August 2023 – Page 3

RE/MAX National Housing Report for July 2023

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July Sales Down but Inventory is Up, Sellers Get Their Asking Price July marked the first month-over-month decline in home sales since April, signaling that perhaps the peak of summer buying is beginning to taper. Growth in the inventory of homes for sale inched up alongside modest increases in interest rates despite strong consumer demand. July home sales declined 14.7% from June and 16.1% compared to a year ago. The decline was tied to a 9.0% drop in new listings month over month and represented 26.7% fewer new listings year over year across the 50 metro areas surveyed. July inventory was up 3.1% from June, even though it still lagged 20.8% from July 2022. Tight inventory amid consistent demand continued to prop up the median sales price of $425,000. This is a marginal decline of less than 1% compared to June, while registering a 1.2% upswing in comparison to July 2022. With the average close-to-list price ratio in July at 100%, sellers were able to get their asking price from buyers. That was the average close-to-list ratio in June as well but was a decline from the 101% ratio recorded a year ago. “The market is playing out like we expected it to, it’s bumpy,” says Nick Bailey, President and CEO of RE/MAX LLC. “The inventory situation is unique — we are seeing it differ across the country depending on what area, but demand for housing is still strong. As rates stabilize, consumers’ confidence should strengthen, helping boost market activity.” Real estate agent Jeffrey Decatur of RE/MAX Capital in Latham, NY says it’s important to remember that real estate is hyper local. “The market continues to keep us on our toes. Inventory levels still pose a challenge in some areas while others are shifting and appreciating. Buyers are adjusting, too, and in some cases expanding search criteria or commute times to find more options. Working with an experienced professional who understands the nuances of the local market is the best way to navigate the ever-changing market.” Other notable metrics: Highlights and local market metrics for July include: New Listings Of the 50 metro areas surveyed in July 2023, the number of newly listed homes is down 9.0% compared to June 2023, and down 26.7% compared to July 2022. The markets with the biggest decrease in year-over-year new listings percentage were Phoenix, AZ at -59.3%, Las Vegas, NV at -45.8% and Providence, RI at -37.4%. Only one market had an increase in year-over-year new listings percentage, Kansas City, MO at +1.8%. Closed Transactions Of the 50 metro areas surveyed in July 2023, the overall number of home sales is down 14.7% compared to June 2023, and down 16.1% compared to July 2022. The markets with the biggest decrease in year-over-year sales percentage were Dover, DE at -34.9%, Providence, RI at -27.3%, and New York, NY at -24.4%. Only two markets had an increase in year-over-year sales percentage, Cincinnati, OH at +16.1% and Coeur d’Alene, ID at +12.7%. Median Sales Price – Median of 50 metro area pricesIn July 2023, the median of all 50 metro area sales prices was $425,000, down 0.7% compared to June 2023, and up 1.2% from July 2022. The markets with the biggest year-over-year decrease in median sales price were Phoenix, AZ at -4.4%, San Antonio, TX at -3.7%, and Las Vegas, NV at -3.4%. The markets with the biggest year-over-year increase in median sales price were Trenton, NJ at +14.1%, Bozeman, MT at +9.2%, and Milwaukee, WI at +9.0%. Close-to-List Price Ratio – Average of 50 metro area pricesIn July 2023, the average close-to-list price ratio of all 50 metro areas in the report was 100%, flat compared to June 2023, and down from 101% compared to July 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 ratios were a tie between Bozeman, MT and New Orleans, LA at 97%. The highest close-to-list price ratios were a tie between Hartford, CT and Trenton, NJ at 105%. Days on Market – Average of 50 metro areasThe average days on market for homes sold in July 2023 was 30, up 1 day compared to the average in June 2023, and up 6 days from the average in July 2022. The metro areas with the lowest days on market were a tie between Baltimore, MD and Washington, DC at 11, followed by another tie between Dover, DE and Trenton, NJ at 12. The highest days on market averages were in Fayetteville, AR at 68, Coeur d’Alene, ID at 59, and San Antonio, TX at 54. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed. Months’ Supply of Inventory – Average of 50 metro areasThe number of homes for sale in July 2023 was up 3.1% from June 2023 and down 20.8% from July 2022. Based on the rate of home sales in July 2023, the months’ supply of inventory was 1.5, up from 1.3 in June 2023, and decreased compared to 1.6 in July 2022. In July 2023, the markets with the lowest months’ supply of inventory were a four-way tie between Charlotte, NC, Manchester, NH, Seattle, WA, and Trenton, NJ at 0.7. The markets with the highest months’ supply of inventory were San Antonio, TX at 3.5, Bozeman, MT at 3.4, and New Orleans, LA at 3.1. SOURCE RE/MAX, LLC

