Newsletter – Page 122

LendingHome Loans $219 Million in March, Surpassing Previous Monthly Record

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Rising number of real estate investors turn to San Francisco lender for financing needs LendingHome, one of the nation’s largest lenders to real estate investors, announced the company in March surpassed $200 million in funding volume for the first time — eclipsing the previous monthly record. LendingHome funded loans equaling $219 million, including one for $9.3 million with high-profile Pintar Investment Company to refinance a 56-unit rental home community in Florida. March’s total volume of loans represented a more than 30% increase over the former monthly high set in December 2020. “LendingHome is proud to be the partner of choice for real estate investors and provide them with exceptional, reliable service to help meet their goals,” said Arvind Mohan, LendingHome’s chief operating officer. “We are excited for the opportunities and growth we see ahead of us as we expand our footprint in the real estate investment space.” LendingHome continues to grow at a record-setting pace. During the past six years, the company has provided $7 billion in financing for more than 32,000 properties, helping real estate investors create more than $3.4 billion of value in their renovations of aged homes. Additionally, last year, the lender funded twice as many loans as the company’s closest competitor. COVID-19 impacted many segments of the real estate sector, and during this challenging period many lenders stopped loaning money. In contrast, LendingHome continued to finance projects throughout the pandemic. In the current environment, much of the news about real estate is focused on the lack of residential inventory available for sale, but acquisitions occur every day, and LendingHome provides financing for many of them. LendingHome has built proprietary machine learning and predictive-analytics capabilities, while acquiring the kind of market knowledge that enables managers to assess value with greater precision. LendingHome combines analytics and know-how to help investors avoid overextending themselves. LendingHome estimates that nationwide, 76% of investment properties are sold for a profit. When LendingHome provides the financing that number jumps to 93%. About LendingHome LendingHome is now one of the nation’s top lenders for real estate investors with more than $7 billion in loans originated to date. Established in 2013, LendingHome makes it easy for professional and first-time real estate investors to quickly and reliably receive the financing they need for their projects and businesses to thrive. Using a powerful combination of innovative technology and expert advice, LendingHome has added flexibility and simplicity to every step of the borrowing process. For further information, please visit lendinghome.com. NMLS ID #1125207

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New construction is taking up a bigger piece of the pie as low mortgage rates and surging homebuyer demand make homebuilding more attractive during the coronavirus pandemic More than a quarter (25.7%) of single-family homes for sale in America during the first quarter were new-construction homes, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That is up from 20.4% a year earlier and represents the highest share on record. New-construction homes have steadily been taking up a larger piece of the pie over the last decade, but there has been a notable acceleration during the coronavirus pandemic. There are two primary reasons, according to Redfin Lead Economist Taylor Marr: an increase in homebuilding and a decrease in the number of Americans putting their houses up for sale. “Building homes has become more attractive and profitable during the pandemic due to record-low mortgage rates and red-hot homebuyer demand,” Marr said. “At the same time, many homeowners have opted to stay put and refinance or remodel their existing homes instead of selling them, allowing new-construction homes to take up a larger portion of the market.” U.S. housing starts—the number of new residential construction projects—jumped nearly 20% month over month in March to the highest level since 2006, a sign that homebuilders are growing more bullish despite lumber shortages and elevated construction costs. Meanwhile, listings of existing homes fell. A lot of pandemic homebuyers have also turned to the new-construction market because bidding wars are fierce and new homes have historically attracted less competition. But the U.S. housing shortage has grown so severe that some newly built homes now have waitlists that are 90 buyers deep, said Redfin’s Salt Lake City Market Manager, Ryan Aycock. Some builders are even canceling contracts with buyers who refuse to accept price increases. “New construction has typically been a good option for buyers who don’t want to deal with bidding wars because builders don’t usually set deadlines for offers. Buyers also like that they can often buy a new home for what it’s actually listed for rather than having to offer way over the asking price to win,” said Redfin Houston real estate agent Melanie Miller. “However, inventory for new construction is very low and prices are now rising for many new and pre-construction homes because lumber prices have gone up. I had one buyer who came to terms with a builder at a certain price. The builder called us the next day and said they can’t do that price anymore because their suppliers just increased prices.” El Paso, TX and Boise, ID Have the Highest Share of New-Construction HomesIn El Paso, TX, 53.2% of single-family homes for sale in the first quarter were newly built—the largest share of the 82 U.S. metropolitan areas in Redfin’s analysis. Metros must have had populations of at least 750,000 and at least 50 sales of newly built single-family homes in the first quarter to be included in Redfin’s analysis. The other metros in the top 10 were Boise, ID (46.7%), Houston (35.5%), Raleigh, NC (34.5%), Baton Rouge, LA (34.1%), Albany, NY (33.7%), Nashville, TN (31.9%), Charlotte, NC (31.6%), Oklahoma City, OK (30.8%) and Knoxville, TN (29.6%). In Fresno, CA, just 2.4% of single-family homes for sale in the first quarter were newly built—the smallest share of the 82 metros in Redfin’s analysis. It was followed by Oakland, CA (2.9%), Bakersfield, CA (3.2%), Riverside, CA (3.4%), Pittsburgh (3.8%), Anaheim, CA (4.2%), San Diego (4.4%), Las Vegas (4.5%), Camden, NJ (4.7%) and Newark, NJ (5%). California metros fill the bottom of the list in part because they tend to have less vacant land available and less space zoned for housing development, Marr said. When broken down by region, the West had the lowest share of newly built homes as a portion of total single-family homes for sale, at just 8.4%. It was followed by the Northeast (11.4%), the Midwest (15.4%) and the South (25.8%). Certain major metros are excluded from Redfin’s analysis because its methodology filters out metros where there were fewer than 50 sales of newly built single-family homes in the first quarter. San Francisco and Philadelphia are among the metros excluded for this reason. Looking Ahead: Building Permits Are Up the Most In Elgin, IL and Tacoma, WASingle-family building permits, or government-granted authorizations that allow builders to begin construction of single-family homes, jumped 25.7% year over year during the first quarter. In Elgin, IL, single-family permits climbed 68.3%—the biggest jump of the metros in Redfin’s analysis for which U.S. Census permit data was available. It was followed by Tacoma, WA (58.9%), Bridgeport, CT (57.9%), Minneapolis (57.5%) and Albany, NY (57%). Just five of the metros in Redfin’s analysis saw a decline in single-family permits. The largest drop was in Newark, NJ, where permits fell 22% from a year earlier in the first quarter. Next came Allentown, PA (-19.6%), Virginia Beach, VA (-10.5%), San Diego (-9.2%) and Camden, NJ (-5.6%). To read the full report, including charts with metro-level data, please visit: https://www.redfin.com/news/new-construction-Q1-2021

