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word of the day: Bafflegab

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[ba-fəl-ˌgab] Part of speech: Noun Origin: English, 20th century Definition: Messy, wordy jargon; Incomprehensible gibberish; Confusing legal or bureaucratic language Examples of Bafflegab in a sentence “The contract was full of so much bafflegab that I don’t even know what I agreed to.” “Do your words have actual meaning, or is it all just bafflegab?” About Bafflegab In addition to bafflegab, English has a rich history of words used to describe nonsense. Some standouts include gibberish, gobbledygook, double-talk, and legalese, used specifically for the confusing language often found in legal documents. Did you Know? Bafflegab is a relatively recent word in English, appearing only in the 1950s. If it looks familiar, that’s because it’s a combination of two common words: baffle and gab.

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ZOMBIE PROPERTY COUNT INCHES UP AGAIN IN THIRD QUARTER OF 2022 ACROSS U.S. AMID CONTINUED RISE IN FORECLOSURE ACTIVITY

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Zombie Properties Still Represent Just One of Every 13,000 Residential Properties Nationwide; But Ratio is Up Since Lifting of Foreclosure Moratorium One Year Ago ATTOM, a leading curator of real estate data nationwide for land and property data, released its third-quarter 2022 Vacant Property and Zombie Foreclosure Report showing that 1.3 million (1,277,162) residential properties in the United States sit vacant. That figure represents 1.3 percent, or one in 78 homes, across the nation. The report analyzes publicly recorded real estate data collected by ATTOM — including foreclosure status, equity and owner-occupancy status — matched against monthly updated vacancy data. Vacancy data is available for U.S. residential properties at https://www.attomdata.com/solutions/marketing-lists/. The report also reveals that 270,470 residential properties in the U.S. are in the process of foreclosure in the third quarter of this year, up 4.4 percent from the second quarter of 2022 and up 25.5 percent from the third quarter of 2021. The latest increase marks the fourth straight quarter that the count of pre-foreclosure properties has increased since a nationwide moratorium on lenders pursuing delinquent homeowners, imposed after the Coronavirus pandemic hit in 2020, was lifted at the end of July 2021. Among those pre-foreclosure properties, 7,707 are zombie-foreclosures (pre-foreclosure properties that sit vacant) in the third quarter of 2022, up 1.8 percent from the prior quarter and 2.2 percent from a year ago. “We see two trends heading in opposite directions – the number of vacant properties continues to decline and the number of zombie properties continues to increase, although neither trend appears to be particularly worrisome,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “Vacancy rates should continue to be low as investor and prospective homebuyers compete for limited inventory. And the number of zombie properties should continue to increase slowly as foreclosure activity climbs back from historically low levels due to government intervention.” The number of zombie-foreclosures does remain historically low and continues to represent just a tiny segment of the nation’s total stock of 99.8 million residential properties. Just one of every 12,947 homes in the third quarter of 2022 is vacant and in foreclosure, meaning that most neighborhoods still have no such properties. The portion of pre-foreclosure properties that have been abandoned into zombie status, meanwhile, continues to decline, from 3.5 percent a year ago to 2.9 percent in the second quarter of 2022 and 2.8 percent in the third quarter of this year. But the level of all homes sitting empty as zombie properties has grown for the second quarter in a row and now is up 3.6 percent from one in 13,424 in the first