Technology

HOME SELLER PROFIT MARGINS DROP SLIGHTLY ACROSS U.S. AS HOUSING MARKET SLOWS DURING THIRD QUARTER

Published

4 hours ago

October 17, 2024

Returns on Typical U.S. Home Sales Remain High but Dip Down Quarterly and Annually;Typical Margin at 56 percent as Median U.S. Home Price Levels Out Over Summer; Median Raw Profits Hold Steady at Just Under $130,000

IRVINE, Calif., Oct. 17, 2024 /PRNewswire/ — ATTOM, a leading curator of land, property data, and real estate analytics, today released its third-quarter 2024 U.S. Home Sales Report, which shows that homeowners earned a 55.6 percent profit margin on typical single-family home and condo sales in the United States during the third quarter. That figure was down by small amounts both quarterly and annually, dipping by one percentage point from the second quarter of 2024 and two points from the third quarter of last year.

The nationwide investment return ticked downward as home-price spikes that had buoyed the housing market during the Spring of this year flattened out, leaving the U.S. median home value virtually unchanged at about $360,000. While home-seller profits remain historically high, the national margin has declined almost every quarter from a 64 percent peak hit in 2022.

The leveling off of prices during the third quarter also led to typical raw profits for sellers staying about the same, near an all-time high of just under $130,000.

“The latest price and profit numbers provided another round of generally good news for homeowners, tempered by a bit of a downside,” said Rob Barber, CEO for ATTOM. “Home values remained at or near record levels around large swaths of the country, keeping seller profits far above historical levels. At the same time, though, the housing market settled down after a big second quarter, which extended a slow fallback in profit margins that started last year. If history is a good guide, the fourth quarter is likely to bring more of the same as the peak buying season ends.”

He added that “this is far from a warning sign that the long market boom is ending. But there certainly are forces that could cut either way, especially as affordability remains a challenge for so many potential buyers.”

Profit margins slip quarterly in half of U.S. and annually in three-quarters of nation
Typical profit margins – the percent difference between median purchase and resale prices – stayed the same or decreased from the second quarter of 2024 to the third quarter of 2024 in 79 (50.6 percent) of the 156 metropolitan statistical areas around the U.S. with sufficient data to analyze. They were down annually in 112, or 71.8 percent, of those metros, and down in about the same portion since the second quarter of 2022, when the nationwide return on median-priced home sales peaked at 64.3 percent.

Profit margins have softened over the past year throughout all price segments of the market, from metro areas where home values mostly sit below $250,000 to those where they top $450,000. But the low end of the market has fared a bit better. Typical margins decreased annually in about 60 percent of the least expensive metro areas compared to about 75 percent elsewhere.

The biggest year-over-year decreases in typical profit margins during the third quarter of 2024 came in the metro areas of San Francisco, CA (margin down from 84.9 percent in the third quarter of 2023 to 61.4 percent in the third quarter of 2024); Punta Gorda, FL (down from 94.1 percent to 74.4 percent); Scranton, PA (down from 88.2 percent to 69.6 percent); South Bend, IN (down from 77.3 percent to 59.2 percent) and Hilo, HI (down from 86.5 percent to 70.5 percent).

Aside from San Francisco, the biggest annual profit-margin decreases in metro areas with a population of at least 1 million in the third quarter of 2024 were in Austin, TX (typical return down from 44.3 percent to 33.3 percent); Honolulu, HI (down from 53.9 percent to 43.3 percent); Riverside, CA (down from 78.6 percent to 69 percent) and Birmingham, AL (down from 52.1 percent to 42.7 percent).

The biggest annual improvements in returns on investment came in Trenton, NJ (margin up from 65.5 percent in the third quarter of 2023 to 87.4 percent in the third quarter of 2024); Albany, NY (up from 31.8 percent to 51.6 percent); Rockford, IL (up from 54.5 percent to 70.2 percent); Rochester, NY (up from 66.7 percent to 81.2 percent) and Evansville, IN (up from 47.2 percent to 61.7 percent).

Two-thirds of metro markets enjoying investment returns above 50 percent
Despite the downward trend, returns on investment for median-priced home sales during the third quarter of 2024 still surpassed 50 percent in 107 of the metro areas analyzed (68.6 percent). That was down from three quarters of those areas in the third quarter of last year but far above the level of 13 percent five years ago.

