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Opportunity Zone Housing Markets Continue To Keep Up With Broader Price Gains Across Nation In Third Quarter

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Median Home Values Increase in Majority of Opportunity Zones Targeted for Economic Redevelopment Around U.S.; Price Trends Inside Zones Continue to Roughly Match Broader Market Patterns; Opportunity Zone Home Values Again Improve Slightly More Than Elsewhere ATTOM, a leading curator of land, property, and real estate data, released its third-quarter 2023 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 3,465 zones around the United States with sufficient data to analyze, meaning they had at least five home sales in the third quarter of 2023. The report found that median single-family home and condo prices rose from the second quarter of 2023 to the third quarter of 2023 in 54 percent of Opportunity Zones around the country and rose at least 5 percent in close to half. The price improvements in and around low-income neighborhoods where the federal government offers tax breaks to spur economic revival, again tracked closely with a nationwide rebound from a temporary dip in home values that hit last year. WATCH: ATTOM Q3 2023 Opportunity Zones Report The renewed price growth also continued a long-term trend of home values inside Opportunity Zones following along with broader market gains for at least the last three years – an ongoing sign of economic strength inside some of the country’s most distressed communities. Opportunity Zone markets even showed signs again, by one key measure, of doing slightly better than other neighborhoods around the country during the third quarter of this year. A slightly larger portion of Opportunity Zones versus other locations saw median values rise annually at a faster pace than they did nationwide. “The third-quarter price data shows that many of the country’s lower-income neighborhoods continue to come back from the brief downturn we saw last year, right along with the rest of the U.S. housing market. While there were exceptions, Opportunity Zones overall saw no extended backslide and continued to benefit from the boom that has spiked home values around the nation for more than a decade,” said Rob Barber, CEO for ATTOM. “That trend is likely connected to financially marginal house hunters getting priced out of more expensive locations and turning to places like Opportunity Zones for affordable homes. This should give investors looking to take advantage of Opportunity Zone tax breaks more welcome news about the potential for those neighborhoods.” 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. As they have historically, typical home values in most Opportunity Zones fell well below those in other neighborhoods around the nation in the third quarter of 2023. Median third-quarter prices were less than the U.S. median of $350,000 in 81 percent of Opportunity Zones. That was about the same portion as in earlier periods over the past year. In addition, median prices fell below $200,000 in 49 percent of the zones during the third quarter of 2023. Considerable price volatility also continued in Opportunity Zones, with median values either dropping or increasing by at least 5 percent in more than three-quarters of those locations from the second quarter of 2023 to the third quarter of 2023. That again likely reflected the small number of sales in many zones. Still, the latest trends marked the second straight quarter in which Opportunity Zone home values, in general, erased losses seen during the downturn that lasted from the middle of 2022 into early 2023. That highlighted an extended scenario of home-price runups across the U.S. leaving a significant cluster of potential buyers with limited resources and few choices other than the lowest-priced communities. The apparently healthy demand in the third quarter continued even as home-mortgage rates climbed back up toward 8 percent for 30-year fixed-rate loans over the Summer, and inflation inched upward cutting into what buyers could afford. “Like most places with fewer resources, Opportunity Zones remain especially vulnerable to negative forces affecting the housing market or the broader economy, so we will continue to keep a close watch on prices in those locations,” Barber added. “But the ongoing tight supply of homes for sale combined with high home-buying demand around the country suggests that Opportunity Zones are in a good position to remain on pace with the broader national trends.” High-level findings from the report: Media Contact: Christine Stricker 949.748.8428 christine.stricker@attomdata.com

