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Redfin Reports There Are Nearly 40% Fewer Homes For Sale Now Than Pre-Pandemic

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Inventory has posted its biggest decline in over a year, with homeowners hanging onto their comparatively low mortgage rates The total number of U.S. homes for sale dropped 6% from a year earlier during the four weeks ending June 11, the biggest decline in 13 months. That’s according to a new report from Redfin, the technology-powered real estate brokerage. New listings dropped 23%, continuing a 10-month streak of double-digit declines. Those add to the deepening post-pandemic inventory shortage; there are 39% fewer homes for sale now than there were five years ago, in June 2018. The inventory crunch is partly due to a homebuilding slump that’s lasted for over a decade and partly to mortgage rates falling to record-low levels during the pandemic, then shooting up. Mortgage rates have more than doubled since 2021, landing at close to 7% this week. The record-low mortgage rates of 2020 and 2021 drove a homebuying boom, depleting inventory. When rates started going up in the beginning of 2022, many would-be sellers backed off, failing to fill the inventory hole. Elevated rates discourage homeowners who would prefer to hold onto a comparatively low rate from selling. Pending home sales are down 17% year over year, the biggest decline in over four months, but it isn’t all due to a lack of demand. People are still showing interest in buying. Mortgage-purchase applications rose 8% over the last week, and Redfin’s Homebuyer Demand Index—a measure of requests for tours and other services from Redfin agents—is up over the last two weeks and near its highest level in a year. That means there’s a fair amount of pent-up demand, and many buyers will be ready to pounce when more homes hit the market. Demand outpacing supply is preventing home prices from falling drastically: The median sale price is down just 1.1%, the smallest annual decline in three months. This week’s economic news indicates that mortgage rates are unlikely to decline in the next few months, which may mean new listings stay low for the time being and the inventory shortage deepens. The latest inflation report shows that price increases have continued to cool, and the Fed announced that it will pause interest-rate hikes this month after nearly a year of increases but may hike a couple more times this year. “The Fed’s indication that there are more rate hikes to come is not what homebuyers want to hear. It’s likely to keep mortgage rates elevated and may even push them up a bit,” said Redfin Economics Research Lead Chen Zhao. “People who are sitting on the sidelines, waiting for mortgage rates to decline, should know that’s unlikely to happen in the foreseeable future. If a home that’s in your price range and has everything on your wishlist hits the market, there’s no good reason to wait.” 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 June 11. 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-supply-drops-mortgage-rates-high

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Cenlar FSB, the nation’s leading mortgage loan subservicer, announced that Thomas “Tom” Donatacci has joined the company as Senior Vice President and Investor Relations Officer. Tom, who is a well-known leader in the mortgage sector, has extensive experience in servicing transactions and subservicing, due diligence, and M&A. He will be responsible for strengthening our relationships with Cenlar’s stakeholders – primarily agency investors, shareholders, clients and rating agencies. Tom will support the growth of our relationships with clients as well as prospects by bringing his considerable knowledge and insight to the fore and sharing the details of Cenlar’s mortgage servicing transformation and strategic plan for the benefit of our clients and their homeowners. “Tom brings invaluable industry insights to Cenlar in addition to a solid track record of delivering results. Having such deep knowledge of the industry and building relationships, I am confident that Tom will further strengthen our market presence, as well as inform all stakeholders of our strategic vision and improvements to the company as we’re striving every day to be the very best partner to our clients and their homeowners,” said Chief Executive Officer and President Jim Daras. Prior to joining Cenlar, Tom was Executive Vice President of Business Development for The Money Source Inc. He was also Chief of Staff at Impac Holdings Inc., Executive Vice President of Special Servicing at Selene Finance, and Executive Vice President of Clayton Holdings, LLC. “I am excited to be joining Cenlar, the leading subservicer in our industry, at this point in the evolution of the company and my own career,” Tom said. Tom holds a Master of Business Administration from Seton Hall University and a Bachelor of Arts from Rutgers University. About Cenlar FSB Cenlar FSB is the nation’s leading subservicer, servicing loans in 50 states and its U.S. territories. Cenlar boasts a loyal and growing client base including banks, credit unions and mortgage bankers. Our employees, strategically located throughout the United States, are dedicated to customer satisfaction and teamwork that drives client solutions unparalleled in quality, flexibility and innovation. Headquartered in Ewing, NJ, Cenlar is industry rated and audited regularly by independent third parties. For more information, visit www.cenlar.com.

