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Incenter Insurance Solutions Announces Lender Insurance Services, Bringing More Efficiency to the Commercial Lending Process

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Offerings Include Real Estate Investment Portfolio Reviews and Specialty Insurance for Short-Term Opportunities Incenter Insurance Solutions, part of the Incenter family of companies, announced its Lender Insurance Services. These innovative programs are designed to give lenders a competitive advantage in the commercial and investor markets through two distinct offerings: 1) real estate investment portfolio reviews of existing insurance, and 2) specialty insurance products for short-term opportunities, such as fix and flips. “Our Lender Insurance Services not only empower our clients to ensure compliant insurance coverage across all investment properties; they help them do so efficiently while providing added value. This is what sets us apart in the marketplace,” said Royce Yeager, Director of Lender Insurance Services, Incenter Insurance Solutions. Through the portfolio review services, agents make sure adequate insurance coverage is in place for each asset, whether properties are all in one region or dispersed across the U.S.  Acting as consultants, they seek to determine whether existing policies are free of issues that could delay a closing or reduce the salability of a portfolio since the systematic acceptance of insufficient coverage can cause undue exposure to loss and potentially violate lender investor covenants. The work product includes written reports for loan files confirming all requirements have been met. Should the team identify any issues, they are available to work directly with borrowers and their third-party agents—freeing staff to remain focused on lending. If borrowers/investors are unable to produce acceptable insurance, Incenter Insurance Solutions can provide a quick and accurate quote as desired. Incenter Insurance Solutions’ short-term insurance program offers lenders a full suite of specialty policies for temporary rentals, bridge and construction loans, and fix and flip projects. Since many agencies are not agreeable to the extra servicing required to bind and cancel these temporary policies, Incenter Insurance Solutions is helping to fill a market gap. Furthermore, Incenter Insurance Solutions is able to provide quotes for every loan file well in advance of closings without any borrower identifiable information, using only the property address and information about any planned renovation or construction. Incenter Insurance Solutions is fully licensed and insured to write business in all 50 states. To learn more, visit https://incenterinsurance.com/ or contact Mr. Yeager at royce.yeager@incenterms.com. About Incenter Insurance Solutions Incenter Insurance Solutions provides insurance services and solutions that help clients obtain coverage while advancing their personal or business goals. The firm’s flexibility and partnerships with dozens of carriers enable them to custom-design solutions with creative precision. For more information, visit incenterinsurance.com.

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WORD OF THE DAY: Moil

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[moyl] Part of speech: Verb Origin: Latin, mid-16th century Definition: Work hard; Move around in confusion or agitation. Examples of Moil in a sentence “You’ll moil to plant your spring garden, but it’s worth the effort.” “She seemed lost as she moiled around the street corner.” About Moil As a verb, moil means to be working very hard. But if you work too hard you might get overhwhelmed or overheated. In comes the second definition of moil, meaning to move around in agitation. Did you Know? The modern definition of moil is the opposite of its roots. In Latin, “mollis” means soft, and moil originally meant to wetten or soften a substance. But if you’re laboring in mud, it’s probably pretty hard work, and that’s likely how moil came to mean strenuous work.

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Redfin Reports Early Stage Demand Picks Up as Mortgage Rates Fall to a Four-Month Low

