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WORD OF THE DAY: Entelechy

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[en-TEL-ə-kee] Part of speech: noun Origin: Late Middle English, late 1500s Definition: (Philosophy) The realization of potential; the supposed vital principle that guides the development and functioning of an organism or other system or organization. Examples of Entelechy in a sentence “The instructor intended to guide all students to discover their own entelechy.” “The entelechy of a tadpole is to develop into a frog.” About Entelechy This word developed trifold through Late Middle English, Latin, and, originally, Greek. The Greek word “entelekheia,” notably used by philosopher Aristotle, was the first iteration of entelechy, and came from a combination of the words “en” (within), “telos” (end, perfection), and “ekhein” (be in a certain state). Did you Know? Animals that go through metamorphosis undergo multiple stages of development in order to reach entelechy. Frogs, for example, hatch as tadpoles and use a long flagellate tail to move around. As they metamorphosize, however, tadpoles eventually develop legs and realize their full potential as an adult frog.

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Home Prices Are Far Outpacing Inflation

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The median price per square foot of a home in the U.S. has increased 310% since 1980 and has exceeded overall inflation by 139% since 2020. The price per square foot of a U.S. home is higher than ever, according to a new report from Home Bay, an online publication that connects readers with expert real estate advice. A new single-family home has a median square footage of 2,356 and a price of $397,100, making the median price per square foot $169. In 1980, the median price per square foot was only $41 – an astronomical 310% less than today’s prices. The study ranked the 50 most-populous U.S. metros by price per square foot and found that the cities with the highest price per square foot are: San Jose ($801) San Francisco ($656) Los Angeles ($520) San Diego ($494) New York ($458) The cities with the lowest price per square foot are: Memphis ($92) Cleveland ($103) Pittsburgh ($134) Indianapolis (134) Buffalo ($139) In addition to having the lowest price per square foot, Memphis also has the largest square footage of homes of the cities on the list, at 2,630. Miami has the smallest square footage overall, at just 1,376. For comparison, the national median square footage is 2,356, but only two metro areas (Memphis and Salt Lake City) come in higher than that. For home buyers looking for more space at a lower cost, suburban and rural areas win out. Further, the data shows that home prices have skyrocketed in the past two years. Since 2020, the median sale price of single-family homes has exceeded overall inflation by 139%. Although home prices are increasing rapidly, the good news is that home sizes are increasing, too. The median square footage of new single-family homes has increased 50% since 1980 (from 1,570 to 2,356 square feet), while the average number of people per household has slightly decreased (from 2.8 to 2.5), meaning Americans today have more space per person than previous generations. Read the full report at: https://homebay.com/price-per-square-foot-2022/?utm_source=press+release&utm_medium=pr&utm_campaign=price+per+square+foot About Home Bay Home Bay is a web property of Clever Real Estate, an online platform that connects home buyers and sellers with top-rated agents at a discount rate. Please contact Nicole Lehman at nicole.lehman@movewithclever.com to be connected with a researcher with any questions.

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Black Knight: June Sees Record-Setting Slowdown in Home Price Growth

