2024 – Page 45

OPPORTUNITY ZONE HOME PRICES MIXED BUT STILL KEEPING UP WITH NATIONWIDE PRICE TRENDS

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Median Home Values Rise During First Quarter of 2024 in Only Half of Opportunity Zones Targeted for Economic Redevelopment Around U.S.; But Price Trends Inside Zones Again Reflect National Market Patterns; By Some Measures, Opportunity Zone Changes Surpass Nationwide Gains ATTOM, a leading curator of land, property, and real estate data, released its first-quarter 2024 report analyzing qualified low-income Opportunity Zones targeted by Congress for economic redevelopment in the Tax Cuts and Jobs Act of 2017. In this report, ATTOM looked at 3,512 zones around the United States with sufficient data to analyze, meaning they had at least five home sales in the first quarter of 2024. The report found that median single-family home and condo prices increased from the fourth quarter of 2023 to the first quarter of 2024 in just 49 percent of Opportunity Zones around the country. But they were still up annually in almost two-thirds of Opportunity Zones with enough data to measure. Those trends, in and around low-income neighborhoods where the federal government offers tax breaks to spur economic revival, continued a long-term pattern of home values inside Opportunity Zones moving alongside broader nationwide shifts for at least the last three years. The mixed first-quarter price patterns hit harder in the very lowest-priced areas, with declining values posing a warning sign in those markets. Nevertheless, the overall picture inside Opportunity Zones revealed ongoing measures of economic strength, or limited weakness, inside some of the country’s most distressed communities compared to other markets around the country. That scenario has remained in place even as a decade-long housing market boom has slowed in Opportunity Zones and elsewhere, with relatively modest price increases over the past year. By one key measure, Opportunity Zones price trends even showed continued signs again of doing somewhat better than the nation as a whole during the early months of 2024. For example, changes in typical home values across more than half of Opportunity Zones were better than nationwide price movements both quarterly and annually. “Another quarter, same result. That’s the takeaway yet again inside Opportunity Zones around the U.S., where home prices still lag far behind national numbers, but gains and losses mostly keep tracking overall market patterns,” said Rob Barber, CEO for ATTOM. “Clearly, there are exceptions, especially at the lowest end of the price scale. Nevertheless, the latest data shows Opportunity Zone housing markets continuing to attract considerable interest among home buyers pushed out of higher-priced areas in a market with very limited supplies of homes for sale. That again points to the kind of economic viability needed to lure investors who may want to take advantage of the redevelopment incentives aimed at revitalizing those communities.” Opportunity Zones are defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet various criteria for redevelopment in all 50 states, the District of Columbia and U.S. territories. Census tracts, as defined by the U.S. Census Bureau, cover areas that have 1,200 to 8,000 residents, with an average of about 4,000 people. Amid economic limitations, most Opportunity Zones again had typical home values that fell well below those in other markets around the nation in the first quarter of 2024. Median first-quarter prices inside 78 percent of the zones were less the U.S. median of $330,000. That was about the same portion as in earlier periods over the past three years. In addition, median prices remained under $200,000 in about half the zones. High-level findings from the report: Media Contact:Megan Huntmegan.hunt@attomdata.com SOURCE ATTOM

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D.R. Horton, Inc., America’s Builder, announced the sudden passing of Donald R. Horton, the Company’s Founder and Chairman of the Board of Directors. David V. Auld, the Company’s Executive Vice Chairman, has been appointed by the Board to serve as Executive Chairman, effective immediately. “It is with great sadness that I announce the passing of my friend and our Company’s iconic founder and Chairman, Don (“DR”) Horton. Throughout the Company’s 46-year existence, he worked tirelessly to build a national homebuilding operation with a strong company culture, and the impact of his personal involvement with our team of operators across the United States has contributed immeasurable value to our company and people,” Auld said. Auld continued, “I am deeply grateful to DR for his friendship, leadership and commitment to making D.R. Horton the leading homebuilder in America. DR was truly a pioneer in the homebuilding industry. From the first house he built in 1978 in Fort Worth, Texas as a local homebuilder, he led the business to unprecedented growth regionally and then nationally. Under DR’s leadership, we have had the privilege of helping more than one million American individuals and families achieve homeownership. We are all indebted to DR for his vision, tenacity and never-ending drive to continue to grow and improve our Company. While he is impossible to replace, we will strive to carry on his legacy of enabling the dream of homeownership for individuals and families across the United States in every stage of their lives. Our sincere condolences and prayers go out to DR’s wife, Marty; his