quarter of this year. The latest bump-ups in overall and zombie-property counts – while presenting an issue to watch – comes at a time when the relentless U.S. housing market boom has continued into its 11th year despite forces that threaten to slow it down. Zombie foreclosures up again but remain tiny portion of overall market A total of 7,707 residential properties facing possible foreclosure have been vacated by their owners nationwide in the third quarter of 2022, up from 7,569 in the second quarter of 2022 and from 7,538 in the third quarter of 2021. While the issue remains nonexistent in most neighborhoods, the biggest increases from the second quarter of 2022 to the third quarter of 2022 in states with at least 50 zombie foreclosures are in Oklahoma (zombie properties up 22 percent, from 97 to 118), Missouri (up 16 percent, from 55 to 64), California (up 15 percent, from 221 to 254), Massachusetts (up 9 percent, from 54 to 59) and Florida (up 8 percent, from 922 to 998). The biggest quarterly decreases among states with at least 50 zombie foreclosures are in Kentucky (zombie properties down 14 percent, from 63 to 54), Georgia (down 10 percent, from 80 to 72), New Jersey (down 7 percent, from 257 to 240), Pennsylvania (down 6 percent, from 371 to 349) and Nevada (down 6 percent, from 86 to 81). Overall vacancy rates continue downward trend in most of nation The vacancy rate for all residential properties in the U.S. has dropped to 1.28 percent in the third quarter of 2022 (one in 78 properties). That’s down from 1.31 percent in the second quarter of 2022 (one in 76) and from 1.35 percent in the third quarter of last year (one in 74). States with the biggest annual drops are Tennessee (down from 2.33 percent of all homes in the third quarter of 2021 to 1.34 percent in the third quarter of this year), Minnesota (down from 1.24 percent to 0.84 percent), Oregon (down from 1.26 percent to 0.95 percent), Wisconsin (down from 1.03 percent to 0.72 percent) and Georgia (down from 1.82 percent to 1.53 percent). Other high-level findings from the third quarter of 2022: Among metropolitan statistical areas in the U.S. with at least 100,000 residential properties and at least 100 properties facing possible foreclosure in the third quarter of 2022, the highest zombie rates are in Wichita, KS (11.9 percent of properties in the foreclosure process are vacant); Peoria, IL (10.5 percent); Cleveland, OH (8.9 percent); Syracuse, NY (8.7 percent) and South Bend, IN (8.2 percent). Aside from Cleveland, the highest zombie-foreclosure rates in major metro areas with at least 500,000 residential properties and at least 100 homes facing foreclosure in the third quarter of 2022 are in Baltimore, MD (7.4 percent of homes in the foreclosure process are vacant); St. Louis, MO (5.6 percent); Pittsburgh, PA (5.6 percent); Tampa, FL (4.7 percent) and Indianapolis, IN (4.6 percent). Among the 27.9 million investor-owned homes throughout the U.S. in the third quarter of 2022, about 888,000 are vacant, or 3.2 percent. The highest levels of vacant investor-owned homes are in Indiana (6.8 percent), Kansas (5.8 percent), Oklahoma (5.3 percent), Alabama (5 percent) and Ohio (5 percent). Among the roughly 4,200 foreclosed, bank-owned homes in the U.S. during the third quarter of 2022, 8.2 percent are vacant. In states with at least 50 bank-owned homes, the largest vacancy rates are in Ohio (14.5 percent vacant), Pennsylvania (13 percent), Illinois (12.5 percent), New York (11 percent) and Maryland (10.5 percent). The highest zombie-foreclosure rates in U.S. counties with at least 500 properties in the foreclosure process during the third quarter of 2022 are in Broome County (Binghamton), NY (11.4 percent zombie foreclosures); Cuyahoga County (Cleveland), OH (10.1 percent); Pinellas County (Clearwater), FL (9.9 percent); Onondaga County (Syracuse), NY (9.3 percent) and Oneida County, NY (outside Syracuse) (8.5 percent).  Among 425 counties with at