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Home Sales Likely to Weaken in Near Term but Bottom Out Early Next Year Economic growth remains likely to decelerate and ultimately result in a mild recession in 2024, followed by a return to growth in 2025, according to the November 2023 commentary from the Fannie Mae (OTCQB: FNMA) Economic and Strategic Research (ESR) Group. While the combination of ongoing employment gains and decelerating inflation has increased the likelihood of a soft landing, the ESR group contends that, between a likely slowdown in consumption growth stemming from an imbalance between spending and incomes and the rising real federal funds rate weighing on consumer and business activity, a downturn remains the most likely outcome. With mortgage rates having previously neared the 8 percent mark, the ESR Group expects existing home sales to decline further in the near term but bottom out in early 2024. Regardless of whether the economy manages a soft landing or enters a mild recession, the ESR Group forecasts mortgage rates in 2024 to retreat from their recent highs and average 6.8 percent by the fourth quarter. As such, the ESR group expects home sales to begin to increase modestly over 2024 but to remain constrained by the likely persistence of the so-called “lock-in effect” and the low supply of homes for sale. New home sales and starts, which have remained comparatively resilient over the past year, are expected to remain so in 2024. “The economy is now slowing from the otherwise robust first estimate of third quarter growth,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “The slowdown in employment gains has continued, and stress is growing on consumers’ ability to sustain their high levels of spending – unsurprising results that we attribute to the often-lagged economic effect of monetary policy tightening. At the same time, housing has been and continues to be under serious affordability pressure, resulting in recessionary-level home sales activity. While many current owners with low mortgage rates will likely continue to be discouraged from listing their homes, we expect mortgage rates to trend modestly downward in 2024, which should help kickstart a gradual recovery in home sales into 2025.” Visit the Economic & Strategic Research site at fanniemae.com to read the full November 2023 Economic Outlook, including the Economic Developments Commentary, Economic Forecast, Housing Forecast, and Multifamily Market Commentary. To receive e-mail updates with other housing market research from Fannie Mae’s Economic & Strategic Research Group, please click here. SOURCE Fannie Mae

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New listings were near their six-month high in October, helping drive an increase in pending sales, though buyers backed out of deals at the highest rate on record. The recent drop in mortgage rates could give sales another boost in November. U.S. pending home sales rose 1% month over month in October to the highest level in a year on a seasonally adjusted basis. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. They fell 4.8% from a year earlier, but that’s the smallest annual decline in almost two years. Pending sales have been ticking up for several reasons: “I’ve had a lot of sellers reach out to me recently saying they’re ready to list their homes—a reversal from recent months,” said Heather Mahmood-Corley, a Redfin Premier real estate agent in Phoenix. “Everyone has a different reason for relocating. One of my sellers is moving because she wants to buy her father’s house and he’s giving her a deal, which helps offset the higher mortgage rate she’ll take on. Another is moving to Florida with her sister because her husband passed away; she built up a lot of equity, so is able to pay in cash. Other people are selling because they want to live somewhere more affordable.” October 2023 Highlights: United States October 2023 Month-Over-Month Change Year-Over-Year Change Median sale price $413,874 0.5% 3.5% Pending sales, seasonally adjusted 400,648 1.0% -4.8% Homes sold, seasonally adjusted 398,537 -1.8% -12.5% New listings, seasonally adjusted 487,401 -0.2% -4.5% All homes for sale, seasonally adjusted (active listings) 1,412,404 1.4% -12.5% Months of supply 2.7 0.1 -0.1 Median days on market 34 1 -1 Share of for-sale homes with a price drop 20.8% 2.4 ppts -0.9 ppts Share of homes sold above final list price 31.6% -1.7 ppts 2.7 ppts Average sale-to-final-list-price ratio 99.3% -0.2 ppts 0.5 ppts Pending sales that fell out of contract, as % of overall pending sales 17.2% 1.2 ppts 0.6 ppts Average 30-year fixed mortgage rate 7.62% 0.42 ppts 0.72 ppts But Buyers Backed Out of Deals at the Highest Rate on Record While pending sales have inched up in recent months, closed home sales have continued declining. In October, closed sales fell 1.8% from a month earlier and 12.5% from a year earlier, hitting the lowest level since the onset of the pandemic on a seasonally adjusted basis. That’s partly because many deals are falling through at the last minute. Roughly 54,000 U.S. home-purchase agreements were canceled in October, equal to 17.2% of homes that went under contract that month—the highest percentage in Redfin records that date back to 2017. That’s up from 16.1% one month earlier and 16.6% one