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FORECLOSURE ACTIVITY NATIONWIDE SHOWS SLIGHT DECLINE IN APRIL 2023

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Foreclosure Starts Decrease 7 Percent from Last Month;While Completed Foreclosures Decrease 39 Percent ATTOM, a leading curator of land, property, and real estate data, released its April 2023 U.S. Foreclosure Market Report, which shows there were a total of 32,977 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — down 10 percent from a month ago but up 8 percent from a year ago. Illinois, Maryland, and New Jersey post highest foreclosure ratesNationwide one in every 4,234 housing units had a foreclosure filing in April 2023. States with the highest foreclosure rates were Illinois (one in every 2,221 housing units with a foreclosure filing); Maryland (one in every 2,283 housing units); New Jersey (one in every 2,334 housing units); South Carolina (one in every 2,495 housing units); and Delaware (one in every 2,603 housing units). Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in April 2023 were Atlantic City, NJ (one in every 1,356 housing units with a foreclosure filing); Cleveland, OH (one in every 1,580 housing units); Lakeland, FL (one in every 1,649 housing units); Columbia, SC (one in every 1,651 housing units); and Chicago, IL (one in every 1,950 housing units). “Foreclosure activity continues to stabilize and even correct itself in 2023, with April showing a 10 percent decrease in overall activity after a 20 percent increase last month,” said Rob Barber, chief executive officer at ATTOM. “While there is no apparent indication of a continued decline in the number of foreclosures, it’s important to note that the month of April typically exhibits a recurring trend of decreased activity. However, this trend underscores the significance of monitoring foreclosure rates and identifying any potential market shifts or trends.” Among those metropolitan areas with a population greater than 1 million, those with the worst foreclosure rates in April 2023, aside from Cleveland, OH and Chicago, IL, included: Riverside, CA (one in every 2,046 housing units); Philadelphia, PA (one in every 2,079 housing units); and Jacksonville, FL (one in every 2,091 housing units). Foreclosure starts decline 7 percent from last monthLenders started the foreclosure process on 22,455 U.S. properties in April 2023, down 7 percent from last month and up only 1 percent from a year ago. Counter to the national trend, states that had at least 100 foreclosure starts in April 2023 and saw the greatest monthly increases included: Maryland (up 55 percent); New Mexico (up 55 percent); Iowa (up 29 percent); Utah (up 13 percent); and Florida (up 12 percent). Those major metropolitan areas with a population greater than 1 million that had the greatest number of foreclosure starts in April 2023 included: New York, NY (1,711 foreclosure starts); Chicago, IL (1,153 foreclosure starts); Miami, FL (846 foreclosure starts); Los Angeles, CA (829 foreclosure starts); and Philadelphia, PA (747 foreclosure starts). Foreclosure completions decrease 39 percent monthlyLenders repossessed 2,919 U.S. properties through completed foreclosures (REOs) in April 2023, down 39 percent from last month but up 3 percent from last year. Those states that had the greatest number of REOs in April 2023 included: Illinois (334 REOs); Pennsylvania (218 REOs); New York (199 REOs); Texas (184 REOs); and California (171 REOs). Those major metropolitan statistical areas (MSAs) with a population greater than 200,000 that saw the greatest number of REOs in April 2023 included: Chicago, IL (259 REOs); New York, NY (165 REOs); Philadelphia, PA (128 REOs); St. Louis, MO (54 REOs); and Detroit, MI (52 REOs). Media Contact:Christine Stricker949.748.8428christine.stricker@attomdata.com SOURCE ATTOM Author admin View all posts

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A debt default is very unlikely, but new scenario projections from Zillow show sales would decrease sharply as mortgage costs balloon The U.S. government defaulting on its debt, which could become a reality as soon as June 1 without intervention, could send the typical cost of a mortgage soaring by 22%. Mortgage rates rising above 8% would likely overwhelm a small price dip to make affording a home an even steeper hill to climb and send home sales tumbling, according to a new Zillow® analysis. To be sure, the U.S. has never before defaulted on its debt, and it is very unlikely that the U.S. will fail to pay its debts now. This analysis projects what might happen in the unlikely worst-case scenario of a prolonged default, and it is not a prediction that a default will occur. “Home buyers and sellers finally have been adjusting to mortgage rates over 6% this spring, but a debt default could potentially raise borrowing costs even higher and send the market into a deep freeze,” said Zillow senior economist Jeff Tucker. “Home values might not see a notable drop, but higher mortgage rates would severely impair affordability, for first-time buyers especially. It is critically important to find a solution and not put more strain on Americans who are striving to achieve their homeownership dreams.” A debt default would almost certainly mean severe disruption for the economy, with the ripple effects taking their toll on the housing market. One highly likely consequence would be rising interest rates — including mortgage rates — as shaken confidence in Treasury bills being repaid means investors would require a greater return before purchasing them. Mortgage rates tend to follow Treasury rates and