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Measures of homebuyer activity such as online searches, requests for tours and agents’ help, and mortgage applications rose as mortgage rates fell below 5% More homebuyers are returning to the market, motivated by a decline in mortgage rates and a record share of listings with price drops, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Redfin’s Homebuyer Demand Index—a measure of requests for home tours and other home-buying services from Redfin agents—rose 7 points during the last week of July, and mortgage purchase applications rose for the first time in five weeks. So far this rebound has not moved through to actual home sales. Pending sales in July posted their largest decline since May 2020. Home sellers are also reluctant to enter the market—new listings fell 11% from a year ago, the largest decline since June 2020. “Homebuyers may catch a break this month as rates have come down nearly a point from the recent high on fears of a recession,” said Redfin Deputy Chief Economist Taylor Marr. “There are deals to be had on some homes that have been sitting on the market with reduced prices. General economic uncertainty may continue to keep a lid on homebuyer demand and keep mortgage rates volatile, but the labor market remains a beacon of strength in the economy and the housing market in particular.” Leading indicators of homebuying activity: For the week ending August 4, 30-year mortgage rates fell to 4.99%, the lowest level in four months. This was down from a 2022 high of 5.81% but up from 3.11% at the start of the year. Fewer people searched for “homes for sale” on Google—searches during the week ending July 30 were down 24% from a year earlier, but are up 9% since late May. The seasonally-adjusted Redfin Homebuyer Demand Index was down 9% year over year during the week ending July 31, but has risen 21 points since the week of June 19. Touring activity as of July 31 was down 7% from the start of the year, compared to a 15% increase at the same time last year, according to home tour technology company ShowingTime. Mortgage purchase applications were down 16% from a year earlier during the week ending July 29, while the seasonally-adjusted index was up 1% week over week, the first increase in five weeks. Key housing market takeaways for 400+ U.S. metro areas: Unless otherwise noted, this data covers the four-week period ending July 31. Redfin’s weekly housing market data goes back through 2015. The median home sale price was $380,187, up 8% year over year, the slowest growth rate since July 2020. Prices fell 3.8% from their peak during the four-week period ending June 19. A year ago they rose 0.7% during the same period. San Francisco was the only metro area that saw a year-over-year decline in the median home sale price. Prices fell 8% from a year earlier. The median asking price of newly listed homes increased 13% year over year to $394,375, but was down 2.6% from the all-time high set during the four-week period ending May 22. Last year during the same period median prices were down just 0.1%. The monthly mortgage payment on the median asking price home hit $2,267 at the current 4.99% mortgage rate, up 37% from $1,655 a year earlier, when mortgage rates were 2.77%. That’s down slightly from the peak of $2,467 reached during the four weeks ending June 12. Pending home sales were down 16% year over year, the largest decline since May 2020. New listings of homes for sale were down 11% from a year earlier, the largest decline since June 2020. Active listings (the number of homes listed for sale at any point during the period) rose 4% year over year. 38% of homes that went under contract had an accepted offer within the first two weeks on the market, down from 45% a year earlier. 26% of homes that went under contract had an accepted offer within one week of hitting the market, down from 31% a year earlier. Homes that sold were on the market for a median of 21 days, up from 19 days a year earlier and up from the record low of 16 days set in May and early June. 45% of homes sold above list price, down from 53% a year earlier. On average, 7.7% of homes for sale each week had a price drop, a record high as far back as the data goes, through the beginning of 2015. The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, declined to 100.8%. In other words, the average home sold for 0.8% above its asking price. This was down from 101.9% a year earlier. To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-demand-picks-up-rates-below-5-pct/

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WORD OF THE DAY: Entelechy

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[en-TEL-ə-kee] Part of speech: noun Origin: Late Middle English, late 1500s Definition: (Philosophy) The realization of potential; the supposed vital principle that guides the development and functioning of an organism or other system or organization. Examples of Entelechy in a sentence “The instructor intended to guide all students to discover their own entelechy.” “The entelechy of a tadpole is to develop into a frog.” About Entelechy This word developed trifold through Late Middle English, Latin, and, originally, Greek. The Greek word “entelekheia,” notably used by philosopher Aristotle, was the first iteration of entelechy, and came from a combination of the words “en” (within), “telos” (end, perfection), and “ekhein” (be in a certain state). Did you Know? Animals that go through metamorphosis undergo multiple stages of development in order to reach entelechy. Frogs, for example, hatch as tadpoles and use a long flagellate tail to move around. As they metamorphosize, however, tadpoles eventually develop legs and realize their full potential as an adult frog.

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Home Prices Are Far Outpacing Inflation

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The median price per square foot of a home in the U.S. has increased 310% since 1980 and has exceeded overall inflation by 139% since 2020. The price per square foot of a U.S. home is higher than ever, according to a new report from Home Bay, an online publication that connects readers with expert real estate advice. A new single-family home has a median square footage of 2,356 and a price of $397,100, making the median price per square foot $169. In 1980, the median price per square foot was only $41 – an astronomical 310% less than today’s prices. The study ranked the 50 most-populous U.S. metros by price per square foot and found that the cities with the highest price per square foot are: San Jose ($801) San Francisco ($656) Los Angeles ($520) San Diego ($494) New York ($458) The cities with the lowest price per square foot are: Memphis ($92) Cleveland ($103) Pittsburgh ($134) Indianapolis (134) Buffalo ($139) In addition to having the lowest price per square foot, Memphis also has the largest square footage of homes of the cities on the list, at 2,630. Miami has the smallest square footage overall, at just 1,376. For comparison, the national median square footage is 2,356, but only two metro areas (Memphis and Salt Lake City) come in higher than that. For home buyers looking for more space at a lower cost, suburban and rural areas win out. Further, the data shows that home prices have skyrocketed in the past two years. Since 2020, the median sale price of single-family homes has exceeded overall inflation by 139%. Although home prices are increasing rapidly, the good news is that home sizes are increasing, too. The median square footage of new single-family homes has increased 50% since 1980 (from 1,570 to 2,356 square feet), while the average number of people per household has slightly decreased (from 2.8 to 2.5), meaning Americans today have more space per person than previous generations. Read the full report at: https://homebay.com/price-per-square-foot-2022/?utm_source=press+release&utm_medium=pr&utm_campaign=price+per+square+foot About Home Bay Home Bay is a web property of Clever Real Estate, an online platform that connects home buyers and sellers with top-rated agents at a discount rate. Please contact Nicole Lehman at nicole.lehman@movewithclever.com to be connected with a researcher with any questions.