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Roc Capital Holdings LLC (“Roc360”, the “Company”), a vertically integrated platform for residential real estate investors and a leading originator of business-purpose loans, and Temasek, a global investment company headquartered in Singapore, announced the launch of Roc360 Real Estate Income Trust Inc (“Roc360 REIT”). The externally managed mortgage REIT will invest in business purpose loans for residential real estate investment properties principally originated by Roc360. Since its founding, Roc360’s core focus has been to connect the highly fragmented business of residential investment property lending with institutional capital through an “originate-to-sell” business model. The formation of the Roc360 REIT establishes Roc360’s presence as an asset manager, which will enable the Company to further diversify its base of committed capital to enhance the certainty of capital for its borrowers. “As demand for our assets has increased, we view the Roc360 REIT as an opportunity to secure more funding for our customers by diversifying our range of capital sources,” said Arvind Raghunathan, Ph.D., Roc360 Founder and Chief Executive Officer. “We are honored to partner with Temasek on this important endeavor, which will have a beneficial impact on our customers’ ability to scale their businesses in combating the shortage of affordable, energy efficient homes in this country.” The partnership between Roc360 and Temasek highlights the continued interest in US residential real estate from the international investor community. “This year, we have taken a number of steps to grow our origination capabilities both organically and via acquisitions. As such, we view the Roc360 REIT as a natural extension of our platform, which binds best-in-class origination capabilities and diverse, committed and scalable capital through technology and data which provides our borrowers certainty of execution and a streamlined process. We are excited to provide an alternate funding model for this segment of the industry outside of whole loan purchases and securitization markets,” said Maksim Stavinsky, Co-Founder and President of Roc360. In addition to the REIT, Roc360 will maintain and expand its existing loan purchase programs and asset management solutions to accommodate its growing origination footprint. Deutsche Bank Securities Inc. served as sole structuring agent for this transaction. 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 by Arvind Raghunathan, Maksim Stavinsky and Eric Abramovich, Roc360 employs over 300 people and its wholesale and retail brands have funded in excess of $25 billion in loans throughout the United States since inception. The company is headquartered in New York City with offices on three continents. Prior to Roc360, the company’s founding partners and its leadership team had extensive experience in founding and/or serving in senior capacities in asset and risk management roles at a range of global financial institutions. For more information about Roc360, please visit www.roc360.com

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Poplar is among the top 13 fastest-growing companies in the San Jose, CA, metro and top 31 in real estate Inc. revealed today that Poplar Homes is No. 865 on its annual Inc. 5000 list, the most prestigious ranking of the fastest-growing private companies in America. In addition to making its debut on the Inc. 5000 in the top third of the overall list, Poplar Homes ranked as the 13th fastest-growing company headquartered in the San Jose, Sunnyvale, Santa Clara, Calif. MSA and the 31st fastest-growing real estate company in the country. The ranking provides a data-driven look at the most successful companies within the economy’s most dynamic segment—its independent, entrepreneurial businesses. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other household name brands gained their first national exposure as honorees on the Inc. 5000. “We are honored to be included on the 2023 Inc. 5000 list of America’s fastest-growing public companies,” Poplar Co-Founder and CEO Greg Toschi said. “This recognition is a testament to the incredible work our team has done to change the way millions of independent owners of single-family and multifamily properties manage their rental properties.” Poplar Homes was founded in 2014 by Toschi, Rico Mok, Chief Technology Officer, and Chuck Hattemer, Chief Marketing Officer, to help solve for their own housing needs while students at Santa Clara University. Since that time, by combining its proprietary tech-enabled property management platform with the expertise of local property management teams Poplar has evolved its services to help both owners and renters. With Poplar, individual property investors, who comprise two-thirds of the $85 billion SFR market, have access to the tools and services typically only available to large institutional investors, while renters have the ability to tour, get approved and rent properties online while earning credit to achieve their homeownership goals. “Running a business has only gotten harder since the end of the pandemic,” said Inc. Editor-In-Chief Scott Omelianuk. “To make the Inc. 5000—with the fast growth that requires—is truly an accomplishment. Inc. is thrilled to honor the companies that are building our future.” In the past two years, Poplar has grown rapidly, completing 19 acquisitions that have expanded its presence to over 25 markets in 17 states and 15,000 doors under management. The company is on track to be in 18 new markets and grow to 25,000 doors in 2023. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, location, and other criteria, can be found at www.inc.com/inc5000. About Poplar HomesPoplar Homes is a national technology-enabled property management company that empowers both property owners and residents throughout their lifetime real estate journey. With remote staffing and a proprietary full-stack platform, Poplar offers zero-fuss leasing, managing, and maintenance services to over 15,000 doors across 17 states and over 25 major markets. For renters entering the market, Poplar rebalances the power dynamic and makes it easy to get approved, view available properties, and rent a home online. For property owners, Poplar Homes makes maintaining a rental home as easy as managing a stock portfolio online. Poplar’s coast-to-coast expansion is bringing national tools to local teams, empowering investors to manage and monetize residential rental property across disparate locations while increasing efficiencies by 5x and saving thousands in operating costs. Contact:Janice McDillPoplar Homes PRjanice.mcdill@poplarhomes.com312.307.3134

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Affordable markets including Little Rock and Milwaukee saw the biggest jumps in value, while pricey West Coast metros and pandemic boomtowns faced large drops; L.A. has shed $153 billion since last summer The total worth of U.S. homes hit a record $46.8 trillion in June, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. This overtakes the prior all-time high of $46.6 trillion set a year earlier, as a shortage of homes for sale propped up housing values. The value of U.S. homes rose 0.4% ($166.2 billion) from a year earlier in June and 19.1% ($7.5 trillion) from two years earlier. The housing market has now offset the $2.9 trillion decline in value—set off by rising mortgage rates—that occurred from June 2022 through February 2023. “The dominance of the 30-year fixed rate mortgage in America is propping up home values,” said Redfin Economics Research Lead Chen Zhao. “Tons of homeowners scored an incredible deal during the pandemic: a 3% mortgage rate for the remainder of their 30-year loan. Now they’re staying put because moving would mean taking on a rate that’s twice as high. This means buyers who are in the market now are duking it out for a very small pool of homes, preventing home values from plunging.” Roughly nine in 10 homeowners with mortgages have a mortgage rate under 6%, which is nearly a full percentage point below today’s 6.96% average. As a result, just 1% of the nation’s homes have changed hands this year—the lowest share in at least a decade. The number of houses for sale in the U.S. dropped 15% year over year to an all-time low in June, the biggest annual decline in nearly two years. West Coast Tech Hubs, Pandemic Boomtowns Saw Biggest Drops in Home Value There are 32 U.S. metropolitan areas where aggregate home value declined from a year earlier in June, bucking the national trend. Eleven of those 32 are in California and seven are in Texas. This analysis includes the 100 most populous metro areas for which there was sufficient data. The value of homes in Austin, TX fell 9.6% year over year to $388.1 billion in June—a larger decline than any other metro. Next came Oakland, CA (-8.7%), Seattle (-8.1%), San Francisco (-7.8%) and