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Oregon and Washington Among Higher-Priced Areas of Nation Absorbing More of Recent Market Decline Based on Key Measures from First Quarter of 2023; Other Areas of U.S. in Lower Price Ranges Showing Less Impact from Downturn ATTOM, a leading curator of land, property, and real estate data, released a Special Housing Impact Report spotlighting how the recent downturn in the U.S. housing market is starting to affect counties around the nation, based on key measures from the first quarter of 2023. The report shows that the Western region and other more-upscale areas around the country are bearing the greater brunt so far from the slowdown, than other parts of the U.S., with larger-than-average declines in home values or increases in underwater mortgage rates and foreclosure activity. In contrast, lower-priced markets across the country have experienced relatively less impact from the market downturn that started in the middle of last year. The patterns during the first quarter of 2023 – based on changes in home price, home affordability, underwater mortgages and foreclosures since the second quarter of 2022 – revealed that almost half of the 50 counties seeing the biggest impact were in the West. Among the top 50, 12 were in Oregon and Washington. The downturn also has dented markets more often in areas where median home values exceed $350,000. As with the West, those more-upscale areas had almost half of the 50 most-affected counties during the first quarter of this year. At the other end of the spectrum, the South, Midwest and Northeast were seeing less fallout along with lower-priced markets. States in those regions, led by Texas, Connecticut and Illinois, had 18 of the 50 counties showing the smallest effects from the pullback that hit last year after a decade of nearly unceasing gains in prices, profits and other key measures. “We are starting to see some patterns that show where the U.S. housing market is cooling off and how it’s hitting homeowners based on some key metrics. It looks so far—and it’s important to stress, so far—to be having more impact in places with the highest housing costs and less impact elsewhere,” said Rob Barber, CEO at ATTOM. “This doesn’t mean those markets are in danger of a big fall while others are immune, but the data does provide a useful geographical snapshot of the initial market dip.” Counties were considered more or less affected by the market slowdown based on changes from the second quarter of 2022 to the first quarter of 2023 in four measures: median home prices, the percentage of homes facing possible foreclosure, the percentage of average local wages required to pay for major home ownership expenses on median-priced homes, and the portion of homes with mortgage balances that exceeded estimated property values. The conclusions were drawn from an analysis of the most recent reports on each topic prepared by ATTOM. Rankings showing the most and least impacted markets were based on a combination of those four categories in 572 counties around the United States with sufficient data to analyze in the first quarter of 2023. Counties were ranked in each category, with the overall conclusions based on a combination of the four ranks. The new trends reflect a period when the U.S. housing market endured three straight quarters of flat or negative performance for the first time in more than a decade, as prices, seller profits and homeowner equity fell in most of the country while foreclosure activity rose. That happened as average home-mortgage rates doubled to more than 6 percent for a 30-year fixed-rate loan, inflation was as high as 9 percent, the stock market faltered, and economic uncertainty increased, even amid a period of historically high employment. Interest rates have stabilized, inflation has eased, and the stock market has improved in recent months, generating potential positive signs for the Spring and Summer buying seasons. As with past ATTOM reports on potential downturns, the gaps in the impact from the market drop-off do not suggest significant problems for housing markets anywhere in the nation. What they do show is different impacts in different local markets. Western counties and high-priced markets feeling more impact from market slowdownTwenty-three of the 50 U.S. counties considered most affected by U.S. housing market drop-off, from among 572 with enough data to analyze, were in the West region during the first quarter of 2023. The top 50 counties included seven in Oregon, mostly in or near the city of Eugene: Deschutes County (east of Eugene), Douglas County (south of Eugene), Jackson County (south of Eugene), Lane County (Eugene), Linn County (north of Eugene), Marion County (Salem) and Yamhill County (outside Portland). Another five were in Washington: Clark County (Vancouver), Cowlitz County (north of Vancouver), Skagit County (north of Seattle), Spokane County and Yakima County. Others in the top 50 were scattered around the country, with concentrations in areas where single-family homes typically sold for at least $350,000. Prices dropping faster while underwater and foreclosure rates grow in most affected marketsMedian single-family home and condo prices decreased between the second quarter of 2022 to the first quarter of 2023 by more than the nationwide 7.2 percent decline (from $345,000 to $320,000) in 31 of the 50 counties considered most affected by the market downturn. Typical values increased during that time in only three of those counties. The largest price decreases in those markets came in Washington County, PA (outside Pittsburgh) (median price down 25.5 percent from the second quarter of 2022 to the first quarter of 2023); Tompkins County (Ithaca), NY (down 25.5 percent); Peoria County, IL (down 24.6 percent); San Francisco County, CA (down 18 percent) and Boone County (Columbia), MO (down 17.6 percent). At the same time, underwater residential mortgage rates grew from the second quarter of 2022 to the first quarter of 2023 by more than the nationwide increase in all 50 counties considered most affected by the recent market trends. The national rate rose during that time from 5.9 percent to 6.2 percent. Among those 50 counties, the biggest increases in the portion of homeowners who owed more on their mortgages than the estimated value of their properties, included Dona Ana County (Las Cruces), NM (portion up from 7.8 percent to 11 percent); Pinal County, AZ (outside Phoenix) (up from 2.8 percent to 5.5 percent); Williamson County, TX (outside Austin) (up from 1.4 percent to 4 percent); Gaston County, NC (outside Charlotte) (up