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Largest Monthly Inventory Gain in 12 Years; Prices Back Off Highs in Some Major Markets Annual home price growth dropped by nearly two percentage points in June – the greatest single-month slowdown on record since at least the early 1970s – with the rate of slowing this month jumping 66% from May While June’s slowdown was record-breaking, home price growth would need to decelerate at this pace for six more months to drive annual appreciation back to 5%, a rate more in line with long-run averages It could take five months or more for the full impact of recent interest rate spikes to be reflected in traditional home price indexes, which suggests the potential for even stronger slowing to come Localized slowdowns were even more pronounced; 25% of major markets saw home price growth rates slow by three percentage points, with four of those decelerating by four or more points in June alone Though Black Knight’s Collateral Analytics data shows a seasonally adjusted 22% (114K) increase in the number of homes listed for sale over the past two months, inventory is still 54% below 2017-2019 levels Facing a national shortage of 716K listings, it would take more than a year of such record increases for inventory levels to fully normalize Some metro area markets are returning to pre-pandemic inventory levels more quickly than the national rate, with price gains softening or even showing early signs of reversing course in response With the supply/demand equation shifting quickly, some of these markets – including San Jose, Calif. (-5.1%), Seattle (-3.8%) and San Francisco (-2.8%) – are now seeing home prices pull back from recent peaks The Data & Analytics division of Black Knight, Inc. (NYSE: BKI) released its latest Mortgage Monitor Report, based upon the company’s industry-leading mortgage, real estate and public records data sets. With June marking the greatest deceleration in home price growth on record, this month’s report dives deep into the latest housing market trends, looking specifically into home price appreciation and for-sale inventory trends at both the national and metro levels. According to Black Knight Data & Analytics President Ben Graboske, June’s slowdown from 19.3% to 17.3% annual home price growth coincided with the largest single-month gain in homes listed for sale in 12 years. “The pullback in home price growth in June marked the strongest single month of slowing on record dating back to at least the early 1970s – and it wasn’t even close,” said Graboske. “According to the Black Knight HPI, the annual rate of appreciation dropped nearly two full points in June. For context, during the 2006 downturn the strongest single-month slowing was 1.19 percentage points – about what we saw last month – and June topped that by 66%. The slowdown was broad-based among the top 50 markets at the metro level, with some areas experiencing even more pronounced cooling. In fact, 25% of major U.S. markets saw growth slow by three percentage points in June, with four decelerating by four or more points in that month alone. Still, while this was the sharpest cooling on record nationally, we’d need six more months of this kind of deceleration for price growth to return to long-run averages. Given it takes about five months for interest rate impacts to be fully reflected in traditional home price indexes we’re likely not yet seeing the full effect of recent rate spikes, with the potential for even stronger slowing in coming months. “We’re also seeing significant shifts in the demand-supply equation, though that too has quite a way to go before normalization. Even with our Collateral Analytics data showing a seasonally adjusted 22% increase in the number of homes listed for sale over the past two months, the market is still at a 54% listing deficit when compared to 2017-2019 levels. With a national shortage of more than 700,000 listings, it would take more than a year of such record increases for inventory levels to fully normalize. Of course, some metro areas are seeing inventory return to the market more quickly than others. San Francisco officially returned to pre-pandemic levels in June, becoming the first major market to do so, with San Jose close behind, where the number of homes listed for sale is just 1% off the June 2017-2019 average. It’s therefore of little surprise to find both metros among the markets where prices are pulling back from recent highs, along with Seattle, San Diego, Denver and others.” Drilling further into June home price data, the report finds the average San Jose home value has fallen 5.1% (-$75K) in the last two months alone, marking the sharpest pullback from recent highs among the top 50 U.S. markets. Seattle follows with a 3.8% decline in home prices over the same period, a reduction of more than $30K. San Francisco (-2.8%, -$35K), San Diego (-2%, -$19.5K) and Denver (-1.4%, -$8.7K) round out the top five. In total, prices have pulled back from recent peaks in 12 of the 50 largest markets, with seven pulling back by 1% or more. As nearly 10% of mortgaged properties were purchased over the past year, this could affect a meaningful number of borrowers who bought into the market at or near recent highs. The Mortgage Monitor also found that the clear driver behind recent inventory increases is a decline in sales activity due to rising rates and the lowest levels of home affordability in nearly 40 years. Seasonally adjusted home sales are down by more than 21% since the start of the year, with Black Knight Optimal Blue rate lock data suggesting further slowing in the coming months. Factoring in both active listings and sales volumes, the market has ticked up from a low of 1.7 months of inventory at the start of the year to 2.6 months as of June. If current trends continue to hold, months of inventory could continue to trend sharply upward in coming months. Black Knight will continue to monitor the situation and report its findings moving forward.   Much more information on these and other topics can be found in this month’s Mortgage Monitor. About the Mortgage Monitor The Data & Analytics division of Black Knight manages the nation’s leading

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WORD OF THE DAY: Nobby

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[NAH-bee] Part of speech: Adjective Origin: Unknown, late 17th century Definition: Describing a person of wealth or high social position. Examples of Nobby in a sentence “When he wasn’t saving lives as Batman, Bruce Wayne lived a nobby lifestyle as a socialite.” “It doesn’t matter if the rental car is a nobby convertible or a family minivan — I’ll be happy either way.”   About Nobby The closest guess is that “nobby” developed by way of the Scottish word “knab” (a person of importance) as slang for high society. Did you Know? Don’t mix these homophones up. Knobby is an adjective that describes something that has a lot of knobs — such as a pilot’s switchboard or an old branch. Nobby is an adjective that specifically describes a wealthy person or one who has a high social position. Both are adjectives, but possess different meanings.

