Newsletter – Page 36

Amid Emerging Climate-Related Disclosures and Rising Commercial Insurance Rates, AreaHub Equips Businesses With Critical Risk Intelligence

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As businesses grapple with new SEC climate risk disclosures, rising insurance rates, and increasing losses from climate risk, AreaHub provides actionable environmental intelligence – efficiently and affordably. Amid the recent SEC climate risk disclosure rules, a changing insurance landscape, and increasing climate-related losses for businesses, AreaHub announced an Enterprise version of its climate and environmental intelligence platform for U.S. businesses and organizations. Last week, the SEC released its final climate disclosure rules, requiring large U.S. public companies to reveal information about their material climate risks and emissions to the public. According to USI’s 2024 Property & Casualty Market Outlook, natural catastrophe losses continue to increase by 5% to 7% annually. Additionally, as insurance rates rise and insurance companies scale back coverage in certain areas, property owners take on additional risk – leaving businesses exposed to increasing losses. The rise in insurance costs also correlates with the frequency of U.S. billion-dollar disasters. In 2023, the U.S. experienced a record-setting 28 billion-dollar climate and weather disasters, with damages costing over $92.9 billion, according to NOAA. “Climate and environmental risks are affecting businesses’ bottom line,” said AreaHub Co-Founder and CEO Alison Gregory. “Businesses need to incorporate environmental risk information into their strategies, decision making, and investments to prepare for and reduce the increasing effects of climate change on their finances and operations.” AreaHub Enterprise provides clear, synthesized, and localized climate environmental information (such as climate risks, nearby contaminated sites, infrastructure, and more) to help businesses make more informed decisions about any of their U.S. locations. By aggregating over 30 topics from credible, science-based sources, the platform offers enterprise clients address-specific information to proactively manage their locations and make informed decisions. AreaHub Enterprise services include: As public awareness and stakeholder pressure grows, businesses must align their governance and strategies with evolving climate and environmental expectations. “AreaHub Enterprise is ideal for businesses looking to identify the local climate and environmental factors that can impact their investments, finances, operations, and people,” continued Gregory. “Our data-driven platform enables clients to inform investments, mitigate exposures, and increase resiliency by leveraging the environmental risk profile of their locations to inform their operational planning or management strategies.” AreaHub also offers consumer plans catering to relocators, homeowners, or parents. The Basic plan provides limited free reports of select major U.S. cities, while AreaHub Pro’s extensive address-specific one-time paid reports include additional topics and access to expanded details, such as specific hazard locations and risk indicators. About AreaHub AreaHub is an environmental risk management platform that offers localized climate and environmental hazard information by aggregating credible, science-based data about climate risks, industrial hazards, pollution and other issues that can impact finances, operations, or health and safety. By leveraging their prior managerial, data processing, and startup experience, the co-founders built AreaHub to help businesses and individuals make healthier and wiser decisions with clearly presented, scientific, and locally relevant information. For more information, visit AreaHub.com or follow AreaHub on LinkedIn and Instagram. Contacts Media:Isabella Armas-Leonisabella@areahub.com

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Housing supply is finally rebounding as sellers get used to elevated mortgage rates, but it’s not rebounding enough to curb home price growth. High housing costs mean many house hunters remain hesitant to commit. New listings jumped 3.8% month over month on a seasonally adjusted basis in February to the highest level since September 2022, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. They were up 14.8% year over year, the largest annual gain since May 2021. Active listings, or the total supply of homes for sale, hit the highest level in a year. They climbed 0.8% from a month earlier on a seasonally adjusted basis, and were little changed (-0.1%) from a year earlier–the smallest annual decline in months. New listings rose fastest from a year earlier in Texas and active listings rose fastest in Florida–the two states that have been building the most homes. In Florida, condo listings in particular are