Los Angeles (-6.6%). Rounding out the top 10 are San Jose, CA, Phoenix, Oxnard, CA, Las Vegas and Sacramento, CA. Pricey West Coast markets like San Francisco and Seattle have experienced outsized declines because they’re among the most expensive markets in the nation, meaning home values had more room to fall. Scores of remote workers left these areas during the pandemic in search of more space and better bang for their buck, contributing to the drop in value. Additionally, the West Coast has been hit hard by tech layoffs. Many buyers in pricey coastal markets also got sticker shock after seeing the impact of elevated mortgage rates on paper; in a metro like San Francisco, a higher rate can equate to a monthly housing bill that’s thousands of dollars more expensive. The situation is somewhat similar in pandemic boomtowns; home values overheated, leaving many people priced out. Values surged in Sun Belt metros including Austin, Phoenix and Las Vegas because scores of remote workers moved in. Now, home values in those areas are coming back down to earth. “Occasionally, a special house will get multiple offers, but that’s not the norm in Austin anymore,” said local Redfin Premier real estate agent Carmen Gioia. “Buyers are shopping but taking their sweet time, in part because there’s so much inventory. I’m warning my sellers that it could take a few weeks to sell, even if their home is priced well.” In dollar terms, Los Angeles saw the biggest decline in aggregate home value, posting a $152.6 billion year-over-year decline in June. It was followed by Oakland (-$85.8 billion), Seattle (-$82.7 billion), Phoenix (-$58.4 billion) and San Francisco (-$57.5 billion). Relatively Affordable Markets Posted the Biggest Gains in Home Value The value of homes in Little Rock, AR climbed 8.8% year over year to $63.7 billion in June—a bigger increase than any other metro. Next came Camden, NJ (8.7%), Milwaukee (8.5%), Wilmington, DE (8.5%), Bridgeport, CT (8.3%), Greenville, SC (7.8%), Hartford, CT (7.6%), Charleston, SC (7.2%), Greensboro, NC (7.2%) and Columbia, SC (7.1%). Home values in these areas didn’t overheat nearly as much as they did in places like Phoenix and San Francisco during the pandemic, meaning they have room to rise. In a majority of the 10 aforementioned markets, the typical home still sells for below the national median of $426,056. That’s likely bolstering homebuyer demand, because fewer people are priced out. In dollar terms, Atlanta saw the biggest jump in aggregate home value, posting a $40.1 billion year-over-year increase in June. It was followed by Boston ($33.4 billion), Miami ($30.3 billion), New Brunswick, NJ ($22.6 billion) and Montgomery County, PA ($21.4 billion). Millennials Now Hold More Home Value Than the Silent Generation The total value of U.S. homes owned by millennials rose 2.9% year over year to $5 trillion in the first quarter of 2023—the most recent period for which generational data is available—a bigger increase than any other generation. That’s the second quarter in a row that Millennials have held more value than the Silent Generation, on a revised basis. The value of homes owned by the Silent Generation fell 11.4% to $4.7 trillion. Meanwhile, the value of homes owned by Generation X dropped 0.7% to $13.4 trillion, and the value of homes owned by Baby Boomers was flat, at $18 trillion. The Silent Generation has lost home value as many of its members have passed away or moved into retirement homes. Millennials have gained value because they’re in prime homebuying age, which means they’re purchasing substantially more homes than they were in recent years. Millennials now make up the biggest piece of the homebuying pie, purchasing roughly 60% of homes bought with mortgages over the last several years. Interestingly, Millennials have lost home equity. Millennial home equity declined 18.2% year over year in the first quarter—a bigger decline than any other generation. Home Values Held Up Better in Suburbs and Rural Areas Than in Urban Areas The total value

