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» VISIT US ONLINE @ DSNEWS.COM 7 A look at facts you didn't know you couldn't live without. Compiled by the DS News Staff TAKE A LOOK INSIDE THE NUMBERS D ATA B I T S REO sales made up 6.1 percent of all home sales in July 2015. When the cash sales share reached its peak in January 2011, REO sales made up nearly 28 percent of all home sales, according to CoreLogic. The nation's serious delinquency rate for single-family mortgages in August 2015 was 3.5 percent, the lowest it has been since January 2008, according to CoreLogic. VACANCY RATES DOWN FOR SFR SECURITIZATIONS, BUT TREND NOT EXPECTED TO CONTINUE INSIDE THE JOURNAL // MOVERS & SHAKERS // ON THE WEB // THE APP SPECTRUM Source: CoreLogic (as of July 2015) Source: Trulia (as of Fall 2015) METROS WHERE BUYING NOW IS CHEAPER THAN RENTING COMPARED WITH 2012 1 Houston, Texas 46% 2 San Antonio, Texas 42% 3 Greenville, South Carolina 39% 4 Birmingham, Alabama 37% 5 Cincinnati, Ohio 34% 6 Kansas City, Missouri 34% 7 Akron, Ohio 31% 8 Albuquerque, New Mexico 25% 9 Long Island, New York 21% 10 New York, New York 11% Metro % Cheaper to Buy than Rent Ranking STATES WITH THE HIGHEST CASH SALES SHARE 1 Alabama 47% 2 Florida 45% 3 New York 43% 4 West Virginia 41% 5 New Jersey 39% 6 Idaho 38% 7 Kentucky 37% 8 Missouri 36% 9 Indiana 36% 10 New Mexico 36% Ranking State Percentage Although vacancy rates across single- family rental (SFR) securitizations showed a downward trend in August, the trend is not expected to continue as lease expirations are also declining across most deals, according to data reported by Morningstar Credit Ratings in its September 2015 Single- Family Research: Performance Summary Covering All Morningstar Rated Securitizations released last month. Higher lease expirations are typically correlated with higher vacancy rates, according to Morningstar, as in the case of PRD 2015-SFR1 (Progress Residential), which had the highest vacancy rate out of 21 securitizations in August and also had one of the highest percentages of lease expirations at 12.0 percent, Morningstar reported. Morningstar added two new sets of data to its September report, which summarizes issuer-reported property-level information as of the end of August 2015: » Month-to-month (MTM) tenant data; Morningstar found there was a "positive relationship" between the number of MTM tenants and the retention of MTM leases » e calculated monthly turnover rate, which was found to be below 6 percent for all 21 securitizations covered in the report. Only six of the 21 SFR deals in August reported a delinquency rate higher than 1 percent, compared to 10 deals in July, which is an indication that delinquency rates are staying low. e ARP 2014- SRF1 transaction (American Residential Properties) once again had the highest delinquency rate out of the 21 transactions at 2.2 percent as of the end of August, holding steady from July after taking a big drop from 3.0 percent in June. at same ARP 2014-SRF1 deal again had the lowest total of delinquent properties as of the end of August, with 2,876. For ARP transactions, delinquency is defined as 30 days or more overdue and owing $500 or more. Invitation Homes (IH), which defines 30 days or more overdue and owing 25 percent or more of the monthly rent, had the highest number of delinquent properties for any one securitization as of the end of August with 7,207 (for the IH 2015-SFR3 transaction). e lowest delinquency rate among the 21 securitizations as of the end of August was the AH4R 2014-SFR3 (American Homes 4 Rent) transaction, with a 0.4 percent rate, according to Morningstar. "e August property-level data for the single-borrower, single-family rental asset class shows performance in line with Morningstar's expectations," Morningstar said in the report. "Vacancy rates are trending higher, but Morningstar does not anticipate this trend to continue, as lease expirations are declining. In line with recent months, delinquency rates remain low." PAGE 32 Associate Professor of Public Policy and Research Director of the USC Lusk Center for Real Estate ASK THE ECONOMIST WITH Rodney Ramcharan

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