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Buyers gaining time and options as housing market rebalances

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Competition is easing as inventory accumulates, leading the market back toward ‘normal’ U.S. home values fell 0.1% from June to July, the first decline in the raw Zillow Home Value Index since 2012. Home values fell last month in 30 of the 50 largest metro areas, but are still up 16% from a year ago.  Rising inventory is being driven by homes lingering on the market and new listings trailing pre-pandemic levels. It took 10 days for a listing to go pending in July, two days longer than in June. Rent appreciation is slowing, but the growth rate remains much higher than pre-pandemic levels. After two years of unprecedented growth, home values fell slightly from June to July, according to the latest market report from Zillow®. The market is quickly rebalancing. With buyers’ purchasing power diminished by nearly two years of double-digit price growth and higher mortgage rates, competition for homes is dropping off.  The typical U.S. home value declined by 0.1% ($366) month over month in July and now stands at $357,107, as measured by the raw Zillow Home Value Index (ZHVI). Monthly growth in this metric has relaxed since reaching a recent peak of 1.9% in April, slowing to 1.2% growth in May and 0.8% growth in June. It’s not unusual for home price growth to decelerate this time of year, but the small decline is the first monthly dip since 2012. The nation’s typical home value is up 16% year over year and 44.5% since July 2019.  “Home values flattening so quickly after recent record growth might surprise, but it’s a badly needed rebalancing that gives home buyers more options, more time to shop and more negotiating power,” said Zillow chief economist Skylar Olsen. “This slowdown is about discouraged buyers pulling back after the affordability shock from higher rates. As prices soften, many will renew their interest, and we will continue our progress back to ‘normal.’ With buyers ready in the wings once confidence returns, homeowners can expect to keep the majority of the equity gains they’ve seen in the last two years.” Home values measured by raw ZHVI fell from June to July in 30 of the 50 largest metro areas, an increase from 13 the previous month. The largest monthly home value declines were in San Jose (-4.5%) and San Francisco (-2.8%) — the nation’s most expensive major markets — followed by Phoenix (-2.8%) and Austin (-2.7%), which saw the most extreme growth over the pandemic. Values rose the most since June in Miami (1.5%), Richmond (1%) and Memphis (0.9%), although monthly growth has decelerated in these markets.  Home shoppers still on the hunt have more time to find and consider their options, and have a better chance of seeing price cuts. Listings’ median days to pending jumped by two days in July to 10 — still nearly two weeks less than in July 2019. Among major metros, typical time on market is rising fastest in Austin, Phoenix and San Jose. A wide swath of sellers are adjusting pricing to meet buyers’ expectations, as the share of listings with a price cut grew to 18.6% in July, a few percentage points higher than in July 2019.  Homes lingering on the market are driving for-sale inventory up at a fast clip. Inventory is up 5.1% on a monthly basis, yet new inventory fell 13.6% month over month in July. Compared to July 2019, 15.5% fewer new listings came on the market. This new inventory figure does not include new construction, so it represents current homeowners deciding not to list their homes.  While total inventory is rising quickly, it still stands 43.5% below July 2019. Low inventory is a key reason Zillow economists do not expect home prices to fall significantly.  “Inventory, the pool of homes available during a given window, is very responsive to easing demand and slowing sales, this year posting the largest month-over-month seasonal increases for any May, June or July ever recorded,” said Olsen. “The flow of homes into the market, however, is slowing. High interest rates are likely keeping current homeowners from deciding to list, as they compare their current rate — and home — against what can be found on the market, keeping inventory far below pre-pandemic norms despite the slowdown in sales.”  Typical monthly rent in the U.S. is now $2,031. After a rapid run-up that peaked in February, rent hikes appear to be stabilizing, easing to 0.6% month-over-month growth in July after seeing higher volatility through much of 2021. Although growth is decelerating, the annual growth rate is still more than three times that of July 2019. Among major metros, the most significant slowdowns in monthly rent growth since July of last year occurred in Las Vegas (from 3.6% to -0.2%), Phoenix (3.5% to -0.3%), Tampa (3.9% to 0.3%), and Austin (3.8% to 0.7%). 

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RCN Capital Appears on the Inc. 5000 List of the Fastest-Growing Private Companies

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RCN Capital, the leading nationwide private lender for real estate investors, has been named on the 2022 Inc. 5000 list, the most prestigious ranking of the fastest-growing private companies in America, ranking No. 2083. RCN Capital also ranked No. 119 on the Inc. 5000 Regionals Northeast list earlier this year.  “In such a dynamic fast-growing US economy that the Inc. 5000 tracks, it is truly humbling to be added to their list for the second straight year,” said Jeffrey Tesch, CEO of RCN Capital. “The foundation of RCN Capital is truly its amazing employees. As our company approaches the five-billion-dollar mark in originations in our short history I would like to thank all of the current and former employees who have gotten us here. Without the dedication of those team members and the support of their families, we would not be achieving such incredible milestones today. The RCN catchphrase is ‘we are just getting started’ and it could not be more true today!” RCN Capital provides diverse financing options specifically for real estate investors that are purchasing or refinancing single-family and multifamily investment properties. Starting from humble beginnings as a regional lender offering short-term fix & flip and bridge financing, RCN has expanded its national footprint as well as its product offerings over the last decade. The company now offers ground-up construction financing, short-term bridge loans, fix & flip financing, and long-term rental financing for investors looking to build out their real estate portfolios. RCN’s focus on wholesale as well as retail lending in the private lending space with an emphasis on partner relationships and providing superior customer service has continued to propel the company’s growth. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000. About RCN Capital RCN Capital is a South Windsor, CT based national, direct, private lender. Established in 2010, RCN provides commercial loans for the purchase or refinance of non-owner occupied residential and commercial properties. The company specializes in new construction financing, short-term fix & flip and bridge financing and long-term rental financing for real estate investors. For more information on RCN Capital and RCN’s loan programs, visit www.RCNCapital.com.

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WORD OF THE DAY: Cognoscente

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[kahn-yə-SHEN-tee] Part of speech: Noun Origin: Italian, late 18th century Definition: A connoisseur; a discerning expert Examples of Cognoscente in a sentence “Jackie took special pride in her reputation as a film cognoscente.” “While he could make anything behind the bar, Jerome worked best as a wine cognoscente.” About Cognoscente This word — which translates directly into “people who know” — developed in the late 18th century from the Italian words “cognoscent” (getting to know) and “cognoscere.” Did you Know? While there are specific training programs that one can apply to in order to become a wine cognoscente, a person can also become a connoisseur through personal experience. Attending workshops on the craft, listening to recommendations from people established in the field, and getting hands-on experience in wineries are all recommended ways to get started as a sommelier.