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Foreclosure Starts Down 12 Percent from Last Month; But Completed Foreclosures Up 4 Percent ATTOM, a leading curator of land, property, and real estate data, released its July 2023 U.S. Foreclosure Market Report, which shows there were a total of 31,877 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — down 9 percent from a month ago but up 5 percent from a year ago. “The slight decline in foreclosure filings we are seeing is yet another sign of a rebounding housing market,” said Rob Barber, CEO at ATTOM. “With home prices back up, several factors have combined to put more financial resources in the hands of homeowners, providing more options to avoid foreclosure. However, given with the U.S. housing market remains in flux, the various forces at play could keep the market improving or turn it back downward over the coming months.” Maryland, New Jersey and Delaware post highest foreclosure ratesNationwide one in every 4,380 housing units had a foreclosure filing in July 2023. States with the highest foreclosure rates were Maryland (one in every 2,071 housing units with a foreclosure filing); New Jersey (one in every 2,335 housing units); Delaware (one in every 2,343 housing units); Illinois (one in every 2,430 housing units); and South Carolina (one in every 2,511 housing units). Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in July 2023 were Fayetteville, NC (one in every 1,367 housing units with a foreclosure filing); Atlantic City, NJ (one in every 1,708 housing units); Columbia, SC (one in every 1,747 housing units); Trenton, NJ (one in every 1,870 housing units); and Cleveland, OH (one in every 1,957 housing units). Those metropolitan areas with a population greater than 1 million with the worst foreclosure rates in July 2023, including Cleveland, OH, were: Baltimore, MD (one in every 1,991 housing units); Las Vegas, NV (one in every 2,098 housing units); Jacksonville, FL (one in every 2,243 housing units); and Philadelphia, PA (one in every 2,273 housing units). Salt Lake City, Honolulu and Kansas City see largest declines in foreclosure startsLenders started the foreclosure process on 21,020 U.S. properties in July 2023, down 12 percent from last month and down 2 percent from a year ago. States that saw the greatest monthly declines and had 10 or more foreclosure starts in July 2023 included: Hawaii (down 51 percent); New Hampshire (down 45 percent); Idaho (down 43 percent); Arkansas (down 40 percent); and Alabama (down 38 percent). Those major metropolitan areas with a population greater than 1 million that saw the greatest monthly declines in foreclosure starts in July 2023 included: Salt Lake City, UT (down 63 percent); Honolulu, HI (down 53 percent); Kansas City, MO (down 46 percent); Rochester, NY (down 43 percent); and Birmingham, AL (down 41 percent). Foreclosure completions continue to increase monthly and annuallyLenders repossessed 3,332 U.S. properties through completed foreclosures (REOs) in July 2023, up 4 percent from last month and up 9 percent from last year. States that had the greatest number of REOs in July 2023, included: Illinois (355 REOs); Pennsylvania (230 REOs); California (217 REOs); Michigan (200 REOs); and Texas (200 REOs). Those major metropolitan statistical areas (MSAs) with a population greater than 1 million that saw the greatest number of REOs in July 2023 included: Chicago, IL (233 REOs); New York, NY (148 REOs); St. Louis, MO (104 REOs); Baltimore, MD (82 REOs); and Philadelphia, PA (80 REOs). Media Contact:Christine Stricker949.748.8428christine.stricker@attomdata.com SOURCE ATTOM

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Median Home Price in the Mid-Atlantic Region Up 3.9% in July, Strongest Price Growth Since January, Different Trend than Other National Markets The Mid-Atlantic housing market stayed firmly on the summer pace set in June, as buyers still compete for historically-low levels of inventory even in the midst of an elevated mortgage rate environment, according to the Bright MLS Mid-Atlantic July Housing Report released today. The median home price in the region was up 3.9% in July, the strongest price growth since January. “It’s been surprising to me that higher rates and prices have not pushed more people out of the market, particularly first-time buyers,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “Buyers are definitely having to get creative to navigate the competitive market, with assumable mortgages and seller financing now part of the conversation for some.” The median sales price in the Mid-Atlantic was $400,000 in July, 3.9% higher than a year ago, with prices up in each of the Washington, D.C., Philadelphia, and Baltimore metro areas. Median days on the market, an indicator of how quickly homes are moving, stayed flat at seven in Baltimore, nine in Philadelphia, and was even down a day in the Washington, D.C. metro area to seven. Summer typically sees the market cool slightly, as vacation and travel season kicks into high gear. No relief was found in the market for buyers, however, as new listings were down over 29% in the region. Active listings were down 19.1%, further indicating the pace of the market is still very fast, with buyers needing to move quickly once they find a home on the market that suits their needs. New pending sales