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WORD OF THE DAY: Zonk

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[zoNGk] Part of speech: Verb Origin: of imitative/echoic origin, mid-20th century Definition: Fall or cause to fall suddenly and heavily asleep or lose consciousness; Hit or strike. Examples of Zonk in a sentence “Nothing makes me zonk out quite as quickly as NyQuil.” “The bowl zonked Cheryl when she tried to grab it from the top shelf.” About Zonk Zonk is a slang, onomatopoeic term from the mid-20th century with unknown origin. Did you Know? Zonk has its own unofficial meaning within the Army. A commanding officer will usually use it during physical training formations as a fun way to dismiss his or her unit from duty. Once the word is shouted out, the entire unit can run off while shouting with glee.

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Black Knight: Against Sharpest Monthly Home Price Drop in 11 Years, Tappable Equity Backs Off Q2 Peak

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Annual home price growth shifted from deceleration to decline in July as the median home price fell 0.77% from June – the largest single-month decline since January 2011 More than 85% of the 50 largest U.S. markets are at least marginally off their peaks through July, with home prices down by >1% in a third, and more than one in 10 seeing prices fall by 4% or more Tappable equity – the amount a homeowner can borrow against while keeping a 20% equity stake – hit its 10th consecutive record high in Q2 2022 at $11.5T but appears to have peaked in May of this year Escalating declines in June and July have total tappable equity down 5% over the past two months, suggesting a sizeable reduction is likely in Q3, which would mark the first quarterly decline in three years In some markets, equity pullbacks have quickly become fairly significant, with the five most equity-rich West Coast markets shedding 10-20% of previously available tappable equity from April through July The impact of home price declines is twice as pronounced on tappable equity levels; a 5% decline in home values nationally would equate to a 10% decline in tappable equity, and so on. Overall, the market is on strong footing to weather a correction; total market leverage as of Q2 – including both first and second liens – was just 42% of mortgaged homes’ values, the lowest on record 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 datasets. The most recent data from the Black Knight Home Price Index shows the deceleration in home price growth on which the company has been reporting in recent months has shifted to actual decline. As Black Knight Data & Analytics President Ben Graboske explains, July’s month-over-month decline represents the first such contraction in nearly three years. “After 31 consecutive months of growth, home prices pulled back by 0.77% in July,” said Graboske. “Annual home price appreciation still came in at over 14%, but in a market characterized by as much volatility and rapid change as today’s, such backward-looking metrics can be misleading as they can mask more current, pressing realities. Case in point – this cooling has been indicated in our home price data for several months now, and at an increasing pace. In January, prices rose at 28 times their normal monthly rate before slowing to five times average in February as interest rates began to tick up. Even May was still about two times normal, before June growth came in 70% below the long-run average. And all the while, annual appreciation continued to appear historically strong, showing double-digit growth month after month. Without timely, granular data, market-moving trends don’t become apparent until they’re right in front of you – like a sudden shift to the largest single-month decline in home prices in more than a decade. “Similarly, while mortgage-holders’ tappable equity had grown 25% from last year to hit yet another record high in Q2, we noted that equity actually peaked in May and tracked the pullback that began in June before escalating in July. Tappable equity is now down 5% in the last two months, setting up Q3 to likely see the first quarterly decline in tappable equity since 2019. Some of the nation’s most equity-rich markets have seen significant pullbacks, most notably among key West Coast metros. From April through July, San Jose lost 20% of its tappable equity. Seattle followed, shedding 18% of tappable equity over that same three-month span. Likewise, San Diego (-14%), San Francisco (-14%) and Los Angeles (-10%) have all seen double-digit declines since April. Keep in mind that of the roughly 275K borrowers who would fall underwater from a 5% price decline, more than 80% purchased their homes in the first six months of 2022 – right at what appears to have been the top of the market. With prices continuing to correct and our McDash HELOC data showing home equity lending at its highest level in 12 years, we will keep a very close eye on equity positions in the coming months.”   The month’s report looks again at the inventory side of the housing supply/demand equation. Falling housing demand continued to allow inventory levels to build for the fifth month in a row, with July marking the third consecutive record-breaking increase. Despite a 128K rise in active listings, inventories remain 622K (45%) below 2017-2019 levels. Black Knight Collateral Analytics data shows 3.1 months’ worth of inventory as of the end of July, up from 1.7 months at the beginning of the year. If sales continue to fall at the rate they have the past four months and listings continue to build at their current pace, inventory would cross the six-month threshold by December – typically the point at which the landscape shifts from a seller’s to a buyer’s market.   Much more localized 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 repository of loan-level residential mortgage data and performance information covering the majority of the overall market, including tens of millions of loans across the spectrum of credit products and more than 160 million historical records. The combined insight of the Black Knight HPI and Collateral Analytics’ home price and real estate data provides one of the most complete, accurate and timely measures of home prices available, covering 95% of U.S. residential properties down to the ZIP-code level. In addition, the company maintains one of the most robust public property records databases available, covering 99.9% of the U.S. population and households from more than 3,100 counties. Black Knight’s research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for the monthly Mortgage Monitor Report. To review the full report, visit: https://www.blackknightinc.com/data-reports/ About Black Knight Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries,

