has the highest median income at $93,000, it also led all major metros in annual home value appreciation — with the typical home growing a whopping $229,277 over 2021, nearly what oral surgeons make. Expensive coastal markets in California and Hawaii saw home value growth wallop local median incomes by the largest amounts. San Jose led but San Francisco closely followed, with homes earning $129,914 more than the median salary. Boise, Salt Lake City, Seattle and Phoenix rounded out the top 10. Metropolitan areas with the lowest home price appreciation relative to median incomes were Detroit, St. Louis and Baltimore, though even the smallest home value growth among these metros, in St. Louis, was still higher than $27,000. While homeowners watched their assets multiply in 2021, the chasm separating many renters from homeownership widened, as home prices skyrocketed and rising rents eroded their ability to save for a down payment. Rents rose 16% across the U.S. in 2021 and upward of 25% in popular Sun Belt locales like Miami, Phoenix and Las Vegas. Locking in a one-year lease on a typical U.S. rental cost $3,072 more at the end of the year than the start of the year. It was $7,104 more in Miami, $4,644 more in Phoenix and $4,380 more in Las Vegas — major hits to a household budget, as that money can’t be saved toward a down payment. At the same time, down payments — often the highest hurdle to homeownership for first-time buyers — rose by more than $10,000 in 2021 for a typical 30-year fixed mortgage. Sticking with our metros used in the rent comparison, typical down payments rose nearly $14,500 in Miami, more than $20,600 in Phoenix and $16,700 in Las Vegas. Metro Area* Home ValueGrowthDecember2020 –December2021 MedianPretaxIncome,2021** Home ValueGrowthMinusMedianIncome 2021 Rise inFull-YearRentPayments U.S. Profession’sMean Annual WageClosest to 2021Home ValueGrowth*** United States $52,667 $50,000 $2,667 $3,072 Directors, religiousactivities andeducation New York–Newark— JerseyCity $63,928 $60,000 $3,928 $4,656 Judicial law clerks Los Angeles– LongBeach– Anaheim $131,979 $50,000 $81,979 $3,924 Judges, magistrates Chicago–Naperville– Elgin $34,918 $57,000 -$22,082 $2,028 Other protectiveservice workers Dallas–FortWorth– Arlington $69,488 $50,000 $19,488 $3,156 Human resourcespecialists Houston– TheWoodlands–Sugar Land $45,250 $50,000 -$4,750 $2,004 Dental laboratorytechnicians Washington,D.C.– Arlington-Alexandria $56,163 $75,000 -$18,837 $2,700 Loading machineoperators,underground mining Miami– FortLauderdale– WestPalm Beach $72,053 $40,000 $32,053 $7,104 Public relationsspecialists Philadelphia–Camden–Wilmington $39,994 $60,000 -$20,006 $2,160 Supervisors of foodpreparation andserving workers Atlanta– SandySprings– Roswell $73,036 $50,000 $23,036 $4,008 Soil and plantscientists Phoenix– Mesa–Scottsdale $103,470 $52,000 $51,470 $4,644 Educationadministrators, K–2 Boston–Cambridge–Newton $76,616 $66,852 $9,764 $3,948 Arbitrators,mediators San Francisco–Oakland-Hayward $204,914 $75,000 $129,914 $3,540 General internalmedicine physicians Riverside– SanBernardino–Ontario $111,014 $45,000 $66,014 $4,560 Air transportationworkers Detroit– Warren–Dearborn $29,675 $57,000 -$27,325 $1,644 Gambling cageworkers Seattle– Tacoma–Bellevue $131,129 $65,000 $66,129 $3,816 Computer andinformation researchscientists Minneapolis– St.Paul–Bloomington $39,942 $60,000 -$20,058 $1,020 Gamblingsurveillance officers San Diego—Carlsbad $160,493 $54,703 $105,790 $4,932 Computer andinformation systemsmanagers Tampa– St.Petersburg–Clearwater $74,754 $46,000 $28,754 $5,292 Criminal justiceteachers,postsecondary Denver– Aurora–Lakewood $108,922 $65,000 $43,922 $2,928 Electrical engineers St. Louis $27,741 $50,000 -$22,259 $1,428 Cooks and foodpreparation workers Baltimore–Columbia–Towson $36,984 $60,000 -$23,016 $2,316 Medical assistants Charlotte–Concord–Gastonia $71,804 $57,000 $14,804 $3,384 Commercial divers Orlando–Kissimmee–Sanford $64,638 $44,384 $20,254 $4,380 Set and exhibitdesigners San Antonio–New Braunfels $54,769 $46,966 $7,803 $2,292 Counselors Portland–Hillsboro–Vancouver $83,283 $60,000 $23,283 $2,520 Speech-languagepathologists Las Vegas–Henderson–Paradise $83,894 $46,000 $37,894 $4,380 Nuclear technicians Kansas City $40,846 $50,000 -$9,154 $1,368 Mixing and blendingmachine setters,operators San Jose–Sunnyvale– SantaClara $229,277 $93,000 $136,277 $3,108 Oral and maxillofacialsurgeons Nashville–Davidson–Murfreesboro–Franklin $84,395 $50,000 $34,395 $3,372 Emergencymanagementdirectors Providence–Warwick $66,657 $55,000 $11,657 $2,364 Court reporters andsimultaneouscaptioners Oklahoma City $26,866 $44,044 -$17,178 $1,584 Food preparationworkers New Orleans–Metairie $31,945 $47,000 -$15,055 $2,628 Textile machinesetters, operatorsand tenders Salt Lake City $119,539 $53,638 $65,901 $3,156 Computer networkarchitects Birmingham–Hoover $31,968 $50,000 -$18,032 $1,476 Helpers – productionworkers Urban Honolulu $138,254 $51,000 $87,254 $2,820 Operationsspecialties managers Omaha– CouncilBluffs $31,114 $50,000 -$18,886 $1,236 Funeral attendants Albuquerque $47,215 $45,000 $2,215 $2,736 Educationalinstruction andlibrary workers, all others Boise City $124,979 $50,000 $74,979 $3,240 Health specialtiesteachers,postsecondary *Table ordered by size rank ** Median inflation-adjusted pretax wage and salary income data from the Current Population Survey Annual Social and Economic Supplement *** Occupation wage data from May 2020 National Occupational Employment and Wage Estimates United States