March 2023 – Page 3

RE/MAX National Housing Report for February 2023

by admin
Comment Off
217 views

Home Sales Show Strong Increase and Slight Rise in Median Sales Price Over January Despite being down 24.4% year over year, February home sales increased 16.8% from January. That was the largest month-over-month increase in 11 months and ended a five-month streak of sales declines that began in September. The median sales price of $385,000 increased 0.6% over January, ending a seven-month streak of price declines since the peak of $426,000 in June 2022. Although home prices increased slightly month-over-month, February marked the first year-over-year drop in prices since January 2012 – as the median was 1.3% lower than a year ago ($390,000). Inventory increased year over year for the 10th consecutive month, and the number of homes for sale in the report’s 50 metro areas was 55.0% higher than a year ago. “Prices have steadied and demand is strong, but the lack of available, affordable homes remains a challenge,” said Nick Bailey, RE/MAX President and CEO. “Mortgage rates are top of mind for many buyers, and as they move up or down, sales activity should generally follow suit. That’s a big factor to watch as we move into the spring.” Laurie Thiel, Broker/Owner of RE/MAX Equity Group in Beaverton, OR is already seeing an uptick in demand and activity in her area. “As the market has stabilized, our agents are experiencing increased activity with homebuyers and sellers. Even though the time to sell a home has increased, inventory in the Portland metropolitan market remains limited.” Other notable metrics: Highlights and local market metrics for February include: Closed Transactions Of the 50 metro areas surveyed in February 2023, the overall number of home sales is up 16.8% compared to January 2023 and down 24.4% compared to February 2022. The markets with the biggest decrease in year-over-year sales percentage were Anchorage, AK at -42.1%, Miami, FL at -37.2%, and New York, NY at -35.5%. No metro area had a year-over-year sales percentage increase in February. Closed Transactions:5 Markets with the Biggest YoY Decrease Market Feb 2023Transactions Feb 2022Transactions Year-over-Year %Change Anchorage, AK 228 394 -42.1 % Miami, FL 5,120 8,148 -37.2 % New York, NY 6,247 9,684 -35.5 % Las Vegas, NV 2,182 3,327 -34.4 % San Diego, CA 1,628 2,439 -33.3 % Median Sales Price – Median of 50 metro area pricesIn February 2023, the median of all 50 metro area sales prices was $385,000, up 0.6% compared to January 2023, and down 1.3% from February 2022. The markets with the biggest year-over-year decrease in median sales price were Bozeman, MT at -13.8%, San Francisco, CA at -12.7%, and Phoenix, AZ at -7.8%. Four metro areas increased year-over-year by double-digit percentages: Burlington, VT at +16.4%, Wichita, KS at +12.5%, Milwaukee, WI at +12.3%, and Hartford, CT at +11.3%. Median Sales Price:5 Markets with the Biggest YoY Decrease Market Feb 2023Median SalesPrice Feb 2022Median SalesPrice Year-over-Year %Change Bozeman, MT $632,500 $734,000 -13.8 % San Francisco, CA $960,000 $1,100,000 -12.7 % Phoenix, AZ $415,000 $450,000 -7.8 % Birmingham, AL $255,000 $274,950 -7.3 % Trenton, NJ $316,000 $340,000 -7.1 % Close-to-List Price Ratio – Average of 50 metro area pricesIn February 2023, the average close-to-list price ratio of all 50 metro areas in the report was 98%, up compared to 97% in January 2023, and down from 101% compared to February 2022. The close-to-list price ratio is calculated by the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it’s less than 100%, the home sold for less than the list price. The metro areas with the lowest close-to-list price ratio were Miami, FL at 94% and New Orleans, LA at 96%. The highest close-to-list price ratios were in Hartford, CT and Richmond, VA, tied at 101%. Close-to-List Price Ratio:5 Markets with the Biggest YoY Decrease Market Feb 2023Close-to-ListPrice Ratio Feb 2022Close-to-ListPrice Ratio Year-over-YearDifference San Francisco, CA 100.2 % 111.9 % -11.6 pp Seattle, WA 99.0 % 108.3 % -9.3 pp Dallas, TX 96.5 % 102.6 % -6.1 pp Denver, CO 98.7 % 104.4 % -5.7 pp Los Angeles, CA 97.2 % 102.5 % -5.3 pp Days on Market – Average of 50 metro areasThe average days on market for homes sold in February 2023 was 45, down three days from the average in January 2023, and up 14 days from the average in February 2022. The metro areas with the lowest days on market were Baltimore, MD at 17, Manchester, NH at 19, and Washington, DC at 20. The highest days on market averages were in Bozeman, MT at 79, Fayetteville, AR at 78, followed by a tie at 64 between San Antonio, TX and Seattle, WA. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed. Days on Market:5 Markets with the Biggest YoY Increase Market Feb 2023Days onMarket Feb 2022Days onMarket Year-over-Year %Change Salt Lake City, UT 56 15 +282.2 % Denver, CO 34 11 +218.0 % Bozeman, MT 79 29 +168.2 % Las Vegas, NV 55 21 +158.3 % Portland, OR 51 20 +147.8 % Months’ Supply of Inventory – Average of 50 metro areasThe number of homes for sale in February 2023 was down 7.5% from January 2023 and up 55.0% from February 2022. Based on the rate of home sales in February 2023, the months’ supply of inventory was 1.7, down from 2.0 compared to January 2023, and up compared to 1.0 in February 2022. In February 2023, the markets with the lowest months’ supply of inventory were Albuquerque, NM and Seattle, WA, tied at 0.7, followed by a three-way tie between Charlotte, NC, Hartford, CT, and Washington, DC at 0.8. The markets with the highest months’ supply of inventory were Bozeman, MT at 3.3, San Antonio, TX at 3.1, and New Orleans, LA at 3.0. Months’ Supply of Inventory:5 Markets with the Biggest YoY Increase Market Feb 2023Months’Supply ofInventory Feb 2022Months’Supply ofInventory Year-over-Year %Change Raleigh, NC 1.6 0.3 +367.3 % Dallas, TX 2.9 0.6 +343.4 % Salt Lake City, UT 1.7 0.5 +264.0 % San Antonio, TX 3.1 0.9 +234.3 % Coeur d’Alene, ID 2.3 0.7 +232.6 % SOURCE RE/MAX, LLC