sons, Ryan and Reagan; daughters-in law, Stacy and Michelle; their four grandchildren; and the rest of DR’s family.” Throughout the Company’s history, Don steadfastly maintained a strategy of decentralized operational decision making, which was considered unorthodox by many industry observers. The company’s local leadership teams have been and continue to be empowered to make local business decisions, such as product offerings, price points and home features. Today, we consider this important company tenet a critical ingredient to our past and future success. Over the years, Don traveled extensively visiting the Company’s field operations. During these visits, he made it a point to meet everyone in the sales offices, job sites and division offices, and he continually emphasized that the people in our operational teams are the key to our business success. Don was approachable and relatable to everyone he met and maintained an unassuming personal lifestyle, as he never forgot his humble beginnings and the hard work it took to succeed. Don always referred to the Company, including our employees, homebuyers, vendors and subcontractors, as the D.R. Horton family. While the Company has grown significantly, the sentiment remains true, and Don championed several initiatives for the benefit of D.R. Horton employees and their families. He founded a Horton summer camp for employees’ children to enjoy activities in the great outdoors and truly enjoyed leading and actively participating in the summer camp for many years. The D.R. Horton, Inc. Foundation was created to provide financial and other assistance to employees and their families who are victims of natural disasters, helping take care of housing, meals and other personal needs following a disaster. Also, numerous Company employees have experienced individual acts of caring and kindness from Don over the years without him seeking any attention or credit. This culture of family and care for each other will be a longstanding legacy of Don’s commitment to the Company and its employees. Don, age 74, has served as Chairman of D.R. Horton, Inc. since it was formed in July 1991, and held the roles of President and CEO from July 1991 until November 1998. He was involved in the real estate and homebuilding industries since 1972, and was the founder, sole or principal stockholder, director and president of each of D.R. Horton’s predecessor companies, which date from 1978 to 1990. Don is survived by his wife Marty and their children Ryan (Stacy) and Reagan (Michelle) and four grandchildren: Douglas, Madeline, Derek and Shelby. Details on a public memorial event to honor Don’s longstanding legacy will be made available at a later date.

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San Jose and Rochester are hotter than other parts of the country; roughly three-quarters of homes that sold in those metros last month fetched more than their asking price—a higher share than anywhere else in the U.S. The median U.S. home sale price rose 6.2% year over year in April to $433,558—the highest level on record, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Today’s housing market is much slower than it was during the pandemic homebuying boom, but prices continue climbing because there still aren’t enough homes to go around. New listings increased 1.7% month over month in April on a seasonally adjusted basis and rose 10.8% year over year. Still, they were roughly 20% below pre-pandemic levels, in large part because many homeowners don’t want to sell, as they feel “locked in” by the low mortgage rate they scored during the pandemic. It’s worth noting that last April, new listings were at the lowest level on record aside from the start of the pandemic, which is one reason they’re now posting such a large year-over-year gain. Home sales were little changed from a month earlier (0.2%) in April on a seasonally adjusted basis but were down 1.4% from a year earlier. Homebuyers are getting hit by the one-two punch of high prices and elevated mortgage rates. The average 30-year-fixed mortgage rate was 6.99% in April. That’s up from 6.82% in March and 6.34% in April 2023, and is more than double the all-time low of 2.65% during the pandemic. “It’s not all bad news for homebuyers. Mortgage rates are already inching lower in response to this week’s inflation report, which signaled that the Fed may cut interest rates this summer—a possibility that just weeks ago many thought was off the table,” said Redfin Economics Research Lead Chen Zhao. “In certain parts of the country, buyers also have room to negotiate as homes linger on the market, prompting sellers to slash their asking prices and provide concessions.” Housing Supply—While Historically Low—Hit a Four-Year High in April as Homes Lingered on the Market Active listings rose to the highest level since December 2020 in April. They were up 0.3% from a month earlier and up 7.5% from a year earlier on a seasonally adjusted basis, though remained far below pre-pandemic levels. While new listings represent the number of homes that were listed for sale during a given month, active listings represent the total number of homes that were for sale during a given month. That means that the latter metric includes homes that have been sitting on the market for a while. Nationwide, 43.9% of homes that went under contract in April did so within two weeks of being listed, down from 46.9% a year earlier. 