March 2023 – Page 4

U.S. Foreclosure Activity Declines Monthly In February 2023 But Continues To Increase Annually

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Overall Foreclosure Activity Down 3 Percent from January 2023; While Foreclosure Completions Increase 45 Percent from Last Year ATTOM, a leading curator of land, property, and real estate data, released its February 2023 U.S. Foreclosure Market Report, which shows there were a total of 30,528 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — down 3 percent from a month ago and up 18 percent from a year ago. “Foreclosure activity finally started to stabilize in February after 21 straight months of increases,” said Rob Barber, chief executive officer at ATTOM. “The numbers don’t yet show a clear trend toward fewer foreclosures, partly because February is a short month. But with historically high levels of home equity flowing from a decade of rising values, we may be seeing a growing number of delinquent mortgage payers with at least the option to sell before facing foreclosure.” Foreclosure completion numbers increase 45 percent from last year Lenders repossessed 3,831 U.S. properties through completed foreclosures (REOs) in February 2023, dipping 2 percent from last month but increasing 45 percent from last year. States that had at least 100 or more REOs and saw the greatest annual increase in completed foreclosures in February 2023 included: New York (up 268 percent); Georgia (up 237 percent); California (up 132 percent); Texas (up 87 percent); and Virginia (up 73 percent). Those major metropolitan statistical areas (MSAs) with a population greater than 200,000 that saw the greatest number of completed foreclosures (REOs) in February 2023 included: Chicago, IL (193 REOs); New York, NY (170 REOs); Detroit, MI (112 REOs); Philadelphia, PA (104 REOs); and St. Louis, MO (97 REOs). Foreclosure starts decrease monthly in 25 states including the District of Colombia Lenders started the foreclosure process on 20,360 U.S. properties in February 2023, down 2 percent from last month but up 23 percent from a year ago. Those states that saw the greatest numbers of foreclosures starts in February 2023 included: Texas (2,187 foreclosure starts); California (2,133 foreclosure starts); Florida (1,831 foreclosure starts); New York (1,318 foreclosure starts); and Illinois (1,170 foreclosure starts). Among the 223 metropolitan statistical areas with a population of at least 200,000, those that had the greatest numbers of foreclosure starts in February 2023, included: New York, NY (1,554 foreclosure starts); Chicago, IL (1,034 foreclosure starts); Los Angeles, CA (710 foreclosure starts); Houston, TX (699 foreclosure starts); and Philadelphia, PA (565 foreclosure starts). Highest foreclosure rates in New Jersey, Maryland, and Illinois Nationwide one in every 4,574 housing units had a foreclosure filing in February 2023. States with the highest foreclosure rates were New Jersey (one in every 2,271 housing units with a foreclosure filing); Maryland (one in every 2,390 housing units); Illinois (one in every 2,443 housing units); Nevada (one in every 2,854 housing units); and Indiana (one in every 2,956 housing units). Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in February 2023 were Fayetteville, NC (one in every 1,627 housing units with a foreclosure filing); Atlantic City, NJ (one in every 1,708 housing units); Florence, SC (one in every 1,833 housing units); Jacksonville, NC (one in every 1,934 housing units); and Cleveland, OH (one in every 2,049 housing units). Other than Cleveland, among the metropolitan areas with a population greater than 1 million, those with the worst foreclosure rates in February 2023 included: Chicago, IL (one in every 2,300 housing units); Las Vegas, NV (one in every 2,305 housing units); Riverside, CA (one in every 2,450 housing); and Baltimore, MD (one in every 2,510 housing units). Media Contact: Christine Stricker 949.748.8428 christine.stricker@attomdata.com

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White households had three times as many affordable housing options as Black households Roughly one in five (21%) U.S. homes for sale in 2022 was affordable for the typical household, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s down from two in five (40%) in 2021 and the lowest share on record. A listing is considered affordable if the estimated monthly mortgage payment is no more than 30% of the local county’s median income. The number of affordable listings fell 53% from a year earlier in 2022—the largest annual drop in Redfin’s records, which date back to 2013. While that’s partly due to a decline in listings in general—new listings fell 10% year over year—it’s mostly due to the fact that higher mortgage rates made the