REI INK

Redfin Reports Typical U.S. Asking Rent Surpassed $2,000 for First Time in May

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Asking rents were up over 30% in Cincinnati, Seattle, and Nashville and nearly 50% in Austin The median monthly asking rent in the U.S. surpassed $2,000 for the first time in May, rising 15% year over year to a record high of $2,002, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s on par with April’s annual increase of 15%, but a slowdown from March’s 17% gain. “More people are opting to live alone, and rising mortgage-interest rates are forcing would-be homebuyers to keep renting,” said Redfin deputy chief economist Taylor Marr. “These are among the demand-side pressures keeping rents sky-high. While renting has become more expensive, it is now more attractive than buying for many Americans this year as mortgage payments have surpassed rents on many homes. Although we expect rent-price growth to continue to slow in the coming months, it will likely remain high, causing ongoing affordability issues for renters.” Rents Up Over 30% in Austin, Nashville, Seattle and Cincinnati Asking rents surged 48% year over year in Austin, TX—the largest increase on record in any metro area since at least the beginning of Redfin’s rental data in 2019. Nashville, TN, Seattle, and Cincinnati also saw asking rents increase over 30% from a year earlier. Rent growth in Portland, OR (24%) fell below 30% for the first time since the start of the year, causing it to drop out of the top 10. Top 10 Metro Areas With Fastest-Rising Rents Year Over Year Austin, TX (48%) Nashville, TN (32%) Seattle, WA (32%) Cincinnati, OH (32%) Miami, FL (29%) Fort Lauderdale, FL (29%) West Palm Beach, FL (29%) New York, NY (24%) Nassau County, NY (24%) New Brunswick, NJ (24%) Just three of the 50 most populous metro areas saw rents fall in May from a year earlier. Rents declined 10% in Milwaukee and 3% in Kansas City, MO and Minneapolis. The same three metro areas saw rents decline in April as well. Metro Areas Where Rents Declined Year Over Year Milwaukee, WI (-10%) Kansas City, MO (-3%) Minneapolis, MN (-3%) To read the full report, including charts, additional data and methodology, please visit: https://www.redfin.com/news/redfin-rental-report-may-2022/