by admin
Comment Off
246 views

The Appraisal Foundation shared an update on how it is progressing on a number of recommendations made in the Biden Administration’s Property Appraisal and Valuation Equity (PAVE) Task Force’s Action Plan. The Action Plan was released a year ago next week with the aim of providing a “blueprint for how all Americans can benefit fairly from the equity built through homeownership.” “The Appraisal Foundation shares the PAVE Task Force’s commitment to root out bias and discrimination in the appraisal profession, and our boards have been hard at work over the past few years to do just that,” said The Appraisal Foundation President Dave Bunton. “I am proud of the work that our boards have accomplished in such a short time, but much remains to be done. We look forward to partnering with the PAVE Task Force to continue these efforts to build public trust in the appraisal profession.” The following are the top ten highlights of The Foundation and its boards’ actions on the following PAVE commitments: For more information on each of these initiatives and how the Foundation is responding to many more PAVE recommendations please read this update provided to the PAVE Task Force on February 2, 2023. Background: The Appraisal Foundation is the nation’s foremost authority on the valuation profession. The organization sets the congressionally-authorized standards and qualifications for real estate appraisers and provides voluntary guidance on recognized valuation methods and techniques for all valuation professionals. This work advances the profession by ensuring appraisals are independent, consistent, and objective. More information on The Appraisal Foundation is available at www.appraisalfoundation.org. Media Contact:Amy KaufmanDirector of CommunicationsThe Appraisal Foundationamy@appraisalfoundation.orgdirect phone 202.624.3048 SOURCE The Appraisal Foundation