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Homebuyer Competition Falls to Lowest Level Since Early Months of Pandemic

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Higher mortgage rates and home prices are pushing some house hunters out of the market, leaving those who remain with more options and negotiating power Nationwide, 44.3% of home offers written by Redfin agents faced competition on a seasonally adjusted basis in July, compared with a revised rate of 50.9% one month earlier and 63.8% one year earlier, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s the sixth-straight monthly decline and the lowest share on record with the exception of April 2020, when the onset of the coronavirus brought the housing market to a near standstill. The typical home in a bidding war received 3.5 offers in July, compared with 4.1 one month earlier and 5.3 one year earlier, according to data submitted by Redfin agents nationwide. Redfin’s bidding-war data goes back through April 2020. Homebuyer competition is cooling as more Americans are priced out of the housing market due to higher mortgage rates and inflation. Properties are lingering on the market longer and the housing shortage is easing up, giving buyers more options to choose from and room to negotiate. Some sellers are slashing their asking prices as a result. Roughly 8% of listings on the market each week experience a price cut, the highest share on record. “The market is wildly different than it was a few months ago. Buyers are competing with one to two other offers instead of four to eight. Some aren’t facing competition at all,” said Alexis Malin, a Redfin real estate agent representing buyers in Jacksonville, FL. “There’s not the same sense of urgency. House hunters are scheduling tours four days in advance instead of one, and they’re becoming much more selective. If a home doesn’t check all of their boxes, they’re waiting until they find one that does. Six months ago, buyers were taking any house they could get.” Malin continued: “Buyers have also started writing offers for less than sellers’ list prices—a reversal from the height of the pandemic, when homes were going for tens of thousands of dollars over asking. I haven’t written an over-asking offer in a month.” With the scales of the housing market tipping increasingly in buyers’ favor, Spokane, WA Redfin agent Brynn Rea has a few tips for sellers: “Sellers should make sure their home is move-in ready and not overpriced,” Rea said. “They should do everything possible to make their property pristine for the masses—invest in updates and make it feel fresh. Doing little things like replacing faulty faucets or painting walls will help sell a home more quickly.” Phoenix, Austin and Nashville Have Among the Lowest Rates of Homebuyer Competition In Phoenix, just over one quarter (26.6%) of home offers written by Redfin agents encountered competition in July—the lowest share among the 36 U.S. metropolitan areas Redfin analyzed. Rounding out the bottom five were Riverside, CA (31%), Seattle (31.5%), Austin, TX (31.7%) and Nashville, TN (33.3%). Many of these areas attracted scores of out-of-town homebuyers during the pandemic, pushing up prices and rendering them prohibitively expensive for some house hunters—one reason they now have relatively low bidding-war rates. The average out-of-towner moving to Nashville last year had $736,900 to spend on a home, 28.5% higher than average budget for local buyers—the largest gap among U.S. cities recently analyzed by Redfin. To be included in this analysis, metros must have had a monthly average of at least 50 offers submitted by Redfin agents from March 2021 to March 2022. Scroll down to the bottom of this report to see a table with data on all 36 metros. Raleigh, NC had the highest bidding-war rate, at 63.8%. Next came Honolulu (63%), Providence, RI (60.5%), Philadelphia (60.4%) and Worcester, MA (54.8%). Housing-Market Competition Declined Most in Orlando, Nashville and Sacramento In Orlando, FL, 37.4% of home offers written by Redfin agents faced competition in July, roughly half of the 81.4% rate seen a year earlier. That 44-percentage-point decline was the largest among the 36 metros in this analysis. It was followed by Nashville (33.3% vs. 73.1%; -39.7 ppts), Sacramento, CA (34.3% vs. 73.3%; -39 ppts), Charlotte, NC (34.6% vs. 71%; -36.4 ppts) and Colorado Springs, CO (36.8% vs. 71.2%; -34.3 ppts). There were no metros in which the bidding-war rate increased on a year-over-year basis. Townhouses Are Most Likely to Encounter Competition Townhouses were more likely than any other property type to face bidding wars, with 43.5% of Redfin offers encountering competition in July. Next came single-family homes (42.9%), condos/co-ops (39.7%) and multi-family properties (38.9%). Some homebuyers have sought out townhouses, which are typically smaller and more affordable, because they’re priced out of the market for single-family homes. The typical home that went under contract in March was 1,720 square feet, down 1.8% from 1,751 square feet a year earlier, a recent Redfin analysis found. To read the full report, please visit: https://www.redfin.com/news/real-estate-bidding-wars-july-2022

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