18% of Home Sellers Are Cutting Their Asking Prices Nearly one in five (17.6%) homes for sale in April had a price cut, meaning the seller lowered the asking price after putting their home on the market. That’s up 5.6 percentage points from 12.1% a year earlier—the biggest gain in over a year. “Most sellers in Las Vegas are willing to negotiate—anywhere from 5% to 10% off their list price,” said local Redfin Premier real estate agent Fernanda Kriese. “Sellers are offering buyers money for mortgage-rate buydowns, along with other concessions. Homes that are listed below market value get multiple offers and are snatched up in two to four days, but homes that are priced $5,000 to $10,000 over market value are sitting for 30 to 60 days longer.” Las Vegas, like many pandemic boomtowns, has seen its housing market cool following the homebuying frenzy of 2021 and 2022. But other markets haven’t cooled as quickly, and some are seeing substantial competition between homebuyers. In San Jose, CA, for example, three in four homes (75.8%) that sold in April went for more than their asking price. That’s up from 61.6% a year earlier and is the highest share among the metros Redfin analyzed. Next came Rochester, NY, at 72.8%, and Oakland, CA, at 69.7%. Nationwide, one-third (33.5%) of homes that sold in April went for more than their asking price. Redfin recently surveyed its agents and found that the majority of respondents (74.4%) think the 2024 housing market is shaping up to be more favorable for sellers than buyers. That’s likely in part because sellers are fetching record-high prices for their homes. The survey, conducted by Qualtrics in April-May 2024, was fielded to roughly 300 Redfin Premier agents. April 2024 Highlights: United States April 2024 Month-Over-Month Change Year-Over-Year Change Median sale price $433,558 3.2% 6.2% Homes sold, seasonally adjusted 425,102 0.2% -1.4% New listings, seasonally adjusted 522,713 1.7% 10.8% All homes for sale, seasonally adjusted (active listings) 1,617,980 0.3% 7.5% Months of supply 2.3 -0.2 0.1 Median days on market 35 -5 -2 Share of for-sale homes with a price drop 17.6% 1.9 ppts 5.6 ppts Share of homes sold above final list price 33.5% 3.5 ppts 0.1 ppts Average sale-to-final-list-price ratio 99.7% 0.4 ppts 0.2 ppts Share of homes that went under contract within two weeks 43.9% -1.4 ppts -3 ppts Average 30-year fixed mortgage rate 6.99% 0.17 ppts 0.65 ppts Metro-Level Highlights: April 2024 Data in the bullets below came from a list of 85 U.S. metro areas with populations of at least 750,000. A full metro-level data table can be found in the “download” tab of the dashboard in the monthly section of the Redfin Data Center. Refer to Redfin’s metrics definition page for explanations of metrics used in this report. Metro-level data is not seasonally adjusted. All changes below represent year-over-year changes. To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-tracker-april-2024/

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Top cities offer what matters most to current and former service members, including housing affordability, low crime rates and a strong Veteran community Veterans United Home Loans, the nation’s largest VA lender, today released its 2024 Best Cities for Veterans to Live list. While each region of the country is represented, the East Coast and Midwest rank high among the best places for Veterans and service members to plant roots. The Top 10 overall markets for Veterans and service members are: Tampa, Fla., Rochester, Minn.; Wichita Falls, Texas; Fargo, N.D.; Virginia Beach, Va.; Watertown, N.Y.; Charleston, S.C.; Medford, Ore.; Altoona, Pa., and Sioux Falls, S.D. In addition to the overall list, the complete analysis includes separate rankings of the best big and small cities based on population size. “Our in-depth analysis factors in feedback and priorities from hundreds of Veterans we surveyed, so we can really dig into what those who serve are looking for when it comes to planting roots and building communities,” said Chris Birk, vice president of mortgage insight at Veterans United. “These cities, both big and small, are great places to raise a family, offer healthy job markets, an abundance of outdoor activities to enjoy for those kicking off the next chapter after the military and provide ample opportunities to connect with fellow Veterans.” Each quarter, Veterans United surveys Veterans to learn which factors are most important to them when deciding where to live. The Best Cities to Live list analyzes more than 500 metropolitan markets based on 25 factors, including cost of living, crime, housing affordability and a strong Veteran community, which all rank high among Veterans. Cost of living: Higher food, gasoline and utility costs mean less money for savings and discretionary spending. Veterans United considered the cost of goods and services to measure the cost of living. A higher composite score means a lower cost of living. With a composite score of 90.17, Sioux Falls was the most affordable of the Top 10 cities, followed by Wichita Falls at 90.13. At the other end of the spectrum, Virginia Beach (85.56) ranked as the most expensive city in the Top 10, slightly above the national average of 86.64. Crime: Veterans and service members consistently rank crime as one of the most important factors in deciding where to live. Veterans United analyzed the FBI’s local violent and property crime rates to assign a crime score to each market. A higher composite score means a lower crime rate. With a composite score of 90.71, Rochester ranked No. 1, putting it about 19 points higher