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Walker & Dunlop Expands Affordable Housing Platform with Addition of New Investment Sales Team

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Walker & Dunlop, Inc. announced that it is expanding the capabilities of its affordable housing platform with the creation of a dedicated affordable investment sales team. The eleven-member team, led by Managing Directors Aaron Hargrove and Eric Taylor, formerly of Greystone Real Estate Advisors, brings invaluable experience and relationships in the affordable housing space and will play a strategic role in helping Walker & Dunlop further its mission of empowering clients to create, preserve and revitalize affordable communities. “We are excited and proud to join a company that believes in this mission and is making it an integral part of their business by investing in and expanding their platform to better serve stakeholders. We look forward to collaborating with the entire affordable team and adding our expertise in affordable investment sales,” said Aaron Hargrove. The new team of tenured affordable housing experts has experience that spans the full scope of affordable housing programs including Section 8, Section 42 LIHTC, and Rural Development. Drawing on their diverse backgrounds and areas of expertise, as well as their experience transacting in almost every state plus Puerto Rico, they are known to provide unmatched analysis and brokerage services for property owners in any situation, including disposition, refinancing, partnership dissolution, partnership buyout, asset repositioning, resyndication, and qualified contract execution. “We are thrilled to welcome Aaron, Eric, and the team to Walker & Dunlop. The addition of investment sales to our existing suite of affordable services ensures our ability to further our mission of creating and maintaining the nation’s affordable housing stock by elevating the ways in which we can support our clients,” said Sheri Thompson, Walker & Dunlop’s Executive Vice President for Affordable Housing & Investment Management/Proprietary Capital. “The team will also play an important role in helping Walker & Dunlop achieve its goal of originating $60 billion of affordable and workforce housing loans by 2025.” The creation of this investment sales team broadens Walker & Dunlop’s affordable-specific capabilities to now include debt financing and LIHTC equity, affordable housing preservation, appraisals, development support and construction management, affordable compliance software solutions, and investment sales and advisory. This full suite of services, combined with unparalleled affordable experience, exceptional expertise in transaction execution, and industry-leading technology positions Walker & Dunlop to continue to be a leader and set the standard in affordable housing. Eric Taylor added, “Our team is eager to join forces with Walker & Dunlop’s existing affordable platform to provide an investment sales solution to our combined client base. We are encouraged by the cross-collaboration between teams and how we can use W&D’s technology to enhance our processes, and by the opportunity to help build something special.” Walker & Dunlop is a leader in multifamily property sales, having completed $19.3 billion in property sales volume in 2021 alone, up 214% from 2020. The firm was also the third largest provider of capital to the U.S. multifamily market, originating $49 billion in transactions and lending over $42 billion for multifamily properties in 2021. Additionally, the affordable team financed $10B of affordable financing in 2021 through HUD, Fannie Mae, Freddie Mac, and capital markets sources. To learn more about our capabilities and financing options, visit our website. About Walker & Dunlop Walker & Dunlop (NYSE: WD) is one of the largest providers of capital to the commercial real estate industry in the United States, enabling real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. Our people, brand and technology make W&D one of the most insightful and customer-focused firms in our industry. With more than 1,400 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune‘s Great Places to Work® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.

