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Home Rents Continue to Rise in Q2 2023

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89% of U.S. Cities Experienced Year-Over-Year Rent Increases 36% of the cities analyzed experienced double-digit rent increases Rentometer has released their Q2 2023 Rent Report for three-bedroom (3-BR) houses that are single-family rentals (SFRs). Rentometer collects data for all residential asset classes, but this report is focused on SFR because they are one of, if not the most, active residential rental 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 Q2 ’23 report covers 508 cities that had at least 25 data points for Q2 ’22 and Q2 ’23. It includes an analysis of year-over-year change in average rent prices by city for the second quarter. Highlights from the report are as follows: Some notable markets with increasing average rents over the past year are Dallas, TX (+34%), Phoenix, AZ (+19%), and Atlanta, GA (+18%). Markets that had the largest decrease in average rents are Conyers, GA, Springfield, IL, Cypress, TX, and Apex, NC which all had rent prices decrease by -9%. 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 SFR rent price data throughout the U.S. Our rental data is proven to be valuable for our diverse customer base including real estate investors, property managers, agents, other real estate professionals, and renters as we deliver more than 20,000 reports on a daily basis. For more information, please contact us at info@rentometer.com or visit us at www.rentometer.com SOURCE Rentometer

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FORECLOSURE ACTIVITY IN FIRST HALF OF 2023 TICKS UPWARDS TOWARDS PRE-COVID LEVELS

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U.S. Foreclosure Starts Increase 15 Percent in First Six Months of 2023; Average Days to Complete a Foreclosure Hits Peak; June and Q2 2023 Foreclosure Activity Also Post Annual Increases ATTOM, a leading curator of land, property, and real estate data, released its Midyear 2023 U.S. Foreclosure Market Report, which shows there were a total of 185,580 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the first six months of 2023. That figure is up 13 percent from the same time period a year ago and up 185 percent from the same time period two years ago. “Similar to the first half of 2022, foreclosure activity across the United States maintained its upward trajectory, gradually approaching pre-pandemic levels in the first half of 2023,” stated Rob Barber, CEO for ATTOM. “Although overall foreclosure activity remains below historical norms, the notable surge in foreclosure starts indicates that we may continue to see a rise in foreclosure activity in the coming years.” States that saw the greatest increase in foreclosure activity compared to a year ago in the first half of 2023 included Maryland (up 100 percent); Oregon (up 99 percent); Alaska (up 95 percent); West Virginia (up 83 percent); and Arkansas (up 72 percent). Illinois, New Jersey, and Maryland post highest state foreclosure rates Nationwide, 0.13 percent of all housing units (one in every 752) had a foreclosure filing in the first half of 2023. States with the highest foreclosure rates in the first half of 2023 were Illinois (0.25 percent of housing units with a foreclosure filing); New Jersey (0.24 percent); Maryland (0.23 percent); Delaware (0.23 percent); and Ohio (0.20 percent). Other states with first-half foreclosure rates among the 10 highest nationwide were South Carolina (0.19 percent); Florida (0.19 percent); Nevada (0.19 percent); Indiana (0.18 percent); and Connecticut (0.16 percent). Highest metro foreclosure rates in Cleveland, Atlantic City, and Fayetteville Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in the first half of 2023 were Cleveland, Ohio (0.33 percent of housing units with foreclosure filings); Atlantic City, New Jersey (0.33 percent); Fayetteville, North Carolina (0.30 percent); Columbia, South Carolina (0.29 percent); and Lakeland, Florida (0.29 percent). Other major metro areas with foreclosure rates ranking among the top 10 highest in the first half of 2023 were Chicago, Illinois (0.28 percent of housing units with a foreclosure filing); Jacksonville, Florida (0.26 percent); Florence, South Carolina (0.26 percent); Philadelphia, Pennsylvania (0.25 percent); and Elkhart, Indiana (0.25 percent). Foreclosure starts up 15 percent from last year A total of 135,065 U.S. properties started the foreclosure process in the first six months of 2023, up 15 percent from the first half of last year and up 36 percent from the first half of 2020. States that saw the greatest number of foreclosures starts in the first half of 2023 included California (14,217 foreclosure starts); Florida (13,837 foreclosure starts); Texas (13,419 foreclosure starts); New York (8,772 foreclosure starts); and Illinois (7,995 foreclosure starts). Bank repossessions climb in first half of 2023 from last year Lenders foreclosed (REO) on a total of 22,672 U.S. properties in the first six months of 2023, up 9 percent from the first half of 2022 and up 133 percent from the first half of 2021, but down 40 percent from the first half of 2020. States that posted the greatest number of REOs in the first half of 2023 included Michigan (2,423 REOs); Illinois (2,059 REOs); Pennsylvania (1,420 REOs); California (1,362 REOs); and New York (1,350 REOs).   Q2 2023 foreclosure activity below pre-recession averages in 78 percent of major markets There were a total of 97,608 U.S. properties with a foreclosure filings during the second quarter of 2023, up 2 percent from the previous quarter and up 8 percent from a year ago. The national foreclosure activity total in Q2 2023 was 65 percent below the pre-recession average of 278,912 per quarter from Q1 2006 to Q3 2007. Second quarter foreclosure activity was below pre-recession averages in 173 out 223 (78 percent) metropolitan statistical areas with a population of at least 200,000 and sufficient historical foreclosure data, including New York, Los Angeles, Chicago, Dallas, Houston, Miami, Atlanta, San Francisco, Riverside-San Bernardino, Phoenix, and Detroit. Metro areas with second quarter foreclosure activity above pre-recession averages included Honolulu, HI; Richmond, VA; Baltimore, MD; Virginia-Beach, VA; Albany, New York; and Montgomery, AL. Average time to foreclose hits all-time high Properties foreclosed in Q2 2023 had been in the foreclosure process an average of 1,212 days, the highest number of average days to foreclose since Q1 2018. That figure was up 28 percent from the previous quarter and up 28 percent from Q2 2022. States with the longest average foreclosure timelines for homes foreclosed in Q2 2023 were Michigan (2,601 days); Louisiana (2,252 days); New York (1,966 days); Hawaii (1,934 days); and Kentucky (1,921 days). States with the shortest average foreclosure timelines for homes foreclosed in Q2 2023 were Wyoming (104 days); Minnesota (145 days); Montana (160 days); Texas (162 days); and Missouri (170 days). June 2023 Foreclosure Activity High-Level Takeaways

