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CoreLogic Estimates the Eaton and Palisades Fires are Causing Devastating Initial Property Losses Estimated to be Between $35 Billion to $45 Billion
CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, announced preliminary residential and commercial loss estimates for the Eaton and Palisades Fires in Los Angeles, California. According to this new data analysis, ongoing losses from the Los Angeles wildfires are estimated to be between $35 to $45 billion, as both fires are less than 50% contained as of Thursday, January 16. CoreLogic will provide final insured loss estimates once the fires have been fully contained. This analysis of both residential and commercial properties accounts for both fire and smoke damage as well as demand surge, debris removal, clean up and Additional Living Expenses (ALE). The majority of losses are to residential properties. Many of the potentially impacted properties are high value homes, so even moderate damage from the fires or smoke could result in costly claims. “The destruction caused by these fires is anticipated to be the most expensive in the state’s history with effects on the insurance industry that will persist into the future. This event highlights the paramount challenge for homeowners and the insurers that support them – the increasing density of homes and properties near the wildlife-urban-interface,” said Tom Larsen, Senior Director of CoreLogic Insurance Solutions. “Los Angeles is a resilient community, and as they look to rebuild it will be essential to design or redesign with mitigation practices in mind, so an event of this magnitude never happens again.” CoreLogic is supporting recovery efforts for people affected by the wildfires through a donation to the Red Cross, enabling them to prepare for, respond to and help people recover from these disasters. To join us, visit the Red Cross website. Please visit the CoreLogic natural hazard risk information center, CoreLogic Hazard HQ Command Central™ to get access to the most up-to-date wildfire data and see reports from previous catastrophes. Source: CoreLogic
Pending Home Sales Fell the Most Since 2022 in December as Mortgage Rates Jumped
Redfin reports roughly 40,000 home purchases were called off in December, equal to 16% of homes that went under contract—the highest December percentage on record Pending home sales fell 4.5% month over month in December on a seasonally adjusted basis—the largest decline since October 2022—and dropped 2.3% year over year. That is according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Homebuyer demand dipped at the end of the year because mortgage rates jumped. After inching downward at the beginning of the month, mortgage rates reversed course halfway through December and have been rising since—in part because the Federal Reserve projected fewer 2025 interest-rate cuts than anticipated. The weekly average 30-year-fixed mortgage rate now sits at 7.04%, the highest level since May, after hitting an early-December low of 6.6%. Home purchases fell through at the highest December rate on record, which likely contributed to the decline in pending sales. Nearly 40,000 home-purchase agreements were canceled in December, equal to 16.2% of homes that went under contract that month. That’s the highest December percentage in records dating back to 2017 and is up from 15.1% a year earlier. “Homebuying activity will likely slow further in January due to the wildfires impacting Los Angeles—the nation’s second most populous metro area—and winter storms impacting the Mid-Atlantic and Southeast,” said Redfin Senior Economist Elijah de la Campa. “Rent prices, on the other hand, may tick up as people who have been displaced by the fires seek alternative housing.” Existing Home Sales Rose to the Highest Level in Nearly Two Years Existing home sales rose 0.7% month over month in December to a seasonally adjusted annual rate of 4,317,683—the highest level since February 2023. They jumped 6% year over year—the largest annual increase since July 2021. A seasonally adjusted annual rate is not a measurement of actual total sales for the year, but rather, the pace of sales at a given time. A