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WORD OF THE DAY: Quisquous

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[KWIS-kwəs] Part of speech: Adjective Origin: Unknown, 17th century Definition: Difficult to deal with or settle; perplexing; (of a person) of dubious character. Examples of Quisquous in a sentence “I wanted to trust him, but also knew that he had a quisquous reputation.” “She tried to be patient but knew that her friend was quisquous.” About Quisquous While we know that quisquous is a Scottish word that first came into use around the 17th century, its exact origins are uncertain. It could possibly originate from the Latin word “quisquis,” which means “whoever.” Did you Know? Quisquous characters have long been referred to as tricksters in mythology; the coyote (Indigenous cultures), the fox (East Asian cultures), Anansi (the spider god of West Africa), and Loki (Norse god) are all viewed as tricksters.

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Redfin Reports More Sellers Retreat Amid Falling Prices, Volatile Mortgage Rates

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The average sale-to-list ratio fell below 100% for the first time since March 2021 and the share of homes with a price drop came down from its record high. The average home sold for less than its list price for the first time in over 17 months during the four-week period ending August 28, as the housing market cooldown continued. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Every month since March of 2021 has seen an average sale-to-list ratio of over 100%, meaning that the average home has sold for more than its final asking price, after all price drops. This comes as the share of listings with a price drop has finally begun to plateau. Despite the easing in home prices, demand from homebuyers is still chilled—mortgage purchase applications and pending sales both saw large declines from a year ago—thanks in large part to another spike in mortgage rates, which rose to 5.66%, their highest level since June. Home sellers are also reluctant to step into the market: new listings and total inventory of homes for sale saw large declines as well. “While the cooldown appears to be tapering off, there are signs that there is more room for the market to ease,” said Redfin Chief Economist Daryl Fairweather. “The post-Labor Day slowdown will likely be a little more intense this year than in previous years when the market was super tight. Expect homes to linger on the market, which may lead to another small uptick in the share of sellers lowering their prices. Homebuyers’ budgets are increasingly stretched thin by rising rates and ongoing inflation, so sellers need to make their homes and their prices attractive to get buyers’ attention during this busy time of year.” Leading indicators of homebuying activity: For the week ending August 25, 30-year mortgage rates rose to 5.66%. That’s down from a 2022 high of 5.81% but up from 3.22% at the start of the year. Fewer people searched for “homes for sale” on Google. Searches during the week ending August 27 were down 26% from a year earlier. The seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other home-buying services from Redfin agents—was up 15% from the 2022 low in June during the week ending August 28, but was down 16% year over year. Touring activity as of August 28 was down 9% from the start of the year, compared to a 11% increase at the same time last year, according to home tour technology company ShowingTime. Mortgage purchase applications were down 2% week over week, seasonally adjusted, and were down 23% from a year earlier during the week ending August 26. Key housing market takeaways for 400+ U.S. metro areas: Unless otherwise noted, this data covers the four-week period ending August 28. Redfin’s weekly housing market data goes back through 2015. The median home sale price was $370,000, up 6% year over year. Prices have declined 6% from the record high of $393,725 hit during the four-week period ending June 19. A year ago, they rose 0.4% during the same period. Three metro areas saw a year-over-year decline in their median home-sale price: Honolulu, HI, where prices fell 3.6% to $676,875, Oakland, CA, where prices fell 3% to $918,500, and San Francisco, where prices were down 3.7% to $1,453,125. The median asking price of newly listed homes increased 9% year over year to $379,194. Asking prices are down 5.8% from the all-time high set during the four-week period ending May 22. Last year during the same period they were down just 0.4%. The monthly mortgage payment on the median asking price home was $2,306 at the current 5.66% mortgage rate, up 39% from $1,665 a year earlier, when mortgage rates were 2.87%. That’s down from the peak of $2,461 reached during the four weeks ending June 12. Pending home sales were down 18% year over year. New listings of homes for sale were down 16% from a year earlier, the largest decline since May 2020. Active listings (the number of homes listed for sale at any point during the period) fell 0.9% from the prior four-week period. On a year-over-year basis, they rose 4.2%. 35% of homes that went under contract had an accepted offer within the first two weeks on the market, little changed from the prior four-week period but down from 43% a year earlier. 24% of homes that went under contract had an accepted offer within one week of hitting the market, little changed from the prior four-week period but down from 30% a year earlier. Homes that sold were on the market for a median of 26 days, up from 21 days a year earlier and the record low of 17 days set in May and early June. 37% of homes sold above list price, down from 50% a year earlier. On average, 7.5% of homes for sale each week had a price drop, a record high but unchanged from the prior four-week period. The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, fell to 99.8% from 101.4% a year earlier. In other words, the average home sold at its asking price. This was the first time since March 2021 the ratio has fallen below 100%, meaning the typical home is now selling for below asking price. To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-homes-sell-below-asking-price/

