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Redfin Reports 2023 on Pace For Fewest Home Sales Since 2008 As Mortgage Rates Hit 8%

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Redfin economists say this is likely to be the slowest sales year since the Great Recession as persistently high mortgage rates and low inventory spook buyers This year is likely to end with roughly 4.1 million existing home sales nationwide, the fewest since the housing bubble burst in 2008 after the subprime mortgage crisis. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. What Redfin economists say: “Buyers have been in a bind all year,” said Chen Zhao, Redfin’s economic research lead. “High mortgage rates and still-high prices are making it harder than ever to afford a home, shutting many young people out of homeownership and causing homeowners to reevaluate whether 2023 is the right time to move. Mortgage rates are staying high longer than anticipated, keeping away everyone except those who need to move and pushing our sales projection for the year down to a 15-year low. The last time home sales were this low was during the Great Recession. At that time, tough economic conditions and slow demand pushed home prices down 30% year over year in some parts of the country, creating an opportunity for first-timers to snatch up starter homes—but this time, there’s no deal to be had.” What the numbers say: The average daily mortgage rate hit 8% this week, its highest level in 23 years. Rising rates have pushed buyers to the sidelines, with mortgage applications dropping to their lowest level since 1995 and Redfin’s Homebuyer Demand Index—a measure of tours and other early-stage demand indicators—at its lowest level in a year. Pending U.S. home sales fell 8% year over year during the four weeks ending October 15; that’s the smallest decline in a year and a half, but that’s mostly because sales plummeted at this time in 2022. Low inventory is another factor dampening sales: There are 14% fewer homes for sale than a year ago as homeowners stay put to hold onto relatively low rates. But new listings have ticked up slightly this fall, giving buyers a small reprieve. What real estate agents say: Redfin agents recommend that buyers who are frustrated by low inventory and high housing costs consider new construction. Sales of newly built homes are holding up better than existing-home sales, largely because builders—unlike regular homeowners—aren’t locked in by low rates, and they’re often more motivated than homeowners to close a deal. Sales of U.S. new-construction homes increased 1.5% year over year in September as prices dropped about 4%, according to Redfin’s data. To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-2023-fewest-home-sales-since-2008

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What Will Happen to the U.S. and Global Economy in the Next 50 Years?

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Renowned demographer and economist Alan Nevin’s new book, The Next Half Century, tells which cities and countries will fare best With so much talk of doom and gloom in the U.S. and abroad, it is easy to worry that life will only get worse in the next half century. But according to Alan Nevin, a demographer, economist and author of the new book, The Next Half Century, the data show something much brighter. Global changes in population, lifestyle, education and employment point to the U.S. continuing to lead the way in creating new industries and jobs. Nevin has devoted his career to studying the growth of the world’s leading economies, with a focus on real estate development and trends. Often featured in the San Diego Daily Transcript and San Diego Business Journal, he can discuss: Praise for The Next Half Century “Nevin has shown us how today’s world is shifting, evolving, and reshaping itself. An essential read for the thoughtful person who wants to understand where we are headed and what to expect.” — Cheryl Soon, fellow, American Institute of Certified Planners and author of Reflections in Stone and Bronze “This book marshals a range of detailed facts to paint a picture of a remarkable change in the prosperity of people around the world that we should expect to see over the next 50 years.” — James D. Hamilton, professor of economics, University of California at San Diego About the Author Alan Nevin is a real estate economist, demographer and futurist. He is the director of the Economic Research Division of GAFCON, a construction management consulting firm based in San Diego. As a consultant, he provides advice for real estate owners and developers and serves the legal community as an expert witness and appraiser. Former chief economist for the California Building Industry Association, Nevin is a co-founder of the UC San Diego Economics Roundtable, a fellow of the Lambda Alpha International Land Economics Society, and an active member of the Land Economics Foundation. He holds two master’s degrees, one in statistics and research from Stanford University and an MBA in real estate economics from American University. For more information, contact Alan Nevin, (619) 417-1817; 367049@email4pr.com; https://nevinadvisors.com SOURCE Alan Nevin

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Home Rents Continue to Rise in Q3 2023: 73% of U.S. Cities Experienced Year-Over-Year Rent Increases