than the national average score of 80.72. Only two cities in the Top 10 had a crime rate that was slightly above the national average, with Sioux Falls and Charleston–North Charleston scoring 79.30 and 77.97, respectively. Median home price: Affordability is a major consideration for Veteran homebuyers. Half of the markets in the Top 10 – Altoona, Wichita Falls, Fargo, Watertown and Sioux Falls – have median home prices that are below the national median home price of $383,538. Altoona offered the most affordable median home price at $129,950. At $415,500, Tampa has the highest median home price among the Top 10. Quality of life: To determine what makes a good place to live, Veterans United looked at a combination of highly rated quality of life factors for Veterans, such as local air quality, proximity to essentials like grocery stores, and local amenities, including outdoor activities and restaurants. The Top 10 markets rank high in each of these categories. For instance, top-rated Tampa has plenty of day and nighttime activities to appeal to all ages, from multiple amusement parks to museums, theaters and beautiful sandy beaches. Veteran community: Veterans and service members want to be near people who share common experiences and beliefs. To assess a Veteran community score, Veterans United examined both the local community as well as the state benefits afforded to Veterans. Wichita Falls (No. 3 on the Best Cities list) had the highest score of all 500+ cities, with a score of 166.71, well above the average of 128.1. Wichita Falls is also a beacon to the Veteran community because of the nearby Sheppard Air Force Base and local organizations, such as Base Camp Lindsey, which has a mission to eliminate Veteran homelessness in northern Texas. To see the full analysis, including individual city profiles, rankings of the best big and small cities, and a detailed methodology, visit: https://www.veteransunited.com/education/best-cities-for-veteran-homebuyers/ SOURCE Veterans United Home Loans

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More boomers favor renting, with little interest in buying a home Many prospective homebuyers fear the long-term consequences of renting, including 70% who feel they’re not making a long-term investment in their future, and 72% who worry that rent increases could affect their current and long-term finances, according to a new Bank of America Homebuyer Insights Report (HBIR), conducted in partnership with Bank of America Institute. However, with higher interest rates and home prices, uncertainty over whether to keep renting or to buy a home in the current market has grown. Today, 57% of respondents are unsure whether it’s a good time to buy, compared to 48% at this time last year. This trend is even more prevalent among first-time homebuyers, as 62% shared they’re unsure what to do. “Given the highly competitive homebuying market, renters are unsure whether now is the right time to buy,” says Matt Vernon, Head of Consumer Lending at Bank of America. “That said, our research continues to show that the vast majority of prospective homebuyers overwhelmingly feel buying a home, now or in the future, is the best decision for them in the long run.” These decisions are further complicated by the continued population flows across the United States. In its quarterly On the move publication, Bank of America Institute notes that cities in the South continued to see large inflows of people as of the first quarter of 2024, often fueled by the younger generations. The Institute finds that while housing supply has increased in response to population change, the supply of rental properties in some regions may not be sufficient to account for growing populations. Against this background, while 37% of respondents in the HBIR say renting is the better choice right now, they still plan to take steps towards buying a home in the near future. Among prospective buyers, 81% said that renting is temporary and suits their current stage in life, and 76% are planning to buy a home within the next five years. The Emotional Value of Owning vs. RentingNew insights from this research show that most homeowners and prospective homebuyers agree on the many financial and emotional benefits of homeownership—benefits that two-thirds (66%) of renters feel they’re losing out on. However, baby boomers are an anomaly. Today, 80% of baby boomer renters believe that it’s better to rent than to buy a home in the current environment – up from 63% a year ago. This can be attributed in part to the fact that baby boomers say: Lacking Confidence & Avoiding MistakesExacerbating the difficulties presented by higher interest rates and home prices, many prospective buyers feel that they lack the confidence needed to begin their homebuying journey, and don’t want to make a mistake. “Grants are a valuable resource to help bridge the gap between your savings and a downpayment,” shares Vernon. “Meeting with a lending specialist can be a great first step to see if you qualify for assistance programs, such as Bank of America’s down payment and closing cost grants.” However, some buyers do feel they made mistakes during the homebuying process. Two-thirds (66%) of current homeowners said they would have done something differently when buying their first home, including: saving more for a down payment (26%), spending more time shopping around (19%) and considering other neighborhoods (18%), and saving money for new appliances or other updates they wanted to make to the home (17%).