Roc360 Expands its Leading Portfolio of Brands with Acquisition of Finance of America Commercial Through Asset Sale

by admin
Comment Off
369 views

Roc Capital Holdings LLC (“Roc360”), a vertically integrated platform for residential real estate investors and a leading originator of business purpose loans nationwide, announced it has closed on the previously announced transaction for Finance of America Commercial (“FACo”) assets. Under the terms of the transaction, Finance of America Companies Inc. (NYSE:FOA) has sold the operational assets of its FACo division, which specializes in residential real estate investment loans, to Roc360. Excluded from the sale are previously originated loans and the residual in the ANTLR securitization shelf. Roc360 will refresh the brand with a new logo and run it under a new subsidiary using its trusted brand name, Finance of America Commercial, which will join Roc360’s growing portfolio of leading real estate brands, including Roc Capital, Haus Lending, Elmsure Insurance, Wimba Title, and Tamarisk Appraisals. FACo traces its initial roots back over a decade to its predecessor companies B2R Finance, Dwell Finance and Jordan Capital Finance, early players in the national private lending space offering fix and flip and landlord DSCR loans to real estate investors. Since its inception, FACo has funded in excess of $6 billion to over 9,000 individual guarantors across over 25,000 closed loans through its borrower-direct and broker channels. The FACo acquisition adds additional capacity to Roc360’s existing origination footprint within its retail and wholesale channels and the data acquired will further contribute to Roc360’s data science efforts. In 2022, the two companies collectively funded in excess of $4.6 billion in business purpose loans. “Roc360 is committed to delivering innovative products and services that help rejuvenate and deliver new and like-new energy efficient homes to America’s undersupplied housing stock. The acquisition further broadens our reach and ability to make a difference. We will continue to pursue growth opportunities, including acquisitions, that expand our ability to provide solutions to real estate investors,” said Arvind Raghunathan, Ph.D., Founder and Chief Executive Officer, Roc360 family of companies. About Roc360 Roc360 is a leading financial services platform for residential real estate investors, providing vertically integrated solutions, including lending, servicing, insurance and valuation. Founded in 2014, Roc360 employs over 300 people and has funded in excess of $14 billion in loans through its lending subsidiaries. The company is headquartered in New York City with offices on three continents. In 2022, Roc360 joined the Deloitte Technology Fast 500™, a ranking of the 500 fastest-growing technology, media, telecommunications, life sciences, fintech, and energy tech companies in North America. For Roc360 Media Relations: pr@Roc360.com For more information about Roc360, please visit www.roc360.com SOURCE Roc360