listings hitting the market less affordable. The housing affordability crisis has intensified for three primary reasons: “Housing affordability is at the lowest level in history, which will widen the wealth gap—especially between millennials,” said Redfin Deputy Chief Economist Taylor Marr. “Many millennials were able to buy their first home before or during the pandemic homebuying boom, but many others were priced out of homeownership and forced to keep renting. That means a lot of young adults missed out on a major wealth building opportunity: the value of homes owned by millennials has risen nearly 30% in the past year. ” Marr continued: “The good news is that housing affordability should improve. Mortgage rates will eventually come down as the Fed makes progress fighting inflation, and home prices have already begun falling. Incomes are also growing faster than the historical norm.” The Biden Administration recently announced that it’s cutting mortgage-insurance rates for homebuyers who take out loans backed by the Federal Housing Administration (FHA). The move is estimated to save roughly 850,000 homebuyers, many of whom are low-income and/or first-time buyers, an average of $800 per year. It goes into effect March 20. Some states, including California and Oregon, have also passed legislation that allows for the construction of more starter homes. Increased supply could help limit home-price growth over time. If executed well, these new laws could serve as a blueprint for other areas grappling with housing shortages. White Households Can Afford Three Times as Many Homes as Black Households Only 9% of homes for sale last year were affordable for the typical Black household, compared with 28% for the typical white household and the lowest share of any race in this analysis. The share was nearly as low for Hispanic/Latino households (14%) and was highest for Asian households (34%). Affordability has also fallen slightly faster for Black households than for white households. The share of listings affordable for the typical Black household was cut in half (9% in 2022 vs 18% in 2021), while the share affordable for the typical white household fell by less than half (28% vs 50%). The number of listings affordable for the typical Black household dropped a record 57% in 2022 from the year before—a larger decline than any other race in this analysis—while the number of listings affordable for the typical white household fell a record 49%. Hispanic/Latino and Asian households also experienced record declines in the number of listings affordable. “Housing has become incredibly unaffordable for a lot of Americans, but Black families have been hit especially hard because they’re often less wealthy to begin with,” said Redfin Chief Economist Daryl Fairweather. “On average, Black Americans earn less money, have less generational wealth, and have lower credit scores (and sometimes no credit scores at all) than white Americans. That makes it tougher to afford a down payment and qualify for a low mortgage rate. They also frequently face racial bias during the homebuying process.” The racial housing affordability gap exists nationwide, from the least affordable to the most affordable. In Detroit, for example, 33% of listings were affordable for the typical Black household last year—the highest share in the country. But that’s still less than half the share affordable for the typical white household (70%). In Los Angeles, one of the most expensive markets in the country, people across the board have a hard time finding affordable housing. Still, Black house hunters have fewer options. Close to zero (0.1%) listings were affordable for the typical Black household in 2022, compared with 2% for the typical white household. There are a few slivers of good news, Fairweather said. The Black unemployment rate has been falling on a seasonally-adjusted basis, helping to shrink the gap between the white and Black unemployment rates. Rent growth has also been slowing, which disproportionately affects Black Americans because they’re more likely to be renters. Pandemic Boomtowns and Pricey Coastal Cities Saw Largest Declines in Number of Affordable Homes The 100 most populous U.S. metro areas all had fewer affordable homes for sale in 2022 than in 2021. In Boise, ID, the number of home listings affordable to the typical local household plunged 86% year over year. It was followed by San Diego (-85%), Salt Lake City (-84%), Oxnard, CA (-83%) and Austin, TX (-82%). Some of the metros above, including San Diego and Oxnard, have long been expensive. That means that many homes were verging on unaffordable before the pandemic, and have since been pushed over the threshold due to rising prices and mortgage rates. Other metros, including Boise, Salt Lake City and Austin, were relatively affordable before the pandemic, but the homebuying boom pushed prices out of reach for many house hunters. These areas surged in popularity as scores of remote workers moved in, searching for space and affordability. Relatively affordable places saw the smallest declines in the number of affordable homes. In Detroit, the number of affordable listings fell 16% year over year in 2022. Next came Akron, OH (-24%), Cleveland (-25%), Pittsburgh (-27%) and Philadelphia (-28%). To view the full report, including charts, methodology, and a metro-level breakdown, please visit: https://www.redfin.com/news/share-of-homes-affordable-2022

