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Housing Market Cooldown Persists Heading Into The Fall, According to Latest HouseCanary Report

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Volume of Price Drops Increased 95.5% Compared to the Same Period Last Year Monthly Nationwide Supply Continues to Trend Downward on the Heels of Elevated Interest Rates and Market Seasonality Net New Listing Volume and Contract Volume are Down Across Every Price Bin on a Year-Over-Year Basis HouseCanary, Inc., a national brokerage known for its real estate valuation accuracy, released its latest Market Pulse report, covering 22 listing-derived metrics and comparing data between August 2021 and August 2022. The Market Pulse is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform. Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented: “The nationwide supply shortage accelerated by the Fed’s rate hikes and economic concerns persisted through the end of the summer despite a slight increase in inventory back in June. Decelerating price growth, decreasing sale-to-list ratio, and an increase in median days on market are all indicators of a potential market normalization as both buyer and seller activity continue to cooldown. More and more would-be buyers are holding off on making offers as raised rates amplify perceptions of unaffordability. In response to the decreased demand, sellers are cutting listing prices or dropping out of the market completely, suggesting we may see the market shift in buyers’ favor as we head into the fall.” Select findings from this month’s Market Pulse are below. Be sure to review the Market Pulse in full for extensive state-level data. Total Net New Listings: Since August 2021, there have been 3,226,813 net new listings placed on the market, which is a 6.4% decrease versus the 52 weeks prior Percentage of total net new listings over the last 52 weeks, broken down by home price: $0-$200k: 14.6% $200k-$400k: 37.6% $400k-$600k: 23.9% $600k-$1mm: 15.9% >$1mm: 8.0% Percent change in net new listing activity over the last 52 weeks versus the same period in 2021, broken down by home price: $0-$200k: -25.4% $200k-$400k: -15.3% $400k-$600k: +9.5% $600k-$1mm: +14.5% >$1mm: +12.2% Monthly Net New Listing Volume (Single-Family Detached Homes): Monthly new listing volume was down 18.7% compared to August 2021 In August, there were 260,489 net new listings placed on the market, representing a 29.2% decrease year-over-year For the month of August, the percent change in net new listing volume compared to August 2021, broken down by home price: $0-$200k: -35.4% $200k-$400k: -31.9% $400k-$600k: -23.6% $600k-$1mm: -22.8% >$1mm: -25.9% Listings Under Contract: Over the last 52 weeks, 3,256,348 properties have gone into contract, representing a 9.8% decrease relative to the same period in 2021 Percentage of total contract volume since August 2021, broken down by home price: $0-$200k: 15.7% $200k-$400k: 38.4% $400k-$600k: 23.2% $600k-$1mm: 15.2% >$1mm: 7.5% Percent change in contract volume over the last 52 weeks versus the same period in 2021, broken down by home price: $0-$200k: -22.9% $200k-$400k: -17.4% $400k-$600k: +3.6% $600k-$1mm: +7.3% >$1mm: +0.9% Monthly Contract Volume (Single-Family Detached Homes): For the month of August, there were 315,977 listings that went under contract nationwide, which is a 14.5% decrease year-over-year For the month of August, the percent change in contract volume compared to August 2021, broken down by home price: $0-$200k: -18.3% $200k-$400k: -18.7% $400k-$600k: -8.2% $600k-$1mm: -6.6% >$1mm: -15.0% Median Listing Price Activity (Single-Family Detached Homes): For the week ending September 2, 2022, the median price of all single-family listings in the U.S. was $433,473, a 13.1% increase year-over-year For the week ending September 2, 2022, the median closed price of single-family listings in the U.S. was $405,952,a 7.4% increase year-over-year The median price of all single-family listings in the U.S. is down by 1.8% month-over-month and the median price of closed listings has increased by 0.2% month-over-month About HouseCanary Founded in 2013, national real estate brokerage HouseCanary empowers consumers, financial institutions, investors, and mortgage lenders, with industry-leading services including valuations, forecasts, and transaction support. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com.