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Foreclosure Activity

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Foreclosures Rates Highest in Illinois, New Jersey and Ohio By ATTOM Staff ATTOM, a leading curator of real estate data nationwide for land and property data, released its Midyear 2022 U.S. Foreclosure Market Report, which shows there were a total of 164,581 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the first six months of 2022. That figure is up 153% from the same time period a year ago but down just 1% from the same time period two years ago. “Foreclosure activity across the United States continued its slow, steady climb back to pre-pandemic levels in the first half of 2022,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “While overall foreclosure activity is still running significantly below historic averages, the dramatic increase in foreclosure starts suggests that we may be back to normal levels by sometime in early 2023.” Illinois, New Jersey and Ohio post highest state foreclosure rates Nationwide, 0.12% of all housing units (one in every 854) had a foreclosure filing in the first half of 2022. States with the highest foreclosure rates in the first half of 2022 were: »          Illinois (0.26% of housing units with a foreclosure filing) »          New Jersey (0.24%) »          Ohio (0.21%) »          Delaware (0.20%) »          South Carolina (0.19%) Other states with first-half foreclosure rates among the 10 highest nationwide, were: »          Florida (0.18%) »          Nevada (0.18%) »          Indiana (0.16%) »          Georgia (0.13%) »          Michigan (0.13%) Highest metro foreclosure rates in Cleveland, Atlantic City and Jacksonville Among 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in the first half of 2022 were: »          Cleveland, Ohio (0.40% of housing units with foreclosure filings) »          Atlantic City, N.J. (0.33%) »          Jacksonville, N.C. (0.31%) »          Chicago, Ill. (0.30%) »          Columbia, S.C. (0.30%) Other metro areas with foreclosure rates ranking among the top 10 highest in the first half of 2022 were: »          Rockford, Ill. (0.30% of housing units with a foreclosure filing) »          Lakeland, Fla. (0.27%) »          Akron, Ohio (0.24%) »          Fayetteville, N.C. (0.24%) »          Trenton, N.J. (0.23%) Foreclosure starts up 219% from last year A total of 117,383 U.S. properties started the foreclosure process in the first six months of 2022, up 219% from the first half of last year and up 19% from the first half of 2020. States that saw the greatest number of foreclosures starts in the first half of 2022 included: »          California (12,805 foreclosure starts) »          Florida (11,448 foreclosure starts) »          Tennessee (10,970 foreclosure starts) »          Illinois (8,411 foreclosure starts) »          Ohio (6,987 foreclosure starts) “It’s important to note that many of the foreclosure starts we’re seeing today – in fact, much of the overall foreclosure activity we’re seeing right now – is on loans that were either already in foreclosure or were more than 120 days delinquent prior to the pandemic,” Sharga added. “Many of these loans were protected by the government’s foreclosure moratorium, or they would have already been foreclosed on two years ago. There’s very little delinquency or default activity that’s truly new in the numbers we’re tracking.” Foreclosure Activity High-Level Takeaways Nationwide in June 2022, one in every 4,431 properties had a foreclosure filing. States with the highest foreclosure rates in June 2022 were: »          Illinois (one in every 2,096 housing units with a foreclosure filing) »          Delaware (one in every 2,117 housing units) »          Ohio (one in every 2,386 housing units) »          Nevada (one in every 2,408 housing units) »          South Carolina (one in every 2,471 housing units) 22,239 U.S. properties started the foreclosure process in June 2022, up 1% from the previous month and up 226% from a year ago. Lenders completed the foreclosure process on 3,239 U.S. properties in June 2022, up 13% from the previous month and up 40% from a year ago.

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PROFITS FOR HOME SELLERS SURGE AGAIN ACROSS U.S. AMID NEW ROUND OF PRICE SPIKES IN SECOND QUARTER OF 2022