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Building Local Team of Project Managers and Service Techs to Serve Property Owners and Financial Institutions with Field Property Solutions MCS, the national property services company founded in 1986, announced the opening of its own self-performing Service Center in Dallas. The Service Center is staffed with a market operations director, project managers, inspectors, estimators and highly trained service technicians to execute the field property services needs of the firm’s Single-Family Rental, Commercial and Mortgage Services lines of business. The Dallas Service Center currently has a team of thirteen to manage the field services needs of its customers in the region with plans to add more employees over the next few months, helping support the local community through new jobs and economic investment. MCS is actively recruiting licensed, certified project managers and technicians who can perform a full range of property services within the property management environment, as well as seeking qualified, third-party service partners to provide additional support in key trades to perform property maintenance, inspections, repairs and rehab services. MCS also announced that Kelly Carney will lead the local market team in Dallas as Operations Director. Carney brings over 30 years of operations experience and a vast network of local connections to MCS’s Dallas operation. A Marine Corps veteran, Carney has extensive experience with renovation and new build projects totaling over $500 million dollars for Axtell Development Partners and Carter Family Office. MCS’s hybrid service model combines its own “boots-on-the-ground” services with its expansive network of local vendors to create efficiencies, enhance quality control and code compliance, and ensure transparency for owner/operators through aggregation and innovative technology-driven processes. “We’re pleased to add to our growing national network of self-performing Service Centers by making an investment in Dallas as we continue to expand our property service offerings,” said Andrew Nolan, President, Commercial and SFR Services, for MCS. “Our hybrid Service Center model combines the advantage of MCS’s own team with local vendor expertise to create efficiencies and improve service delivery through aggregation and technology-driven processes.” Each Service Center leverages MCS’s own self-performing teams with regional know-how and connections, along with a network of local service providers, to facilitate the most appropriate property servicing solutions on everything from inspection services and occupied maintenance to turns and renovations for SFR properties, as well as preserving foreclosed and vacant properties. MCS Service Centers also provide a robust suite of offerings for commercial/retail locations, including general maintenance, landscaping, electrical and lighting, parking lot maintenance, and plumbing, among others. “The Dallas-Fort Worth market continues on an incredible growth trajectory on many levels, which includes over 325,000 single-family rental properties and more on the way,” added Carney. “DFW’s business-friendly environment, consistent stream of corporate relocations and steady job creation, combined with strong population growth predictions, only adds to the appeal of the market for investors and property owners. Our local expertise will be a valuable asset for commercial and residential properties across the DFW metro.” About MCS MCS is a leading property services provider working across Commercial Properties, Single-Family Rentals, and the Property Preservation industry. For over 35 years, MCS has been committed to responsive care, industry-leading service standards, leveraging technology, and end-to-end transparency to protect, preserve and serve communities across the country. Some of the largest and most respected mortgage servicers, real estate owners and operators, and corporations trust MCS to perform property inspections, preservation, maintenance, renovations, and other property-related services. Learn how MCS is Making Communities Shine at mcs360.com.