contributing to the jump in supply amid a surge in HOA and insurance fees. “The housing market is nothing like it was two years ago during the pandemic homebuying frenzy, but it’s better than it was last year. It’s coming back,” said David Palmer, a Redfin Premier real estate agent in Seattle. “Sellers who were on the fence in 2023 are now listing. They’re more used to elevated rates now. There still aren’t enough listings to quench pent-up buyer demand, but it’s getting better.” Nationwide, housing supply is on the rise because the “lock-in effect” is easing; eventually, homeowners who have been holding on to their ultra-low mortgage rates simply have to move. “February was a mixed bag for the housing market and the economy,” said Redfin Economics Research Lead Chen Zhao. “Housing supply is finally starting to recover in a meaningful way, which is great news for buyers who for months have been competing for a tiny pool of homes for sale. Still, many house hunters are hesitant to pull the trigger because mortgage rates and home prices remain elevated.” Mortgage-purchase applications slid in February as mortgage rates ticked back up after dropping in December. The average 30-year-fixed mortgage rate was 6.78% last month, up from 6.64% in January. Mortgage rates will likely remain elevated a bit longer than expected after this week’s inflation report came in hotter than anticipated. Home sales rose 0.5% month over month on a seasonally adjusted basis in February, and fell 3.5% year over year. Home Prices Post Biggest Increase in Nearly a Year and a Half The median U.S. home sale price climbed 6.6% year over year–the biggest uptick since September 2022–to $412,778. Please note that home price data is not seasonally adjusted, which is why Redfin focuses on year-over-year changes for this metric. Prices continue to rise because despite the recent uptick in listings, there’s still not enough supply to meet demand. Both new listings and active listings remained far below pre-pandemic levels in February. “If you price your home reasonably, buyers will show up. If you don’t, buyers will wait for you to drop the price,” Palmer said. “I recently listed an estate sale fixer upper for $550,000 and it got 14 offers, sold for $75,000 over the asking price and the buyer waived every contingency.” In Seattle, 77.4% of homes that went under contract did so within two weeks–the highest share among the metros Redfin analyzed. It took the top spot from Rochester, which has held that title for months. The typical home that went under contract in Seattle did so in 11 days (versus a national median of 48 days). February 2024 Highlights: United States February 2024 Month-Over-MonthChange Year-Over-YearChange Median sale price $412,778 2.7% 6.6% Homes sold, seasonally adjusted 422,203 0.5% -3.5% New listings, seasonally adjusted 548,285 3.8% 14.8% All homes for sale, seasonally adjusted (active listings) 1,601,260 0.8% -0.1% Months of supply 2.7 -0.5 0 Median days on market 48 -2 -5 Share of for-sale homes with a price drop 16.1% -0.1 ppts 2.9 ppts Share of homes sold above final list price 26.1% 2 ppts 2.6 ppts Average sale-to-final-list-price ratio 98.7% 0.4 ppts 0.5 ppts Average 30-year fixed mortgage rate 6.78% 0.13 ppts 0.52 ppts Metro-Level Highlights: February 2024 To view the full report, including charts, please visit:https://www.redfin.com/news/housing-market-tracker-february-2024

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The 2024 ServiceLink State of Homebuying Report highlights generational preferences and trends from today’s homebuyers Gen Z and millennials are optimistic, eager and ready to buy a home. Relatively high mortgage rates and lower income levels aren’t stopping their plans to become homeowners in 2024. A new report released from ServiceLink, the nation’s premier provider of tech-enabled mortgage services, analyzes generational trends among today’s homebuyers, revealing their sentiment about the current housing market and their intentions to purchase, refinance and leverage home equity this year. Now in its fourth year, the 2024 ServiceLink State of Homebuying Report (SOHBR) features insights from homeowners who either purchased a home or tried to purchase a home within the past four years and focuses on yearly trends that provide valuable insights for lenders, servicers, investors and buyers alike. “This is an interesting and pivotal moment in the housing and mortgage industries as the younger generations are not only determined to buy but are seemingly undeterred by the higher price tags and interest rates,” said Dave Steinmetz, president of origination services, ServiceLink. “Our study suggests that Gen Z and millennials are poised to impact the market in several ways including purchase, refi and home equity, which is an opportunity for lenders to educate and usher these younger buyers through