year earlier. “I’m seeing a lot of cold feet,” said Redfin Tampa Sales Manager Eric Auciello. “Home prices are high, mortgage rates are high and insurance costs are high, and when buyers see the final number, a lot of them are backing out.” Some buyers are also walking away when sellers refuse to fix issues that come up during the inspection, according to Mahmood-Corley. “Buyers want turnkey houses because everything is so expensive now, whereas in 2021 and 2022, they felt lucky to get any house,” she said. “And while I’m seeing more sellers in the market, they’re squirrely too. They’re backing out when they don’t get the price they want.” The cancellation rate could tick down in November as buyers take advantage of the decline in mortgage rates. The average 30-year-fixed mortgage rate fell to 7.44% this week, the lowest level since September. Home Prices Climbed 4% From a Year Earlier The median U.S. home sale price rose 3.5% year over year to $413,874 in October and was up slightly (0.5%) from a month earlier. Prices were just 4.4% below their May 2022 record high of $432,732, in part because buyers are still competing for a limited number of homes, which is buoying prices; while listings have inched up in recent months, they remain historically low. Metro-Level Highlights: October 2023 To view the full report, including charts, please visit:https://www.redfin.com/news/housing-market-tracker-october-2023

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Austin, Denver, Seattle, Raleigh, and D.C. top the list of cities with the most momentum for STEM job growth Leading real estate advisory firm RCLCO Real Estate Consulting, announced the results of their 2023 STEM Job Growth Index (STEMdex), which projects which metropolitan areas will have the strongest outlook for growth in STEM jobs. Published annually since 2016, with the support of light industrial and office investment management firm CapRidge Partners, the STEMdex tracks and projects STEM job growth trends across the country by analyzing the economies of the largest metropolitan areas to understand which regions are attracting the jobs and employees of the future. Read the full report online. “STEM jobs are characterized by a highly educated workforce and are some of the highest paying, most economically productive jobs in any market,” said Gregg Logan, Managing Director of RCLCO. “Their importance in the economy cannot be overstated and our STEMdex, now in its seventh year of publication, aims to highlight the markets that currently feature strong levels of industry employment, and those likely to see strong growth in the future. We find the STEMdex is an easy and intuitive way for people to understand the trends in employment and housing that STEM jobs will bring to these cities in the coming years.” The index’s analysis focuses on metrics in four major areas RCLCO finds to be paramount to the growth of STEM jobs: STEM Trends/Economic Factors, Workforce Quality, Quality of Life/Health, and Business Climate. In total, RCLCO identified and weighted 25 different indicators they believe best characterize the four major categories and can quantify their impact on the STEM job market. Some of the highlights of this year’s list include: Three MSAs in California made this year’s list, while Texas and North Carolina both saw two cities in the top 20; no other state had more than one city in the 2023 list. 2023’s results are fairly consistent from 2022 with some notable moves: New York City, which ranked #13 last year, dropped off the list entirely while Orlando and Nashville both moved up the list significantly. 40% of the cities on the list maintained their precise ranking from 2022 – including Atlanta, Austin, Boston, Charlotte, Portland, San Diego, San Francisco and San Jose. The top 20 cities include: RANK MSA RANK MSA 1 Austin, TX 11 Minneapolis, MN 2 Denver, CO 12 Salt Lake City, UT 3 Seattle, WA 13 Orlando, FL 4 Raleigh, NC 14 Charlotte, NC 5 Washington, DC 15 Atlanta, GA 6 San Francisco, CA 16 Nashville, TN 7 Portland, OR 17 San Diego, CA 8 San Jose, CA 18 Richmond, VA 9 Boston, MA 19 Baltimore, MD 10 Dallas, TX 20 Philadelphia, PA About RCLCO Since 1967, RCLCO Real Estate Consulting has been the “first call” for real estate developers, investors, public institutions, and non-real estate companies seeking strategic and tactical advice regarding property investment, planning, and development. RCLCO leverages quantitative analytics platforms and a strategic planning framework to provide end-to-end business planning and implementation solutions at an entity, portfolio, or project level. With the insights and experience gained over 50 years and thousands of projects – touching over $5B of real estate activity each year – RCLCO brings success to all product types across the United States and around the world. RCLCO is headquartered in Bethesda, MD, and has offices in Los Angeles, CA, Orlando, FL, Austin, TX, and Denver, CO. To learn more about RCLCO, visit www.rclco.com.

