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HOME FLIPPING DECLINES AND INVESTOR PROFITS STUMBLE ACROSS U.S. DURING THIRD QUARTER OF 2024

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Typical Raw Flipping Profit Drops to $70,000; Flipping Rate Also Decreases to Low Point Over Past Year ATTOM, a leading curator of land, property data, and real estate analytics, released its third-quarter 2024 U.S. Home Flipping Report showing that 74,618 single-family homes and condominiums in the United States were flipped in the third quarter. Those transactions represented 7.2 percent, or one of every 14 home sales, nationwide during the months running from July through September of 2024. The latest portion of flipped properties was down from 7.6 percent of all sales in the U.S. during the second quarter of 2024, extending a common pattern seen during annual Spring and Summer buying seasons when other types of home sales spike. The flipping rate returned to the 7.2 percent level recorded in the third quarter of last year. However, while the flipping rate followed historical trends, profits turned back downward for investors who buy, renovate and quickly resell homes following a period when their fortunes had been improving. The latest data showed that home flipping nationwide typically generated just a 28.7 percent return on investment before expenses on homes re-sold during the third quarter of this year. That was down from 31.2 percent in the second quarter of 2024 after six straight quarterly increases that had signaled a marked improvement for the flipping industry. The typical profit margin on homes flipped during the third quarter of 2024 – based on the difference between the median purchase and median resale price for home flips – slid down to only half of the mid-50 percent peak hit in 2016. It also stayed withing a range that could easily be wiped out by carrying costs that include renovation expenses, mortgage payments and property taxes, exposing again the struggles U.S. home flippers are having in turning healthy profits. Gross profits on typical flips around the country, meanwhile, decreased to about $70,000 . That was down roughly $5,000 from the prior quarter and $10,000 from highs reached two years ago, although still up slightly from the third quarter of 2023. “Home flippers just can’t seem to shake the doldrums. After more than a year when things were getting better, they turned notably worse again over the Summer,” said Rob Barber, CEO for ATTOM. “One quarter’s worth of numbers isn’t enough to make any grand statements about another downturn. The next six months should speak more to that, especially amid an ongoing tight housing market that should work in their favor. But as interest rates remain double what they were a few years ago and inflation keeps raising renovation costs, investors continue to have a tough time making the kind of profits that would lure more into the game.” Home-flipping rates drop quarterly in two-thirds of U.S. Home flips as a portion of all home sales decreased from the second quarter to the third quarter of 2024 in 115 of the 183 metropolitan statistical areas around the U.S. with enough data to analyze (62.8 percent), although they were still up annually in 95, or 51.9 percent of those markets. Measured against the same period of 2023, a majority of flipping rates changed by less than one percentage point. (Metro areas were included if they had a population of 200,000 or more and at least 50 home flips in the third quarter of 2024). Among the metro areas analyzed, the largest flipping rates during the third quarter of 2024 were in Warner Robins, GA (flips comprised 22.7 percent of all home sales); Macon, GA (16.8 percent); Atlanta, GA (13.6 percent); Columbus, GA (12.8 percent) and Memphis, TN (12.7 percent). Q3 2024 U.S. Home Flipping Historical Trends Aside from Atlanta and Memphis, the highest third-quarter flipping rates among metro areas with a population of at least 1 million were in Birmingham, AL (11 percent), Phoenix, AZ (10.7 percent) and Tampa, FL (10 percent). The smallest home-flipping rates were in Seattle, WA (3.5 percent); Des Moines, IA (3.7 percent); Honolulu, HI (3.8 percent); Portland, ME (3.9 percent) and Madison, WI (4 percent). Typical home-flipping returns down in more than half of U.S. The median $315,250 resale price of homes flipped nationwide in the third quarter of 2024 generated a gross profit of $70,250 above the median investor purchase price of $245,000. That resulted in a typical 28.7 percent gross profit margin before expenses in the third quarter of 2024, down more than two points from 31.2 percent in the second quarter of 2024. It also was down from 29.7 percent in the third quarter of last year. The latest nationwide figure remained only about half the 56.3 percent level reached in mid-2016 and well below a more recent peak of 48.8 percent in 2020. Profit margins decreased from the second to the third quarter of this year in 106 of the 183 metro areas analyzed (57.9 percent) and were down annually