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RENTING A HOME STILL MORE AFFORDABLE THAN OWNING ACROSS U.S.

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Home Rental and Ownership Still Difficult in 2024 for Average Workers in Most of Nation; But Renting Less of a Burden in Nearly 90 Percent of Local Markets; Trend Continues Despite Rents Growing Faster Than Home Prices ATTOM, a leading curator of land, property and real estate data, released its 2024 Rental Affordability Report, which shows that median three-bedroom rents in the U.S. are more affordable than owning a similarly-sized home in nearly 90 percent of local markets around the nation. The report shows that both renting and owning a three-bedroom home continue to pose significant financial burdens for average workers, consuming more than one-third of their wages in the vast majority of county-level housing markets. But median rental rates still require a smaller portion of average wages than major home-ownership expenses on three-bedroom properties in 296, or 88 percent, of the 338 U.S. counties with enough data to analyze. That gap extends trends from 2023 even as rents have commonly risen faster than home prices over the past year around the U.S. The analysis for this report incorporated 2024 rental prices and 2023 home prices, collected from ATTOM’s nationwide property database, as well as publicly recorded sales deed data licensed by ATTOM. Those two data sources were combined with average wage figures from the Bureau of Labor Statistics. “Finding an affordable home remains a daunting prospect around the country for average workers, regardless of whether they want to buy or rent. Continuously increasing home prices contribute to the escalation of rental costs, making both buying and renting properties a challenging endeavor across most of the United States.,” said Rob Barber, CEO at ATTOM. “But the latest data shows that even as rents are growing faster, they remain more affordable than owning.” The current situation favoring renting over buying reflects a combination of housing market trends that offer limited straightforward options for home seekers but ultimately lean towards the advantage of rentals. Over the past year, both rental rates and home prices have continued to rise in most of the country. Rental rates have climbed even faster in a majority of counties with enough data to analyze. That has happened as elevated home prices have become further and further out of reach for average workers, preventing those with marginal finances from obtaining mortgages and leaving them with few options other than renting. Home prices kept going up in 2023 despite rising mortgage rates, in part because of a tight supply of homes for sale. Still, despite renting and ownership consuming more than a third of average wages in most local markets, rents haven’t escalated enough to keep them from being the more affordable option for average workers. That trend has held throughout the country but remains most pronounced in the most populous urban and suburban markets. Changes in rents outpacing home price trends in nearly two-thirds of U.S Median rents for three-bedroom homes have increased more over the past year, or declined less, than median prices for single-family homes in 210, or 62 percent, of the 338 counties analyzed in this report. Counties were included in the report if they had a population of 100,000 or more, at least 100 sales from January through November of 2023 and sufficient data showing changes in three-bedroom rents from 2023 to 2024. Changes in three-bedroom rents commonly have ranged from 3 percent decreases to 15 percent increases while changes in median sale prices for single-family homes last year typically ranged from 3 percent losses to 7 percent gains. Most populous counties have widest affordability gaps between renting and owning Renting a three-bedroom home, while still difficult for average workers, is most affordable in 2024 compared to owning a median-priced single-family home in the nation’s largest counties. In almost three-quarters of markets with populations of at least 1 million, the portion of average local wages consumed by renting is at least 10 percentage points lower than the portion required for typical major home ownership expenses. (Comparisons assume a home-purchase mortgage based on a 20 percent down payment. Major ownership expenses include mortgage payments, property taxes and insurance). Among 45 counties with a population of at least 1 million included in the report, the biggest gaps are in Honolulu, HI (median three-bedroom rents consume 67 percent of average local wages while typical single-home affordability consume 134 percent); Kings County (Brooklyn), NY (72 percent for renting versus 136 percent for owning); Alameda County (Oakland), CA (51 percent for renting versus 108 percent for owning); Santa Clara County (San Jose), CA (29 percent for renting versus 83 percent for owning) and Orange County, CA (outside Los Angeles) (88 percent for renting versus 136 percent for owning). The only two counties with a population of more than 1 million where it is more affordable to buy than rent in 2024 are Riverside County, CA (median rents consume 101 percent of average local wages while typical home ownership costs consume 91 percent) and Wayne County (Detroit), MI (22 percent for renting versus 19 percent for owning). Renting three-bedroom homes stretches budgets but remains most affordable in South and Midwest The report shows that the median three-bedroom rent requires more than one-third of the average local wage in 274 of the 338 counties analyzed for the report (81 percent). Among the 64 markets where median three-bedroom rents require less than one-third of average local wages, 59 are in the Midwest and South. The most affordable for renting are Jefferson County (Birmingham), AL (22 percent of average local wages needed to rent); Wayne County (Detroit), MI (22 percent); Ingham County (Lansing), MI (22 percent); Genesee County (Flint), MI (23 percent) and Caddo Parish (Shreveport), LA (23 percent). Aside from Wayne County, the most affordable counties for renting among those with a population of at least 1 million are Cuyahoga County (Cleveland), OH (24 percent of average local wages needed to rent); St. Louis County, MO (24 percent); Allegheny County (Pittsburgh), PA (26 percent) and Philadelphia County, PA (28 percent). The