The leaders among areas with a population of at least 1 million in the third quarter of this year were San Jose, CA (typical return of 109.8 percent); Seattle, WA (90.3 percent); Providence, RI (84.6 percent); Miami, FL (83.9 percent) and Grand Rapids, MI (81.9 percent).

The lowest among areas with a population of at least 1 million were in New Orleans, LA (24.8 percent); San Antonio, TX (25.1 percent); Austin, TX (33.3 percent); Houston, TX (37.3 percent) and Dallas, TX (37.4 percent).

Raw profits remain near record level
The raw profit on median-priced home sales nationwide, measured in dollars, slipped 0.9 percent during the months running from July through September of this year, to $128,700. But it was still up 2.7 percent from the third quarter of 2023 and remained near the record of $135,000 hit in 2022.

Typical raw profits were flat or down quarterly in 74, or 47.4 percent, of the markets analyzed. Despite the nationwide year-over-year gain, raw profits were the same or down annually in 82, or 52.6 percent of those metro areas.

The biggest year-over-year increases in raw profits on typical sales among metro areas with a population of at least 1 million were in Rochester, NY (up 24.4 percent); Cleveland, OH (up 23.5 percent); Providence, RI (up 18.9 percent); Chicago, IL (up 18.8 percent) and Cincinnati, OH (up 15 percent).

Raw profits on median-priced sales exceeded $100,000 during the third quarter in 67.3 percent of the metro areas analyzed, with 19 of the top 20 along the east or west coasts. They were led by San Jose, CA (raw profit of $785,000); San Francisco, CA ($380,600); San Diego, CA ($377,000); Los Angeles, CA ($376,000) and Barnstable, MA ($361,968).

The 25 lowest raw profits were all in the Midwest or South. The smallest were in Beaumont, TX ($15,481); Lubbock, TX ($29,740); Montgomery. AL ($35,590); Macon, GA ($37,692) and McAllen, TX ($40.312).

National median home value stalls in Summer of 2024, but still at all-time high
Nationwide, the median price of single-family homes and condos rose from the second to the third quarter of 2024 by just 0.2 percent after spiking 7.4 percent in the Spring. But it still hit a new record of $360,500, up from $359,900 in the prior three-month period. The latest median was up 5.3 percent from $342,500 in the third quarter of last year.

The typical value increased quarterly in 52.5 percent of the metro areas around the country with enough data to analyze and annually in 81.6 percent. It hit new highs during the third quarter in 50 percent of those markets.

Metro areas in upper half of the U.S. market, concentrated in the West and South regions, suffered the largest quarterly price declines. About two-thirds of those locations, with typical values of at least $350,000, absorbed losses. Measured annually, the best gains came in low-priced areas, clustered more in the Midwest and Northeast.

Markets with a population of at least 1 million and the biggest quarterly decreases in median home prices were San Francisco, CA (down 11.1 percent from the second to the third quarter of this year, to $1 million); Austin, TX (down 10.5 percent, to $425,000); New Orleans, LA (down 6.6 percent, to $242,900); San Jose, CA (down 6.1 percent, to $1.5 million) and Indianapolis, IN (down 4.2 percent, to $263,560).

The largest annual median-price increases in metro areas with a population of at least 1 million were in Rochester, NY (up 11.1 percent from the third quarter of 2023 to the third quarter of 2024, to $250,000); Providence, RI (up 10.3 percent, to $480,000); Hartford, CT (up 9.6 percent, to $367,000); Detroit, MI (up 9.4 percent, to $255,000) and Cleveland, OH (up 9.4 percent, to $221,000).

Historical Median Home Sales Prices

Homeowners staying longer before selling
Homeowners who sold in the third quarter of 2024 had owned their homes an average of 8.09 years. That was up from 7.82 years in the second quarter of 2024 and from 7.74 years in the third quarter of 2023, marking the fifth increase in the last six quarters.