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Arrived Homes, the Real Estate Investing Platform, Opens Access to Vacation Home Rental Investment to All

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Prospective investors can now buy shares in vacation rentals starting with homes in several cities including Joshua Tree, CA, Nashville, TN, and Panama City, FL Arrived Homes, the first SEC-qualified real estate investing platform that allows anyone to buy shares in single-family rentals starting at just $100, is now offering the opportunity to invest in short-term vacation rentals as well. Anyone can buy shares in the vacation rentals to access the rental income and property appreciation over time. Over the past year, Arrived has helped thousands of Americans gain access to the financial benefits of property ownership for the first time in their lives. We are excited to bring our model to vacation rentals, the fastest growing real estate segment right now”, said Ryan Frazier, CEO & Co-Founder of Arrived. “Platforms like Airbnb have helped vacation rental owners generate over $150 Billion dollars in rental income from serving 1 Billion guest arrivals, and yet, less than 0.5% of these guests have been able to access the wealth-building potential of this rapidly growing asset class. We’re changing that today by adding these assets to our platform.” The first seven vacation rental properties available through this new feature will be The Mirage in Joshua Tree, CA, The Oasis in Nashville, TN, The Cardinal in Glendale, AZ, The Ace in Scottsdale, AZ, The Hammock in Clearwater, FL, The Orchard in Blue Ridge, GA, and The Pointbreak in Panama City, FL. These new vacation rentals are collectively valued at $5M USD and feature desirable amenities including hot tubs, rooftops with downtown views, and prime locations near cultural and entertainment centers. Arrived has partnered with established vacation rental property managers and developers – Tony Robinson and Alpha Geek Capital team, Misfit Homes, Old Town Rental, Roseus Hospitality, Southern Comfort Cabin Rentals, and Techvestor – to oversee the design, furnishing, and upkeep of the homes, which eliminates the need for investors to be involved in day-to-day operations of the rental units. These managers bring hyperlocal hosting experience: including having their own seasoned teams, being on housing boards, and having established brand recognition across social platforms. While investors will go through the Arrived website to buy shares, anyone interested in renting the properties can find them on any major vacation rental property platform. Additionally to celebrate this launch, Arrived is hosting the #ArrivedGetaway where investors can win shares in a vacation rental, a trip for two, and five nights stay at a property they own a piece of. Arrived is the first company to offer SEC-qualified shares of single-family rental homes to accredited and non-accredited investors alike. This move to provide customers with the option to invest in short-term rental properties directly follows their recent $25M Series A, supporting their mission to democratize access to the real estate asset class across the United States. To date, Arrived has fully funded over 150 single-family rental properties in 27 markets across the country totaling over $55M in asset value. Arrived is planning to expand its offerings across both single-family rentals and vacation rental properties while opening new markets in Florida, Texas, Nevada, and Indiana. About Arrived Arrived Homes is a Seattle-based real estate investing platform that makes ownership of rental properties possible for anyone and everyone. At Arrived Homes, anybody can buy shares in rental properties starting with $100 and start earning money from day one. Arrived’s goal is to make real estate investing easy and accessible to millions of people who don’t have the expertise, time, or large amounts of capital needed to buy a rental property on their own. Arrived manages the operational work so that investors can sit back and collect passive rental income and their share of the home’s appreciation. For more information please visit www.arrivedhomes.com.

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WORD OF THE DAY: Zonk

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[zoNGk] Part of speech: Verb Origin: of imitative/echoic origin, mid-20th century Definition: Fall or cause to fall suddenly and heavily asleep or lose consciousness; Hit or strike. Examples of Zonk in a sentence “Nothing makes me zonk out quite as quickly as NyQuil.” “The bowl zonked Cheryl when she tried to grab it from the top shelf.” About Zonk Zonk is a slang, onomatopoeic term from the mid-20th century with unknown origin. Did you Know? Zonk has its own unofficial meaning within the Army. A commanding officer will usually use it during physical training formations as a fun way to dismiss his or her unit from duty. Once the word is shouted out, the entire unit can run off while shouting with glee.

