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May 2023 » thefivestar.com 59 J O U R N A L May 2023 of the report. » Total production revenues (fee income, net secondary marking income, and warehouse spread) were 333 basis points in 2022, down from 382 basis points in 2021. On a per-loan basis, production rev- enues were $10,322 per loan in 2022, down from $11,003 per loan in 2021. » Total loan production expenses—com- missions, compensation, occupancy, equipment, and other production expens- es and corporate allocations—increased to $10,624 per loan in 2022, up from $8,664 in 2021. » Productivity was 1.5 loans originated per production employee per month in 2022, down from 2.5 in 2021. Production employees include sales, fulfillment, and production support functions. » Net servicing financial income, which in- cludes net servicing operational income, as well as mortgage servicing right (MSR) amortization and gains and losses on MSR valuations, was at a gain of $586 per loan in 2022, up from a gain of $261 per loan in 2021. » Including all business lines, 53% of the firms in the study posted pre-tax net finan- cial profits in 2022, down from 96% in 2021. HOMEBUYERS FACING LESS COMPETITION A ccording to the RE/MAX National Housing Report for March 2023, home sales jumped an estimated 37.7% over February, signaling the start of the peak spring and summer seasons in the report's 52 metro areas. While inventory was down 2.8% from February's total, March inventory was 56.4% higher year-over-year—due in part to the combination of pending sales and closings being down, leaving homes on the market longer than they were a year ago. The median sales price of $396,000 in March was also down 2.0% year-over-year. "Compared to last year, there's a lot to like about this housing market, including lower prices and less competition for available list- ings. Although it would be good to see more new listings coming onto the market, the current conditions offer potential for home buyers and sellers alike," said Nick Bailey, RE/MAX President and CEO. "For those interested in selling, demand for properties remains high and for buyers entering the market, this spring can be a prime time to make a move." Key Findings: » While down year over year, the median sales price ticked up 3.4% from Febru- ary's $383,500, which is in line with last year when home prices rose 4.7% (from $387,000 to $405,000) from February to March. » Months' Supply of Inventory in March was 1.4, down from 1.7 months in Febru- ary but well above the 0.8 of last March. » March's average close-to-list price ratio was 99%, meaning that on average, homes sold for 1% less than the asking price. A year ago, it was 102%. » Homes sold in March were on the market for an average of 40 days—six days less than in February but two weeks longer than a year ago. Highlights and local market metrics for March include: Closed Transactions Of the 52 metro areas surveyed in March 2023, the overall number of home sales is up 37.7% compared to February 2023, and down 21.8% compared to March 2022. The markets with the biggest decrease in year-over-year sales percentage were San Francisco at -37.8%; Portland, Oregon at -36.0%; and Los Angeles at -31.5%. No metro area had a year- over-year sales percentage increase in March. "Compared to last year, there's a lot to like about this housing market, including lower prices and less competition for available listings. Although it would be good to see more new listings coming onto the market, the current conditions offer potential for home buyers and sellers alike." —Nick Bailey, RE/MAX President and CEO