Average tenure was up from the third quarter of 2023 to the same period this year in 82 percent of metro areas with sufficient data. The largest annual increases were in Peoria, IL (tenure up 15 percent); Crestview, FL (up 14 percent); Medford, OR (up 14 percent); Salinas, CA (up 11 percent) and Fort Collins, CO (up 10 percent).

The longest average tenures for owners who sold in the third quarter were again in the Northeast or West regions of the U.S. They were led by Barnstable, MA (13.84 years); Bridgeport, CT (13.23 years); New Haven, CT (12.81 years); Hartford, CT (12.81 years) and San Francisco, CA (12.69 years).

Average U.S. Homeownership Tenure

The shortest average tenures among third-quarter sellers were in Provo, UT (6.62 years); Oklahoma City, OK (6.69 years); Lakeland, FL (6.81 years); San Antonio, TX (6.83 years) and Austin, TX (6.87 years).

Lender-owned foreclosures still decreasing
Home sales following foreclosures by banks and other lenders represented just 1.3 percent, or one of every 78 U.S. single-family home and condo sales in the third quarter of 2024. That was down from 1.4 percent in both the second quarter of 2024 and the third quarter of last year. The portion continues to represent just a tiny fraction of the 30.1 percent peak this century hit in 2009 during the aftermath of the Great Recession of 2007.

Among metro areas with sufficient data, those where REO sales represented the largest portion of all sales in the third quarter of 2024 included Honolulu (7.5 percent); Albany, NY (4.9 percent); Flint, MI (4.7 percent); Macon, GA (4.6 percent) and St. Louis, MO (3.6 percent).

Cash sales drop as portion of all transactions
Nationwide, all-cash sales accounted for 37.2 percent of single-family home and condo sales in the third quarter of 2024. That was down from 38.9 percent in the second quarter of 2024, although up slightly from 36.9 percent in the third quarter of last year.

Among metropolitan areas with sufficient data, those where all-cash sales represented the largest share of all transactions in the third quarter of 2024 included Myrtle Beach, SC (69 percent of all sales); Claremont–Lebanon, NH (64.8 percent); Macon, GA (59.9 percent); Warner Robins, GA (58.3 percent) and Hilton Head, SC (58 percent).

Those where cash sales represented the smallest share of all transactions in the third quarter of 2024 included Greeley, CO (15.7 percent); Hagerstown, MD (19.6 percent); Jacksonville, NC (21.6 percent); Washington, DC (22.2 percent) and Kennewick, WA (22.3 percent).

Institutional investment decreases again
Institutional investors nationwide accounted for 6 percent, or one of every 17 single-family home and condo sales in the third quarter of 2024. That was down from 6.2 percent in the second quarter of 2024 and from 6.6 percent in the third quarter of last year.

Among states with enough data to analyze, those with the largest percentages of sales to institutional investors in the third quarter of 2024 included Alabama (9.1 percent of all sales), Tennessee (8.9 percent), Oklahoma (8.4 percent), Georgia (8.2 percent) and Texas (8.1 percent).

Historical Home Sales by Type

FHA-financed purchases stay roughly the same
Nationwide, buyers using Federal Housing Administration (FHA) loans comprised 8.4 percent of all single-family home and condo sales in the third quarter of 2024 (one of every 12). That was about the same as the 8.2 percent level in second quarter of 2024 and down slightly from 8.7 percent a year earlier.

Among metropolitan areas with sufficient FHA-buyer data, those with the highest levels of FHA sales in the third quarter of 2024 included Lakeland, FL (24.1 percent of all sales); Merced, CA (23.5 percent); Bakersfield, CA (21.7 percent); Yuma, AZ (20.6 percent) and Visalia, CA (19.6 percent).

Report methodology
The ATTOM U.S. Home Sales Report provides percentages of REO sales and all sales that are sold to institutional investors and cash buyers, at the state and metropolitan statistical area. Data is also available at the county and zip code level, upon request. The data is derived from recorded sales deeds, foreclosure filings and loan data. Statistics for previous quarters are revised when each new report is issued as more deed data becomes available.

Definitions
All-cash purchase: sale where no loan is recorded at the time of sale and where ATTOM has coverage of loan data.

Homeownership tenure: for a given market and given quarter, the average time between the most recent sale date and the previous sale date, expressed in years.

