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BH Properties Plans Billion Dollar Investment in Affordable Housing

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Los Angeles-Based Real Estate Investment Firm Hires Bill Stoll to Lead New Initiative BH Properties (“BH”) has launched a new investment initiative into affordable housing  with a  goal of ultimately building a $1 billion portfolio of assets. The new initiative will be led by veteran affordable housing executive William “Bill” Stoll who joins the firm as Managing Director, announced company President Jim Brooks. An adjunct to the firm’s value-add multifamily platform, the new platform will focus on low-income housing tax credit (LIHTC), Section 8 and age-restricted housing throughout the United States. For the Los Angeles-based real estate investment firm, which manages a 10 million-square-foot  portfolio of commercial real estate assets and more than 2,000 multifamily units, investment in affordable housing is complementary to its other business lines including value add acquisitions, bankruptcy solutions, and investment in real estate debt instruments across the capital stack. “As long-term investors, our affordable housing strategy is driven by the annuity-like nature of the income stream and not the assumption of tax credits where most investors play,” said Brooks. “We will be looking at assets with 100 or more units, typically following the expiration of the 15-year compliance period, where we can then hold them for as long as a decade. We believe we can benefit from the durable and consistent cash flow that a professionally managed asset can generate.”    “Our goal is to build scale relatively quickly,” added Andy Van Tuyle, Senior Managing Director Investments. “The addition of Bill, his contacts, reputation and experience will help expedite this effort.” Stoll, who will work closely with Van Tuyle, brings to BH more than $6 billion dollars in transaction experience over his nearly 14-year career at Steadfast Companies. Stoll, a graduate of San Diego State University, joined the Public Non-Traded REIT in 2009 as manager of a Southern California portfolio of 10 LIHTC properties, eventually rising to Executive Vice President of Acquisitions. In addition to completing the acquisition and disposition of nearly 150 multifamily, LIHTC and Section 8 properties, Stoll played an integral role in construction, financing and property management during his tenure at Steadfast. “It’s bittersweet to be leaving Steadfast, but Jim and Andy offered me an opportunity to lead and grow their new affordable housing platform,” said Stoll. “I was impressed with BH Properties’ well capitalized balance sheet, and their track record of making investment decisions quickly. This has allowed me to hit the ground running and we are already looking at potential investments in Texas, California, Arizona and Colorado.” About BH PropertiesFounded 30 years ago, privately held BH Properties (http://www.bhproperties.com) is a vertically integrated real estate investment company focusing on the acquisition and management of a geographically and product diverse portfolio of assets. The Los Angeles-based company, with regional offices in Phoenix, Dallas, Houston and Seattle, continues to focus on value-add transactions, distressed debt, gap financing, and ground leases. Today the company owns and operates nearly 10 million square feet across 16 states. Media Contact: Bruce BeckDB&R Marketing Communications, Inc.(805) 777-7971 – office(818) 540-8077 – mobilebruce@dbrpr.com

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Average Home Is Selling Above Its Asking Price for the First Time in Nearly a Year

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This is the first time since last August the average sale-to-list price ratio has surpassed 100%. Low inventory and steady demand are buoying home prices. The average sale-to-list price ratio hit 100.1% during the four weeks ending July 2, marking the first time in nearly a year the average U.S. home is selling for more than its asking price. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Additionally, the median home-sale price was down just $1,000 (-0.3%) from a year ago, when prices were near record highs. A lack of homes for sale is the main reason homes are selling above their asking price, with new listings down 25% from a year ago and the total number of homes for sale down 12% as homeowners hang onto relatively low mortgage rates. Despite the double dilemma of low inventory and high prices, early-stage homebuyer demand is picking up. Redfin’s Homebuyer Demand Index—a measure of requests for home tours and other buying services from Redfin agents—is up 4% from a month earlier and near its highest level in over a year. Leading indicators of homebuying activity: Key housing market takeaways for 400+ U.S. metro areas: Unless otherwise noted, this data covers the four-week period ending July 2. Redfin’s weekly housing market data goes back through 2015. For bullets that include metro-level breakdowns, Redfin analyzed the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. To view the full report, including charts, please visit:https://www.redfin.com/news/housing-market-update-homes-selling-above-asking-price

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Consumer Confidence in Housing May Have Plateaued