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Lanthorn.ai and Uptimo are partnering up to streamline residential property management Lanthorn.ai, a Video Analytics Company, and Uptimo, a Real Estate Management Company, announced a collaboration agreement to bring AI solutions into property management. Property management is an essential service facilitating the balance in the rental housing market. The goal of this collaboration is to increase operating income, by reducing costs, and by increasing tenant’s satisfaction through enhanced experiences. This collaboration will assess different use cases, such as snow detection outside entrances to ensure tenant safety and the use of occupancy mapping to optimize cleaning and maintenance. “Property management is a legacy business. Speaking to property owners and operators made us realize that ROI is the determining factor for them to consider technology adoption. So, to introduce new technology to property management, the solution must be priced according to the value it brings. Through this collaboration, we are hoping to develop a strong benchmark for the use of ROI positive AI technologies in this old-school industry,” said Reza Khosravi, CEO and Co-Founder of Lanthorn.ai. “Real estate is still the largest portion of wealth in North America. Years of the low-interest-rate environment have made real estate an attractive investment asset both for institutional and retail investors. Meanwhile, the role of property management is becoming more important in optimizing yield on investments while improving the experience of the tenants. At Uptimo, as the name says, we add value through optimization and we believe we can accelerate this process through this partnership. AI empowers us to gain new insight and fuel new business ideas at a reduced cost,” said Marc Antoine Vezina, CEO of Uptimo. About Uptimo Uptimo is a real estate management company based in Sherbrooke, QC that optimizes the yields of income properties by offering quality management. Uptimo’s goal is to increase the value of properties under management. The strength of the company is its multidisciplinary, competent, and passionate team which allows it to offer a variety of services in the real estate industry. Visit www.uptimo.ca About Lanthorn.ai Lanthorn.ai is a video analytics company based in San Francisco, California that relies on existing cameras to provide insights regarding occupancy, safety, and more. The company is dedicating to adding value while ensuring data security and occupant privacy. Lanthorn.ai’s suite of solutions is essential in any organization that hosts people. Visit Lanthorn.ai