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Profit Margins on Typical Home Sales Hit Another Record, Rising to 56 Percent;Investment Returns in Second Quarter Rise at Fastest Pace in More Than a Decade;Median U.S. Home Price Up 9 Percent Quarterly and 15 Percent Annually, to New High of $346,000 ATTOM, a leading curator of real estate data nationwide for land and property data, released its second-quarter 2022 U.S. Home Sales Report, which shows that profit margins on median-priced single-family home and condo sales across the United States hit another new record of 55.5 percent following the largest quarterly gain in a decade. On the heels of a lackluster first quarter of 2022 that suggested possible weakness in the nation’s long-running housing market boom, the latest typical profit margin was up from 48.3 percent in the first quarter of 2022 and 42.9 percent in the second quarter of 2021. It was more than 20 points above the 32 percent figure from the second quarter of 2020. “Home sellers in the second quarter continued to benefit from the rapid growth in home price appreciation the country has experienced over the past few years,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “While price growth may slow down as higher mortgage rates dampen demand from prospective homebuyers, home sellers should continue to profit from the record $27 trillion in homeowner equity in today’s market. “While profit margins routinely go up during the Spring home-buying season, the latest spike of more than seven percentage points marked the largest quarterly gain since at least 2008. The year-over-year gain of 13 points in the typical return on investment was one of the largest in the past decade. Gross profits also hit new highs in the second quarter of 2002, after dipping slightly in the early months of the year. The typical single-family home and condo sale across the country generated a gross second-quarter profit of $123,869, up 19 percent from $103,750 in the first quarter of 2022 and up 38 percent from $90,000 a year earlier. The second-quarter records for gross profits and profit margins came as the national median home price hit a new high of $346,000 in the second quarter of 2022 – the 10th straight quarterly increase. The latest median value was up 8.8 percent from the first quarter of 2022 and 15.3 percent from the second quarter of 2021. The second quarter profit figures showed how strong the nation’s housing market prices remained despite rising economic uncertainty and home-mortgage rates that have surged this year. Average mortgage rates have nearly doubled from a year ago, reaching almost 6 percent for a 30-year fixed rate loan, making affordability a challenge for many potential homebuyers. These higher rates, coupled with rising home prices, the highest U.S. inflation rates in 40 years, and soaring food and fuel prices are all headwinds threatening to slow down what has been a white-hot housing market over the past few years. Still, home prices and seller profits surged anew in the second quarter, after a first quarter that saw a rare dip in investment returns. Profit margins rise quarterly and annually across most of U.S. Typical profit margins – the percent change between median purchase and resale prices – increased from the first quarter of 2022 to the second quarter of 2022 in 162 (89 percent) of the 183 metro areas around the U.S. with sufficient data to analyze. They were up annually in 174 of those metros (95 percent). Metro areas were included if they had at least 1,000 single-family home and condo sales in the second quarter of 2022 and a population of at least 200,000. The biggest annual increases in profit margins came in the metro areas of Fort Myers, FL (margin up from 47.1 percent in the second quarter of 2021 to 90.9 percent in the second quarter of 2022); Naples, FL (up from 40.4 percent to 83.1 percent); Ocala, FL (up from 44.4 percent to 85.2 percent); Gulfport, MS (up from a loss of 6.5 percent to a gain of 30.8 percent) and Yuma, AZ (up from 42.7 percent to 77.8 percent). The biggest annual profit-margin increases in metro areas with a population of at least 1 million in the second quarter of 2022 were in Orlando, FL (margin up from 36.4 percent to 67.6 percent); Tampa, FL (up from 47.4 percent to 76.3 percent); Miami, FL (up from 38.9 percent to 66.8 percent); Cleveland, OH (up from 21.4 percent to 42.1 percent) and Jacksonville, FL (up from 43.4 percent to 63.4 percent). Profit margins decreased annually in just 20 of the 183 metro areas analyzed (11 percent) and annually in only nine metro areas (5 percent). The biggest annual decreases were in Salem, OR (margin down from 87.5 percent in the second quarter of 2021 to 55 percent in the second quarter of 2022); Hilo, HI (down from 140.8 percent to 110.5 percent); Boise, ID (down from 122.8 percent to 100.1 percent); Salisbury, MD (down from 57.1 percent to 48.6 percent) and Albany, NY (down from 35.4 percent to 28.3 percent). The largest annual decreases, or smallest gains, in profit margins among metro areas with a population of at least 1 million came in Atlanta, GA (down from 48.9 percent to 42.8 percent); Sacramento, CA (up from 61.5 percent to 62.5 percent); San Francisco, CA (up from 81.5 percent to 83.1 percent); Washington, DC (up from 44.9 percent to 46.7 percent) and Boston, MA (up from 49.8 to 52.9 percent). Prices up in almost every metro area around the U.S. Median home prices in the second quarter of 2022 exceeded values from the prior quarter in 181 (96 percent) of the 183 metropolitan statistical areas with enough data to analyze and were up annually in 180 of those metros (96 percent). Nationally, the median price of $346,000 in the second quarter was up from $318,000 in the first quarter of 2022 and $300,000 in the second quarter of last year. The biggest annual increases in median home prices during the second quarter of 2022 were in Gulfport, MS (up 55.3 percent); Naples, FL (up 36 percent); Lakeland, FL (up 35.7 percent); Fort Myers, FL (up 31.7 percent) and Port St. Lucie, FL (up 29.8 percent). The largest annual increases in metro areas with a population of at least 1 million in the second quarter of 2022 were in Tampa, FL (up 29.3 percent); Orlando, FL (up 25.5 percent); Phoenix, AZ (up 25.3 percent); Nashville, TN (up

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