in 105 of those markets (57.4 percent). Metro areas with the biggest quarterly declines in typical profit margins during the third quarter of 2024 included Salisbury, MD (ROI down from 129.8 percent in the second quarter of 2024 to 61.8 percent in the third quarter of 2024); South Bend, IN (down from 89.4 percent to 36.4 percent); Gainesville, FL (down from 64 percent to 20 percent); Peoria, IL (down from 78.2 percent to 36.4 percent) and Youngstown, OH (down from 54.1 percent to 20 percent). Metro areas with a population of at least 1 million and the largest quarterly profit-margin drop-offs were Buffalo, NY (ROI down from 100 percent in the second quarter of 2024 to 73.5 percent in the third quarter of 2024); Honolulu, HI (down from 24.4 percent to 5.9 percent); Tulsa, OK (down from 59.1 percent to 40.8 percent); San Jose, CA (down from 26.8 percent to 12.1 percent) and Pittsburgh, PA (down from 115.3 percent to 101.8 percent). Profit margins below 30 percent in nearly half of nation The recent fallback resulted in typical gross profit margins of less than 30 percent in 80, or four of

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New York City and Chicago Areas More Vulnerable to Drop-offs Along with Inland California; South Still Faces Relatively Small Exposure ATTOM, a leading curator of land, property data, and real estate analytics, released its latest Special Housing Market Impact Risk Report spotlighting county-level housing markets around the United States that are more or less vulnerable to declines, based on home affordability, equity and other measures in the third quarter of 2024. The report shows that California, New Jersey and Illinois once again had high concentrations of the most-at-risk markets in the country, with parts of Florida also joining that mix. Less-vulnerable markets continued to be clustered in the South region of the nation. The third-quarter patterns – derived from gaps in affordability, underwater mortgages, foreclosures and unemployment – revealed that two-thirds of the 50 counties around the U.S. considered most exposed to potential fallbacks were in California, Florida, Illinois and New Jersey. Florida was a new addition to that group in the third quarter after earlier periods when it had fewer markets making the list of areas at elevated risk of downturns. County-level housing markets on the latest list included six in and around Chicago, IL, five in or near New York City and four in southern New Jersey. Another 13 were in California, mostly inland from the Pacific coast. The rest were scattered largely around the Northeast, South and Midwest. At the other end of the risk spectrum, more than half the markets considered least likely to decline fell in Virginia, Wisconsin, Tennessee, Montana and New Hampshire. They included four in the Washington, DC, area. The latest gaps come as the nation’s 13-year housing-market boom, along with the broader economy, continue to affect different parts of the country in different ways. An almost unrelenting increase in home prices has surpassed most wage gains around the country to varying degrees. That has led to home ownership costs consuming more than triple the portion of average wages in some parts of the country compared to others. Similar disparities can be found in several other measures: unemployment rates, the level of homeowners facing foreclosure and the portion owing more on their mortgages than their homes are worth. “The recent market risk patterns changed a bit in the third quarter, with some new areas making the list of places more or less exposed to downfalls. But the big picture remained pretty much the same around the country as differences in important metrics helped produce varying pockets of vulnerability,” said Rob Barber, CEO at ATTOM. “As with past reports, this one is not meant to suggest any given area is about to fall or is immune from problems. Rather, it spotlights locations that look to be more or less able to withstand significant changes in market conditions. We will continue to keep a close watch on markets throughout the country to see how things track.” Counties were considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceeded estimated property values, the percentage of average local wages required to pay for major home ownership expenses on median-priced single-family homes and local unemployment rates. The conclusions were drawn from an analysis of the most recent home affordability, equity and foreclosure reports prepared by ATTOM. Unemployment rates came from federal government data. Rankings were based on a combination of those four categories in 578 counties around the United States with sufficient data to analyze in the third quarter of 2024. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the four ranks. Significant differences in risk continue around the U.S. at a time when market forces could combine to push home values up even further or tamp them down. Vulnerable housing markets clustered around Chicago, New York City and inland CaliforniaThe metropolitan areas around New York, NY, and Chicago, IL, as well as broad swaths of California, had 24 of the 50 U.S. counties considered most vulnerable in the third quarter of 2024 to housing market troubles. The counties were among 578 around the nation with enough data to analyze. The most at-risk counties included Cook, Kane, Kendall, McHenry and Will counties in Illinois and Lake County in Indiana, two in New York City (Kings County, which covers Brooklyn, and New York County, which covers Manhattan) and three in the New York City suburbs (Essex, Passaic and Sussex counties, all in northern New Jersey). Another 13 were in California: Butte County (Chico), Contra Costa County (outside Oakland), El Dorado County (outside Sacramento), Humboldt County (Eureka) and Solano County (outside Sacramento) in the northern part of the state, plus Kern County (Bakersfield), Kings County (outside Fresno), Madera County (outside Fresno), Merced County, San Joaquin County (Stockton) and Stanislas County (Modesto) in central California. Two others, Riverside and San Bernardino counties, were in southern California. Worse levels of affordability, underwater mortgages, foreclosures and unemployment continue in most-at-risk marketsMajor home-ownership costs (mortgage payments, property taxes and insurance) on median-priced single-family homes and condos were considered seriously unaffordable in 30 of the 50 counties deemed most vulnerable to market drop-offs in the third quarter of 2024. That means those expenses consumed at least 43 percent of average local wages. Nationwide, major expenses on typical homes sold in the third quarter required 34 percent of average local wages, a level also above basic affordability benchmarks. The highest percentages in the most at-risk markets were in Kings County (Brooklyn), NY (108 percent of average local wages needed for major ownership costs); Riverside County, CA (70.2 percent); El Dorado County, CA (outside Sacramento) (66.3 percent); Passaic County, NJ (outside New York City) (65.9 percent) and New York County (Manhattan), NY (65.1 percent). At least 6 percent of residential mortgages were underwater in the third quarter of 2024 in 23 of the 50 most-at-risk counties. Nationwide, 5.5 percent of mortgages fell into that category, with homeowners owing more on their mortgages than the estimated value of their properties. Those with the highest underwater rates among the 50 most at-risk counties were St. Clair County, IL (outside St. Louis, MO) (15 percent underwater); Tangipahoa Parish, LA (east of Baton Rouge) (13.7 percent); Pinal County, AZ (outside Phoenix) (12.4 percent); Philadelphia County, PA (11.9 percent) and Marion County, FL (outside Gainesville) (11 percent). More than one of every 1,000 residential properties faced a foreclosure action in the third quarter of 2024 in 35 of the 50 most vulnerable counties. Nationwide, one in 1,618 homes were in that position. The highest foreclosure-case rates in those counties were in Charlotte County (Punta Gorda), FL (one in 449 residential properties facing possible foreclosure); Osceola County, FL (outside Orlando) (one in 473); Dorchester County, SC (outside Charleston) (one in

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Panel Also Forecasts Stagnant Home Sales and Only Modestly Lower Mortgage Rates Following an average expectation for national home price growth of 5.2 percent in 2024, a panel of over 100 housing experts forecasts home price growth to decelerate to 3.8 percent in 2025 and 3.6 percent in 2026, according to the Q4 2024 Fannie Mae (OTCQB: FNMA) Home Price Expectations Survey (HPES), produced in partnership with Pulsenomics, LLC. The panel’s latest estimates of national home price growth represent an upward revision from last quarter’s expectations of 4.7 percent for 2024, 3.1 percent for 2025, and 3.3 percent for 2026, as measured by the Fannie Mae Home Price Index (FNM-HPI). The Economic & Strategic Research (ESR) Group also surveyed panelists on their general housing outlook for 2025. On average, the panelists expect existing home sales to remain sluggish for another year, new home sales to trend slightly upward, and mortgage rates to remain elevated but modestly decline over the course of the year to 6.3 percent. Additionally, depending on their expectations for accelerating or decelerating home prices in 2025, the ESR Group also asked for the major factors driving their home price forecast. The largest group, which represents roughly 80 percent of respondents, expects home price growth to decelerate, citing continued high mortgage rates, rising for-sale housing inventory, and slower wage growth as the main drivers. The minority of panelists who expect faster home price appreciation most commonly cited strong pent-up demand from first-time homebuyers, continued tightening of inventory of homes for sale, and easing mortgage rates. Complete results of the Q4 2024 HPES can be found here. “While home price growth is expected to ease next year, HPES panelists’ big-picture view for 2025 