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Inventory Grows While Declines in Sales, New Listings Soften Seasonal declines in home sales and new listings softened in October while inventory grew for a seventh consecutive month across the 53 metro areas surveyed. Home sales dropped 4.6% from September to October, far less than the 13.5% month-over-month drop in October 2022. New listings also declined 5.0%, which was also less than half of the 11.1% drop from September to October last year. While there were 6.9% fewer homes on the market year over year, October’s inventory grew 4.6% month over month to continue a streak of monthly increases that began in April. The median sales price of $410,000 did not budge from September and remained 2.8% above October 2022. “October had some encouraging signs – especially compared to a year ago,” said Nick Bailey, President and CEO of RE/MAX, LLC. “Given the interest rate environment, it was good to see the trend of monthly inventory gains continuing, and prices appear to be stabilizing for the moment. It remains a challenging market, but demand for homes is still high – and buyers are gaining a little more leverage as time goes on.” Agent Esther Clarke of RE/MAX Associates in Salt Lake City says it’s a balancing act in her market. “New housing developments have sprung up around the city, but regardless of how fast they’re built, the inventory can’t keep up with demand. Homes that are in good shape and priced right are selling quickly. And I think buyers are starting to recognize the interest rates as the new normal.” Other notable metrics: Highlights and local market metrics for October include: New Listings Of the 53 metro areas surveyed in October 2023, the number of newly listed homes is down 5.0% compared to September 2023, and down 1.3% compared to October 2022. The markets with the biggest decrease in year-over-year new listings percentage were Las Vegas, NV at -17.6%, Seattle, WA at -17.5%, and Indianapolis, IN at -13.0%. The markets with the biggest year-over-year increase in new listings percentage were San Francisco, CA at +14.2%, Miami, FL at +13.9, and Tampa, FL at +13.6%. New Listings:5 Markets with the Biggest YoY Decrease Market Oct 2023New Listings Oct 2022New Listings Year-over-Year% Change Las Vegas, NV 3,072 3,729 -17.6 % Seattle, WA 3,607 4,374 -17.5 % Indianapolis, IN 2,717 3,124 -13.0 % Detroit, MI 5,364 6,144 -12.7 % Chicago, IL 10,579 11,984 -11.7 % Closed Transactions Of the 53 metro areas surveyed in October 2023, the overall number of home sales is down 4.6% compared to September 2023, and down 8.7% compared to October 2022. The markets with the biggest decrease in year-over-year sales percentage were Dover, DE at -26.9%, New Orleans, LA at -17.6%, followed by a tie between Burlington, VT and Trenton, NJ at -15.9%. Only two markets had an increase in year-over-year sales percentage, Salt Lake City, UT at +13.4% and Milwaukee, WI at +2.7%. Closed Transactions:5 Markets with the Biggest YoY Decrease Market Oct 2023Transactions Oct 2022Transactions Year-over-Year% Change Dover, DE 177 242 -26.9 % New Orleans, LA 796 966 -17.6 % Trenton, NJ 285 339 -15.9 % Burlington, VT 217 258 -15.9 % Seattle, WA 3,454 4,089 -15.5 % Median Sales Price – Median of 53 metro area pricesIn October 2023, the median of all 53 metro area sales prices was $410,000, flat compared to September 2023, and up 2.8% from October 2022. The markets with the biggest year-over-year decrease in median sales price were Honolulu, HI at -4.1%, New Orleans, LA at -3.7%, followed by a tie between Portland, OR and San Antonio, TX at -1.9%. The markets with the biggest year-over-year increase in median sales price were Trenton, NJ at +18.6%, Cleveland, OH at +12.5%, and Hartford, CT at +11.5%. Median Sales Price:5 Markets with the Biggest YoY Increase Market Oct 2023Median Sales Price Oct 2022Median Sales Price Year-over-Year% Change Trenton, NJ $415,000 $350,000 +18.6 % Cleveland, OH $225,000 $200,000 +12.5 % Hartford, CT $340,000 $305,000 +11.5 % San Diego, CA $840,000 $764,000 +9.9 % Manchester, NH $445,000 $410,000 +8.5 % Close-to-List Price Ratio – Average of 53 metro area pricesIn October 2023, the average close-to-list price ratio of all 53 metro areas in the report was 99%, flat compared to both September 2023 and October 2022. 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 95%, followed by a tie between Bozeman, MT and New Orleans, LA at 96%. The metro areas with the highest close-to-list price ratios were Hartford, CT at 104% and San Francisco, CA at 103%. Close-to-List Price Ratio:5 Markets with the Biggest YoY Increase Market Oct 2023Close-to-List PriceRatio Oct 2022Close-to-List PriceRatio Year-over-YearDifference* Trenton, NJ 102.4 % 100.2 % +2.1 pp Hartford, CT 103.9 % 101.8 % +2.1 pp San Francisco, CA 102.9 % 100.9 % +1.9 pp Las Vegas, NV 98.2 % 96.7 % +1.5 pp Detroit, MI 99.6 % 98.2 % +1.4 pp *Difference displayed as change in percentage points Days on Market – Average of 53 metro areasThe average days on market for homes sold in October 2023 was 36, up one day compared to the average in both September 2023 and October 2022. The metro areas with the lowest days on market were Baltimore, MD at 12, Washington, DC at 13, and Philadelphia, PA at 15. The highest days on market averages were in Coeur d’Alene, ID at 78, Bozeman, MT at 77, and Fayetteville, AR at 73. 