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High financing costs, limited inventory continue to be biggest challenges, but insurance costs and coverage are growing concerns. There were significant differences of opinion between fix-and-flip investors and rental property owners about the state of real estate investing, according to the Winter 2023 Investor Sentiment Survey from RCN Capital, conducted by market intelligence firm CJ Patrick Company. To read the full report: https://lp.constantcontactpages.com/su/emMCtPO/WinterInvestorSentiment Fifty percent of flippers felt things were better today than last year, and 51% expect things to improve over the next 6 months. Only 20% of rental property owners felt conditions were better today, and only 22% expect things to improve over the next 6 months. Forty eight percent of rental property owners felt conditions were worse today compared to 26% of flippers. Rental owners are also less optimistic about future conditions, with 23% expecting things to worsen, while only 14% of flippers share that concern. Overall, after jumping from 30% to 39% in the Fall Survey, investor optimism was basically flat with 40% of the respondents saying the environment for investing was better than a year ago. Slightly fewer felt that things were worse: 33%, down from 38% in the Fall and 37% in the Spring. “Rising home prices are helping improve profits for fix-and-flip investors, while asking rents have flattened out and even declined in some markets compared to last year.” said RCN Capital CEO Jeffrey Tesch. “These factors probably play a large role in the opposite trends we’re seeing among real estate investors today.” The Winter 2023 Investor Sentiment Survey is the third quarterly report from RCN Capital, taking the pulse of real estate investors across the country, identifying market challenges and opportunities, and getting feedback on current trends and events. Investors sited the same factors as major challenges to their success as in previous surveys. The high cost of financing was mentioned by 74% of respondents; 43% noted the lack of inventory of properties for sale; and 35% said that competition from institutional investors was a problem and will continue to be later in the year. Investors may believe that finance costs are beginning to improve, as only 67% of respondents believed that high loan costs will still be a major challenge in six months. Conversely, the percentage of investors who believe that limited inventory will still be a problem in the future was slightly higher, at 46%. Perhaps due to that expectation, over 82% of investors expect to buy the same number of properties or less in the next year. Fix-and-flip and rental property investors outlooks are similar in that regard: 49% of flippers and 47% of rental property investors plan to buy the same number of properties in the next year; 37% and 33% respectively expect to buy fewer. “One new finding in the Winter survey is that insurance is becoming more of a factor for investors today, and a major concern going forward,” noted Rick Sharga, CJ Patrick Company CEO. “Almost 70% of the respondents agreed that rising premiums and limited availability of insurance were factoring into their decisions about investing, and 62% noted that these factors were somewhat of a hindrance in their ability to buy and sell properties.” Investors continued to see the impact of higher mortgage rates in their local markets. Over 92% have seen either a decline in demand for owner-occupied homes, an increase in demand for rental properties, or both in the markets where they invest. Recession Still Seems Likely, Home Prices Expected to Rise Investors were slightly less pessimistic about the U.S. economy in the Winter survey compared to the Fall. Almost 43% of the respondents expect the country to enter a recession in 2024, down from 53% in the prior survey. Just under 42% were unsure, while 15% don’t expect a recession. Investors still believe that home prices will continue to increase – almost 50% expect home prices to go up, 31% believe prices will remain about the same, and only 18% believe they’ll decrease. Most Investors Opting for Rental Properties, Buying Close to Home For the second time in the last three surveys, more investors claimed to focus on buying rental properties than fixing-and-flipping homes. Forty six percent of the respondents buy and rent properties, while 32% fix-and-flip properties to home buyers. Wholesaling – securing the rights to sell a property without taking title – may be a growing trend, as 22% of respondents listed that practice as their primary type of investment activity. As in the previous survey, the majority of investors purchase their investment properties close to home – 39% purchase within their hometown, and 84% within their home state. California, Florida, Texas, and New York were the states most frequently cited by respondents as where they invest today, and where they plan to invest over the next year. To read the full report: https://lp.constantcontactpages.com/su/emMCtPO/WinterInvestorSentiment About RCN Capital RCN Capital is a South Windsor, CT-based national, direct, private lender. Established in 2010, RCN provides commercial loans for the purchase or refinance of non-owner-occupied residential properties. The company specializes in new construction financing, short-term fix & flip and bridge financing, and long-term rental financing for real estate investors. For more information on RCN Capital and RCN’s loan programs, visit www.RCNCapital.com. About CJ Patrick Company Founded in 2019, CJ Patrick Company is a Market Intelligence and Business Advisory firm working with companies in the real estate and mortgage industries. Visit www.cjpatrick.com for more information.