appears to be little changed compared to 2024, with most seeing another year of elevated mortgage rates and weak home sales,” said Mark Palim, Fannie Mae Senior Vice President and Chief Economist. “We share our panelists’ view that home price growth is likely to decelerate next year, as the mix of continued elevated mortgage rates and the run-up in home prices of the past four years will likely continue to strain affordability and remain an impediment to many would-be homebuyers.” Terry Loebs, founder of Pulsenomics, added: “Although a significant majority of experts expect the nationwide home value appreciation rate will diminish from recent levels, the panelists’ annual average projected price increase through 2029 is still well above expectations for economy-wide inflation, suggesting that they expect affordability problems to persist well beyond 2025.” To receive email updates regarding future HPES updates and other economic and housing market research from Fannie Mae’s Economic & Strategic Research Group, please click here. About Fannie Mae’s Home Price Expectations SurveyFannie Mae’s Home Price Expectations Survey (HPES), produced in partnership with Pulsenomics, LLC, polls over 100 experts across the housing and mortgage industry and academia for forecasts of national home price percentage changes in each of the coming five calendar years, with the Fannie Mae Home Price Index as the benchmark. On a quarterly basis, Fannie Mae plans to publish the latest panelist-level expectations, as well as a special topic report that includes respondent feedback on topical questions designed to help inform the broader housing industry. The Q4 2024 HPES had 115 respondents and was conducted by Pulsenomics, LLC, between November 12, 2024, and November 22, 2024. SOURCE Fannie Mae Author admin View all posts

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Leni Launches Universal Data Model (UDM): A Groundbreaking Milestone for Multifamily Real Estate Data Integration Leni, the leading AI-powered decision-support platform for real estate, is proud to unveil its Universal Data Model (UDM)—a revolutionary innovation redefining data integration and intelligence in the multifamily real estate industry. Developed over three years of intensive R&D by an exceptional team including alumni from MIT, Greystar, EY and X (formerly Twitter), along with PhD and Master’s graduates from Nobel Laureate Geoffrey Hinton’s Vector Institute, the UDM represents a pivotal moment in real estate technology. Leni’s position as an official partner of all the leading Property Management Systems (PMS) further underscores this achievement. “The multifamily real estate industry has always struggled with siloed data across platforms that don’t communicate, creating inefficiencies and lost opportunities,” said Arunabh Dastidar, CEO and Co-Founder of Leni. “The Universal Data Model is a landmark advancement that changes this paradigm. It acts as a polyglot, translating the languages of various PMS systems into a unified schema—finally empowering professionals to harness the true potential of their data.” “The Universal Data Model is a testament to our commitment to solving complex data challenges in real estate. By creating a standardized framework that speaks the language of every major PMS system, we’re not just organizing data—we’re unlocking its potential to drive smarter decisions,” said Jonathan Gerstein, Data and Analytics Lead at Leni and MIT alumnus, formerly leading Business Intelligence at Olive Tree. “This innovation represents a fundamental shift in how the industry can leverage its data assets.” A New Era for Multifamily Professionals For today’s multifamily professionals, the UDM is more than a technical solution—it’s a gateway to a smarter, more efficient way of investing and managing real estate portfolios. Here’s what this means for you and your organization: This isn’t just a step forward—it’s a leap into a new world of possibilities. Redefining Data Integration in Multifamily The UDM is built to address challenges at every level of multifamily property management, with key features including: Real-World Applications: Unlocking Potential The UDM opens doors to innovative solutions, making it possible to: Talking about Leni’s impact on the organization’s operations, George Harabedian, Director at The GSH Group, said, “We rely on multiple management companies and systems to manage our portfolio, and Leni has been instrumental in bringing all the data together in one easy-to-access place. It didn’t take long for us to see the difference – having our financial reports ready without the hassle of manual consolidation has made such a positive impact. Plus, the insights from Leni’s reports give us a clear picture of our portfolio, making it easier to spot any gaps and make smart decisions quickly.” A Milestone in Real Estate Technology The Universal Data Model isn’t just another data schema—it’s a patent-pending, transformative technological breakthrough in multifamily real estate data architecture. Built on a