seasonally adjusted annual rate of 4,317,683 in December means that existing home sales would end the year at that level if homes were sold at the December pace for each month of 2024. For the full year of 2024, actual existing home sales came in at 4,189,268—roughly in line with 2023. Overall home sales, a metric that includes sales of both existing and newly built homes, rose 1.9% month over month on a seasonally adjusted basis. They jumped 9.3% year over year, the biggest annual gain since June 2021. It’s worth noting that both existing and overall home sales are lagging indicators. They reflect purchases that, while finalized in December, went under contract during the several months leading up to December. Those several months were a key time in the housing market; housing demand jumped in September as mortgage rates hit a two-year low and the Federal Reserve cut interest rates, and then jumped again after the uncertainty around the election disappeared. “Homebuyers pumped the brakes when mortgage rates ticked back up and are now in wait-and-see mode,” said Jesse Landin, a Redfin Premier real estate agent in San Antonio. “Everyone is just trying to figure out when rates are going to come down again. In the meantime, a lot of house hunters are opting to rent.” Redfin expects mortgage rates to remain elevated and volatile throughout 2025. December 2024 Housing Market Highlights: United States December 2024 Month-over-month change Year-over-year change Median sale price $427,670 -0.5% 6.3% Existing home sales, seasonally adjusted annual rate 4,317,683 0.7% 6% Pending home sales, seasonally adjusted 471,888 -4.5% -2.3% Homes sold, seasonally adjusted 449,684 1.9% 9.3% New listings, seasonally adjusted 515,054 -1.6% -1.5% Total homes for sale, seasonally adjusted (active listings) 1,723,121 -0.3% 7% Months of supply 2.5 -0.6 -0.1 Median days on market 49 6 6 Share of homes sold above final list price 24.2% -2.4 ppts -1.4 ppts Average sale-to-final-list-price ratio 98.5% -0.3 ppts -0.1 ppts Pending sales that fell out of contract, as % of overall pending sales 16.2% 1.5 ppts 1.1 ppts Monthly average 30-year fixed mortgage rate 6.72% -0.09 ppts -0.1 ppts Home Prices Posted the Largest Gain in Almost a Year The median U.S. home sale price increased 6.3% year over year to $427,670 in December, the biggest annual gain since February. Prices continue climbing because there’s still a shortage of homes for sale. New listings fell 1.6% month over month on a seasonally adjusted basis and declined 1.5% year over year. Active listings, a measure of all homes on the market, fell 0.3% month over month—the first decline on a seasonally adjusted basis in five months. They rose 7% year over year, but that was the smallest annual increase in nearly a year. One reason active listings are rising is that some homes are taking a long time to sell, causing stale supply to pile up. Homes Sold at the Slowest December Pace in Five Years The typical home that went under contract in December was on the market for 49 days—the slowest December pace since 2019. That’s up from 43 days a year earlier. Just 25.1% of homes went under contract within two weeks—the lowest share in five years. That’s down from 28.4% in December 2023. One silver lining in a slow housing market: Buyers have more flexibility to bide their time and ask sellers for concessions. Metro-Level Highlights: December 2024 To view the full report, including charts, please visit: https://www.redfin.com/news/pending-home-sales-fall-december-2024
RE/MAX NATIONAL HOUSING REPORT FOR DECEMBER 2024
December Continues Momentum, Marking Eighth Month of 2024 to Surpass 2023 Sales December became the eighth month of 2024 to top 2023, with home sales up 13.3% over December 2023 and 4.4% above November 2024. The number of homes for sale in the 52 metro markets surveyed remained 22.0% higher year over year but dropped 12.4% from November, reflecting seasonal trends. Additionally, new listings rose 7.5% year over year after a 24.9% drop from November, in contrast to declines in the past two Decembers. With a median sales price of $427,000, December homes remained $25,000 (6.2%) more than December 2023’s $402,000 but cost about $3,000 (-0.6%) less