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HPSI Remains Stuck at Relatively Low Level Amid Ongoing Supply and Affordability Constraints The Fannie Mae Home Purchase Sentiment Index® (HPSI) remained mostly flat in June, increasing by only 0.4 points to 66.0, as difficult supply and affordability conditions continue to weigh on the housing market. While most of the HPSI’s six components were little changed month over month, survey respondents did report that homebuying conditions improved slightly in June compared to May. Even so, a significant majority of consumers continue to report that it’s a “bad time to buy” a home, as they have since mid-2021. The full index is up 1.2 points year over year. “Confidence in the housing market appears to have plateaued at a relatively low level, suggesting that many consumers may be coming to terms with elevated mortgage rates and high home prices,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Home prices continue to be supported by the tight supply of homes available for sale, and, compared to the end of last year, fewer respondents today believe home prices will decrease over the next 12 months. Additionally, consumers’ mortgage rate expectations have tempered: A larger share of respondents think mortgage rates will stay the same over the next year, whereas mid-to-late last year, most thought rates would continue going up. This seems to signal that consumers are adapting to the idea that higher mortgage rates will likely stick around for the foreseeable future. We continue to forecast home sales to slow in the second half of the year, compared to the first half, due to ongoing affordability constraints and lack of housing supply.” Home Purchase Sentiment Index – Component Highlights Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased in June by 0.4 points to 66.0. The HPSI is up 1.2 points compared to the same time last year. Read the full research report for additional information. About Fannie Mae’s Home Purchase Sentiment IndexThe Home Purchase Sentiment Index® (HPSI) distills information about consumers’ home purchase sentiment from Fannie Mae’s National Housing Survey® (NHS) into a single number. The HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and decision making. The HPSI is constructed from answers to six NHS questions that solicit consumers’ evaluations of housing market conditions and address topics that are related to their home purchase decisions. The questions ask consumers whether they think that it is a good or bad time to buy or to sell a house, what direction they expect home prices and mortgage interest rates to move, how concerned they are about losing their jobs, and whether their incomes are higher than they were a year earlier.

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D.R. Horton, Inc. Acquires the Homebuilding Operations of Truland Homes

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D.R. Horton, Inc. (NYSE:DHI), America’s Builder, announced the acquisition of Truland Homes, the largest private homebuilder along the Gulf Coast. The homebuilding assets of Truland Homes (“Truland”) acquired include approximately 263 lots, 155 homes in inventory and 55 homes in sales order backlog. D.R. Horton also acquired 156 lots and control of approximately 400 lots through option contracts from Truland affiliates and 201 lots and control of approximately 260 lots through option contracts from third parties. During calendar 2022, Truland closed 512 homes ($244 million in revenue) with an average home size of approximately 2,340 square feet and an average sales price of $477,000. D.R. Horton expects to pay approximately $100 million in cash for the purchase, and the Company plans to combine the Truland operations with its current D.R. Horton platforms in Baldwin County, Alabama and Northwest Florida. Donald R. Horton, Chairman of the Board, said, “We are excited for the Truland team to join the D.R. Horton family. Their quality building operations and strong presence across the Gulf Coast make Truland a great addition to D.R. Horton’s already strong local market operations.” Nathan Cox, Founder of Truland Homes, said, “Leading Truland Homes over the last 13 years has been the most rewarding experience of my professional career. The amazing team members that took us from our first home to over a billion dollars in total sales are the ones that deserve all the credit. No matter what, they always came through. In conjunction with growing Truland Homes over the last decade plus, D.R. Horton has afforded us the honor and privilege of becoming the largest lot supplier within their Gulf Coast region. We look forward to continuing as a key lot development partner for D.R. Horton.” About D.R. Horton, Inc. D.R. Horton, Inc., America’s Builder, has been the largest homebuilder by volume in the United States since 2002. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 110 markets in 33 states across the United States and closed 83,119 homes in its homebuilding and single-family rental operations during the twelve-month period ended March 31, 2023. The Company is engaged in the construction and sale of high-quality homes through its diverse product portfolio with sales prices generally ranging from $200,000 to over $1,000,000. Through its mortgage, title and insurance subsidiaries, D.R. Horton provides mortgage financing, title services and insurance agency services for its homebuyers. The Company also constructs and sells both single-family and multi-family rental properties and is the majority-owner of Forestar Group Inc., a national residential lot development company.

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CoreLogic: US Mortgage Performance Continues Strong Run in April

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Despite small annual upticks in certain states and metro areas, overall mortgage delinquencies remain near an all-time low CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, released its monthly Loan Performance Insights Report for April 2023. For the month of April, 2.8% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), representing a 0.1 percentage point decrease compared with 2.9% in April 2022 and a 0.2 percentage point increase compared with 2.6% in March 2023. To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In April 2023, the U.S. delinquency and transition rates and their year-over-year changes, were as follows: Although almost a dozen states and more than 150 metro areas posted year-over-year increases in overall mortgage delinquency rates in April, U.S. loan performance remains resilient, with delinquencies and foreclosures continuing to hover near record lows. The national overall delinquency rate increased slightly from March to April, but this is a typical seasonal pattern, as tax bills can stretch homeowners’ budgets in the short term and result in late mortgage payments for some borrowers. “Mortgage performance remained strong in April, with overall delinquencies at minimal levels and serious delinquencies at a 23-year low,” said Molly Boesel, principal economist for CoreLogic. “However, there is concern that mortgages originated in a rising-interest-rate environment may have higher instances of delinquencies, as borrowers become stretched financially. While early delinquencies for 2022 mortgage originations are about the same rate as those in other rising interest-rate environments, loans with low down payments are exhibiting comparably higher-than-usual early delinquencies.” State and Metro Takeaways: The next CoreLogic Loan Performance Insights Report will be released on July 27, 2023, featuring data for May 2023. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence. About CoreLogic CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