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MORTGAGE LENDING PLUMMETS ACROSS U.S. IN FIRST QUARTER

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Overall Residential Lending Activity Down Annually by 32 Percent, Marking Fastest Decline in Eight Years;  Number of New Loans Decreases for Fourth Straight Quarter;  Refinance Lending Drops Another 22 Percent While Purchase Mortgages Dip 18 Percent ATTOM, a leading curator of real estate data nationwide for land and property data,  released its first-quarter 2022 U.S. Residential Property Mortgage Origination Report, which shows that 2.71 million mortgages secured by residential property (1 to 4 units) were originated in the first quarter of 2022 in the United States. That figure was down 18 percent from the fourth quarter of 2021 – the largest quarterly decrease since 2017 – and down 32 percent from the first quarter of 2021 – the biggest annual drop since 2014. The decline, which marked the fourth straight quarterly decrease, resulted from double-digit downturns in purchase and refinance activity, even as home-equity lending rose. Overall, lenders issued $892.4 billion worth of mortgages in the first quarter of 2022. That was down quarterly by 17 percent and annually by 27 percent. As with the number of loans, the quarterly and annual decreases in the dollar volume of loans were the largest in five and eight years, respectively. The biggest contributor to the downturn was a decrease in refinance deals. Just 1.45 million residential loans were rolled over into new mortgages during the first quarter of 2022, down 22 percent from the fourth quarter of 2021 and 46 percent from a year earlier. Amid rising mortgage interest rates, the number of refinance mortgages decreased for the fourth straight quarter while the annual drop was the largest since 2014. The dollar volume of refinance loans was down 20 percent from the prior quarter and 42 percent annually, to $470.7 billion. Refinancing, while still a majority of residential lending activity, also decreased again as a portion of all loans during the first quarter of 2022. They represented 53 percent of all first-quarter mortgages, down from 56 percent in the fourth quarter of 2021 and 67 percent in the first quarter of 2021. “The drop-off in Q1 refinancing activity is no surprise with mortgage rates rising as rapidly as they have,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “But many forecasts expected purchase loans to remain strong in 2022, and even increase in both the number of loans originated and the dollar volume of those loans. The weakness in purchase loan activity shows just how much of an impact the combination of escalating home prices and rising interest rates have had on borrower activity this year.” Purchase-loan activity shrank in the first quarter of 2022 as lenders issued 1.01 million mortgages to buyers. That tally was down 18 percent quarterly and 12 percent annually. The dollar value of loans taken out to buy residential properties dipped to $371.3 billion, down 16 percent from the fourth quarter of last year and 1 percent from the first quarter of 2021. Despite those decreases, purchase loans remained at 37 percent of all loans in the first quarter of 2022 and were still up annually from 29 percent. In the one category that bucked the trend, home-equity lending went up 6 percent quarterly and 28 percent annually, to 249,900. So-called HELOC mortgages represented 9 percent of all first-quarter residential loans, up from 7 percent in the fourth quarter of 2021 and 5 percent in the first quarter of last year. The continued shrinkage in overall residential lending during the first quarter reinforced a stark reversal for the mortgage industry following a near-tripling of activity from early 2019 through early 2021. The first-quarter figures come amid multiple forces that threaten to continue the recent trends, including 30-year mortgage rates that have risen past 5 percent this year, an ongoing tight supply of homes for sale around the country that limits the number of home purchases, rising inflation and other uncertainties surrounding the U.S. economy. They also add to a list of indicators showing that the nation’s decade-long housing market boom may be cooling off, including slower price growth, smaller home-seller profits and declining home affordability. Total mortgages drop at fastest pace in five yearsBanks and other lenders issued 2,708,492 residential mortgages in the first quarter of 2022. That was down 18.4 percent from 3,320,689 in the fourth quarter of 2021 and down 32.5 percent from 4,011,939 in the first quarter of 2021. The quarterly decline was the largest since the first quarter of 2017, while the annual decrease was the biggest since the second quarter of 2014. The $892.4 billion dollar volume of loans in the first quarter was down 17.1 percent from $1.08 trillion in the prior quarter and was 27.3 percent less than the $1.23 trillion lent in the first quarter of 2021. Overall lending activity decreased from the fourth quarter of 2021 to the first quarter of 2022 in 213, or 99 percent, of the 216 metropolitan statistical areas around the U.S. with a population of more than 200,000 and at least 1,000 total residential mortgages issued in the first quarter of 2022. Total lending activity was down at least 10 percent in 183 metros (85 percent) and by at least 20 percent in 90 metros (42 percent). The largest quarterly decreases were in Huntsville, AL (down 62 percent); St. Louis, MO (down 52.2 percent); Augusta, GA (down 40.8 percent); Montgomery, AL (down 37.4 percent) and Des Moines, IA (down 35.8 percent). Aside from St. Louis, metro areas with a population of least 1 million that had the biggest decreases in total loans from the fourth quarter of 2021 to the first quarter of 2022 were San Jose, CA (down 34.1 percent); Boston, MA (down 31.5 percent); Minneapolis, MN (down 30.4 percent) and Rochester, NY (down 29.6 percent). The only metro areas with increases in the total number of mortgages from the fourth quarter to the first quarter were Philadelphia, PA (up 11.4 percent); Laredo, TX (up 9 percent) and Sioux Falls, SD (up 7.6 percent). Refinance mortgage originations down 22 percent from fourth quarterLenders issued 1,446,622 residential refinance mortgages in the first quarter of 2022, down 21.7 percent from 1,846,450 in fourth quarter of 2021 and down 45.8 percent from 2,670,304 in the first quarter of 2021. The total was down

