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Consumers Report Improving Job Security, Healthy Household Finances

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But Only 18% Believe It’s a Good Time to Buy a Home The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased slightly in July, as consumers’ increased confidence regarding their personal financial situations was largely offset by further pessimism toward homebuying conditions. Three of the HPSI’s six components increased month over month, including the components measuring job security and home price expectations. However, 82% of consumers reported that it’s a “bad time to buy” a home, a new survey high and up from 78% in June. The full index is up 4.0 points year over year. “While consumers are reporting confidence in the components related to their personal financial situations, it’s unlikely we’ll see housing sentiment catch up to other broader economic confidence measures until there is meaningful improvement to home purchase affordability,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “In July, a significant majority of consumers indicated that their jobs are stable and that their incomes are the same or better than they were twelve months ago. However, homebuying sentiment once again matched its all-time low, with only 18% telling us that it’s a good time to buy a home. Unsurprisingly, consumers continue to attribute the challenging conditions to high home prices and unfavorable mortgage rates. Further, the share of consumers expecting home prices to continue to rise has also been on a steady climb since March, which may only add to perceptions of unaffordability. Additionally, we have not seen much movement in the ‘good time to sell’ component over the last few months, an indication that the current low levels of existing homes for sale will likely continue to persist in the near term, as also reflected in our latest forecast.” Home Purchase Sentiment Index – Component Highlights Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased in July by 0.8 points to 66.8. The HPSI is up 4.0 points compared to the same time last year. Read the full research report for additional information. To receive e-mail updates with other housing market research from Fannie Mae’s Economic & Strategic Research Group, please click here. SOURCE Fannie Mae

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Home Prices Hit New Record Highs in 60% of Major Markets as Annual Growth Rate Rises

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The Data & Analytics division of Black Knight, Inc. (NYSE:BKI) released its August 2023 Mortgage Monitor Report, based on the company’s industry-leading mortgage, real estate and public records data sets. This month’s report looks again at the reheating housing market nationwide, with home prices hitting new peaks at the national as well as local levels, and no end in sight to the constrictive lack of for-sale inventory driving the price increases. As Black Knight Vice President of Enterprise Research Andy Walden explains, backward-looking annual home price growth rates are beginning to inflect driven by the seasonally adjusted monthly increases the Black Knight Home Price Index (HPI) has been tracking in near real time as 2023 has progressed. “We’ve been noting for some months that the recent rate of home price gains would have a lagging, but significant, impact on the annual rate of appreciation,” said Walden. “Well, June marked that inflection point. Not only has the Black Knight HPI reached a new record high – on both seasonally adjusted and non-adjusted bases – but 60% of major markets have done so as well. After slowing for 14 straight months, the annual growth rate jumped back to 0.8% in June, up from just 0.2% in May, amid widespread growth that saw annual rates of appreciation inflect and begin to trend higher in more than 80% of markets. Rising home prices have boosted homeowner equity levels as well, which had been retreating from their 2022 highs not very long ago. In fact, despite total outstanding mortgage debt topping $13T for the first time in history, much of the decline in equity we’d tracked since last year’s peak has since been recovered. “Overall mortgage-holder equity is now back above $16T, with some $10.5T of that being ‘tappable,’ or available for the homeowner to borrow against while still maintaining a relatively conservative 20% equity stake. The average mortgage holder has some $199K in tappable equity available to them; down somewhat from 2022’s historic highs but still a historically large amount regardless. In terms of negative equity, or ‘underwater borrowers,’ it’s a nearly nonexistent phenomenon in today’s market – just 344K homeowners currently owe more on their homes than the properties are worth. Yes, it’s true that is a 70% jump from this time last year – which may sound ominous – but everything is relative. There are less than half as many underwater homeowners than there were in 2019 before the onset of the pandemic, with only 3.9% having less than 10% equity, down from 6.6% in 2019.” Strong equity positions are one component of today’s historically strong mortgage performance, but this month’s report also quantifies the savings associated with recent refinance waves, which continue to pay dividends in terms of both performance and overall economic benefit. While affordability for prospective homebuyers is nearly the worst it’s been in 37 years, low interest rates locked in during the COVID era continue to keep payments down for existing homeowners, contributing to low delinquency levels. Despite the average unpaid principal balance of existing mortgages hitting an all-time high in June ($242K), the average interest rate on those loans sits at just 3.94%. Existing homeowners who have benefitted from $42B in cumulative savings through refinance in the past three years are now also benefitting from strong income growth as well. Further, existing homeowners need just 21% of the median household income to make the average monthly P&I payment – as opposed to more than 36% for prospective homebuyers in today’s market. The small relative share of income needed for existing homeowners to meet their mortgage obligations, along with the strong credit quality of today’s mortgage holders and an acute focus on loss mitigation by the industry at large, are all contributing to today’s 16-year low in seriously delinquent mortgages. Much more information on these and other topics can be found in this month’s Mortgage Monitor. SOURCE Black Knight, Inc.