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HouseCanary’s Latest Market Pulse Report Shows Resilience in Housing Market as Listed and Closed Prices Rose in June

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Both Listed and Closed Prices Experienced Positive Year-Over-Year Growth in June Persistent Year-Over-Year Decline in Net New Listing Volume Intensifies Inventory Challenges and Dampens Market Activity A Slower Pace of Rate Hikes by the Federal Reserve Is Anticipated Throughout the Second Half of 2023, Coinciding with Expectations of Subdued Market Activity HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its real estate valuation accuracy, released its latest Market Pulse report, covering 22 listing-derived metrics and comparing data between June 2022 and June 2023. The Market Pulse Report is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform. Amidst a looming mild recession and increasing rates from the Federal Reserve, the housing market continues to grapple with challenges, including a year-over-year decline in inventory and a rise in removals. Additionally, although price cuts have been observed, they remain well below peak levels witnessed in September and October of 2022. However, in a notable development, both listed and closed prices experienced positive year-over-year growth in June. While list prices appear to have reached their peak during that month, closed prices continue to climb at a rapid pace. Heading into Q3 2023, it can be expected that market activity remains at relatively low levels, with the Federal Reserve continuing to increase rates at a slow pace. Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented: “In the face of a challenging economic landscape with declining inventory and rising removals, the housing market has shown remarkable resilience, as evidenced by the upward trajectory of listed and closed prices. Price cuts remain well below their peak levels from 2022, and it is promising to witness positive year-over-year growth in June. Looking ahead to the second half of the year and Q3, we anticipate continued subdued market activity and a slow pace of rate hikes by the Federal Reserve.” Key Takeaways: About HouseCanary Founded in 2013, national real estate brokerage HouseCanary empowers consumers, financial institutions, investors, and mortgage lenders, with industry-leading services including valuations, forecasts, and transactions. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com.

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BH Properties Plans Billion Dollar Investment in Affordable Housing