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WORD OF THE DAY: Adhocracy

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[ad-HOC-rə-see] Part of speech: Noun Origin: Latin, 20th century Definition: A flexible, adaptable, and informal organizational structure without bureaucratic policies or procedures. Examples of Adhocracy in a sentence “The council was formed as an adhocracy so everyone felt comfortable contributing.” “The Star Trek crew came across an alien civilization that operates as a successful adhocracy.” About Adhocracy This word, created in the 1960s, is a combination of the Latin phrase “ad hoc” (meaning something created for a specific purpose) and “bureaucracy,” a system where elected officials make decisions. Your book club is likely an adhocracy — it was created for the purpose of discussing the latest novels, but it’s a loose structure without a lot of rules. Did you Know? If you’ve ever been a part of a group or a project with loose rules and regulations, or one that is generally informal, that’s an adhocracy. If you think it sounds too good to be true, it’s no surprise that adhocracies feature in many a science fiction fantasy.

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Kiavi Expands to Alabama, Arkansas and Wisconsin

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Kiavi Continues Strong Growth and Now Operates in 32 States and Washington, D.C. Kiavi, a leading provider of financing to real estate investors (REIs), announced it is expanding its products to three new states: Alabama, Arkansas and Wisconsin. Robust capital, competitive rates and flexible financing solutions from Kiavi allow REIs to confidently maximize returns and focus on scaling their business. The announcement further supports REIs in their bid to reinvigorate the country’s aging housing stock. “We are thrilled to support real estate investors in Alabama, Arkansas and Wisconsin, helping them revitalize neighborhoods in these markets. All three states provide incredible opportunities for our customers to transform aging homes and make them move-in ready for families and truly impact the local communities,” said Michael Bourque, CEO of Kiavi. “We are 5.5 million housing units short in the United States. Current supply chain shortages are already pointing to a slowdown in new construction. With millennials entering their prime home buying years, it is even more important that we, as a nation, work together to close the housing gap and work towards rehabilitating America’s aging housing stock especially at a time when over two-thirds of U.S. homes are over 30 years old. I am excited to extend our products in these three states and I am confident that with our technology platform REIs can make smarter decisions and unlock the true potential of their real estate investments.” Kiavi’s bridge, or fix-and-flip, loans make it easy to purchase and rehab investment properties with flexible, short-term financing and Kiavi’s rental loans make it easy to invest in rental properties with long-term financing options. The new markets provide opportunity to REIs to expand and scale their business. Alabama According to Birmingham Business Journal, Alabama’s business climate is ranked among the best in the nation, with the median home value considerably lower than the national average. Other key facts about Alabama’s housing market include: Median rent in Alabama has increased 12.1% in the last year. Mobile is the sixth-best city to flip homes in America due to its high market potential, low renovation costs and high quality of life. Huntsville, Alabama’s third-largest city, has a younger population compared to the national average which is a great indicator for the market’s future. With a median rent of $1,000 and being listed as the 18th best city to flip houses in the nation, it is a great market to invest in. Realtor.com ranks Birmingham, Alabama as one of the top 25 housing markets for 2022 with a combined sales and price growth of 13.7%. Arkansas Arkansas is the second most affordable state to live in. Its diverse population, robust economy and its natural beauty make it an attractive destination. Key highlights about the best markets to invest in Arkansas include:  Little Rock is one of the major markets in Arkansas ranking as the 22 best cities to flip houses in. Bentonville, AR, expects to see a 24% price increase in homes in the next three years. Wisconsin The Wisconsin real estate market continues to grow. In 2021, the median value of a single-family residential property saw an increase of about 34%. Due to improving economic indicators and a lack of existing inventory, supply and demand fundamentals have increased prices for nearly a decade. Some key facts about the Wisconsin housing market include: Milwaukee is the third-most densely populated metro area in the Midwest, just behind Chicago and Detroit. The real estate market in Milwaukee has been described as an unstoppable force. Waiting lists to rent are not unusual with renter occupied homes accounting for 56% of total occupied housing units in the metropolitan area. Kiavi’s expansion into Alabama, Arkansas and Wisconsin closely follows its entry into Indiana and Kansas this year. Kiavi now operates in 32 States and Washington, D.C. For more information, click here. About Kiavi Kiavi uses the power of data and technology to bring lending for real estate investors into the digital age. Through Kiavi’s digital platform, real estate investors are empowered to make smarter decisions, gain access to funding faster, and scale their business. Founded in 2013 Kiavi, formerly known as LendingHome, has grown to become one of the largest lenders to real estate investors in the United States. The company is committed to helping customers revitalize approximately $25 trillion worth of aged U.S. housing stock and provide move-in ready homes and rental housing for millions of Americans1 across the country. For more information, visit www.kiavi.com, and follow us on Twitter. NMLS ID #1125207