Gov. Murphy signs new foreclosure protection program into law

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By Nikita Biryukov, New Jersey Monitor New Jerseyans facing foreclosure will have a new path back to homeownership under a bill Gov. Phil Murphy signed Friday. The new law creates the community wealth preservation program, which will give homeowners facing foreclosure — plus their families and certain nonprofits — the right of first refusal to purchase their home at a sheriff’s sale. “With today’s bill signing, we are creating a new avenue to homeownership for individuals and families throughout New Jersey, giving many the opportunity to remain in the homes and communities they cherish while also protecting our neighborhoods from rapid investor-driven homebuying,” Murphy said in a statement. To reclaim a foreclosed home, the homeowner or their family must be preapproved for a loan that matches the home’s original upset price — the lowest price for which a home would be sold — or its final starting upset price, whichever is lower. The upset price is typically equal to the combined total of any outstanding mortgage on the property, plus interest, fees, and other associated costs. “This bill is a creative opportunity for families to save their wealth at the time of a foreclosure sale by using financing,” said Sen. Britnee Timberlake (D-Essex), who sponsored the bill as an assemblywoman. “This legislation also levels the playing field for renters, affordable housing nonprofit developers and people who want to purchase an abandoned home to restore and live in or to create affordability.” Successful bidders must make a deposit equal to 3.5% of their bid amount and would be required to use the home as their primary residence for at least seven years. Those who attempt to sell a home reclaimed under the program within that time period would face a $100,000 fine on their first offense and $500,000 fines on subsequent offenses. Exemptions in the bill allow homeowners to sell the property within the seven-year period. Those exceptions are generally related to hardship, including the death of a spouse or child, a divorce, or a change in employment, among others. The bill is in part an effort to slow investor purchases of foreclosed New Jersey homes. Because investors have financial resources, they can outright purchase homes at a sheriff’s sale and make a profit selling the home at market rate. They can also hold the property as an asset. “Too often foreclosed properties are bought up by real estate investors and developers only looking to make a profit,” said Sen. Shirley Turner (D-Mercer). “This legislation will help to keep property ownership within the community.”