would be expected to rise as a result. Home shoppers already are finding few options they can afford this spring, and it’s estimated that a mortgage would cost 22% more in September in the event of a debt default than it otherwise would. That’s on top of an 82% rise over the past two years. A steep rise in mortgage rates — projected to peak at 8.4% in September in this scenario — would freeze sales in an already chilled market. If the affordability mountain grows even taller, fewer would-be buyers will be able to purchase a home. Higher mortgage rates also discourage homeowners, many of whom locked in their loans when mortgage rates were near 3%, from selling and reentering the market when their new loan would be much more costly. Zillow projects this combined impact of buyers and sellers pulling back would wipe nearly one-quarter of expected sales off the board in some months. If there were to be a debt default, the biggest projected deficit would come in September, with an estimated 23% fewer existing home sales. The thin silver lining for the overall health of the housing market is that Zillow economists don’t expect home values would lose much ground, even with a default. Home values have turned the corner this spring, returning to growth near historical norms after a period of overheating and then a short-lived downturn. Home values tend to fall sharply when there is a glut of listings flooding the market, but very low inventory in this scenario would act as a parachute, keeping prices from falling too far, too fast. Zillow forecasts that if the U.S. were to default on its debt, home values would begin to fall starting in August, but only by 1% from current levels through February 2024. Even in this pessimistic scenario, home values are expected to rise 1% from today to the end of next year. That’s down from a current expectation of 6.5% growth over that period. SOURCE Zillow Author admin View all posts

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Leading builder of single-family rental communities climbs in rankings AMH, a leading owner, operator, and developer of single-family rental homes, has been recognized by BUILDER magazine as the 39th largest homebuilder in the United States on its 2023 Builder 100 List with 2,183 new homes built last year. “We are proud to be recognized by BUILDER magazine for the third consecutive year, contributing much-needed supply during a national housing shortage. Since the launch of our development program in 2017, our team has constructed 7,700 new homes in over 130 communities nationwide, with thousands more under development,” said Brent Landry, Executive Vice President of Development of AMH. “Moving forward, we remain focused on bringing new high-quality housing options to an underserved market.” AMH-built homes include premium finishes and popular features such as fenced yards, pocket offices, granite or quartz countertops, stainless steel appliances, luxury vinyl plank flooring, 2- and 3-car garages, and lawn care services. The Company also incorporates state-of-the-art amenities like pools, fitness centers, yoga rooms, playgrounds, nature trails, and clubhouses at many of its new developments to promote a lifestyle of greater comfort and ease. “We thoughtfully design our communities to support our residents’ well-being, sense of belonging, and overall quality of life. And we provide additional amenities and professional services to strengthen their long-term growth into successful neighborhoods, which drive economic activity, add to the local tax base, and contribute stability to their regions,” said Zack Johnson, Executive Vice President of Real Estate Investments of AMH. “Our goal is not just to build more houses, but to elevate the experience of single-family living for thousands of households in this country.” The 2023 Builder 100 list can be viewed here. About AMH AMH is a leading owner, operator, and developer of single-family rental homes. We’re an internally managed Maryland real estate investment trust (REIT) focused on acquiring, developing, renovating, leasing and managing homes as rental properties. Our goal is to simplify the experience of leasing a home and deliver peace of mind to households across the country. In recent years, we’ve been named one of Fortune’s 2022 Best Workplaces in Real Estate™, a 2023 Great Place to Work®, a 2023 Top U.S. Homebuilder by Builder100, one of America’s Most Responsible Companies 2023 and America’s Most Trustworthy Companies 2023 by Newsweek and Statista Inc., and a Top ESG Regional Performer by Sustainalytics. As of March 31, 2023, we owned nearly 59,000 single-family properties in the Southeast, Midwest, Southwest, and Mountain West regions of the United States. Additional information about AMH is available on our website at www.amh.com. AMH refers to one or more of American Homes 4 Rent, American Homes 4 Rent, L.P., and their subsidiaries and joint ventures. In certain states, we operate under AMH Living or American Homes 4 Rent. Please see www.amh.com/dba to learn more. Author admin View all posts