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WEBINAR – AUCTIONS, TAX SALES, BUILD-TO-RENT 

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‼️See Below for the Live Explainer Video‼️ Foreclosure Auctions are back on and the opportunities are incredible – minimum 16% return Georgia Tax Sale inventory unlike anything we have seen – 20% Redemption Penalties Fix and Flips/Buy and Hold in America’s hottest market Build To Rent in Georgia’s fastest growing county Foreclosure Auctions: Now that the foreclosure moratorium is gone, inventory is back and we are dominating the auctions every month!  It was certainly a struggle to maintain our 16% profit promise during the past two years, but we managed to do so in nearly all circumstances and it is back in place.  With auctions back in play, clients are seeing average returns upwards of 24% on flips. Georgia Tax Sales: Tax Sales in Georgia pay a 20% penalty upon redemption and have a remarkably short redemption period of 1 year.  PIP-Group has not offered Georgia Tax Sale opportunities to its partners in nearly 5 years, due to the lack of inventory.  Inventory the last 3 months has been unlike anything we have ever seen and we are back in the game!  In March, we bought 6 properties at the sale, of which 3 have already redeemed, paying our partners a whopping 68% annualized return!  Don’t want to own property from a tax foreclosure in Georgia?  That is fine, as PIP-Group will buy your unredeemed deeds for the 20% penalty, at the end of the redemption period. America’s Hottest Market: Savannah, GA and its surrounding towns had an incredible increase in home values in 2021.  Median home values rose more than 28% on average, with some pockets increasing by more than 35% and there is no end in sight!  Last week Hyundai announced plans for a $5.5B manufacturing plant, which will bring 8100 new jobs to the area.  It is the largest economic development project in Georgia’s history! (Learn more below) Build To Rent: Bryan County, GA has been the fastest growing county in Georgia for the past 6 years.  It is also the 6th fastest growing county in the nation, according to the 2020 Census.  There also is a high demand for affordable housing in Bryan County, as they are a suburb area of Savannah, GA and have a large military base, Fort Stewart.  As a result, PIP-Group has been buying tracts of land for future development in both Bryan and its neighbor, Liberty County.  With the news of the Hyundai plant, it is time to develop, as well as acquire candidate properties ahead of the next big surge.  We are looking for investors to partner with us to build out a 16 acre tract of land with approximately 65 modular homes.  Why modular?  We can develop a project like this in under a year with modular, the process is turnkey and unlike traditional stick built homes, modular are just as storm worthy and cost about 40% less.   ‼️Click below to watch Charles Sells go over this opportunity in much greater details‼️ PIP Group can be reached at 877-335-2529

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WORD OF THE DAY: Breviloquent

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[brə-VIL-ə-kwent] Part of speech: Adjective Origin: Latin, mid-19th century Definition:(of a person, speech, or style of writing) using very few words; concise. Examples of Breviloquent in a sentence “Usually he was breviloquent, but he went into great detail when describing his favorite book.” “If you find it hard to be breviloquent, ask someone to edit your paper before submitting it for a grade.” About Breviloquent There’s eloquent, and then there’s breviloquent. If someone describes you as the former, they’re admiring your ability to be fluent or persuasive in speaking or writing. If you’re the latter, you may still be eloquent, but you’re concise about it. Did you Know? Brevity is the soul of wit. Thanks again, Shakespeare. These words that appear in “Hamlet” sum up the opinion that less is more, at least when it comes to your word choices.

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