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With Limited Inventory, the Mid-Atlantic Market Remains Competitive After two and a half years of robust price growth, home prices in the Mid-Atlantic have been relatively flat for the past three months. However, homes continue to sell very fast and the lack of new listings suggests that prices in the region may have bottomed out and could be set to rebound. Both pending and closed sales increased between April and May, reflecting seasonal patterns, but pending sales were down 19.3% and closed sales were down 20.2% compared to last year at this time. Persistently high mortgage rates have sidelined some buyers, but a lack of inventory continues to be a major constraint on the market and is the primary reason prices are holding firm across most of the region. The number of active listings on the market totals just 42% of available listings in 2019. “There is a pool of ‘shadow’ buyers that could be waiting for mortgage rates to drop this summer,” said Lisa Sturtevant, Bright MLS Chief Economist. “However, renewed buyer interest may not translate into more transactions if there is not more inventory. Lower mortgage rates could entice some homeowners to list their home, but it likely won’t be enough to shift the balance in the market.” That low inventory has meant the market is still moving pretty quickly. The median days on market in the Mid-Atlantic region was 7 in May, the fastest pace of home sales transactions since last June. Buyers have to be ready to make an offer when they find the right home. Showing activity remains below last year’s level (-21.8%) as would-be buyers have relatively few homes to view. The number of new listings coming onto the market is at a two-decade low, down 29.1% compared to a year ago. Without an influx of new listings—which is not expected any time soon—prices across most Mid-Atlantic markets will remain firm or continue to rise and it will remain a seller’s market. Key Market Takeaways The full Mid-Atlantic and new area reports are available at BrightMLS.com/MarketInsights. SOURCE Bright MLS

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Veteran Startup HR Leader to Help Take Company to the Next Level Poplar Homes, the tech-enabled property management company changing the way independent single-family rental investors and multifamily owners manage their rental properties, announced that Lydia Bowers joined the company as Chief People Officer, a new role at the company. Reporting to Poplar CEO Greg Toschi, Bowers will play a pivotal role in evolving the People function as the company continues its nationwide expansion. Bowers brings more than a decade of experience and a diverse background in human resources, including scaling HR teams, implementing processes and systems, talent acquisition, coaching, employee experience and engagement at transformative companies. “Poplar has always been a people-first organization. As we continue to grow the size and complexity of our company, we’re thrilled to add Lydia to our executive team,” Toschi said. “She brings a track record of scaling HR functions and enabling world-class cultures at high-growth companies that attract, develop and retain the best talent in the industry.” Bowers was most recently the Vice President, People, at Flexcar, a vehicle subscription company that was spun out of Zipcar in 2021. During her tenure, she built the HR function from the ground up while overseeing a 400% growth in headcount and the company’s expansion to five states and three countries. She also built the People functions at Spyce, a fast casual restaurant startup that was acquired by Sweetgreen and Ellevest, a VC-based investment platform for women. “Throughout my career, I have been attracted by opportunities to build human resources functions at transformative companies that enable a company to scale to meet their growth objectives. Poplar’s team members are the reason the company has grown so quickly, and I’m excited for the opportunity to be working with a world-class team that is passionate about its employees and understands the role an effective HR function can play in achieving its business objectives,” Bowers said. Bowers is the latest in a series of leadership appointments at Poplar designed to support the company’s growth. In August 2022, Scott Breon was promoted to President from Chief Strategy Officer and Michael Prinn joined as the company’s first Chief Financial Officer in October 2022. Since March 2022, Poplar has raised $110 million to expand nationwide through strategic acquisitions. To date, the company has used the funding to complete 16 acquisitions and expand into 11 new states. Poplar currently manages more than 15,000 properties in 25 markets across 17 states and plans to add 20 new markets in 2023, doubling its doors under management. Bowers holds a bachelor’s degree from Mount Holyoke College and a master’s from Cornell University, School of Industrial and Labor Relations. She is based in Boston.