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– As vaccines roll out, prices of spacious city dwellings are rising 20% – The pandemic-driven bump in rural properties has peaked – Urban condos are making a comeback with sales up nearly 30% year over year Prices of urban single-family homes are rising nearly 20% year over year—faster than any other type of home—according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. But this year’s hot housing market does not discriminate: Urban condo sales are up nearly 30% year over year, more than any other home type. Key takeaways from Redfin’s analysis, which looks at the housing market divided into five categories (urban single-family homes, suburban single-family homes, rural single-family homes, urban condos, suburban condos) during the 12 weeks ending April 4 include: Prices of urban single-family homes increased nearly 20% year over year, outpacing price growth rates for every other home category, a signal that buyers are searching for spacious homes near city amenities as vaccines roll out. Online listings of homes in large metros saw a 62% year-over-year increase in pageviews, bigger than the increases for homes in small towns and rural areas, another suggestion that buyers are returning to the city. Single-family homes sold faster than condos in all neighborhood types, indicating that buyers are clamoring for relatively large, private homes. Urban condos sales were up nearly 30% year over year, a bigger increase than any other home category, signaling that the condo market is recovering after plummeting last summer. Urban single-family homes are currently seeing the fastest price growth partly because they offer the best of both worlds for many buyers, especially with the end of the pandemic in sight. “Now that Americans have had a year to consider what the pandemic and its aftermath mean for their lifestyles, we’re seeing a lasting preference for single-family homes—but rural and suburban settings are no longer as popular as they were at the start of the pandemic,” said Redfin economist Taylor Marr. “Many homebuyers are still prioritizing features that were desirable at the beginning of the pandemic, like space for a home office or a big backyard, partly because many people plan to continue working from home. But as people venture out of their homes more often, they are rediscovering the advantages of living in a city. People want to continue barbecuing in the backyard, but they also want the option of turning off the grill and walking to their local pizza place.” The median sale price of single-family homes in urban neighborhoods is up 19.4% year over year to $286,000—the biggest increase on record, and a bigger price gain than any other category of home. The fact that prices are growing faster for single-family homes than for condos in all types of neighborhoods indicates that many buyers in the pandemic era have a strong preference for self-contained homes without shared walls. Price growth for rural single-family homes outpaced all other home types from the beginning of the pandemic through the end of 2020, when price growth for urban single-family homes surpassed its rural counterpart. Pageviews of homes in large metros are on the upswing, signaling a return to the city Redfin.com pageviews of homes in metro areas with a population of more than 1 million—which include both urban and suburban neighborhoods—increased 62% year over year in March. That is a bigger increase than the 30% gain for small towns and the 18% increase for rural areas. The fact that homebuyer interest in large metros is accelerating while it is decelerating in rural areas and small towns suggests the pandemic-driven bump in demand for rural properties has peaked and buyers are returning to the city. The year-over-year jump in pageviews for large metros is likely exaggerated because March marks one year since the pandemic hit the U.S. Last March, views of homes in that type of area dropped significantly as cities went under lockdown and buyers turned toward smaller towns. Single-family homes are selling faster than condos Another indicator of the hot single-family housing market is that single-family homes in all neighborhood types are selling faster than condos and selling significantly faster than they were a year ago. The typical suburban single-family home spent 25 days on the market before going under contract during the 12 weeks ending April 4. Urban single-family homes are selling nearly as fast, with a median of 29 days on the market before going under contract. Homes in all categories are selling significantly faster than they were a year ago, led by rural single-family homes, which are selling 32 days faster than last year. The increased speed for rural properties is reflective of the pandemic-driven surge in demand for spacious homes outside city centers: In the beginning of 2020, pre-pandemic, homes in rural areas sat on the market longer because fewer buyers were interested in living in far-flung areas with long commutes to the office. Condos are picking up in popularity from a pandemic-driven plunge, even with the outsized popularity of single-family homes Condo sales are picking up more than sales of single-family homes. The number of urban condos sold was up 29.9% year over year during the 12 weeks ending April 4, the biggest gain on record and a bigger increase than any other home category. It is followed by suburban condos (22.8%). The uptick in condo sales is a sign that the condo market is recovering after plummeting with the onset of the pandemic. During the 12 weeks ending June 29, 2020, sales of urban condos reached a record low, down 44.9% year over year. Sales of suburban condos dipped nearly as much, dropping 42.3%. To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/urban-single-family-homes-price-growth/ About Redfin Redfin (www.redfin.com) is a technology-powered real estate broker, instant home-buyer (iBuyer), lender, title insurer, and renovations company. We sell homes for more money and charge half the fee. We also run the country’s #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a