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For the sixth consecutive year, Kiavi is recognized for its unique technology platform that provides real estate investors with reliable, timely capital to scale their businesses Kiavi, a leading provider of financing to real estate investors, was selected as a HousingWire Tech100 Real Estate winner for the sixth consecutive year. Kiavi is the only non-QM financing partner to real estate investors to be named a 2023 award winner, which recognizes the most innovative technology companies in the housing industry. “I am delighted to see Kiavi once again recognized by HousingWire for the ways in which our innovative technology platform helps meet the complex and unique needs of real estate investors,” said Arvind Mohan, Chief Executive Officer, Kiavi. “This recognition demonstrates just how powerful and unique Kiavi’s data, models, and technology platform are – which is one of the reasons why we have such a strong leadership position in the market. We will continue to put our technology platform to work to provide real estate investors across the nation with reliable, timely capital to scale their businesses,” he concluded. Kiavi’s technology platform provides real estate investors with a simpler, faster, and more reliable way to access the capital they need to scale their businesses. Kiavi uses 7.8 billion data points from its 50,000+ transactions to power its machine-learning models – such as determining a property’s after-repair value – which help its customers make smart investment decisions. This platform also enables borrowers to close much faster than traditional financing options by eliminating time-consuming and extraneous elements of the lending process. For more than a decade, the HW Tech100 program has identified and recognized the most innovative technology companies serving the real estate industry. Each year the Tech100 program has continued to expand and the applicants increase in caliber and innovation as the demand for technology in housing continues to grow. “We’re focused on elevating the innovators that are building paths and solutions that enable the largest and most important sector in the U.S. economy to operate efficiently and profitably — the innovators that make housing more accessible and more desirable for the 130 million households that benefit from the stability and economic advantages of homeownership,” said Clayton Collins, CEO of HW Media. “The Tech100 program is the gold standard for organizations in housing who are at the forefront of the kind of innovation that will change the industry forever.” About KiaviWith more than $13 billion in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors (“REIs”). Kiavi harnesses the power of data & technology to offer REIs a simpler, more reliable, and faster way to access the capital they need to scale their businesses. Formerly known as LendingHome, Kiavi is committed to helping its customers revitalize the approximately $25 trillion worth of aged U.S. housing stock to provide move-in ready homes and rental housing for millions of Americans across the country. For more information, visit www.kiavi.com.

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Early Signs of a Rebound Retreated in February on the Heels of Additional Rate Hikes Prices have Continued Downward Thanks to Persistent Tight Supply, Slowing Market Activity and Steadily Increasing Interest Rates Net New Listings and Contract Volume Experienced 10th Consecutive Month of Year-Over-Year Declines, With Decreases of 43.6% and 17.0%, Respectively HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its real estate valuation accuracy, released its latest Market Pulse report, covering 22 listing-derived metrics and comparing data between February 2022 and February 2023. The Market Pulse is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform. February was the tenth consecutive month of double-digit declines in net new listings on a year-over-year basis. Consequently, this has continued to drive down prices and lag contract volume, providing little relief to the ongoing inventory shortage. The market is also experiencing significant increases in listing removals year-over-year. On the contrary, the single-family rental market inventory has recovered considerably since the pandemic, experiencing an 88.3% rebound since February 2021. Although rate hikes from the Federal Reserve picked back up in February, some observations made in the last couple of months have persisted, such as the days on market and sale-to-list-price ratio continuing to imply a balanced market but displaying signs of trending towards a buyer’s market. Notably, median days on market have decreased from 53 in January to 43 in February, representing an 18.9% decrease month-over-month. Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented: “Although the rate hike slowdown from the Federal Reserve in January helped bolster housing market activity, these early signs of a potential rebound were halted in February. While higher interest rates continue to slow market activity, we believe that the market environment is still headed towards a buyer’s market, and expect that more normalized supply-demand dynamics and pricing could be in play by the end of 2023.” Key Takeaways: Learn more at www.housecanary.com.