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HOME AFFORDABILITY WORSENS ACROSS U.S. DURING SECOND QUARTER OF 2023 AS HOME PRICES TICK UPWARDS

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Major Home-Ownership Expenses Consume One-Third of Average Wage;Historic Affordability Hits Low Point Since 2007;Affordability Declines as Median Home Price Spikes 10 Percent ATTOM, a leading curator of land, property, and real estate data, released its second-quarter 2023 U.S. Home Affordability Report showing that median-priced single-family homes and condos are less affordable in the second quarter of 2023 compared to historical averages in 98 percent of counties around the nation with enough data to analyze, continuing a pattern dating back to early 2022. The report shows that affordability has worsened across the nation this quarter amid a renewed jump in home prices that has pushed the typical portion of average wages nationwide required for major home-ownership expenses up to 33 percent. The latest portion is considered unaffordable by common lending standards, which call for a 28 percent debt-to-income ratio. It also marks the highest level since 2007 and remains well above the 25 percent figure from early in 2022, when a spike in home-mortgage rates had just begun to raise ownership costs. The worsening picture facing home buyers reflects the second shift in the U.S. housing market in the past year, coming as the median single-family home price has shot up to a new record following three quarters of declines. Those declines strongly suggested an end to a decade-long boom period lasting from 2012 into the middle of 2022. Nationwide, the median single-family home value has risen 10 percent from the first to the second quarter of 2023, to $350,000 – one of the biggest quarterly increases in the past decade. The second-quarter median sits 2 percent above the previous peak hit a year earlier before the market stalled and prices dropped. This Spring’s price increases have helped to push the typical cost of major ownership expenses up far faster than wages, resulting in declining home affordability. “The U.S. housing market has done an about-face following a downturn that threatened to usher in an extended period of flat or falling prices. With that has come another blow to how much house the average worker around the country can afford,” said Rob Barber, CEO for ATTOM. “Whether this is just a temporary blip amid this year’s peak buying season or a sign of another extended price surge is anyone’s guess. But any predictions of a market demise were certainly premature – and house hunters are feeling the pinch.” The ongoing drop-off in affordability comes as multiple forces create an uncertain scenario that could push the U.S. housing market in decidedly different directions. Home values have jumped at a time when mortgage rates have settled down below 7 percent after more than doubling last year, and the U.S. consumer-price inflation rate has dropped by more than half, to around 4 percent. The stock market has also shown gains recently. All that has put more buying power into the pockets of house hunters, pushing prices up and affordability down. But that could easily change if a recent uptick in mortgage rates continue, the stock market cools down again or the economy falls into a recession, as some economists predict. The third quarter of 2023 will be a key barometer, given that the long market boom came to a halt during the same period last year. This report determined affordability for average wage earners by calculating the amount of income needed to meet major monthly home ownership expenses — including mortgage payments, property taxes and insurance — on a median-priced single-family home, assuming a 20 percent down payment and a 28 percent maximum “front-end” debt-to-income ratio. That required income was then compared to annualized average weekly wage data from the Bureau of Labor Statistics. Compared to historical levels, median home prices in 565 of the 574 counties analyzed in the second quarter of 2023 are less affordable than in the past. That is up from 550 of the same group of counties in the first quarter of 2023 and from 553 in the second quarter of 2022. It is more than double the number that was less affordable historically, two years ago before average home mortgages rates began to go up. Meanwhile, major home-ownership expenses on typical homes are considered unaffordable to average local wage earners during the second quarter of 2023 in 420, or about three-quarters, of the 574 counties in the report, based on the 28 percent guideline. Counties with the largest populations that are unaffordable in the second quarter are Los Angeles County, CA; Maricopa County (Phoenix), AZ; San Diego County, CA; Orange County, CA (outside Los Angeles) and Kings County (Brooklyn), NY. The most populous of the 154 counties where major expenses on median-priced homes remain affordable for average local workers in the second quarter of 2023 are Cook County (Chicago), IL; Harris County (Houston), TX; Wayne County (Detroit), MI; Philadelphia County, PA, and Cuyahoga County (Cleveland), OH. View Q2 2023 U.S. Home Affordability Heat Map  Home prices surge nationwide, up in more than 90 percent of local marketsAfter dropping or staying about the same for three straight quarters, the national median home price has increased to $350,000 in the second quarter of 2023 – a new record. The 10.2 percent gain, from $317,496 in the first quarter of 2023, represents the largest quarterly improvement since the second quarter of 2015. The latest figure is also up 2.5 percent from the prior record of $314,500 hit in the second quarter of last year. At the local level, median home prices in the second quarter of 2023 are up from the early months of this year in 524, or 91 percent, of the 574 counties included in the report. They have risen at least 5 percent in close to two-thirds of the markets analyzed and have hit peaks in almost 40 percent of them. Data was analyzed for counties with a population of at least 100,000 and at least 50 single-family home and condo sales in the second quarter of 2023 and with sufficient data to analyze. Among the 47 counties in the report with a population of at least 1 million, the biggest year-over-year increases in median sales prices during the second quarter of 2023 are in St. Louis

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