the process.” Key findings of the report include: Eagerness to buy: Younger generations plan to purchase a home in 2024 Tolerance for higher rates: There is a strong correlation between generations and the highest interest rate they would accept for a new 30-year mortgage Reasons to refinance: Many homeowners are looking to reduce their current rate Equity is rising: But fewer people plan to tap into it this year Auction is having its moment: Gen Z and millennials are interested in this alternative route to homeownership Market complexities: Some ‘would be’ homebuyers abandoned the process in the last year, but plan to try again Mortgage technology: Popular among all generations Read the full report here. CONTACT: Stephanie Hacke, 412-377-6629, Stephanie.hacke@svclnk.com

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Highest Potential SFR Returns around Vero Beach, St. Louis, Brownsville, Rochester and Augusta; Rental Margins Increasing in About Two-thirds of Nation ATTOM, a leading curator of land, property, and real estate data, released its Q1 2024 Single-Family Rental Market report, which ranks the best U.S. markets for buying single-family rental properties in 2024. The report analyzed single-family rental returns in 341 U.S. counties with a population of at least 100,000 and sufficient rental and home price data. The analysis for this report incorporated median rents and median home prices collected from ATTOM’s nationwide property database, as well as publicly recorded sales deed data licensed by ATTOM. View interactive map displaying SFR returns in all 341 counties analyzed The report shows that the average annual three-bedroom gross rental yield (annualized gross rent income divided by median purchase price) among the 341 counties analyzed is projected to be 7.55 percent in 2024. That is up slightly from an average of 7.39 percent in those same markets a year ago, marking the second year of rising projections after three years of declines. Investment returns for landlords continue to increase as rents are going up slightly faster than home prices across a majority of the country. From 2023 to 2024, median three-bedroom rents rose more than median single-family home prices in 216, or 63 percent, of the markets analyzed. The gaps were small – usually less than one percentage point – but enough to push rental yields upward. That has happened amid a combination of market forces spurring demand for rentals. They include a historically tight supply of homes for sale and home-price increases that have slowed but not enough to make buying widely affordable for average wage earners. “The U.S. home sales market cooled off a good bit last year, with some of the weakest gains over the past decade. But that wasn’t enough to make home prices affordable for most workers, which likely fed enough demand to push up rents and yields for investors who lease out single-family properties,” said Rob Barber, CEO at ATTOM. “The fact that so few homes are available for sale in many markets clearly further helped increase rental demand for landlords and boost their bottom lines.” Top rental returns in Indian River, St. Lous, Cameron, Monroe and Richmond counties, as well as other parts of Midwest, Northeast and South Counties with the highest potential annual gross rental yields on three-bedroom properties for 2024 are Indian River County, FL, in the Sebastian-Vero Beach metro area (14.6 percent); St. Lous City, MO, (14.6 percent); Cameron County, TX, in the Brownsville-Harlingen metro area (13.2 percent); Monroe County, NY, in the Rochester metro area (12.8 percent) and Richmond County, GA, in the Augusta-Richmond County metro area (12.7 percent). The highest potential annual three-bedroom gross rental yields in 2024 among counties with a population of at least 1 million are in Wayne County (Detroit), MI (12 percent); Allegheny County (Pittsburgh), PA (11.2 percent); Cuyahoga County (Cleveland), OH (10.2 percent); Cook County (Chicago), IL (10.1 percent) and Riverside County, CA (9.7 percent). Rental returns increase across majority of nation Potential annual three-bedroom gross rental yields for 2024 have increased compared to 2023 in 216 of the 341 counties analyzed in the report (63 percent). They are led by Taylor County (Abilene), TX (yield up from 7.6 percent in 2023 to 11.3 percent in 2024); Jefferson County (Birmingham), AL (up from 8.5 percent to 12.1 percent); Richmond County (Augusta), GA (up from 9.6 percent to 12.7 percent); Midland County, TX (up from 8.7 percent to 11.7 percent) and Aiken County, SC (outside Augusta, GA) (up from 8.4 percent to 11.1 percent). The biggest increases in potential annual gross rental yields from 2023 to 2024 among counties with a population of at least 1 million are in Riverside County, CA (yield up from 7.4 percent in 2023 to 9.7 percent in 2024); Los Angeles County, CA (up from 5.6 percent to 7.1 percent); Fulton County (Atlanta), GA (up from 6 percent to 6.8 percent); Montgomery County, MD (outside Washington, DC) (up from 4.4 percent to 5.2 percent) and Dallas County, TX (up from 7.4 percent to 8.1 percent). Metro areas with a population of 1 million of more showing decreases in potential gross three-bedroom rental yields from 2023 to 2024 are led by Kings County, Brooklyn, NY (yield down from 8 percent to 4.4 percent); Cook County (Chicago), IL (down from 11 percent to 10.1 percent); Wayne County (Detroit), MI (down from 12.8 percent to 12 percent); Miami-Dade County, FL (down from 7.9 percent to 7.3 percent) and Nassau County, NY (outside New York City) (down from 7.1 percent to 6.8 percent). Lowest rental returns in San Francisco, San Jose, Nashville and Washington, D.C., metro areas, along with other western markets Counties with the lowest potential annual gross returns for 2024 on three-bedroom rentals are Santa Clara County, CA, in the San Jose metro area (3 percent); San Mateo County, CA, in the San Francisco metro area (3.4 percent); Arlington County, VA, in the Washington, DC, metro area (3.8 percent); Williamson County, TN, in the Nashville metro area (3.9 percent) and San Francisco County, CA (3.9 percent). Aside from Santa Clara County, the lowest potential annual gross three-bedroom rental yields in 2024 among counties with a population of at least 1 million are in Honolulu County, HI (4.1 percent); Fairfax County, VA (outside Washington, D.C.) (4.2 percent); Kings County (Brooklyn), NY (4.4 percent) and Alameda County (Oakland), CA (4.4 percent). Rents rising faster than wages in majority of counties measured Median three-bedroom rents are rising faster than average wages in 197 of the 341 counties analyzed (58 percent), including Los Angeles County, CA; Harris County (Houston), TX; Maricopa County (Phoenix), AZ); San Diego County, CA, and Orange County, CA (outside Los Angeles). Average wages are increasing faster than median three-bedroom rents in 144 of the 341 counties analyzed (42 percent), including Cook County (Chicago), IL; Miami-Dade County, FL; Kings County (Brooklyn), NY; Queens County, NY,

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There are more homes for sale as spring approaches, and house hunters are hitting the pavement. Home touring activity is rising, and mortgage-purchase applications are up 11% this week. New listings rose 13% from a year earlier nationwide during the four weeks ending March 3, the biggest increase in nearly three years, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The boost in new listings helped bring the total number of homes for sale up 1.7%. Following eight months of declines, February is the first month the number of homes for sale has increased on an annual basis. This week’s pricing data also brings a few glimmers of hope for house hunters. Asking prices of new listings posted their smallest increase in roughly two months; additionally, 5.5% of home sellers dropped their asking price, on average, the highest share of any February since at least 2015. High mortgage rates pushed the median monthly housing payment to $2,694 this week, just $23 shy of the all-time high. But final sale prices, which rose 5.3% year over year, one of the biggest increases in a year and a half, should start declining soon as price growth for new listings loses some momentum. House hunters are looking at homes and applying for mortgages as we approach spring. Touring activity is up 23% from the start of the year, compared to a 14% increase during the same period last year, and mortgage-purchase applications are up 11% week over week. That early-stage buying activity hasn’t yet translated to a boost in sales, with pending sales down 6% year over year. “There have been two major obstacles for homebuyers over the last year: Low inventory and high housing costs,” said Redfin Economic Research Lead Chen Zhao. “Now, the first barrier is starting to come down as more supply comes on the market. Housing costs are still high, but they’re likely to come down a bit as mortgage rates gradually decline through the year and price growth loses some steam. Buyers who can afford today’s mortgage rates may have better luck finding a home now than they have in the past several months, and they also may be less likely to face competition because inventory is improving.” For more of Redfin economists’ takes on the housing market, including how current financial events are impacting mortgage rates, please visit our “From Our Economists” page. Leading indicators Indicators of homebuying demand and activity Value (if applicable) Recent change Year-over-year change Source Daily average 30-year fixed mortgage rate 6.97% (March 6) Down from 7.15% a week earlier Essentially flat Mortgage News Daily Weekly average 30-year fixed mortgage rate 