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GoDocs, the premier commercial lending document automation platform, has announced Adam Craig as its new CEO. This move signals a continued commitment to providing a true enterprise-class solution for banks, credit unions, and private lenders focused on delivering a seamless and consistent closing experience at scale. Craig, a seasoned FinTech leader with a 20-year track record driving disruptive growth, brings to GoDocs a deep expertise in building and delivering best-in-class SaaS solutions for the Financial Services industry. Prior to joining GoDocs, he served as President at Segmint, an industry-leading transaction cleansing and analytics SaaS company for financial institutions, which was acquired by Alkami in 2022 where he subsequently led M&A and strategic partnerships. “GoDocs is at a pivotal moment, poised to capitalize on its technological edge to disrupt and transform commercial lending,” Craig stated. “My vision is to harness the exceptional talent within GoDocs, to drive disruptive product innovations that will further streamline the commercial lender experience and redefine their borrower’s journey with transparency and speed.” Brian Shortsleeve, Co-Founder and Managing Director of M33 Growth, “Adam has the vision and experience to take GoDocs to the next level,” Shortsleeve declared. “His arrival marks a new phase of growth, and we are thrilled to have him at the helm.” GoDocs’ commitment to delivering next-generation solutions for all commercial lenders – banks, credit unions, and private lenders – remains its core mission. Under Craig’s leadership, the company will accelerate its product and go-to-market build-out in order to transform the commercial lending landscape. This will allow the company to deliver unmatched automation and efficiency resulting in strong growth and positioning the company to be the preferred solution for high-volume commercial lenders. About GoDocsGoDocs, the automation leader in commercial loan document generation, offers a next-generation software platform for banks, credit unions, and private lenders that creates a streamlined process for closing commercial loans. The first and only purely SaaS system for automated loan document generation, GoDocs provides lenders with a digital solution that requires no training to use. The company has the #1 NPS customer satisfaction score in the industry and is trusted by industry-leading banks as well as community banks, Federal and local credit unions, and private lenders of all sizes. GoDocs is proud to back its solutions with 100% onshore support. Media ContactVirginia BushVP of MarketingGoDocs949.274.7907371168@email4pr.com Websitegodocs.com SOURCE GoDocs

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Home prices rise faster than they have in more than a year Falling mortgage rates brought more buyers into the market in December, but they faced the same constraint that has been plaguing buyers for the past two years—a serious lack of homes to choose from. There were 13,109 new pending sales through the Bright MLS service area in December, which was up very slightly (+0.5%) compared to the extremely low levels of market activity in December 2022. While transactions were still relatively low in December, home prices rose strongly. The median price was up 8.1% year-over-year, with strong price appreciation for all housing types (i.e., single-family detached, townhomes, and condos) and across all regions throughout Bright’s footprint. “It was definitely a little bit of a surprise to see prices rise so fast in December,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “Lower mortgage rates enticed more buyers, but they are still finding a dearth of inventory. Prices will continue to rise until there is more inventory.” Existing homeowners are still largely sitting tight. There were 11,780 new listings added to the market in December, which is a more than two-decade low. At the end of 2023, there were just 27,592 active listings on the market, which is down 2.9% from a year ago. That level of inventory translates into 1.52 months of supply. A balanced market would typically have between four and five months of supply. There is significant pent-up demand in the market which will likely be unleashed in early 2024 if mortgage rates continue to fall. However, the prospects for a busy 2024 market depends on whether there is more inventory. Right now, buyers should expect a very competitive market in 2024, with prices continuing to rise. December Mid-Atlantic Housing Market by Region Philadelphia:Fast Home Price Growth to End the YearMedian sale price rose 9.4%, fastest growth since spring 2022 Baltimore:Slow Sales Activity to End the YearBut few new listings keep prices rising in December Washington, D.C.:A Surprisingly Strong Market in December Median sale price rose 8.1%, fastest growth since spring 2022 The full Mid-Atlantic and market metro area reports are available at BrightMLS.com/MarketInsights. SOURCE Bright MLS CONTACT: Christy Reap, Christy.reap@brightmls.com, 202-309-9362