than in November. Homes also took a week longer to sell in December 2024 compared to December 2023 and November. “Overall, 2024 showed some modest improvements in housing inventory,” said RE/MAX Holdings, Inc. CEO Erik Carlson. “Affordability remains a challenge for many buyers, but demand persists as people continue to see the value of homeownership. Buyers should stay informed and act when the time is right for them.” The Denver, Colorado market nearly doubled the national average for year-over-year home sales, increasing 26.5%. Christine Dupont-Patz, broker/co-owner of RE/MAX Cherry Creek in Denver, said buyers monitored the market and prepared strategically. “While winter is typically a slower time of year for Denver real estate, savvy buyers were out with the increased inventory, trying to get ahead of the spring buying season. Closings were up over 25% from December 2023, which could be a positive sign for the new year. With interest rates holding steady, buyers negotiated for more concessions and buy-downs to get into their dream homes.” Other metrics of note: Highlights and local market results for December include: New Listings In the 52 metro areas surveyed in December 2024, the number of newly listed homes was up 7.5% compared to December 2023, and down 24.9% compared to November 2024. The markets with the biggest increase in year-over-year new listings percentage were Burlington, VT at +32.1%, Manchester, NH at +30.6%, and Las Vegas, NV at +30.2%. The markets with the biggest year-over-year decrease in new listings percentage were St. Louis, MO at -13.7%, Bozeman, MT at -12.6%, and Cleveland, OH at -10.4%. New Listings:5 Markets with the Biggest YoY Increase Market Dec 2024 Dec 2023 Year-over-Year %Change Burlington, VT 107 81 +32.1 % Manchester, NH 192 147 +30.6 % Las Vegas, NV 2,679 2,057 +30.2 % Honolulu, HI 691 541 +27.7 % Fayetteville, AR 802 635 +26.3 % Closed Transactions Of the 52 metro areas surveyed in December 2024, the overall number of home sales was up 13.3% compared to December 2023, and up 4.4% compared to November 2024. The markets with the biggest increase in year-over-year sales percentages were Fayetteville, AR at +29.0%, Denver, CO at +26.5%, and Seattle, WA at +24.2%. The markets with the biggest decrease in year-over-year sales percentage were Manchester, NH at -13.8%, Hartford, CT at -2.0%, and Miami, FL at -0.5%. Closed Transactions:5 Markets with the Biggest YoY Increase Market Dec 2024 Dec 2023 Year-over-Year %Change Fayetteville, AR 913 708 +29.0 % Denver, CO 3,149 2,489 +26.5 % Seattle, WA 3,186 2,566 +24.2 % San Diego, CA 1,809 1,458 +24.1 % Providence, RI 1,174 949 +23.7 % Median Sales Price – Median of 52 metro area pricesIn December 2024, the median of all 52 metro area sales prices was $427,000, up 6.2% from December 2023, and down 0.6% compared to November 2024. The markets with the biggest year-over-year increase in median sales price were Dover, DE at +13.3%, Cleveland, OH at +13.1%, and Trenton, NJ and Detroit, MI tied at +11.1%. There was only one market that experienced a year-over-year decrease in median sales price: Bozeman, MT at -5.4%. Median Sales Price:5 Markets with the Biggest YoY Increase Market Dec 2024 Dec 2023 Year-over-Year % Change Dover, DE $350,000 $309,000 +13.3 % Cleveland, OH $236,875 $209,450 +13.1 % Trenton, NJ $450,000 $405,000 +11.1 % Detroit, MI $261,000 $235,000 +11.1 % Chicago, IL $330,000 $300,000 +10.0 % Close-to-List Price Ratio – Average of 52 metro area pricesIn December 2024, the average close-to-list price ratio of all 52 metro areas in the report was 98%, tied with December 2023, and down compared to 99% in November 2024. 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 ratio were Miami, FL at 93.5%, New Orleans, LA at 96.1%, and Tampa, FL at 96.6%. The metro areas with the highest close-to-list price ratios were Hartford, CT at 102.1%, San Francisco, CA at 101.5% and Trenton, NJ at 100.7%. Close-to-List Price Ratio:5 Markets with the Lowest Close-to-List Price Ratio Market Dec 2024 Dec 2023 Year-over-YearDifference* Miami, FL 93.5 % 94.7 % -1.2 pp New Orleans, LA 96.1 % 95.9 % +0.2 pp Tampa, FL 96.6 % 97.0 % -0.4 pp Houston, TX 96.8 % 97.0 % -0.2 pp Pittsburgh, PA 96.8 % 97.0 % -0.1 pp *Difference displayed as change in percentage points Days on Market – Average of 52 metro areasThe average days on market for homes sold in December 2024 was 54, up seven days compared to the average in both December 2023 and November 2024. The metro areas with the highest days on market averages were Bozeman, MT at 113, Coeur d’Alene, ID at 90, and San Antonio, TX at 86. The lowest days on market were Baltimore, MD at 19, Philadelphia, PA and Washington, D.C. tied at 23, and Trenton, NJ at 26. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed. Days on Market:5 Markets with the Highest Days on Market Market Dec 2024 Dec 2023 Year-over-Year %Change Bozeman, MT 113 65 +73.2 % Coeur d’Alene, ID 90 94 -4.3 % San Antonio, TX 86 75 +15.1 % Fayetteville, AR 83 81 +2.5 % Des Moines, IA 82 77 +6.1 % Months’ Supply of Inventory – Average of 52 metro areasThe number of homes for sale in December 2024 was up 22.0% from December 2023, and down 12.4% from November 2024. Based on the rate of home sales in December 2024, the months’ supply of inventory was 3.0, up from 2.5 from December 2023, and flat compared to November 2024. In December 2024, the markets with the lowest months’ supply of inventory were Seattle, WA at 1.0, Washington, D.C. at 1.1 and Trenton, NJ, Baltimore, MD, and Manchester, NH tied at 1.2. The markets with the highest months’ supply of inventory were Miami, FL at 7.2, San Antonio, TX at 6.3, and Honolulu, HI at 5.8. Months’ Supply of Inventory:5 Markets with the Lowest Months’ Supply
Home Price Growth Reaccelerates in Fourth Quarter
Latest FNM-HPI Reading Shows Year-over-Year Increase of 5.8 Percent in Q4 2024 Single-family home prices increased 5.8 percent from Q4 2023 to Q4 2024, an acceleration from the previous quarter’s downwardly revised annual growth rate of 5.4 percent, according to the latest reading of the Fannie Mae (OTCQB: FNMA) Home Price Index (FNM-HPI). The FNM-HPI is a national, repeat-transaction home price index measuring the average, quarterly price change for all single-family properties in the United States, excluding condos. On a quarterly basis, home prices rose a seasonally adjusted 1.7 percent in Q4 2024, up from the downwardly revised 1.2 percent growth rate in Q3 2024. On a non-seasonally adjusted basis, home prices increased just 0.3 percent in Q4 2024. “Year-over-year home price growth accelerated in the fourth quarter, following back-to-back quarters of deceleration,” said Mark Palim, Fannie Mae Senior Vice President and Chief Economist. “Inventories of existing homes for sale have improved from a year ago but remain historically low, due largely to the so-called ‘lock-in effect.’ Since the beginning of October, mortgage rates have rebounded after bottoming out around 6.1 percent and are now inching closer to a new psychological barrier, the 7 percent threshold. The higher mortgage rate environment is not only hurting affordability, but it’s also exacerbating the lock-in effect by further reducing homeowners’ incentive to move.” Palim continued: “The housing market in 2025 faces a difficult balancing act, with a notable decline in mortgage rates likely needed to help unwind the lock-in effect and thaw the supply of existing homes for sale. However, we believe such a decline would likely jumpstart demand from potential first-time homebuyers currently waiting to purchase, which could lead demand to outpace any improvement in supply, further exacerbating already-high home prices and purchase affordability.” The FNM-HPI is produced by aggregating county-level data to create both seasonally adjusted and non-seasonally adjusted national indices that are representative of the whole country and designed to serve as indicators of general single-family home price trends. The FNM-HPI is publicly available at the national level as a quarterly series with a start date of Q1 1975 and extending to the most recent quarter, Q4 2024. Fannie Mae publishes the FNM-HPI approximately mid-month during the first month of each new quarter. For more information on the FNM-HPI, including a description of the methodology and the Q4 2024 data file, please visit our Research & Insights page on fanniemae.com. To receive email updates regarding future FNM-HPI updates and other housing market research from Fannie Mae’s Economic and Strategic Research Group, please click here. SOURCE Fannie Mae