6.94% (week ending Feb. 29) Up from 6.9% a week earlier; 4th straight week of increases Up from 6.65% Freddie Mac Mortgage-purchase applications (seasonally adjusted) Up 11% from a week earlier (as of week ending March 1) Down 8% Mortgage Bankers Association Redfin Homebuyer Demand Index (seasonally adjusted) Up 4% from a month earlier (as of week ending March 3) Down 7% Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents Google searches for “home for sale” Up 4% from a month earlier (as of March 2) Down 11% Google Trends Touring activity Up 23% from the start of the year (as of March 1) At this time last year, it was up 14% from the start of 2023 ShowingTime, a home touring technology company Key housing-market data U.S. highlights: Four weeks ending March 3, 2024Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision. Four weeks ending March 3, 2024 Year-over-year change Notes Median sale price $368,588 5.3% Median asking price $399,223 5.1% Smallest increase since 4 weeks ending Jan. 14 Median monthly mortgage payment $2,694 at a 6.94% mortgage rate 6.9% Down just $23 from all-time high set in October 2023 Pending sales 77,925 -6.4% New listings 81,971 12.8% Biggest increase since June 2021 (there was also a 12.8% increase during the prior 4-week period) Active listings 773,048 1.7% Largest increase since the four weeks ending June 4, 2023. Based on revised data, active listings began increasing for the first time since June during the 4 weeks ending Feb. 11. Months of supply 3.7 months +0.3 pts. 4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions. Share of homes off market in two weeks 39.1% Up from 37% Median days on market 47 -2 days Share of homes sold above list price 24.3% Up from 23% Share of homes with a price drop 5.5% +1.3 pts. Average sale-to-list price ratio 98.5% +0.4 pts. To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-supply-increases-first-time-eight-months

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HPSI Inches Upward Again, Now at Highest Level in Nearly 2 Years The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased 2.1 points in February to 72.8, inching higher for the third consecutive month, due primarily to increased optimism around home-selling conditions. In February, 65% of consumers said it’s a good time to sell a home, up from 60% last month. The share of those who believe it’s a good time to buy a home ticked up slightly this month but remains at an extremely pessimistic 19%. Additionally, a plurality of consumers continues to believe that mortgage rates will go down over the next 12 months, although on net that component fell slightly this month. Overall, the full index is up 14.8 points year over year. “The HPSI increased for the third straight month, continuing its slow but steady rise from the low-level plateau observed through much of 2023; and consumer sentiment toward housing now rests firmly above where it was this time last year,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Consumer attitudes toward home-selling conditions increased markedly in February, with current homeowners, in particular, expressing greater optimism that it’s a ‘good time to sell,’ a development that may foreshadow an upcoming increase in existing home listings. Additionally, despite the recent uptick in rates, consumers remain relatively optimistic that mortgage rates will decrease over the next 12 months. If their expectations come true and rates move closer to the 6-percent mark by the end of 2024, as we currently expect, then it’s likely that consumer sentiment on both sides of the transaction will improve, perhaps leading to a further thawing of the housing market. A decline in mortgage rates – and the resulting uptick in sentiment – would obviously bode well for the upcoming spring homebuying season, although affordability will likely remain a significant challenge for buyers, at least until there’s a meaningful addition to net supply.” Home Purchase Sentiment Index – Component Highlights Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased in February by 2.1 points to 72.8. The HPSI is up 14.8 points compared to the same time last year. Read the full research report for additional information. Detailed HPSI & NHS FindingsFor detailed findings from the Home Purchase Sentiment Index and National Housing Survey, as well as a brief HPSI overview and detailed white paper, technical notes on the NHS methodology, and questions asked of respondents associated with each monthly indicator, please visit the Surveys page on fanniemae.com. Also available on the site are in-depth special topic studies, which provide a detailed assessment of combined data results from three monthly studies of NHS results. To receive e-mail updates with other housing market research from Fannie Mae’s Economic & Strategic Research Group, please click here. SOURCE Fannie Mae