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Sales are ramping up while sellers take another step back The housing market has tilted firmly back in favor of sellers, as steady demand met scarce inventory to drive up home values, according to the latest market report from Zillow®. “Buyers are back on the hunt for houses in what is typically the hottest time of year, thanks to a normal seasonal surge in demand around the end of the school year and some help from slightly lower mortgage rates,” said Jeff Tucker, Zillow senior economist. “Unfortunately, many potential sellers have ghosted the market this spring, concentrating buyer demand on the few listings that do come to market and fueling price growth, especially for more affordable and well-presented houses.” The value of the typical home climbed 1% from March to April, the strongest monthly appreciation since last June and in line with pre-pandemic norms for this time of year. Still, a “normal” springtime sellers season represents a remarkable turnaround from the second half of 2022, which was much cooler than normal as buyers retreated in the face of affordability challenges. Although still 2.2% below their peak last July, typical home values are 1.5% above last April and stand 38% higher than 2020. Increased competition at lower price points is driving far higher annual appreciation for the least expensive houses. From hot to not, and back again — local home value trendsThe relatively affordable Midwest and Great Lakes regions led the nation in appreciation, harboring the top nine major metros for monthly home value gains. Kansas City home values grew fastest for the second month in a row, followed by Columbus, Detroit, Buffalo and Cincinnati. Buyers should expect extremely tough competition in these areas — median time to pending for a new listing in Kansas City, Columbus and Cincinnati is just three days. Home values are down year over year in 22 major markets, most significantly in Austin (-10%), San Francisco (-9.9%), San Jose (-9.5%) and Seattle (-7.5%). But all of these markets posted monthly gains, with San Jose, San Francisco and Seattle outpacing the national average. These West Coast markets experienced some of the biggest contractions in the flow of new listings, helping to explain why their price declines have reversed. The drought of new listings deepensShoppers are seeing fewer fresh listings to tour as sellers have stepped back even further. The flow of new listings to the market decreased in April, defying the normal trend of rising through the spring and deepening the year-over-year deficit in new listings. Total inventory is up just 3% annually and now stands 46% lower than in 2019. Buyers are still scooping up what they can find, but a lack of choices may be holding them back. Newly pending sales rose 2% from March — a smaller monthly increase than historical norms. Affordability is likely to improve, but buyers shouldn’t expect a return to pre-pandemic costsMassive home price appreciation, combined with mortgage rates that doubled in 2022, has made both down payments and monthly mortgage costs much tougher to afford. A new Zillow forecast expects affordability to improve slightly over the next year, but high demand for homes and stubbornly low supply will prevent a return to pre-pandemic norms. Buyers looking for ways to lower costs can use Zillow to check their eligibility for down payment assistance programs and explore whether buying points or negotiating a seller-financed 2/1 buydown makes sense using a new break-even calculator. Rents are firmly back in growth territoryAsking rents climbed 0.6% month over month, a nearly normal monthly growth rate for this time of year. Rents are now 5.3% higher than in April of last year. See Zillow’s Rental Market Report for more details. SOURCE Zillow Author admin View all posts

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Whether Bidding, Buying, or Just Looking, Homebuyers Show a Bias Toward Action Many hopeful homebuyers – especially those in their 40s and younger – are forging ahead with plans to buy homes despite believing the market favors sellers, according to Bank of America’s 2023 Homebuyer Insights Report. And while more than half of prospective homebuyers surveyed (55%) believe the market is more competitive than last year, just as many (54%) plan to either speed up their home purchases or buy when they originally planned, including 62% of Gen Z and 55% of Millennial homebuyers. Yet not all prospective buyers are jumping in. Two in five surveyed Americans (39%) believe this is a seller’s market, while 18% say it’s a buyer’s market and 31% say it’s neither. Buying challenges included high prices and interest rates (51%); lack of cash reserves for down payments (37%); and low credit scores (37%). Still, nearly 40% of those prospective homebuyers said they feel more confident in their ability to buy a home today versus last year, compared to 26% who are less confident and 28% who feel about the same. “The market is less frenzied as rates have moderated, and that may be impacting perception,” said Matt Vernon, head of retail lending at Bank of America. “And low inventory is still creating a highly competitive environment. Homebuyers are doing the right thing by taking time to understand the market, weigh their priorities and determine what fits into their budgets.” Watch Matt Vernon, Bank of America’s Head of Retail Lending, reflect on the Spring homebuying season learn more about homebuyers’ confidence, timelines, and determination. Financial security is a motivating force, as homeownership has historically helped families build long term-wealth. Despite their younger age, 56% of Gen Z and 56% of surveyed Millennial homeowner hopefuls plan to purchase in the next two years – nearly on par with Gen X (58%). Nearly half (47%) of all prospective buyers say they would buy a home in the current housing market because they are tired of renting and of rent increases, and 28% want to start building equity. Prospective buyers said they’d be willing to put up to 25% of their monthly income toward mortgage payments for a starter home and 30% for a forever home, compared to the 29% they’d