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Black Knight: Against Sharpest Monthly Home Price Drop in 11 Years, Tappable Equity Backs Off Q2 Peak

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Annual home price growth shifted from deceleration to decline in July as the median home price fell 0.77% from June – the largest single-month decline since January 2011 More than 85% of the 50 largest U.S. markets are at least marginally off their peaks through July, with home prices down by >1% in a third, and more than one in 10 seeing prices fall by 4% or more Tappable equity – the amount a homeowner can borrow against while keeping a 20% equity stake – hit its 10th consecutive record high in Q2 2022 at $11.5T but appears to have peaked in May of this year Escalating declines in June and July have total tappable equity down 5% over the past two months, suggesting a sizeable reduction is likely in Q3, which would mark the first quarterly decline in three years In some markets, equity pullbacks have quickly become fairly significant, with the five most equity-rich West Coast markets shedding 10-20% of previously available tappable equity from April through July The impact of home price declines is twice as pronounced on tappable equity levels; a 5% decline in home values nationally would equate to a 10% decline in tappable equity, and so on. Overall, the market is on strong footing to weather a correction; total market leverage as of Q2 – including both first and second liens – was just 42% of mortgaged homes’ values, the lowest on record The Data & Analytics division of Black Knight, Inc. (NYSE: BKI) released its latest Mortgage Monitor Report, based upon the company’s industry-leading mortgage, real estate and public records datasets. The most recent data from the Black Knight Home Price Index shows the deceleration in home price growth on which the company has been reporting in recent months has shifted to actual decline. As Black Knight Data & Analytics President Ben Graboske explains, July’s month-over-month decline represents the first such contraction in nearly three years. “After 31 consecutive months of growth, home prices pulled back by 0.77% in July,” said Graboske. “Annual home price appreciation still came in at over 14%, but in a market characterized by as much volatility and rapid change as today’s, such backward-looking metrics can be misleading as they can mask more current, pressing realities. Case in point – this cooling has been indicated in our home price data for several months now, and at an increasing pace. In January, prices rose at 28 times their normal monthly rate before slowing to five times average in February as interest rates began to tick up. Even May was still about two times normal, before June growth came in 70% below the long-run average. And all the while, annual appreciation continued to appear historically strong, showing double-digit growth month after month. Without timely, granular data, market-moving trends don’t become apparent until they’re right in front of you – like a sudden shift to the largest single-month decline in home prices in more than a decade. “Similarly, while mortgage-holders’ tappable equity had grown 25% from last year to hit yet another record high in Q2, we noted that equity actually peaked in May and tracked the pullback that began in June before escalating in July. Tappable equity is now down 5% in the last two months, setting up Q3 to likely see the first quarterly decline in tappable equity since 2019. Some of the nation’s most equity-rich markets have seen significant pullbacks, most notably among key West Coast metros. From April through July, San Jose lost 20% of its tappable equity. Seattle followed, shedding 18% of tappable equity over that same three-month span. Likewise, San Diego (-14%), San Francisco (-14%) and Los Angeles (-10%) have all seen double-digit declines since April. Keep in mind that of the roughly 275K borrowers who would fall underwater from a 5% price decline, more than 80% purchased their homes in the first six months of 2022 – right at what appears to have been the top of the market. With prices continuing to correct and our McDash HELOC data showing home equity lending at its highest level in 12 years, we will keep a very close eye on equity positions in the coming months.”   The month’s report looks again at the inventory side of the housing supply/demand equation. Falling housing demand continued to allow inventory levels to build for the fifth month in a row, with July marking the third consecutive record-breaking increase. Despite a 128K rise in active listings, inventories remain 622K (45%) below 2017-2019 levels. Black Knight Collateral Analytics data shows 3.1 months’ worth of inventory as of the end of July, up from 1.7 months at the beginning of the year. If sales continue to fall at the rate they have the past four months and listings continue to build at their current pace, inventory would cross the six-month threshold by December – typically the point at which the landscape shifts from a seller’s to a buyer’s market.   Much more localized information on these and other topics can be found in this month’s Mortgage Monitor. About the Mortgage Monitor The Data & Analytics division of Black Knight manages the nation’s leading repository of loan-level residential mortgage data and performance information covering the majority of the overall market, including tens of millions of loans across the spectrum of credit products and more than 160 million historical records. The combined insight of the Black Knight HPI and Collateral Analytics’ home price and real estate data provides one of the most complete, accurate and timely measures of home prices available, covering 95% of U.S. residential properties down to the ZIP-code level. In addition, the company maintains one of the most robust public property records databases available, covering 99.9% of the U.S. population and households from more than 3,100 counties. Black Knight’s research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for the monthly Mortgage Monitor Report. To review the full report, visit: https://www.blackknightinc.com/data-reports/ About Black Knight Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries,