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19% of the cities analyzed experienced double-digit rent increases Rentometer has released their Q3 2023 Rent Report for three-bedroom (3-BR) houses that are single-family rentals (SFRs). Rentometer collects rent data for all residential real estate asset classes, but this report is focused on SFRs because they are one of, if not the most, active asset classes today. Rentometer’s president, Mike Lapsley, commented that “we have increased our coverage and monitoring of the SFR market as the activity and interest in this particular market has escalated over the last few years.” The Q3 ’23 report covers 771 cities that had at least 25 data points for Q3 ’22 and Q3 ’23. It includes an analysis of year-over-year change in average rent prices by city for the third quarter. Highlights from the report are as follows: Notable rent price changes across major U.S. cities: Download the full report from Rentometer to view the complete list of updated rent data. About Rentometer, Inc.Rentometer collects, analyzes, and distributes multifamily and single-family rental price data throughout the U.S. Our rental data is proven to be valuable for our diverse customer base of real estate professionals–including real estate investors, property managers, agents, and even renters–as we deliver more than 20,000 reports daily. SOURCE Rentometer, Inc.

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Most Americans Would Buy a Known Haunted House to Save Money

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In 2023, 63% would offer below market value on a haunted house. A staggering 72% of prospective buyers, however, would feel uncomfortable living in a haunted house. More than 1 in 4 Americans (29%) believe they’ve actually lived in a haunted house — up from 24% in 2022, according to new research from Real Estate Witch, an online publication owned by Clever Real Estate that connects readers with expert real estate advice, Estate Media, the first real estate personality-driven media company with a network of agents, professionals, and creators, and Zillowtastrophes, which showcases bizarre, head-scratching real estate listings to more than 700,000 followers on social media. Of those who have lived in a haunted house, 73% were not aware of its paranormal reputation prior to moving in. Unsurprisingly, 40% of those who knowingly bought a haunted house were swayed due to a lower price tag. Despite the cost savings, 36% of haunted homeowners regret living in a haunted house, and 55% would not buy another home they knew was haunted. A resounding 68% of Americans believe the government should mandate sellers to disclose if a home is haunted. Paradoxically, only 31% of sellers would actually provide such information willingly due to fears of the home being harder to sell. Although haunted houses make Americans uneasy, more than half (52%) remain open to the idea, and 71% would consider it if they could save money. Most Americans (62%) would only offer below market value for a haunted home, with 1 in 3 (31%) offering at least $50,000 less. Notably, 48% say nothing could convince them to purchase a haunted house. Just 7% of Americans say ghosts are the scariest aspect of homeownership, though — 93% express a greater fear of home repair issues, such as mold (60%), termites (57%), and a leaky roof (54%), than the presence of ghosts in their homes. Americans say the most terrifying aspects of homeownership are all financial in nature: unexpected costs (50%), high interest rates (46%), and an inability to pay their mortgage (42%). Read the full report at: https://www.realestatewitch.com/haunted-real-estate-2023/ About Real Estate WitchReal Estate Witch is a web property of Clever Real Estate, an online platform that connects home buyers and sellers with top-rated agents at a discounted rate.

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HOME-SELLER PROFITS CONTINUE RISING AS HOME VALUES HIT NEW HIGHS IN Q3