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 Biggest YoY Increase Market Oct 2023Days on Market Oct 2022Days on Market Year-over-Year% Change Bozeman, MT 77 44 +73.4 % Anchorage, AK 44 27 +65.3 % Coeur d’Alene, ID 78 48 +61.9 % New Orleans, LA 60 38 +57.3 % San Antonio, TX 70 46 +51.1 % Months’ Supply of Inventory – Average of 53 metro areasThe number of homes for sale in October 2023 was up 4.6% from September 2023 and down 6.9% from October 2022. Based on the rate of home sales in October 2023, the months’ supply of inventory was 2.3, up compared 2.1 in September 2023, and flat compared October 2022. In October 2023, the markets with the lowest months’ supply of inventory were a two-way tie between Manchester, NH and Trenton, NJ at 0.9, followed by Seattle, WA at 1.0. The markets with the highest months’ supply of inventory were Bozeman, MT at 5.1, San Antonio, TX at

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Market activity tracking closely to 2022 levels High mortgage rates, unrelenting prices, and low inventory have limited transactions throughout the Mid-Atlantic so far in 2023. Yet October showed the first signs of being similar to activity levels in 2022. New pending sales were only 3.2% lower than last year and some metros within the Mid-Atlantic had more new pending sales, and even closed sales, than in October 2022. “The resiliency of the market in the face of mortgage rates approaching 8% has been impressive,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “While the market is expected to slow this winter, as it always does seasonally, the Mid-Atlantic may finally start to trend alongside 2022 activity.” New listing activity has typically been 20-30% below what occurred in 2022. In October 2023, there were 21,517 new listings across the Mid-Atlantic. Excluding January, this is the narrowest difference between the two years. Moreover, akin to new pending sales, some pockets of the Mid-Atlantic are seeing more new listings than last year. Additional new listings are a welcome sign. Overall Mid-Atlantic inventory remains at a deficit compared to the number of homes on the market last year. The 34,415 active listings available at the end of October 2023 were 6.0% less than the number in October 2022. Inventory has been improving since the summer and gains throughout the winter could help buyers persisting in the market have more choices, or provide opportunity for buyers who may bide their time until spring. Whether buyers purchase now or wait until the new year, the market will be competitive. Half of the homes sold in the Mid-Atlantic in October were only on the market 10 days or less before being scooped up by an interested buyer. While there’s been a little relief since the June, the swift pace of buying hasn’t returned to pre-pandemic norms keeping buyers on their toes. In October, the median sale price in the Mid-Atlantic region was $381,000. Though declining from the summer, the median price is up 4.7% compared to a year ago. The seasonal easing won’t likely impact the monthly payment enough to entice buyers. Lower mortgage rates on the other hand could make a difference to the bottom line. And looking into 2024, the consensus is that mortgage rates will begin to come down. Mortgage rates will remain well above 6% forcing consumers to reset their expectations and understand that 3% aren’t coming back. Still, rates moving back towards 7% and below will encourage more activity from both buyers and sellers suggesting a blooming spring market in the Mid-Atlantic. October Mid-Atlantic Housing Market by Region Philadelphia:Buyers Still Active in the Philadelphia MarketHome prices up strongly in OctoberThe Philadelphia metro continues to struggle with inventory, though buyers remain active and willing to make quick offers and pay for attractive homes. Baltimore:Housing Market Remains StrongFastest home price growth in more than a yearBuyers persist despite facing near 8% mortgage rates. Low inventory keeps the market competitive, pushing prices to grow. Washington, DC:Housing Market Activity Slows SeasonallyBut prices still on the rise as inventory remains lowMarket activity isn’t able to sustain the pace of last year as mortgage rates move closer to 8%. However, prices continue to make gains as low inventory fosters competition for buyers searching for a home. About Bright MLSBright MLS was founded in 2016 as a collaboration between 43 visionary associations and two of the nation’s most prominent MLSs to transform what an MLS is and what it does, so real estate pros and the people they serve can thrive today and into our data-driven future through an open, clear and competitive housing market for all. Bright is proud to be the source of truth for comprehensive real estate data in the Mid-Atlantic, with market intelligence currently covering six states (Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia) and the District of Columbia. Bright MLS’s innovative tool library—both created and curated—provides services and award-winning support to well over 100K real estate professionals, enabling their delivery on the promise of home to over half a million home buyers and sellers monthly. Learn more at BrightMLS.com. The full Mid-Atlantic and new area reports are available at BrightMLS.com/MarketInsights. SOURCE Bright MLS