declined 13% and closed sales were down 20% year-over-year across the region in July. The lack of inventory is also impacting showings, which were down nearly 12% from a year ago. Despite the year-over-year declines, the gap in market activity between this year and last year has narrowed. Looking ahead, Bright expects the fall market in the Mid-Atlantic will be characterized by low inventory, stable or rising home prices, and growing affordability challenges. Mortgage rates will begin to come down but will likely remain around 6.5%. With mortgage rates remaining elevated, homeowners have little incentive to sell if it means they will have to give up their low rate. However, expect listing activity to increase slightly over the next couple of months, as there will be more “movers of necessity,” as well as more transactions with non-standard financing, including assumable mortgages, which are available in some cases for FHA loans or mortgages backed by the VA or USDA, as well as seller financing. Key Market Takeaways Philadelphia Metro Area: The Home Price has Risen for the 6th Consecutive Year, but Buyers are Still Willing to Buy In July, the median price in the Philadelphia metro area was $369,000, just shy of the $370,000 record in June. Prices rose in all local markets in the region, including in Philadelphia County, where home prices had dipped earlier this year. Housing affordability is a growing challenge in the Philadelphia region. Despite the affordability challenges, home buyers remain active in the Philadelphia area market. While showing activity was down 13.8% compared to last July, the 2022 to 2023 gap in buyer traffic has been narrowing. Baltimore Metro Area: The Lack of Supply is Causing Frustrations for Buyers In July, a total of 2,852 new listings came onto the market across the Baltimore metro area, which is down 38.7% compared to last July and is at a more than 20-year low. While elevated mortgage rates and growing affordability challenges have not deterred buyers, the persistently low inventory has subdued sales activity across the region. Buyers need to act quickly, particularly in the region’s suburban markets where there is only about a month’s supply of inventory. The median days on market in the Baltimore region was 7 in July, meaning half of all homes sold in a week or less. Washington, D.C. Metro Area: Home Prices are Making the Strongest Climb in Over a Year, but Demand is Still Strong The Washington area’s hot summer weather typically slows housing market activity, but this year home shoppers are still active, competing over ever-shrinking inventory and driving prices higher. In July, the median sales price in the Washington, D.C. metro area was $590,000, a 4.8% rise from a year ago and the biggest year-over-year increase since June 2022. Prices are rising faster in the region’s suburban markets, where housing is slightly more affordable. Overall, across the region, there were just 5,731 total active listings at the end of July, down 29.3% from a year ago and less than half of the inventory that was on the market prior to the pandemic. Buyers this summer have been acting quickly. The median days on market in the Washington, D.C. metro area was just 7 in July, meaning that half of all homes sold in a week or less. Central Pennsylvania: Prices are Growing and Inventory Declines for the Second Consecutive Month The price trajectory in Central Pennsylvania continued upward in July. While median price growth moderated in February through April, the past few months have seen bigger gains in price. July 2023’s median price of $275,000 was 7.8% higher than last year and only $2,000 less than the record high median price hit the prior month. While demand is slower than last year, the lack of new listings has started eating into the inventory gains from earlier this year. Active listings decreased 7.8% year-over-year in July. This follows the smaller 1.4% decline that happened in June. Price pressure will likely remain as the inventory situation in Central Pennsylvania is bleak. Maryland-West Virginia Panhandle: Prices are at Record High While Demand Continues to Outweigh Inventory The median sale price in the Maryland/West Virginia Panhandle reached $295,000 in July 2023. This is the highest median price recorded for the region. Home prices are now more than 50% higher than they were in 2019. Still, the Panhandle is significantly more affordable than other major metros in the Mid-Atlantic. As buyers consider affordability, the Maryland/West Virginia Panhandle has been a draw. Demand in the area continues to outweigh supply. New listings have been significantly below 2022 levels, and while pending and closed sales have