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Foreclosure Starts Decrease 7 Percent from Last Month; While Completed Foreclosures Increase 8 Percent from Last Month ATTOM, a leading curator of land, property, and real estate data, released its April 2024 U.S. Foreclosure Market Report, which shows there were a total of 31,649 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — down 4 percent from a month ago and down 4 percent from a year ago. “April’s foreclosure numbers highlight a mixed landscape in the U.S. housing market,” said Rob Barber, CEO at ATTOM. “While there is a general downtrend in foreclosure starts and filings, we have also seen an increase in completed foreclosures. This mixed activity underscores the importance of closely monitoring these developments to understand the ongoing dynamics in the real estate market.” Maryland, Illinois, and Nevada post highest foreclosure rates Nationwide one in every 4,453 housing units had a foreclosure filing in April 2024. States with the highest foreclosure rates were Maryland (one in every 2,214 housing units with a foreclosure filing); Illinois (one in every 2,517 housing units); Nevada (one in every 2,546 housing units); South Carolina (one in every 2,573 housing units); and Florida (one in every 2,854 housing units). Among the 224 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in April 2024 were Elkhart, IN (one in every 1,565 housing units with a foreclosure filing); Columbia, SC (one in every 1,689 housing units); Cleveland, OH (one in every 1,859 housing units); Lakeland, FL (one in every 1,861 housing units); and Flint, MI (one in every 1,998 housing units). Among those metropolitan areas with a population greater than 1 million, those with the worst foreclosure rates in April 2024, aside from Cleveland, OH, included: Baltimore, MD (one in every 2,096 housing units); Chicago, IL (one in every 2,189 housing units); Orlando, FL (one in every 2,199 housing units); and Jacksonville, FL (one in every 2,237 housing units). Foreclosure starts decline 7 percent from last month Lenders started the foreclosure process on 21,753 U.S. properties in April 2024, down 7 percent from last month and down 3 percent from a year ago. States that had at least 100 foreclosure starts in April 2024 and saw the greatest monthly decline included: New Jersey (down 51 percent); Indiana (down 32 percent); Colorado (down 31 percent); Massachusetts (down 21 percent); and Connecticut (down 20 percent). Counter to the national trend those states that had at least 100 foreclosure starts in April 2024 and saw the greatest monthly increase included: Maryland (up 85 percent); Oregon (up 80 percent); Oklahoma (up 65 percent); Mississippi (up 38 percent); and Michigan (up 25 percent). Those major metropolitan areas with a population greater than 1 million that had the greatest number of foreclosure starts in April 2024 included: Chicago, IL (1,211 foreclosure starts); New York, NY (1,141 foreclosure starts); Houston, TX (1,068 foreclosure starts); Miami, FL (751 foreclosure starts); and Los Angeles, CA (652 foreclosure starts). Foreclosure completions increase 8 percent monthly Lenders repossessed 2,904 U.S. properties through completed foreclosures (REOs) in April 2024, up 8 percent from last month but down less than 1 percent from last year. Those states that had the greatest number of REOs in April 2024 included: Illinois (244 REOs); Pennsylvania (241 REOs); California (233 REOs); New York (225 REOs); and Maryland (200 REOs). Those major metropolitan statistical areas (MSAs) with a population greater than 200,000 that saw the greatest number of REOs in April 2024 included: New York, NY (157 REOs); Chicago, IL (150 REOs); Baltimore, MD (95 REOs); Washington, DC (88 REOs); and Philadelphia, PA (74 REOs). Media Contact:Megan Huntmegan.hunt@attomdata.com SOURCE ATTOM