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Foreclosure Starts Decrease 4%

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Completed Foreclosures Also Decrease 5% from Last Month By ATTOM Staff ATTOM, a leading curator of real estate data nationwide for land and property data, released its July 2022 U.S. Foreclosure Market Report, which shows there were a total of 30,358 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — down 4% from a month ago but up 143% from a year ago. “While it’s encouraging to see both foreclosure starts and completions drop off a bit in July, it’s also worth noting that there may be some seasonality impacting the numbers,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “In eight of the last 10 years Q3 foreclosure activity has been lower than the previous quarter, so we might just be seeing a return to a more normal seasonal pattern of delinquencies and defaults.” Delaware, Illinois and New Jersey had the highest foreclosure rates Nationwide one in every 4,628 housing units had a foreclosure filing in July 2022. States with the highest foreclosure rates were: »          Delaware (one in every 2,127 housing units with a foreclosure filing) »          Illinois (one in every 2,334 housing units) »          New Jersey (one in every 2,564 housing units) »          Nevada (one in every 2,609 housing units) »          South Carolina (one in every 2,976 housing units) Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in July 2022 were: »          Elkhart, IN (one in every 1,592 housing units with a foreclosure filing) »          Davenport, IA (one in every 1,626 housing units) »          Fayetteville, NC (one in every 1,673 housing units) »          Cleveland, OH (one in every 1,757 housing units) »          Atlantic City, NJ (one in every 1,886 housing units) Those metropolitan areas with a population greater than 1 million, with the worst foreclosure rates in July 2022 including Cleveland, OH were: »          Chicago, IL (one in every 2,082 housing units) »          Las Vegas, NV (one in every 2,190 housing units) »          Riverside, CA (one in every 2,431 housing units) »          Philadelphia, PA (one in every 2,519 housing units) Foreclosure starts increase monthly in 21 states nationwide Lenders started the foreclosure process on 21,428 U.S. properties in July 2022, down 4% from last month but up 226% from a year ago. States that had at least 100 foreclosure starts in July 2022 and saw a monthly increase in foreclosure starts included: »          Michigan (up 42%) »          Massachusetts (up 39%) »          Iowa (up 26%) »          Wisconsin (up 25%) »          Indiana (up 22%) “It appears that a few states are still catching up on processing foreclosures on loans that were seriously delinquent prior to the pandemic, which accounts for the year-over-year spike in foreclosure starts,” Sharga added. “But early-stage delinquencies continue to be lower than normal, so once these older loans have re-entered the foreclosure process, it will be interesting to see if foreclosure starts fall off significantly.” Those major metropolitan areas with a population greater than 200,000 that had the greatest number of foreclosures starts in July 2022 included: »          New York, NY (1,380 foreclosure starts) »          Chicago, IL (1,247 foreclosure starts) »          Los Angeles, CA (678 foreclosure starts) »          Miami, FL (666 foreclosure starts) »          Philadelphia, PA (652 foreclosure starts) Foreclosure completion numbers decrease 5 percent from last month Lenders repossessed 3,068 U.S. properties through completed foreclosures (REOs) in July 2022, down 5% from last month but up 27% from last year. Counter to the national trend, those states that saw a monthly increase in REOs in July 2022, included: »          Maryland (up 147%) »          Hawaii (up 58%) »          North Dakota (up 38%) »          Massachusetts (up 38%) »          Michigan (up 27%) States that saw the greatest number of REOs in July 2022, included »          Illinois (359 REOs) »          Pennsylvania (185 REOs) »          Ohio (184 REOs) »          Michigan (182 REOs) »          New York (167 REOs) Those major metropolitan statistical areas (MSAs) with a population greater than 1 million that saw the greatest number of REOs in July 2022 included: »          Chicago, IL (270 REOs) »          New York, NY (90 REOs) »          Philadelphia, PA (89 REOs) »          Detroit, MI (82 REOs) »          Birmingham, AL (66 REOs)

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