by admin
Comment Off
258 views

Chicago and New York City Areas Remain More At Risk Based on Key Market Measures from Fourth Quarter of 2022; East Coast and Swaths of Interior California Also More Vulnerable to Downturns; South Region and Sections of Midwest are Less Vulnerable ATTOM, a leading curator of land, property, and real estate data, released a Special Housing Risk Report spotlighting county-level housing markets around the United States that are more or less vulnerable to declines, based on home affordability, foreclosures and other measures in the fourth quarter of 2022. The report shows that inland California, Illinois, New Jersey, and Delaware continued to have some of the highest concentrations of the most-at-risk markets in the country, with the biggest clusters in the New York City and Chicago metropolitan areas. Southern and midwestern states remained less exposed. The fourth-quarter patterns – based on gaps in home affordability, underwater mortgages, foreclosures, and unemployment – revealed that New Jersey, Illinois, and California had 31 of the 50 counties most vulnerable to potential declines around the U.S. That was roughly the same as the 28 more-at-risk markets that were in those states in the third quarter of last year. During a time when the broader U.S. housing market boom stalled, those concentrations dwarfed other parts of the country. The 50 most at-risk included seven in the Chicago metropolitan area, five in and around New York City, three in or near Cleveland, OH, and 13 spread through northern, central, and southern California. The rest were clustered mainly in other parts of the East Coast, including two of the three counties in Delaware. At the other end of the risk spectrum, the South, Midwest, and western areas outside California continued to have the biggest concentration of markets considered least vulnerable to falling housing markets. “With the U.S. housing market cooling off considerably since the middle of last year, some areas of the country continue to show signs of being more at risk of a larger downturn than others. That’s based on several key factors that can either boost or damage local housing markets, including unusually high home ownership costs, foreclosures, and relatively weak homeowner equity,” said Rob Barber, chief executive officer at ATTOM. “It remains important to note that we are not identifying markets headed for an imminent fall, just those that look to be more exposed to market troubles. Heading into the peak buying season of 2023, we will keep monitoring those areas closely to see if anything changes.” Counties were considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceeded estimated property values, the percentage of average local wages required to pay for major home ownership expenses on median-priced single-family homes and condos, and local unemployment rates. The conclusions were drawn from an analysis of the most recent home affordability, equity and foreclosure reports prepared by ATTOM. Unemployment rates came from federal government data. Rankings were based on a combination of those four categories in 581 counties around the United States with sufficient data to analyze in the fourth quarter of 2022. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the four ranks. The ongoing wide disparities in risks throughout the country remained in place during a time when the overall U.S. housing market had one of its worst second-half performances in more than a decade. Key measures showed the national median home value decreasing 8 percent (down 4 percent specifically in the fourth quarter), while home-seller profits dipped lower, homeowner equity stopped growing, foreclosures continued to increase and mortgage lending plummeted to its lowest level in almost nine years. That happened as 30-year mortgages rates climbed close to 7 percent, inflation remained at a 40-year high and the stock market fell. Each of those forces cut into what home buyers could afford. Most-vulnerable counties again clustered in the Chicago, New York City and Cleveland areas, along with sections of California and Delaware Thirty of the 50 U.S. counties considered most vulnerable in the fourth quarter of 2022 to housing market troubles (from among 581 counties with enough data to be included in the report) were in the metropolitan areas around Chicago, IL, New York, NY, and Cleveland, OH, as well as in Delaware and California. California markets on the list remained mostly inland, away from the coast. The 50 most at-risk counties included seven in the Chicago area (Cook, De Kalb, Kane, Kendall, Lake, McHenry, and Will counties, all in Illinois), two in New York City (Kings and Richmond counties, which cover Brooklyn and Staten Island) and three in the New York City suburbs (Essex, Passaic and Sussex counties in New Jersey). The three in the Cleveland metro area that were among the top 50 in the fourth quarter were Cuyahoga, Lake, and Lorain counties. Elsewhere, California had 13 counties in the top 50 list: Butte County (outside Sacramento), Humboldt County (Eureka), San Joaquin (Stockton), Solano County (outside Sacramento) and Shasta County (Redding) in the northern part of the state; Fresno County, Madera County (outside Fresno), Merced County (outside Modesto), Stanislaus County (Modesto) and Tulare County (outside Fresno) in central California, and Kern County (Bakersfield), Riverside County and San Bernardino County in the southern part of the state. Counties most at-risk of downfalls seeing elevated levels of unaffordable housing, underwater mortgages, foreclosures and unemployment Major home ownership costs (mortgage payments, property taxes and insurance) on median-priced single-family homes and condos consumed more than one-third of average local wages in 34 of the 50 counties that were most vulnerable to market problems in the fourth quarter of 2022. The highest percentages in those markets were in Kings County (Brooklyn), NY (114.6. percent of average local wages needed for major ownership costs); Richmond County (Staten Island), NY (70.1 percent); Riverside County, CA (70 percent); San Joaquin County (Stockton), CA (63.6 percent) and Passaic County, NJ (outside New York City) (59.6 percent). Nationwide, major expenses