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Foreclosure Starts Up from 2022, While Foreclosure Completions Decline; December 2023 Foreclosure Activity Declines from Previous Month; Q4 2023 Foreclosure Activity Declines from Previous Quarter ATTOM, a leading curator of land, property, and real estate data, released its Year-End 2023 U.S. Foreclosure Market Report, which shows foreclosure filings— default notices, scheduled auctions and bank repossessions — were reported on 357,062 U.S. properties in 2023, up 10 percent from 2022 and up 136 percent from 2021 but down 28 percent from 2019, before the pandemic shook up the market. Foreclosure filings in 2023 were also down 88 percent from a peak of nearly 2.9 million in 2010. Those 357,062 properties with foreclosure filings in 2023 represented 0.26 percent of all U.S. housing units, up slightly from 0.23 percent in 2022, but down from 0.36 percent in 2019 and down from a peak of 2.23 percent in 2010. “Reflecting on 2023, we see the recent rise in foreclosure activity as a market correction rather than a cause for alarm. It signals a return to more traditional patterns after years of volatility,” said Rob Barber, CEO at ATTOM. “Our data suggests that while foreclosure activity may fluctuate, it’s unlikely to approach the highs seen in the last decade. Instead, we foresee a market that is more reflective of broader economic trends, with foreclosure filings becoming a more predictable aspect of the housing landscape. This shift offers a silver lining — the opportunity for investors, homeowners, and industry professionals to plan and strategize with greater confidence and insight.” 2023 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 2023, showing there were 30,314 U.S. properties with foreclosure filings, down 6 percent from the previous month and down 2 percent from a year ago. Foreclosure starts on the rise nationwide Lenders started the foreclosure process on 270,222 U.S. properties in 2023, up 9 percent from 2022, up 193 percent from 2021, but down 20 percent form 2019 and down 87 percent from a peak of 2,139,005 in 2009. States that saw the greatest number of foreclosure starts in 2023 included California (29,180 foreclosure starts); Texas (28,533 foreclosure starts); Florida (27,427 foreclosure starts); New York (17,330 foreclosure starts); and Illinois (13,764 foreclosure starts). Counter to the national trend, 6 states saw an increase in foreclosure starts from 2019. They included Indiana (up 73 percent); Idaho (up 70 percent); Michigan (up 15 percent); Nevada (up 10 percent); and Minnesota (up 9 percent). Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of foreclosure starts in 2023, included New York, New York (18,464 foreclosure starts); Chicago, Illinois (11,620 foreclosure starts); Houston, Texas (9,476 foreclosure starts); Los Angeles, California (8,835 foreclosure starts); and Philadelphia, Pennsylvania (8,224 foreclosure starts). Bank repossessions decline slightly from 2022 Lenders repossessed 42,090 properties through foreclosures (REO) in 2023, down 2 percent from 2022 but down 71 percent from 2019 (143,955) and down 96 percent from a peak of 1,050,500 in 2010. States that saw the greatest number of REOs in 2023 included Illinois (3,814 REOs); Michigan (3,634 REOs); Pennsylvania (2,853 REOs); California (2,633 REOs); and New York (2,538 REOs). Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of REOs in 2023 included Chicago, Illinois (2,505 REOs); New York, New York (2,045 REOs); Detroit, Illinois (1,795 REOs); Philadelphia, Pennsylvania (1,130 REOs); and Baltimore, Maryland (872 REOs). New Jersey, Illinois, and Delaware post highest state foreclosure rates in 2023 States with the highest foreclosure rates in 2023 were New Jersey (0.46 percent of housing units with a foreclosure filing); Illinois (0.42 percent); Delaware (0.41 percent); Maryland (0.40 percent); and Ohio (0.38 percent). Rounding out the top 10 states with the highest foreclosure rates in 2023, were South Carolina (0.38 percent); Nevada (0.37 percent); Florida (0.37 percent); Connecticut (0.35 percent); and Indiana (0.32 percent). Cleveland, Atlantic City, and Lakeland post highest metro foreclosure rates in 2023 Among 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in 2023 were Cleveland, Ohio (0.62 percent of housing units with a foreclosure filing); Atlantic City, New Jersey (0.62 percent); Lakeland, Florida (0.56 percent); Columbia, South Carolina (0.55 percent); and Fayetteville, North Carolina (0.51 percent). Metro areas with a population greater than 1 million, including Cleveland, Ohio that had the highest foreclosure rates in 2023 were: Philadelphia, Pennsylvania (0.48 percent); Jacksonville, Florida (0.47 percent); Las Vegas, Nevada (0.46 percent); and Chicago, Illinois (0.45 percent). Average time to foreclose decreases quarterly and annually U.S. properties foreclosed in the fourth quarter of 2023 had been in the foreclosure process an average of 720 days, a 7 percent decrease from the previous quarter and 16 percent decrease from a year ago. 2023 Year-End Avg Days to Complete Foreclosure States with the longest average time to foreclose in Q4 2023 were Louisiana (2,641 days); Hawaii (2,031 days); New York (2,006 days); Nevada (1,816 days); and Kentucky (1,643 days). Q4 2023 Foreclosure Activity High-Level Takeaways December 2023 Foreclosure Activity High-Level Takeaways Media Contact: Christine Stricker 949.748.8428 christine.stricker@attomdata.com