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Profit Margins on Typical Home Sales Nationwide Increase to Almost 60 Percent; Returns Rise for Second Straight Quarter as Median U.S. Home Price Hits Another Record; Seller Profits Still Down from Year Ago Following Earlier Slide ATTOM, a leading curator of land, property and real estate data, released its third-quarter 2023 U.S. Home Sales Report, which shows that profit margins on median-priced single-family home and condo sales in the United States increased to 59 percent in the third quarter – the second straight quarterly increase following several declines. The improvement in typical profit margins, from 56.6 percent in the second quarter of 2023, came amid a continued rebound in the U.S. housing market that pushed the median nationwide home price up 2 percent to a new high of $350,000. Both the nationwide profit margin and median home price have increased since an unusual decline from the middle of 2022 to the early part of 2023 that had threatened to reverse a decade-long market boom. However, even as seller fortunes improved again in the third quarter, the typical investment return nationwide did remain below the 62 percent level recorded in the third quarter of 2022 and a high point of 62.3 percent in the second quarter of last year. “Prices and profits around the U.S. got another boost over the Summer as the housing market continued recovering from last year’s setbacks,” said Rob Barber, chief executive officer for ATTOM. “Things do remain uncertain heading into the market’s annual Fall slowdown, especially at a time when mortgage rates are rising again, home affordability is getting tougher and the potential for a recession hangs in the air. But the latest gains fell in line with what we often see during the third quarter and showed that any predictions of an extended market fallback may have been premature.” Gross profits on typical single-family home and condo sales across the country also went up during the third quarter of 2023. They rose 5 percent quarterly, to $129,900, and were up 3.2 percent annually. The continued gains in profits and prices around the U.S., while representing typical growth for a third-quarter period, still came amid a mix of forces that could turn the market up or down over the coming months. Both measures improved over the Summer as the supply of homes for sale in the U.S. remained historically low. That put upward pressure on prices, which, by extension, helped to push up profits. But mortgage rates started increasing again in the third quarter, rising toward an average of 8 percent for 30-year fixed loan following a stable second quarter. Consumer-price inflation also ticked back up after dropping dramatically over the prior year from 9 percent to 3 percent, while the stock market declined and the national unemployment rate rose close to 4 percent. Profit margins grow quarterly in roughly half the country but remain down annually Typical profit margins – the percent difference between median purchase and resale prices – increased from the second quarter of 2023 to the third quarter of 2023 in 85 (55 percent) of the 155 metropolitan statistical areas around the U.S. with sufficient data to analyze. However, they were still down annually in 103, or 66 percent, of those metros as the recent improvements were not enough to wipe out the earlier losses. That happened as the third-quarter improvement in home prices outpaced smaller increases that recent sellers had been paying when they originally bought their homes. Larger gains at the point of resale translated into higher profit margins. Metro areas were included if they had sufficient population and at least 1,000 single-family home and condo sales in the third quarter of 2023. The biggest quarterly increases in typical profit margins came in the metro areas of Scranton, PA (margin up from 72.2 percent in the second quarter of 2023 to 92 percent in the third quarter of 2023); Reading, PA (up from 70.3 percent to 88.5 percent); Flint, MI (up from 66.7 percent to 84.6 percent); Evansville, IN (up from 32.9 percent to 45.9 percent) and Roanoke, VA (up from 44.4 percent to 56.3 percent). The biggest quarterly profit-margin increases in metro areas with a population of at least 1 million in the third quarter of 2023 were in Birmingham, AL (return up from 41.2 percent to 50.9 percent); Buffalo, NY (up from 73.9 percent to 82.9 percent); Rochester, NY (up from 65.4 percent to 71.9 percent); Kansas City, MO (up from 44.5 percent to 50.2 percent) and Tucson, AZ (up from 59.1 percent to 64.8 percent). Typical profit margins decreased quarterly in 70 of the 155 metro areas analyzed (45 percent). The biggest quarterly decreases were in Lake Havasu City, AZ (margin down from 101.7 percent in the second quarter of 2023 to 81.6 percent in the third quarter of 2023); Albany, NY (down from 44.8 percent to 27.4 percent); Naples, FL (down from 84.5 percent to 73.7 percent); Bakersfield, CA (down from 76.1 percent to 65.9 percent) and Tallahassee, FL (down from 73.8 percent to 63.6 percent). The largest quarterly decreases in profit margins among metro areas with a population of at least 1 million came in San Jose, CA (down from 105.4 percent to 98.1 percent); Fresno, CA (down from 77.1 percent to 70.8 percent); Raleigh, NC (down from 61.9 percent to 56.3 percent); San Diego, CA (down from 78.7 percent to 73.8 percent) and Austin, TX (down from 50.3 percent to 45.5 percent). Metro areas with a population of at least 1 million where typical profits remained down the most annually included Austin, TX (margin down from 68.8 percent in the third quarter of 2022 to 45.5 percent in the third quarter of 2023); Honolulu, HI (down from 69.9 percent to 50.6 percent); Phoenix, AZ (down from 80 percent to 61.9 percent); Raleigh, NC (down from 73.9 percent to 56.3 percent) and Nashville, TN (down from 84 percent to 68 percent). Raw profits up in almost two-thirds of U.S. Profits on median-priced home sales nationwide,

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FORECLOSURE ACTIVITY SHOWS CONTINUED RISE IN Q3, APPROACHING LEVELS SEEN BEFORE PANDEMIC