U.S. FORECLOSURE ACTIVITY DECLINES IN 2024
Foreclosure Starts and Completions Down from 2023; December 2024 Foreclosure Activity Declines from Previous Month and Year; Q4 2024 Foreclosure Activity Declines from Previous Quarter and Year ATTOM, a leading curator of land, property data, and real estate analytics, released its Year-End 2024 U.S. Foreclosure Market Report, which shows foreclosure filings— default notices, scheduled auctions and bank repossessions — were reported on 322,103 U.S. properties in 2024, down 10 percent from 2023 and down 1 percent from 2022 and down 35 percent from 2019, before the pandemic shook up the market. Foreclosure filings in 2024 were also down 89 percent from a peak of nearly 2.9 million in 2010. Those 322,103 properties with foreclosure filings in 2024 represented 0.23 percent of all U.S. housing units, down slightly from 0.25 percent in 2023, and down from 0.36 percent in 2019 and down from a peak of 2.23 percent in 2010. “The continued decline in foreclosure activity throughout 2024 suggests a housing market that may be stabilizing, even as economic uncertainties persist,” said Rob Barber, CEO at ATTOM. “This year’s data points to foreclosure trends potentially returning to more predictable levels, offering some clarity for industry professionals, investors, and homeowners. While foreclosure filings remain a critical metric for understanding market health, current trends may point to a more balanced landscape, potentially shaped by careful lending practices and ongoing homeowner resilience.” 2024 Year-End Historical Foreclosure Activity & Rates ATTOM’s year-end foreclosure report provides a unique count of properties with a foreclosure filing during the year based on publicly recorded and published foreclosure filings collected in more than 3,000 counties nationwide, accounting for more than 99 percent of the U.S. population – also available for licensing or customized reporting. The report also includes new data for December 2024, showing there were 28,632 U.S. properties with foreclosure filings, down 3 percent from the previous month and down 6 percent from a year ago. Foreclosure starts on the decline nationwide Lenders started the foreclosure process on 253,306 U.S. properties in 2024, down 6 percent from 2023, up 174 percent from 2021, but down 25 percent form 2019 and down 88 percent from a peak of 2,139,005 in 2009. States that saw the greatest number of foreclosure starts in 2024 included California (29,529 foreclosure starts); Florida (29,239 foreclosure starts); Texas (28,946 foreclosure starts); New York (14,436 foreclosure starts); and Illinois (13,082 foreclosure starts). Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of foreclosure starts in 2024, included New York, New York (15,327 foreclosure starts); Chicago, Illinois (11,508 foreclosure starts); Houston, Texas (10,197 foreclosure starts); Los Angeles, California (8,790 foreclosure starts); and Miami, FL (8,603 foreclosure starts). Bank repossessions continue second year of decline Lenders repossessed 36,505 properties through foreclosures (REO) in 2024, down 13 percent from 2023 and down 75 percent from 2019 (143,955) and down 97 percent from a peak of 1,050,500 in 2010. States that saw the greatest number of REOs in 2024 included California (3,466 REOs); Illinois (2,858 REOs); Pennsylvania (2,828 REOs); Michigan (2,629 REOs); and Texas (2,501 REOs). Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of REOs in 2024 included Chicago, IL (1,976 REOs); New York, New York (1,815 REOs); Detroit, Michigan (1,575 REOs); Philadelphia, Pennsylvania (946 REOs); and Baltimore, Maryland (905 REOs). Florida, New Jersey, and Nevada post highest state foreclosure rates in 2024 States with the highest foreclosure rates in 2024 were Florida (1 in ever 267 housing units with a foreclosure filing); New Jersey (1 in every 267 housing units); Nevada (1 in every 273 housing units); Illinois (1 in every 278 housing units); and South Carolina (1 in every 304 housing units). Rounding out the top 10 states with the