sophisticated Entity-Relationship model with advanced normalization principles, the UDM implements a hierarchical structure that maps complex property relationships while maintaining referential integrity across disparate systems. Its polymorphic data adapters can process and normalize inputs from various PMS APIs, converting proprietary formats into a standardized JSON-based schema with built-in validation. The model’s distributed architecture ensures horizontal scalability, while its event-sourcing pattern maintains a complete audit trail of all data transformations. With support for both ACID-compliant transactions and eventual consistency models, the UDM bridges decades of technological fragmentation, providing a robust GraphQL API layer that enables real-time data synchronization and advanced querying capabilities. Through this sophisticated technical framework, property owners and operators can now leverage machine learning models and predictive analytics to make data-driven decisions with unprecedented precision and reliability. “Our Universal Data Model represents a paradigm shift in how real estate data is structured and utilized. We’ve created a sophisticated yet flexible framework that adapts to the diverse needs of the industry while maintaining data integrity and accessibility,” said Shruti Jain, Product Lead at Leni and former Manager at EY. “This innovation enables seamless integration across platforms, empowering real estate professionals to make informed decisions confidently.” About Leni Leni is an AI-powered decision-support platform dedicated to empowering real estate portfolio owners and operators with advanced analytics, streamlined reporting, and seamless data integration. As a SOC2-compliant platform with 300,000 units and partnerships with all major PMS providers, Leni continues to set the standard for data-driven performance in multifamily real estate. For more information, visit: www.leni.co SOURCE Leni CONTACT: Maithili Satam, Maithili@leni.co Author admin View all posts

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Wrightwell, a vertically integrated real estate platform offering comprehensive operational and investment services to captive capital partners and third-party clients, today announced the close of its latest funding round. In conjunction with the transaction, Wrightwell also formed a strategic partnership with Bain Capital’s Insurance team (Bain Capital) and Saluda Grade to invest up to $300 million into SFR and BFR housing, addressing critical residential housing needs across the U.S. “We are thrilled to welcome Bain Capital to our platform and to deepen our longstanding partnership with Saluda Grade. Both organizations bring extensive expertise in direct investments in U.S. housing and financing operating companies,” said Anthony DePalma, Co-Founder and CEO of Wrightwell. “In addition to executing for captive capital, our platform helps enable all market participants to leverage our full-service institutional-quality operations for all their real estate needs. Together with our investment partners, we have assembled an outstanding team to drive Wrightwell forward as a top-tier national real estate investment and operating business.” The partnership will focus on creating and enhancing affordable housing options for lower- and middle-income families and individuals, combining Bain Capital’s and Saluda Grade’s investment experience with Wrightwell’s end-to-end operational capabilities. “Wrightwell has demonstrated continued ability to adapt and innovate across changing interest rates and market environments,” said Brad Hartung, Senior Portfolio Manager at Saluda Grade and board member at Wrightwell. “This strategic partnership will help bolster management’s ability to execute on the firm’s growth strategy and secure long-lasting commercial partnerships that should drive value creation for all stakeholders. We are excited to see Wrightwell continue to enhance its servicing of the unmet needs that exist in the real estate market.” Key Leadership Appointments To drive its national expansion, Wrightwell has appointed several industry leaders to key roles: “We are excited to add such a deep bench of industry veterans to our team,” said Alex Kahn, Co-Founder and COO of Wrightwell. “Their expertise, deep experience and understanding of the U.S. housing market will strengthen Wrightwell’s efforts to establish itself as a key provider of real estate operating and investment services to all market participants.” From Vantage to Wrightwell: A Strategic RebrandFounded in 2021 as an SFR asset originator, Wrightwell (formerly Vantage) has evolved into a full-service real estate operating and investment platform. Its new identity reflects a broader focus on delivering a comprehensive suite of solutions to captive capital partners and third-party clients. National Growth PlansHeadquartered in Atlanta, GA, Wrightwell currently operates in Arizona, Georgia, North Carolina, South Carolina, and Tennessee. The company plans to expand its Construction, Brokerage, Asset