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Roofstock Deepens Institutional Capabilities with Two Key New Hires

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Roofstock, a leading real estate services and investment platform specializing in the single-family rental (SFR) sector, is excited to announce the additions of Justin Yagerman as its new Head of Capital Markets and Paul Briggs as its new Head of Research and Investment Strategies. With over two decades in both public and private markets, Mr. Yagerman has a proven track record of building long-term relationships with, and driving successful outcomes for, institutional investors. As Roofstock’s Head of Capital Markets, he will lead business development efforts with investors who seek opportunities in the $4 trillion SFR asset class. Mr. Briggs has been leading research, strategy, and data science teams in the real estate industry for more than twenty years. At Roofstock, he will build analytical models and bespoke investment strategies to drive successful outcomes for institutional SFR investors. “We are thrilled to welcome Justin Yagerman and Paul Briggs to the Roofstock team,” said Gary Beasley, CEO and co-founder of Roofstock. “Justin’s deep understanding of the capital markets landscape and Paul’s demonstrated ability to construct sound strategies from massive data sets will be invaluable as we continue to enhance the capabilities of our platform for our clients.” “I’m extremely excited to join Roofstock at such an exciting time in the evolution of the SFR sector,” said Mr. Yagerman. “The company’s innovative approach to real estate investing and its commitment to technology as a means to drive efficiency and scale is a winning combination. I am eager to leverage my experience and relationships to drive Roofstock’s mission forward.” Prior to joining Roofstock, Mr. Yagerman served as Head of Business Development at Invesco Private Capital. Mr. Yagerman’s understanding of investment strategies, financial product development, and global marketing will be instrumental in expanding Roofstock’s reach and further solidifying its position as a leading partner for investors seeking exposure to the SFR asset class. Mr. Yagerman brings a wealth of experience to Roofstock, having spent many years developing deep relationships with pensions and sovereign wealth funds, private banks, insurance companies, endowments and foundations, wealth management platforms, and family offices. Prior to joining Roofstock, Mr. Briggs served most recently as Managing Director, Head of U.S. Research at BentallGreenOak. He has spent the bulk of his career developing original investment strategies driven by quantitative and qualitative research and advanced predictive models. Mr. Briggs’ data-driven approach and strategic mindset will further position Roofstock as a trusted advisor for institutional capital interested in SFR opportunities. “I joined Roofstock because I have a strong conviction that SFR is maturing as an asset class and now is the time for investors to pursue this substantial opportunity. Roofstock has the proprietary data and scalable platform to generate consistent risk-adjusted returns for investors,” said Mr. Briggs. “By further developing Roofstock’s in-house research, data science capabilities, and thought leadership, I hope to drive strategic investment decisions that maximize returns for our investors and strengthen Roofstock’s position as a leader in the SFR industry.” Messrs. Yagerman’s and Briggs’ appointments come as part of Roofstock’s efforts to expand its senior team and build upon its successful track record providing the institutional segment with new and innovative SFR investment products. The two join Roofstock amid estimates that more than $100 billion in institutional capital has been set aside to invest in SFR, according to a 2022 report from Zelman & Associates. About Roofstock Roofstock is a pioneer in providing Real Estate Investment as a Service (REIaaS) for investors in the $4 trillion single-family rental (SFR) sector across the entire investment lifecycle. Its proprietary data, technology, and integrated services make it possible for investors to maximize opportunities across the U.S. and realize substantial returns. Founded in 2015, Roofstock is backed by a blue-chip roster of venture capital investors including Khosla Ventures, Bain Capital Ventures, Lightspeed Venture Partners, Canvas Ventures, and SoftBank Vision Fund 2. Roofstock has facilitated more than $5 billion in transactions on its platform to date.

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HouseCanary Report Finds Rental Inventory Surges in Q2 2023, Signaling Hope for Price Decreases

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HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its real estate valuation accuracy, released its latest National Rental Report, highlighting that listing inventory is up 70% year-over-year and days on market is up 50% year-over-year as median monthly rent prices have seemingly reached a peak. Despite median listing prices for Single-Family Rentals in other parts of the United States slowing down, Metropolitan Statistical Areas (MSA) in the East Coast and Industrial Midwest continue to be hotspots for real estate investment opportunities due to dramatic price increases since Q2 2022. HouseCanary’s data also finds that Naples-Immokalee-Marco, FL, which previously held the title for the most expensive median monthly rent prices in the U.S, has now been surpassed by Los Angeles-Long Beach-Anaheim, California and San Diego-Carlsbad, California. Chris Stroud, Co-founder and Chief of Research at HouseCanary, commented: “In Q2, we’ve seen the rental market continue to increase in median listings, prices and days on market. While SFR prices only experienced slight year-over-year increases, the surge in available-for-rent inventory suggests that rental prices have reached their peak and are anticipated to trend downwards in the coming months. As interest rate hikes slow down and inventory remains elevated, single-family rentals remain an attractive option for potential home buyers, providing stability to the rental market.” Following a thorough analysis of the aggregated data, HouseCanary’s report identified the following key findings about the rental market for single-family detached listings in the second quarter of 2023: The full report with all additional findings can be viewed here.