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Highest Foreclosure Rates in New Jersey, South Carolina, and Delaware; Average Time to Foreclose Nationwide Hit Pre-Pandemic Levels ATTOM, a leading curator of land, property, and real estate data, released its Q3 2023 U.S. Foreclosure Market Report, which shows there were a total of 124,539 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 28 percent from the previous quarter and 34 percent from a year ago. The report also shows there were a total of 37,679 U.S. properties with foreclosure filings in September 2023, up 11 percent from the previous month and up 18 percent from September 2022. Foreclosure starts tick upwards from last year Lenders started the foreclosure process on 68,961 U.S. properties in Q3 2023, down 1 percent from the previous quarter but up 3 percent from a year ago — nearly reaching pre-pandemic levels. U.S. Foreclosure Starts States that had 1,000 or more foreclosure starts in Q3 2023 and saw the greatest annual increases were North Carolina (up 53 percent); Louisiana (up 47 percent); Pennsylvania (up 24 percent); Alabama (up 18 percent); and Nevada (up 16 percent). “Foreclosures are on the rise again this quarter, as indicated by our latest foreclosure numbers,” said Rob Barber, CEO at ATTOM. ” The number of new cases filed by lenders in the third quarter did rise just a small amount from the same period last year and actually dipped a bit quarterly – signs that the upward pattern may be easing. But foreclosure starts are nearly back to where they were two years ago when the federal government lifted a pandemic-related moratorium on most foreclosure filings. This rise in foreclosures might also be attributed to pending filings finally processing. Even with the national economic upturn and job stability, it’s evident that some homeowners are still grappling with the pandemic’s financial aftermath or encountering new challenges.” Among the 223 metropolitan statistical areas analyzed in the report those that posted the greatest number of foreclosure starts in Q3 2023, included New York, New York (4,514 foreclosure starts); Chicago, Illinois (2,584 foreclosure starts); Houston, Texas (2,279 foreclosure starts); Los Angeles, California (2,273 foreclosure starts); and Philadelphia, Pennsylvania (2,104 foreclosure starts). Counter to the national trend of annual increases, among those metropolitan areas with a population greater than one million that saw a decline in foreclosure starts in Q3 2023 were Salt Lake City, Utah (down 74 percent); Chicago, Illinois (down 35 percent); Kansas City, Missouri (down 34 percent); Columbus, Ohio (down 22 percent); and Milwaukee, Wisconsin (down 21 percent). Highest foreclosure rates in New Jersey, South Carolina, and Delaware Nationwide one in every 1,121 properties had a foreclosure filing in Q3 2023. States with the highest foreclosure rates in Q3 2023 were New Jersey (one in every 595 housing units with a foreclosure filing); South Carolina (one in every 730); Delaware (one in every 739); Nevada (one in every 763); and Maryland (one in every 780). Among 223 metropolitan statistical areas analyzed in the report, those with the highest foreclosure rates in Q3 2023 were Houston, Texas (one in every 371 housing units with a foreclosure filing); Atlantic City, New Jersey (one in every 453); Cleveland, Ohio (one in every 459); Bakersfield, California (one in every 465); and Columbia, South Carolina (one in every 503). Bank repossessions increase nationwide Lenders repossessed 11,020 U.S. properties through foreclosure (REO) in Q3 2023, up 9 percent from the previous quarter and up 5 percent from a year ago. U.S. Completed Foreclosures (REOs) States that posted the largest number of completed foreclosures in Q3 2023, included California (1,277 REOs); Illinois (1,057 REOs); Pennsylvania (743 REOs); New York (673 REOs); and Ohio (635 REOs). Average time to foreclose decreases 12 percent annually Properties foreclosed in Q3 2023 had been in the foreclosure process an average of 778 days, down 36 percent from 1,212 days in the previous quarter and down 12 percent from 885 days in Q3 2022, to the lowest level since Q2 2020. Average Days to Complete Foreclosure States with the longest average foreclosure timelines for homes foreclosed in Q3 2023 were Louisiana (3,045 days); Hawaii (2,498 days); New York (1,941 days); Nevada (1,690 days); and New Jersey (1,621 days). States with the shortest average foreclosure timelines for homes foreclosed in Q3 2023 were Texas (160 days); Montana (169 days); Wyoming (177 days); Missouri (211 days); and Michigan (213 days). September 2023 Foreclosure Activity High-Level Takeaways Media Contact: Christine Stricker 949.748.8428 christine.stricker@attomdata.com

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