and Property Management Divisions into ten new markets within the next year. For more information, please visit: www.wrightwell.co. Media Contact:Jessica Rutledgejrutledge@wrightwell.co917-683-6820 About WrightwellWrightwell is a vertically integrated real estate platform offering comprehensive operational and investment services to captive capital partners and third-party clients. The company operates five core business lines: Brokerage, Construction, Property Management, Asset Management, and REO Management. Clients can choose individual services or engage in a more comprehensive partnership. For more information, please visit: www.wrightwell.co. About Bain Capital Founded in 1984, Bain Capital is one of the world’s leading private investment firms. We are committed to creating lasting impact for our investors, teams, businesses, and the communities in which we live. As a private partnership, we lead with conviction and a culture of collaboration, advantages that enable us to innovate investment approaches, unlock opportunities, and create exceptional outcomes. Our global platform invests across five focus areas: Private Equity, Growth & Venture, Capital Solutions, Credit & Capital Markets, and Real Assets. In these focus areas, we bring deep sector expertise and wide-ranging capabilities. We have 25 offices on four continents, more than 1,850 employees, and approximately $185 billion in assets under management. To learn more, visit www.baincapital.com. Follow @BainCapital on LinkedIn and X (Twitter). About Saluda GradeSaluda Grade is an alternative asset manager focused on opportunities in asset backed finance, real estate debt and equity, and hard asset sectors. Headquartered in New York City, the Firm was founded in 2019. See saludagrade.com for additional information. SOURCE Wrightwell Author admin View all posts

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Evernest, a national, full-service real estate and property management firm, announced the acquisition of certain assets of Elara, the property management division of Picket Homes. The acquisition solidifies Evernest’s position as one of the largest institutional third-party property management providers in the United States. With this acquisition, Evernest now manages 15,000 homes across more than 35 markets nationwide. “Evernest is committed to delivering unmatched value to our clients, and this acquisition represents a strategic milestone for us,” said Matthew Whitaker, Evernest Founder and CEO. “We are thrilled to welcome the Elara team into the Evernest family. Their expertise will enhance our operations and further our mission of providing best-in-class property management services.” Quinten Shay, CEO of Picket Homes, shared his confidence in the transition: “Evernest’s focus on operational excellence, coupled with its innovative approach to property management, made this decision an easy one. Knowing that our clients and residents are in great hands is paramount to us, and Evernest checks all the boxes. This move reinforces Picket’s focus on our core strength-building premium technology and data for SFR investors.” A key differentiator for Evernest is its best-in-class last-mile operations, with dedicated, local teams on the ground in every market it serves. This approach ensures that property owners and residents alike receive personalized, hands-on service. In addition, Evernest continues to develop proprietary technology designed to improve market-level operations and streamline client communications, reinforcing its reputation as a leader in the property management industry. The acquisition will also benefit Evernest’s current and future clients by increasing market density, which in turn boosts net operating income (NOI) for property owners. “We see this as a win-win for everyone involved,” added Whitaker. “Our clients gain from the improved efficiencies and enhanced market presence, while the Picket/Elara team brings incredible talent and experience that will help us elevate our services to the next level.” This transaction marks Evernest’s continued focus on strategic growth, with Elara assets joining the ranks of many other successful acquisitions that have bolstered Evernest’s national presence and operational expertise. About EvernestEvernest is a national leader in single-family and small multifamily real estate investment and property management. Operating in more than 35 real estate markets, the firm manages 15,000 homes for over 6,000 owners, brokers more than 500 investment deals annually, and continues to develop innovative technology and processes to enhance client outcomes. Evernest has earned a spot on the Inc. 5000 list eight of the last nine years. To learn more, visit Evernest.co. About Picket HomesPicket Homes is a real estate technology company focused on enabling property investors with tools, services, and strategies to manage their portfolios effectively. Its Elara division specialized in property management for institutions. SOURCE Evernest Author admin View all posts