by admin
Comment Off
353 views

The median U.S. asking rent is up just 1.7% from a year ago—the smallest gain in nearly two years—as landlords grapple with vacancies due to still-high rental costs and rising supply The median U.S. asking rent rose 1.7% year over year to $1,937 in February—the smallest increase in nearly two years and the lowest level in a year, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Rents were up nearly 10 times that much (16.5%) a year earlier. February was the ninth straight month in which rent growth slowed on a year-over-year basis. Rents fell 0.3% from a month earlier. Still, the median asking rent remained 21.4% higher than it was in February 2020, the month before the coronavirus was declared a pandemic. Rent growth has cooled as persistently high housing costs, inflation, recession fears and a slowdown in household formation have made people less likely to move, putting a damper on demand for new leases. A jump in supply due to a boom in apartment construction has also contributed to the slowdown in rent growth. The number of apartments under construction is up 24.9% year over year to 943,000, the highest level since 1974, according to a recent report from the National Association of Home Builders. “Landlords are slowing their roll on rent increases because they’re grappling with a rise in vacancies as an influx of new apartments hits the market and demand slows from its peak,” said Redfin Deputy Chief Economist Taylor Marr. “Rents are likely close to hitting a floor, though. That’s because stubbornly high inflation is boosting expenses for landlords, so instead of dropping rents they may seek to lure renters with other concessions, like free parking or a discounted security deposit.” Marr continued: “While rent growth has slowed, it hasn’t slowed quite as much as expected—in part because the labor market has held up better than anticipated, which has helped prop up demand. This is likely a reason overall inflation remains stubbornly high, as rent growth is a major contributor to inflation.” Rents Declined in 11 Major U.S. Metro Areas Raleigh Saw the Largest Rent Increase To view the full report, including charts, full metro-level breakouts and methodology, please visit: https://www.redfin.com/news/redfin-rental-report-february-2023/

by admin
Comment Off
275 views

With so much industry emphasis on homeowners, proprietary survey data offers unprecedented and detailed insights into a rising segment of the more than 34% of the population that rents their homes Leading real estate consulting firm RCLCO Real Estate Consulting announced the availability for the first time of a new in-depth national research report on the consumer preferences of renters, a growing and influential market segment comprising over one third of the U.S. population. The report, “2023 Rental Consumer Preferences Survey,” will be available for purchase via RCLCO’s website, at the following link. “Despite media and government policy’s concentration on homeowners, more than 34% of the U.S. population are renters, and there is a dearth of information about the needs and preferences of this expanding market segment,” said Gregg Logan, Managing Director of RCLCO. “While we have seen a significant building boom in the multifamily sector (particularly the luxury market) over the past two decades, rental demand has been increasing since the economy reopened in 2021, and the survey indicates that there is also a potential unmet demand for single-family rentals. We think the data and insights in this report will be invaluable to builders, developers, property managers and architects when designing and renovating rental communities of all types.” As homeownership has become less affordable, single-family build-for-rent product types have increasingly been developed to meet the evolving preferences of renters. Approximately 6.9% of new single-family home starts were Build-for-Rent in 2022, a share that is increasing upwards. This report offers an in-depth look at what rental households are seeking in their ideal residence – and the motivating factors and preferences for groups seeking three major rental housing types – including multifamily, small single-family, and large single-family rental housing. It also delves into how preferences vary by life stage, or by renters seeking niche products such as 55+ rentals or luxury apartments. The 58 page report offers an overview of the national rental market and the shifting consumer preferences of this population, including: “We’re excited to share this information with the real estate community as we believe it will be a valuable tool for those planning new apartment and BFR communities,” said Kelly Mangold, Principal at RCLCO. “Although we prepare similar proprietary studies for our clients, focused on specific properties in particular markets, we believe this study goes a long way towards broadening our industry’s understanding of consumer desires and we’re happy to make it available to a wider audience.” More featured findings from this data: Due to the continuing structural undersupply of rental housing and strong market fundamentals, and with the pipeline of new deliveries slowing in 2024 and 2025, now is a good time to be planning new multifamily and build-for-rent units for the 2024 to 2025 timeframe. The consumer research data included in RCLCO’s 2023 Renter Consumer Preferences Report is intended to provide insights regarding who renters are and what they’re looking for in new rental housing. The report is available for purchase for $295 directly on the RCLCO website at https://www.rclco.com/publication/rclco-2023-renter-consumer-preference-survey/. Existing RCLCO clients can obtain a complimentary copy by contacting their project leads, or Kelly Mangold at kmangold@rclco.com. SOURCE RCLCO