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The JV will acquire, renovate, and manage single-family rental (SFR) homes, marking DivcoWest’s entrance into the SFR investment market Atlas Real Estate, a full-service real estate company specializing in investment brokerage, property management and institutional acquisition, announced that it has entered into a joint venture (JV) partnership with San Francisco-based DivcoWest to invest $250 million of equity in single-family homes as rentals throughout the Western United States. The JV expects to deploy $1 billion acquiring and renovating homes in high-growth states, including Colorado, Arizona, Idaho, Nevada, and Utah, where Atlas currently manages more than 4,200 units. “DivcoWest’s partnership with Atlas is a testament to our decade plus history as an acquisition partner and the long-standing relationships we have cultivated with institutional investors since our inception,” explains Ryan Boykin, co-founder of Atlas Real Estate. “The start of this new joint venture also points to the strength of the SFR housing sector and to the full-service real estate investment platform Atlas has created.” “The new partnership between Atlas and DivcoWest enables us to live up to our mission as a company: ‘To Uplift Humanity Through Real Estate,’” says Tony Julianelle, CEO of Atlas Real Estate. “The joint venture will function to increase the inventory of single-family rentals in Atlas-managed markets, presenting a tangible opportunity to serve people and create a positive resident experience while helping meet the supply demands by providing high quality housing.” Since its inception in 2013, Atlas Real Estate has been recognized as a leader in the real estate industry. The Denver Business Journal named Atlas as a Fast 50 Honoree, Bank of America selected Atlas as one of its Colorado Companies to Watch, and ColoradoBiz Magazine has honored the firm with the Best of Colorado: Property Management award for the past four consecutive years. About Atlas Real EstateAtlas Real Estate is a full-service real estate company specializing in investment services, property management and institutional acquisitions. A buy/sell brokerage, Atlas is also a Zillow Offers Partner Agent. Since its inception in 2013, Denver-based Atlas Real Estate has made a commitment to Uplift Humanity Through Real Estate. With offices in eight markets nationwide, Atlas transacts over $1 billion in real estate annually and manages more than 4,200 residential units. Atlas has been recognized by leading media outlets as a one of the Best Places to Work in Denver, the Best Property Management Company, and a Top Company in Real Estate. To learn more about Atlas, visit www.realatlas.com. About DivcoWestFounded in 1993, DivcoWest is a vertically integrated, real estate investment firm headquartered in San Francisco, with offices in Los Angeles, Menlo Park, Boston, Washington DC and New York City. Known for long-standing relationships and experience across the risk-spectrum in markets where innovation thrives, DivcoWest combines entrepreneurial spirit with an institutional approach to deliver real estate solutions and opportunities to the world’s most forward-thinking companies and investors. DivcoWest aims to create environments that inspire ingenuity, promote growth, and enhance health and well-being. Since inception, DivcoWest and its predecessor have acquired approximately 48 million square feet of commercial space – primarily throughout the United States. DivcoWest’s real estate portfolio currently includes existing and development properties in the office, R&D, lab, industrial, retail, and multifamily spaces. www.divcowest.com

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Texas Realtors releases 2021-Q1 edition of the Texas Quarterly Housing Report The median sales price of homes in Texas reached $274,300 in the first quarter this year, an increase of 13.4% over the same period last year, according to the 2021-Q1 Texas Quarterly Housing Report released today by Texas Realtors. “The demand for housing in Texas remained strong despite the winter storm in February and the pandemic,” said Marvin Jolly, chairman of Texas Realtors. “With a low supply of homes for sale, though, prices in most areas have gone up significantly, and competition among buyers has increased as well.” During the first quarter of this year, 84,464 homes were sold in Texas, jumping 10.1% compared to the first quarter of 2020. One-third of homes sold were in the $200,000-$299,000 price range, the largest percentage of any price range. Luis Torres, Ph.D., research economist with the Texas Real Estate Research Center at Texas A&M University, commented, “Depleted inventory is the greatest challenge to Texas’ housing market, pushing up prices at elevated rates as demand remains strong, making it one of the most competitive housing markets for homebuyers since the 2006-07 housing boom. Rising mortgage rates in 2021 combined with recent rapid price growth will slow demand and, consequently, price growth to more sustainable levels.” Active listings declined 53% from last year and stood at 43,542 homes for sale at the end of the first quarter of 2021. Homes spent an average of 47 days on the market before going under contract, which is 20 days less than the first quarter of 2020. The average total time from hitting the market until the sale closed was 87 days, down 13 days from the previous year. Housing supply in Texas decreased from 3 months in the first quarter of 2020 to 1.3 months of inventory in the first quarter this year. Chairman Jolly concluded, “Many homes are attracting multiple offers and selling for thousands above asking price. Price plays a key role in winning offers, of course, but other considerations can come into play as well. Realtors have been helping their buyers and sellers sort through their options to help them achieve their real estate goals during a market that presents some unique challenges.” About the Texas Quarterly Housing ReportData for the Texas Quarterly Housing Report is provided by the Data Relevance Project, a partnership among local REALTOR® associations and their MLSs, and Texas REALTORS®, with analysis by the Texas Real Estate Research Center at Texas A&M University. The report provides quarterly real estate sales data for Texas and 25 metropolitan statistical areas in Texas. To view the report in its entirety, visit texasrealestate.com About Texas REALTORS®With more than 140,000 members, Texas REALTORS® is a professional membership organization that represents all aspects of real estate in Texas. We are the advocates for REALTORS® and private property rights in Texas. Visit texasrealestate.com to learn more.