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Los Angeles-Based Real Estate Investment Firm Hires Bill Stoll to Lead New Initiative BH Properties (“BH”) has launched a new investment initiative into affordable housing  with a  goal of ultimately building a $1 billion portfolio of assets. The new initiative will be led by veteran affordable housing executive William “Bill” Stoll who joins the firm as Managing Director, announced company President Jim Brooks. An adjunct to the firm’s value-add multifamily platform, the new platform will focus on low-income housing tax credit (LIHTC), Section 8 and age-restricted housing throughout the United States. For the Los Angeles-based real estate investment firm, which manages a 10 million-square-foot  portfolio of commercial real estate assets and more than 2,000 multifamily units, investment in affordable housing is complementary to its other business lines including value add acquisitions, bankruptcy solutions, and investment in real estate debt instruments across the capital stack. “As long-term investors, our affordable housing strategy is driven by the annuity-like nature of the income stream and not the assumption of tax credits where most investors play,” said Brooks. “We will be looking at assets with 100 or more units, typically following the expiration of the 15-year compliance period, where we can then hold them for as long as a decade. We believe we can benefit from the durable and consistent cash flow that a professionally managed asset can generate.”    “Our goal is to build scale relatively quickly,” added Andy Van Tuyle, Senior Managing Director Investments. “The addition of Bill, his contacts, reputation and experience will help expedite this effort.” Stoll, who will work closely with Van Tuyle, brings to BH more than $6 billion dollars in transaction experience over his nearly 14-year career at Steadfast Companies. Stoll, a graduate of San Diego State University, joined the Public Non-Traded REIT in 2009 as manager of a Southern California portfolio of 10 LIHTC properties, eventually rising to Executive Vice President of Acquisitions. In addition to completing the acquisition and disposition of nearly 150 multifamily, LIHTC and Section 8 properties, Stoll played an integral role in construction, financing and property management during his tenure at Steadfast. “It’s bittersweet to be leaving Steadfast, but Jim and Andy offered me an opportunity to lead and grow their new affordable housing platform,” said Stoll. “I was impressed with BH Properties’ well capitalized balance sheet, and their track record of making investment decisions quickly. This has allowed me to hit the ground running and we are already looking at potential investments in Texas, California, Arizona and Colorado.” About BH PropertiesFounded 30 years ago, privately held BH Properties (http://www.bhproperties.com) is a vertically integrated real estate investment company focusing on the acquisition and management of a geographically and product diverse portfolio of assets. The Los Angeles-based company, with regional offices in Phoenix, Dallas, Houston and Seattle, continues to focus on value-add transactions, distressed debt, gap financing, and ground leases. Today the company owns and operates nearly 10 million square feet across 16 states. Media Contact: Bruce BeckDB&R Marketing Communications, Inc.(805) 777-7971 – office(818) 540-8077 – mobilebruce@dbrpr.com

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Average Home Is Selling Above Its Asking Price for the First Time in Nearly a Year

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This is the first time since last August the average sale-to-list price ratio has surpassed 100%. Low inventory and steady demand are buoying home prices. The average sale-to-list price ratio hit 100.1% during the four weeks ending July 2, marking the first time in nearly a year the average U.S. home is selling for more than its asking price. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Additionally, the median home-sale price was down just $1,000 (-0.3%) from a year ago, when prices were near record highs. A lack of homes for sale is the main reason homes are selling above their asking price, with new listings down 25% from a year ago and the total number of homes for sale down 12% as homeowners hang onto relatively low mortgage rates. Despite the double dilemma of low inventory and high prices, early-stage homebuyer demand is picking up. Redfin’s Homebuyer Demand Index—a measure of requests for home tours and other buying services from Redfin agents—is up 4% from a month earlier and near its highest level in over a year. Leading indicators of homebuying activity: Key housing market takeaways for 400+ U.S. metro areas: Unless otherwise noted, this data covers the four-week period ending July 2. Redfin’s weekly housing market data goes back through 2015. For bullets that include metro-level breakdowns, Redfin analyzed the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. To view the full report, including charts, please visit:https://www.redfin.com/news/housing-market-update-homes-selling-above-asking-price

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Consumer Confidence in Housing May Have Plateaued

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HPSI Remains Stuck at Relatively Low Level Amid Ongoing Supply and Affordability Constraints The Fannie Mae Home Purchase Sentiment Index® (HPSI) remained mostly flat in June, increasing by only 0.4 points to 66.0, as difficult supply and affordability conditions continue to weigh on the housing market. While most of the HPSI’s six components were little changed month over month, survey respondents did report that homebuying conditions improved slightly in June compared to May. Even so, a significant majority of consumers continue to report that it’s a “bad time to buy” a home, as they have since mid-2021. The full index is up 1.2 points year over year. “Confidence in the housing market appears to have plateaued at a relatively low level, suggesting that many consumers may be coming to terms with elevated mortgage rates and high home prices,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Home prices continue to be supported by the tight supply of homes available for sale, and, compared to the end of last year, fewer respondents today believe home prices will decrease over the next 12 months. Additionally, consumers’ mortgage rate expectations have tempered: A larger share of respondents think mortgage rates will stay the same over the next year, whereas mid-to-late last year, most thought rates would continue going up. This seems to signal that consumers are adapting to the idea that higher mortgage rates will likely stick around for the foreseeable future. We continue to forecast home sales to slow in the second half of the year, compared to the first half, due to ongoing affordability constraints and lack of housing supply.” Home Purchase Sentiment Index – Component Highlights Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased in June by 0.4 points to 66.0. The HPSI is up 1.2 points compared to the same time last year. Read the full research report for additional information. About Fannie Mae’s Home Purchase Sentiment IndexThe Home Purchase Sentiment Index® (HPSI) distills information about consumers’ home purchase sentiment from Fannie Mae’s National Housing Survey® (NHS) into a single number. The HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and decision making. The HPSI is constructed from answers to six NHS questions that solicit consumers’ evaluations of housing market conditions and address topics that are related to their home purchase decisions. The questions ask consumers whether they think that it is a good or bad time to buy or to sell a house, what direction they expect home prices and mortgage interest rates to move, how concerned they are about losing their jobs, and whether their incomes are higher than they were a year earlier.

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