highest foreclosure rates in 2024, were Connecticut (1 in every 306 housing units); Maryland (1 in every 322 housing units); Ohio (1 in every 325 housing units); Indiana (1 in every 328 housing units); and Delaware (1 in every 329 housing units). Lakeland, Atlantic City, and Columbia post highest metro foreclosure rates in 2024 Among 224 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in 2024 were Lakeland, FL (1 in every 172 housing units with a foreclosure filing); Atlantic City, New Jersey (1 in every 200 housing units); Columbia, SC (1 in every 204 housing units); Cleveland, OH (1 in every 208 housing units); and Las Vegas, NV (1 in every 231 housing units). Metro areas with a population greater than 1 million, including Cleveland, Ohio and Las Vegas, Nevada that had the highest foreclosure rates in 2024 were: Orlando, Florida (1 in every 234 housing units); Jacksonville, Florida (1 in every 241 housing units); Chicago, Illinois (1 in every 245 housing units); and Miami, Florida (1 in every 247 housing units). Average time to foreclose decreases quarterly but increases annually U.S. properties foreclosed in the fourth quarter of 2024 had been in the foreclosure process an average of 762 days, a 6 percent decrease from the previous quarter but a 6 percent increase from a year ago. 2024 Year-End Avg Days to Complete Foreclosure States with the longest average time to foreclose in Q4 2024 were Louisiana (3,015 days); Hawaii (2,505 days); New York (2,099 days); Wisconsin (1,989 days); and Nevada (1,750 days). Q4 2024 Foreclosure Activity High-Level Takeaways December 2024 Foreclosure Activity High-Level Takeaways Media Contact: Megan Hunt megan.hunt@attomdata.com Data and Report Licensing: datareports@attomdata.com
Mr. Cooper Group Announces Leadership Transition at Xome
Mr. Cooper Group Inc. (NASDAQ: COOP) announced today that Mike Rawls, Chief Executive Officer of Xome®, plans to retire effective June 30, 2025, and Chris Marshall, former Vice Chairman and President at Mr. Cooper, will join Xome to lead its operations. Rawls and Marshall will work together over the coming months to ensure a smooth transition. “Since taking on the role of CEO in 2020, Mike has skillfully led Xome to become the powerhouse real estate marketplace it is today, with tremendous opportunity for growth as we move into 2025. We are sincerely grateful for Mike’s thoughtful leadership and innovative spirit over his 25 years with the Mr. Cooper Group team, and we wish him all the best,” said Jay Bray, Chairman and CEO of Mr. Cooper Group. As Marshall steps in to lead Xome, he brings with him decades of experience in financial services, mortgage operations and technology, most recently serving as Vice Chairman and President of Mr. Cooper. He will work closely with Xome’s leadership team to prioritize market share growth and accelerate new revenue opportunities. “With Mike’s upcoming retirement, we are pleased to have Chris Marshall step in to lead Xome as we position the company for continued success. Chris is an industry expert when it comes to driving revenue growth and building partnerships. In his time at Mr. Cooper, our team realized exponential growth and greater financial strength, and I am confident that Xome will unlock new avenues for growth and bolster its market position under Chris’ leadership,” said Bray. “The Xome team has built an innovative, state-of-the-art real estate platform and fostered strong relationships with leading industry players, and I am looking forward to helping the team sustain this momentum as Xome continues to elevate its market position,” said Marshall. In addition to his new role with Xome, Marshall will continue in his role as Chairman for Sagent. About Mr. Cooper Group Mr. Cooper Group Inc. (NASDAQ: COOP) provides customer-centric servicing, origination and transaction-based services related principally to single-family residences throughout the United States with operations under its primary brands: Mr. Cooper®, Xome® and Rushmore Servicing®. Mr. Cooper is the largest home loan servicer in the country focused on delivering a variety of servicing and lending products, services and technologies. For more information, visit www.mrcoopergroup.com.