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Nationwide, rents declined 1% from a year earlier in May—the largest drop since 2020—as a building boom increased supply and economic uncertainty cooled demand The median U.S. asking rent fell 0.6% year over year to $1,995 in May—the largest annual decline since March 2020—according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That compares with a near-record 16.5% increase one year earlier. May’s drop also represented the first annual decline since March 2020 on a revised basis. The median asking rent rose 1.4% from a month earlier in May. In the West, asking rents declined 2.1% from a year earlier—nearly four times the national pace. But other U.S. regions saw increases, with rents climbing 5.4% in the Northeast, 4.9% in the Midwest and 0.8% in the South. Rents have cooled in part because the number of rentals on the market has grown, giving landlords less leeway to hike prices because they’re grappling with a rise in vacancies as renters get more options to choose from. One reason rental supply has been growing is many homeowners are opting to rent their homes out instead of selling. Some have already moved into their next home, and are renting their previous home out to cash in on still-high rents and continue building equity on a house with a relatively low mortgage payment. The average 30-year-fixed mortgage rate is 6.8%, up from 5.09% a year ago and a record low of 2.65% in January 2021. The average monthly payment is $320 higher than it was at this time last year. “Many homeowners are deciding that instead of selling, they’re going to renovate their current home or rent it out while they wait for the market to improve,” said David Orr, a Redfin Premier real estate agent in Sacramento, CA. Some homeowners are likely waiting for housing prices to bounce back so they can make a larger profit when they do sell. Rental supply has also increased because America has been building more multifamily housing. Completed residential projects in buildings with five or more units rose 24.2% year over year on a seasonally-adjusted basis to 400,000 in April—the most recent month for which data is available. This is likely part of the reason the rental vacancy rate has ticked up; it was 6.4% in the first quarter—the highest level in two years. While a building boom has driven up the number of rentals on the market, the boom is slowing. The number of permitted residential projects in buildings with five or more units fell 22.9% year over year on a seasonally-adjusted basis to 503,000 in April. Permits, or approvals given by local jurisdictions to start construction projects, are a leading indicator of what’s happening in the housing market. Completions are a lagging indicator. Still, there remains a backlog of under-construction rentals that have yet to hit the market, meaning rents likely still have room to fall. Finally, rents have eased because fewer people are moving due to economic uncertainty, slowing household formation, still-high rental prices in many markets, and the rising cost of other goods and services due to inflation. While asking rents fell from a year earlier in May, they were still only 2.8% below their August peak of $2,053, meaning many renters are still taking on high rents. That isn’t the case in every market, though; in areas where rents are cooling more, renters are more likely to get deals and concessions from landlords. Rents Are Falling in the West, Rising in the Northeast In the West, the median asking rent fell 2.1% year over year to $2,409 in May. That’s the only region Redfin analyzed that saw an annual decline. Asking rents rose 5.4% to $2,495 in the Northeast, 4.9% to $1,406 in the Midwest and 0.8% to $1,663 in the South. Rents are cooling fastest in the West and South in part because they rose so much during the pandemic as scores of people moved into places including Phoenix and Miami. Now, rents in those regions have relatively more room to fall as supply catches up with demand. Rent growth has been steadier in the Midwest, which is home to many relatively affordable markets. The West is also seeing rents decelerate quickly because it is building a lot of multifamily housing, which means landlords in some areas are grappling with rising vacancies. There were 440,000 new non single family homes completed in the West in the first quarter, compared with roughly 200,000 in each of the other three U.S. regions. Expensive West Coast tech hubs like Seattle and San Francisco may also be experiencing rent declines due to remote work and tech layoffs. To read the full report, including charts and methodology, please visit: https://www.redfin.com/news/redfin-rental-report-may-2023/