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Black Knight: June Sees Record-Setting Slowdown in Home Price Growth

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Largest Monthly Inventory Gain in 12 Years; Prices Back Off Highs in Some Major Markets Annual home price growth dropped by nearly two percentage points in June – the greatest single-month slowdown on record since at least the early 1970s – with the rate of slowing this month jumping 66% from May While June’s slowdown was record-breaking, home price growth would need to decelerate at this pace for six more months to drive annual appreciation back to 5%, a rate more in line with long-run averages It could take five months or more for the full impact of recent interest rate spikes to be reflected in traditional home price indexes, which suggests the potential for even stronger slowing to come Localized slowdowns were even more pronounced; 25% of major markets saw home price growth rates slow by three percentage points, with four of those decelerating by four or more points in June alone Though Black Knight’s Collateral Analytics data shows a seasonally adjusted 22% (114K) increase in the number of homes listed for sale over the past two months, inventory is still 54% below 2017-2019 levels Facing a national shortage of 716K listings, it would take more than a year of such record increases for inventory levels to fully normalize Some metro area markets are returning to pre-pandemic inventory levels more quickly than the national rate, with price gains softening or even showing early signs of reversing course in response With the supply/demand equation shifting quickly, some of these markets – including San Jose, Calif. (-5.1%), Seattle (-3.8%) and San Francisco (-2.8%) – are now seeing home prices pull back from recent peaks 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 data sets. With June marking the greatest deceleration in home price growth on record, this month’s report dives deep into the latest housing market trends, looking specifically into home price appreciation and for-sale inventory trends at both the national and metro levels. According to Black Knight Data & Analytics President Ben Graboske, June’s slowdown from 19.3% to 17.3% annual home price growth coincided with the largest single-month gain in homes listed for sale in 12 years. “The pullback in home price growth in June marked the strongest single month of slowing on record dating back to at least the early 1970s – and it wasn’t even close,” said Graboske. “According to the Black Knight HPI, the annual rate of appreciation dropped nearly two full points in June. For context, during the 2006 downturn the strongest single-month slowing was 1.19 percentage points – about what we saw last month – and June topped that by 66%. The slowdown was broad-based among the top 50 markets at the metro level, with some areas experiencing even more pronounced cooling. In fact, 25% of major U.S. markets saw growth slow by three percentage points in June, with four decelerating by four or more points in that month alone. Still, while this was the sharpest cooling on record nationally, we’d need six more months of this kind of deceleration for price growth to return to long-run averages. Given it takes about five months for interest rate impacts to be fully reflected in traditional home price indexes we’re likely not yet seeing the full effect of recent rate spikes, with the potential for even stronger slowing in coming months. “We’re also seeing significant shifts in the demand-supply equation, though that too has quite a way to go before normalization. Even with our Collateral Analytics data showing a seasonally adjusted 22% increase in the number of homes listed for sale over the past two months, the market is still at a 54% listing deficit when compared to 2017-2019 levels. With a national shortage of more than 700,000 listings, it would take more than a year of such record increases for inventory levels to fully normalize. Of course, some metro areas are seeing inventory return to the market more quickly than others. San Francisco officially returned to pre-pandemic levels in June, becoming the first major market to do so, with San Jose close behind, where the number of homes listed for sale is just 1% off the June 2017-2019 average. It’s therefore of little surprise to find both metros among the markets where prices are pulling back from recent highs, along with Seattle, San Diego, Denver and others.” Drilling further into June home price data, the report finds the average San Jose home value has fallen 5.1% (-$75K) in the last two months alone, marking the sharpest pullback from recent highs among the top 50 U.S. markets. Seattle follows with a 3.8% decline in home prices over the same period, a reduction of more than $30K. San Francisco (-2.8%, -$35K), San Diego (-2%, -$19.5K) and Denver (-1.4%, -$8.7K) round out the top five. In total, prices have pulled back from recent peaks in 12 of the 50 largest markets, with seven pulling back by 1% or more. As nearly 10% of mortgaged properties were purchased over the past year, this could affect a meaningful number of borrowers who bought into the market at or near recent highs. The Mortgage Monitor also found that the clear driver behind recent inventory increases is a decline in sales activity due to rising rates and the lowest levels of home affordability in nearly 40 years. Seasonally adjusted home sales are down by more than 21% since the start of the year, with Black Knight Optimal Blue rate lock data suggesting further slowing in the coming months. Factoring in both active listings and sales volumes, the market has ticked up from a low of 1.7 months of inventory at the start of the year to 2.6 months as of June. If current trends continue to hold, months of inventory could continue to trend sharply upward in coming months. Black Knight will continue to monitor the situation and report its findings moving forward.   Much more 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

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