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Walker & Dunlop Expands Affordable Housing Platform with Addition of New Investment Sales Team

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Walker & Dunlop, Inc. announced that it is expanding the capabilities of its affordable housing platform with the creation of a dedicated affordable investment sales team. The eleven-member team, led by Managing Directors Aaron Hargrove and Eric Taylor, formerly of Greystone Real Estate Advisors, brings invaluable experience and relationships in the affordable housing space and will play a strategic role in helping Walker & Dunlop further its mission of empowering clients to create, preserve and revitalize affordable communities. “We are excited and proud to join a company that believes in this mission and is making it an integral part of their business by investing in and expanding their platform to better serve stakeholders. We look forward to collaborating with the entire affordable team and adding our expertise in affordable investment sales,” said Aaron Hargrove. The new team of tenured affordable housing experts has experience that spans the full scope of affordable housing programs including Section 8, Section 42 LIHTC, and Rural Development. Drawing on their diverse backgrounds and areas of expertise, as well as their experience transacting in almost every state plus Puerto Rico, they are known to provide unmatched analysis and brokerage services for property owners in any situation, including disposition, refinancing, partnership dissolution, partnership buyout, asset repositioning, resyndication, and qualified contract execution. “We are thrilled to welcome Aaron, Eric, and the team to Walker & Dunlop. The addition of investment sales to our existing suite of affordable services ensures our ability to further our mission of creating and maintaining the nation’s affordable housing stock by elevating the ways in which we can support our clients,” said Sheri Thompson, Walker & Dunlop’s Executive Vice President for Affordable Housing & Investment Management/Proprietary Capital. “The team will also play an important role in helping Walker & Dunlop achieve its goal of originating $60 billion of affordable and workforce housing loans by 2025.” The creation of this investment sales team broadens Walker & Dunlop’s affordable-specific capabilities to now include debt financing and LIHTC equity, affordable housing preservation, appraisals, development support and construction management, affordable compliance software solutions, and investment sales and advisory. This full suite of services, combined with unparalleled affordable experience, exceptional expertise in transaction execution, and industry-leading technology positions Walker & Dunlop to continue to be a leader and set the standard in affordable housing. Eric Taylor added, “Our team is eager to join forces with Walker & Dunlop’s existing affordable platform to provide an investment sales solution to our combined client base. We are encouraged by the cross-collaboration between teams and how we can use W&D’s technology to enhance our processes, and by the opportunity to help build something special.” Walker & Dunlop is a leader in multifamily property sales, having completed $19.3 billion in property sales volume in 2021 alone, up 214% from 2020. The firm was also the third largest provider of capital to the U.S. multifamily market, originating $49 billion in transactions and lending over $42 billion for multifamily properties in 2021. Additionally, the affordable team financed $10B of affordable financing in 2021 through HUD, Fannie Mae, Freddie Mac, and capital markets sources. To learn more about our capabilities and financing options, visit our website. About Walker & Dunlop Walker & Dunlop (NYSE: WD) is one of the largest providers of capital to the commercial real estate industry in the United States, enabling real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. Our people, brand and technology make W&D one of the most insightful and customer-focused firms in our industry. With more than 1,400 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune‘s Great Places to Work® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.

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WORD OF THE DAY: Quisquous

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[KWIS-kwəs] Part of speech: Adjective Origin: Unknown, 17th century Definition: Difficult to deal with or settle; perplexing; (of a person) of dubious character. Examples of Quisquous in a sentence “I wanted to trust him, but also knew that he had a quisquous reputation.” “She tried to be patient but knew that her friend was quisquous.” About Quisquous While we know that quisquous is a Scottish word that first came into use around the 17th century, its exact origins are uncertain. It could possibly originate from the Latin word “quisquis,” which means “whoever.” Did you Know? Quisquous characters have long been referred to as tricksters in mythology; the coyote (Indigenous cultures), the fox (East Asian cultures), Anansi (the spider god of West Africa), and Loki (Norse god) are all viewed as tricksters.

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