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The Typical U.S. Homebuyer’s Monthly Payment Is Up Nearly 20% From a Year Ago As Prices Rise

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The median U.S. home-sale price is up 3.2% year over year, the biggest increase since November, and mortgage rates remain elevated The typical U.S. homebuyer’s monthly mortgage payment was $2,605 during the four weeks ending July 30, up 19% from a year earlier and down just $32 from early July’s all-time high. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Housing payments remain historically high because mortgage rates remain elevated, with weekly average rates clocking in at 6.9% this week, and home prices are on the rise. The median home-sale price is up 3.2% year over year, the biggest increase since November. Home prices are increasing because of the mismatch between supply and demand. High mortgage rates have pushed many would-be sellers out of the market, with homeowners hanging onto their relatively low rates. The total number of homes for sale is down 19%, the biggest drop in a year and a half, and new listings are down 21%. High rates are also sidelining prospective buyers, but not as much as they’re deterring would-be sellers. Redfin’s Homebuyer Demand Index, which measures early-stage demand through requests for tours and other buying services from Redfin agents, is down just 4% from a year ago. 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 30. 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-monthly-mortgage-payments-near-record-high

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PURE Property Management Completes 70th Acquisition

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Profitable Proptech Now Managing 25,000+ Residential Properties Across 50 Major U.S. Residential Markets PURE Property Management, the fastest-growing residential property management and technology company in the U.S., announced today that it has completed 70 acquisitions since its start in October 2020. “We average about six acquisitions per quarter and aim to do that many, or more, for the foreseeable future,” said PURE co-founder and general partner Michael Catalano. “Our mission is to become the first brand to provide premium residential living experiences and management in major markets across all 50 states.” PURE’s aggressive pace of acquisitions is supported by seller-aligned purchase models managed by the most experienced and efficient acquisitions team in the industry. “Over half of our acquisitions have been with owners who had no initial interest in selling, but were curious about our vision and opportunity,” said Jock McNeill, vice president of acquisitions. “Three years ago, I was in that exact situation myself.  As an owner, it never hurts to have a conversation. At worst, you make a friendly connection and identify what drives value in your business for future planning.” PURE maintains a highly flexible acquisition model designed to fit all types of sellers.  In addition to cash up-front transactions, owners of independent property management companies have the option to convert any portion of the purchase price they choose into preferred equity in PURE, even if the seller decides to exit the business. Knowing that their clients will be well-cared for, and their employees will have access to career growth opportunities and employment benefits, including equity for all full-time employees, PURE creates a unique, win-win scenario for sellers and their employees. “It’s no secret the capital markets in the current economic environment have been unpredictable, and we have seen competitors dramatically slow down or even stop acquisition activity,” said Joseph Polverari, PURE’s co-founder and general partner. “Because PURE is high-tech, high-growth, and operationally, high-profit, we have continued to accelerate, remaining attractive to growth capital partners when needed.” Recent acquisitions have anchored PURE’s presence in Los Angeles and Orange Counties, Albuquerque, Dallas-Fort Worth, Denver, Nashville, Ocala, Portland, and Tacoma, while expanding existing services reach in major markets like Arizona, California, North Carolina, and Washington. “Our people-first strategy of acquiring experienced teams while and scaling their operations with next-generation processes and technology is paying off in a big way,” noted Eric Wetherington, vice president of operations and strategy. “By combining over 2,000 years of collective property management experience, we’re optimizing and automating workflows, integrating and improving standardized software, and deploying conformed best practices at all locations in real-time. The resulting experiences for owners, residents, and our property management professionals are simple and satisfying – the way it should be.” Wetherington sold his company to PURE in 2021 and served as the 2019 national president of the 6,000-member National Association of Residential Property Managers (NARPM). About PURE Property Management PURE Property Management is the fastest-growing profitable residential property management and technology company in the U.S. Led by a team of experienced industry professionals and seasoned technology innovators, PURE acquires single-family residential property management companies and invests in their people and processes. By deploying technology and providing operational efficiencies, PURE enhances resident and investor experiences. For more information, visit https://purepm.co  SOURCE PURE Property Management

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