be willing to put toward monthly rent. Most prospective buyers plan to purchase a home with a spouse or partner (55%) while 38% say they’re planning to go it alone. Real Estate Curiosity Keeping Those on the Sidelines Active Even hopeful buyers who may be waiting for the housing market to cool are still forging ahead in their own way. More than two-thirds (67%) of prospective buyers are actively looking at homes for sale – whether they’re scrolling through a real estate marketplace app with a certain budget in mind (52%) and/or visiting open house events for fun (31%). Those scanning for homes find it to be an enjoyable pastime (41%), a way to dream about their future home (37%) and a window into how others have decorated their spaces (32%). Beyond simply looking for inspiration, two-thirds (65%) of those who scroll through listings are interested in what their current budget would get them if they were to buy today. Talking with friends and family can also provide first-hand accounts of potential hurdles and valuable resources during the homebuying journey. Most people surveyed say they are comfortable talking with friends about how they came up with their down payment (82%), but only 17% have directly asked a friend how they were able to afford the upfront costs. The sharing of information can be invaluable as only 39% of prospective buyers know how to find down payment assistance programs. Whether it’s a conversation with a friend, family member or a lending specialist, discussing the homebuying process early on can equip hopeful buyers with the know-how they need to feel confident taking the next step. Visit Bank of America’s Home Resource Center to get started with tools and resources on preparing your finances, review available grant programs and more. About Bank of America’s Homebuyer Insights Report Sparks Research conducted a national online survey on behalf of Bank of America between March 29 and April 3, 2023. A total of 1,000 surveys (500 homeowners / 500 renters) were completed with adults age 18+ who currently own a home, previously owned a home or plan to own a home in the future. Survey completions were monitored by gender and age for proper balancing. The margin of error for the total national quota of 1,000 surveys is +/- 3.1% at the 95% confidence level. The margin of error for homeowner and renter quotas of 500 surveys is +/- 4.4% at the 95% confidence level. Select questions allowed respondents to choose more than one answer, resulting in responses that may equate to more than 100 percent. SOURCE Bank of America Corporation Author admin View all posts

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The 2023 ServiceLink State of Homebuying Report highlights generational preferences and trends from today’s homebuyers Higher home prices and low inventory isn’t deterring the youngest generations from seeking homeownership. A new survey report from ServiceLink, part of the FNF family of companies and the nation’s premier provider of tech-enabled mortgage services, analyzes generational trends among recent homebuyers, their sentiment about today’s housing market and the role technology plays throughout the process. The 2023 ServiceLink State of Homebuying Report (SOHBR) features insights from 1,000 homeowners who either purchased a home, or tried to purchase a home, within the past three years.This comprehensive report examines year-over-year (YoY) trends, generational preferences and other factors that shape the behavior of today’s homeowners and prospective buyers. “Even with the ups and downs in today’s housing market, there is still a strong desire among several generations to obtain homeownership,” said Dave Steinmetz, president of origination services, ServiceLink. “Our latest study suggests there are many homeowners and homebuyers who are ready to make their mark in the real estate market this year; whether it’s to purchase a new home or take out a home equity loan. This indicates there is an opportunity for lenders to provide more education and resources to buyers and homeowners to guide them throughout their homeownership journey.” Key consumer survey findings include: Seeking homeownership: More than half of respondents say they are open to purchasing a home Tapping into equity: Homeowners, especially millennials, plan to take advantage of the increasing value of their home Lingering buyer fatigue: Complicated market conditions are leading some homebuyers to abandon the homebuying process Auction is becoming more mainstream: Homebuyers are considering alternative paths to homeownership Streamlining the process: More homebuyers want to leverage technology to improve the homebuying experience Read the full report here. About ServiceLink ServiceLink is the nation’s premier provider of digital mortgage services to the mortgage and finance industries. ServiceLink leads the way by delivering best-in-class technologies, a full product suite of services and proven experience, built on a foundation of quality, compliance and service excellence. ServiceLink provides valuation, title and closing, and flood services to mortgage originators; and default valuation, integrated default title services, vendor invoicing and claims audit services, as well as field services and auction services to mortgage servicers. ServiceLink helps clients in the lending industry and beyond achieve their strategic goals, realize greater efficiencies, and better serve their customers. For more information about ServiceLink, please visit svclnk.com. SOURCE ServiceLink CONTACT: ServiceLink, Amy Pietzak, 412-298-1995, amy.pietzak@svclnk.com Author admin View all posts