Nearly 9 in 10 first-time sellers think they could have gotten a higher price by making different choices

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Rookie mistakes: Zillow survey reveals four common recent first-time seller regrets An overwhelming share of Americans who sold a home for the first time in the past two years wish they had done something differently (84%). A new Zillow® survey conducted online by The Harris Poll finds that even in a sellers’ market, many recent first-time sellers have regrets about the pricing, timing, or marketing of their home. Rookie mistakes can be costly, especially when selling one of life’s biggest financial assets — a home. Homeowners looking to list their home for sale this spring can set themselves up for success by anticipating and avoiding these four common regrets of first-time sellers. Regret #1: Pricing incorrectly The most common thing recent first-time home sellers wish they had done differently is set a higher list price (39%). It’s understandable, given those who sold during the pandemic’s red hot housing market saw nearly every home command a sky-high price. But today’s market is different. Pricing a home too high could lead to a slower sale or force the seller to drop their price. The median time on the market is now 73 days nationwide, but well-priced listings that find a buyer take only 31 days to go under contract. In January, nearly 1 in 4 listings had a price cut (22%), which is 10 percentage points higher than last winter. That’s why nearly 3 in 4 agents believe pricing is the most important thing sellers need to get right in a less frenzied housing market. “This spring’s sellers are more likely to regret pricing their home too high,” said Zillow senior economist Nicole Bachaud. “The price their neighbor commanded a year ago may no longer be realistic. They need to adjust their expectations if they want to avoid having their home linger on the market. It’s more important than ever for sellers to rely on the advice of a great local agent who understands their neighborhood and has a winning pricing strategy.” Regret #2: Ignoring online curb appeal Nearly 9 in 10 recent first-time sellers think something could have helped them get a higher sale price than they received (87%). Almost 2 in 5 (39%) think better listing photos could have boosted their bottom line, while 1 in 4 recent first-time sellers (25%) think a virtual tour could have helped sell their home for more. Most prospective buyers shop for homes online, meaning sellers can’t ignore online curb appeal. A great listing media package that includes professional high-resolution photography and drone photography helps showcase a home’s best features. However, today’s buyers expect an even more immersive experience. Listings that also include a 3D home virtual tour or an interactive floor plan get 69% more page views and 80% more saves on Zillow. Regret #3: Bad timing One-quarter of recent first-time sellers (25%) wish they had listed their home at a different time. While the best time to sell will always depend on a homeowner’s personal circumstances, if the owner has flexibility, the second half of April is the optimal time to list a home for sale nationwide, Zillow research shows. Timing the sale of a home with the purchase of a new one is one of the biggest stressors sellers experience. More than one-third of recent first-time sellers wish they had known how long — or how quickly (36%) — it would take to sell their home. Nearly 2 out of 5 recent first-time sellers (37%) say selling their home on their timeline and/or with a flexible closing date or selling their home quickly was their top priority, more than the share of sellers who prioritized getting top dollar (26%). If timing is the top priority, sellers should explore all their options. On Zillow, homeowners will be able to request both a cash offer from Opendoor and an estimate of what their home could sell for on the open market through the Zillow Premier Agent® program. Sellers in Atlanta and Raleigh can now see these options on Zillow, with more metro areas coming in the next few months. Regret #4: Skimping on repairs Sellers gearing up for the spring home shopping season need to roll up their sleeves and spruce up their homes if they want to attract bids from a smaller pool of buyers. More than one-quarter of recent first-time sellers (25%) think they could have gotten a higher sale price if they had invested in more home improvements and repairs. “The right projects can pay off,” said Amanda Pendleton, Zillow’s home trends expert. “Sellers need to think strategically about their return on investment before diving into repairs and renovations. Landscaping, interior painting and carpet cleaning are the most commonly completed seller projects for good reason. They boost online curb appeal and send a powerful signal to a buyer that a home is well-maintained.” Roughly two-thirds of recent first-time sellers (66%) took on at least two home improvement projects to prepare their home for sale. Nearly 8 in 10 recent first-time sellers (78%) believe the projects they completed helped their home sell. SOURCE Zillow Group, Inc.