The HousingWire award highlight collection highlights the people and organizations which have been acknowledged by means of our Editors’ Selection Awards. Nominations for HousingWire’s TECH100 award are open now by means of Friday, December 23, 2022. Click on right here to appoint your group.
Because the housing market continues to throw curveballs, easy accessibility to dependable actual property information has turn out to be a linchpin for housing professionals as they try and navigate an ever-changing market. For a lot of within the business, entry to market information supplies a vital glimpse of what’s-to-come in housing. This information permits them to pivot methods primarily based on their insights.
Corporations like ATTOM, a number one curator of actual property information and multi-year TECH100 winner, are making developments in know-how by delivering property information options that tackle a variety of wants for actual property professionals.
Annually, the TECH100 awards acknowledge probably the most revolutionary and impactful organizations in actual property and mortgage that present help and options to their shoppers. Nominee accomplishments vary from revolutionizing the secondary mortgage market to constructing a one-click checkout for actual property transactions however all of them have one widespread objective of supporting a extra environment friendly, accessible and sustainable housing financial system.
HousingWire reached out to Rick Sharga, government vice chairman of market intelligence at ATTOM to study extra in regards to the firm’s ever-expanding information portfolio and listen to what insights he has for the market as we method 2023.
HousingWire: ATTOM lately introduced the combination of NMLS information into its platform. What use instances are rising by means of shopper and consumer utilization of this information? Are customers leveraging the facility of NMLS information straight by means of the ATTOM platform or integrating the information into their workflow applied sciences?
Rick Sharga: ATTOM’s NMLS information and mortgage originator analytics present unparalleled insights into mortgage origination exercise, from the hyperlocal to nationwide degree. This dataset exhibits who’s originating residential loans, the place and with which mortgage merchandise, companions and at what quantity. It’s a highly effective useful resource for mortgage originators and lenders, in addition to others in the actual property house. ATTOM’s NMLS information supply options embody: ATTOM Cloud; Property Knowledge APIs; Bulk Knowledge Licensing; Property Experiences; Advertising Lists; Actual Property Market Developments; and Match & Append.
HousingWire: Shaking the crystal ball, do you see any areas of alternative in 2023? How does the information help this prediction?
Rick Sharga: Greater mortgage charges have dramatically affected affordability for a lot of potential homebuyers — particularly first-time consumers, who don’t take pleasure in fairness to leverage in opposition to their residence buy. Because of this, many of those consumers will look to hire till market circumstances enhance, creating alternatives for each single household rental property and multi-family property homeowners. We’re seeing proof of this in information that signifies weakening demand, similar to pending gross sales and buy mortgage software experiences. We’re additionally seeing it available in the market itself, the place residence gross sales have declined for 13 consecutive months, and residential value appreciation has slowed down and in some instances reversed course.
One other alternative for each actual property traders and homebuyers is the migration from excessive price/excessive tax areas to inexpensive markets by individuals who can now work at home and other people merely on the lookout for a spot the place they will afford to purchase a home. This implies that states within the South and Southeast might proceed to see inhabitants and job development, which each level in direction of larger residence gross sales and more healthy costs than in another markets.
HousingWire: ATTOM’s Q3 U.S. House Gross sales Report confirmed that revenue margins on median-priced single-family residence and condominium gross sales within the U.S. decreased to 54.6 p.c. Do you suppose decrease residence vendor revenue margins can have a fabric unfavorable impression on rate-and-term and cash-out refinance volumes in 2023?
Rick Sharga: Declining margins on residence gross sales are sometimes linked to residence costs additionally declining. If householders choose to remain put quite than promote their residence right into a declining market and faucet into their fairness, they’ll discover that they’ve barely much less fairness to faucet into than they did six months in the past, earlier than mortgage charges doubled and residential costs started to weaken. However the distinction for the overwhelming majority of householders will probably be marginal — do not forget that in line with our information, 51.5% of householders are “fairness wealthy,” which means that they owe lower than 50% of the worth of their residence on their mortgage. For most owners who bought their residence earlier than mortgage charges began to rise, there’ll nonetheless be ample fairness for them to get a cash-out refinance mortgage or a HELOC if they need one. These loans are more likely to be the intense spot in an in any other case dismal 12 months for mortgage lenders.
The declining margins on residence gross sales shouldn’t have a fabric impression on rate-and-term refinance loans just because there are very, only a few householders who would profit from refinancing right into a 6.5-7.0% mortgage (roughly 70% of householders with mortgages have a price of 4.0% or under). Quantity of those loans has fallen off a cliff since mid-year, and is unlikely to extend till rates of interest come down considerably.