Home seller price gains: the difference between the median sales price of homes in a given market in a given quarter and the median sales price of the previous sale of those same homes, expressed both in a dollar amount and as a percentage of the previous median sales price.

Institutional investor purchases: residential property sales to non-lending entities that purchased at least 10 properties in a calendar year.

REO sale: a sale of a property that occurs while the property is actively bank owned (REO).

About ATTOM
ATTOM provides premium property data and analytics that power a myriad of solutions that improve transparency, innovation, digitization and efficiency in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation’s population. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 30TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include ATTOM Cloud, bulk file licenses, property data APIs, real estate market trends, property navigator and more. Also, introducing our newest innovative solution, making property data more readily accessible and optimized for AI applications – AI-Ready Solutions.

Media Contact:
Megan Hunt
megan.hunt@attomdata.com

Data and Report Licensing:
datareports@attomdata.com

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Technology

Sinch Unveils New Survey on the Future of Customer Communication

Published

51 mins ago

October 17, 2024

Marking the 175th Anniversary of the Invention of the Telephone, Sinch Highlights Key Trends and Innovations Shaping the Next Era of Customer Engagement

ATLANTA and STOCKHOLM, Oct. 17, 2024 /PRNewswire/ — Sinch (Sinch AB (publ) – (XSTO: SINCH) — As the world commemorates the 175th anniversary of Antonio Meucci’s groundbreaking invention of the telephone, Sinch, which is pioneering the way the world communicates through its Customer Communications Cloud, is ushering in the next era of customer interaction. Sinch is at the forefront of this transformation by developing and delivering products that empower businesses to meet consumer expectations through seamless, rich multi-channel experiences.

To celebrate this important milestone in human communication, Sinch commissioned a survey in North America to explore the future of customer engagement. The survey findings offer valuable insights, revealing that while rich, app-like experiences on platforms such as RCS, WhatsApp, and WeChat are already common in other parts of the world, the U.S. market lags behind in adopting these interactive messaging capabilities. However, this gap presents an exciting opportunity for innovation, allowing U.S. brands to leap forward and enhance customer engagement through advanced technologies.

As the survey indicates, the shift from traditional communication methods to AI-powered, multimedia-rich experiences is accelerating. This evolution is critical, especially as brands prepare for high-stakes shopping events like Black Friday and Cyber Monday, where seamless, interactive engagement will be key to meeting growing consumer expectations.

Key Survey Insights:

RCS is poised to enhance mobile messaging:

A substantial 67.3% of respondents expect RCS to become the preferred messaging platform, emphasizing the growing demand for richer, more engaging mobile communication experiences (especially as customers seek interactive and real-time support during major shopping days.)

Younger generations embrace AI chatbots for shopping:

Over 45% of Gen Z and millennial respondents (ages 18-44) expressed a willingness to use chatbots for Black Friday shopping, showcasing the increasing reliance on AI to enhance the retail experience.

AI-driven communication is gaining momentum:

50% of respondents predict that AI and chatbots will dominate customer experiences within the next decade, signaling a major shift toward automation and personalized experiences. This evolution is particularly relevant as brands prepare to manage interactions during peak shopping periods like Black Friday and Cyber Monday.With technologies like RCS, brands can deliver richer, real-time engagement, from personalized recommendations to seamless shopping experiences, enhancing the overall customer journey and experience during high demand periods.

Customer service remains a critical differentiator:

An overwhelming 75% of respondents said that excellent customer experiences enhance brand loyalty, reinforcing the importance of investing in AI and RCS to deliver seamless, customer-centric solutions, especially during peak shopping seasons.

“Our survey confirms what we’ve long anticipated: AI and RCS are revolutionizing customer communication,” said Sean O’Neal, Chief Product Officer at Sinch. “As businesses seek to create more meaningful, dynamic, and personalized experiences, Sinch’s advanced solutions are empowering brands to engage with their audiences in more effective and creative ways.”

The invention of the telephone by Antonio Meucci in 1849 laid the foundation for modern communication, later enhanced, and popularized by Alexander Graham Bell. Just as Meucci’s groundbreaking work transformed human connection 175 years ago, the rise of AI and RCS is now revolutionizing how brands engage with customers, offering richer, more interactive, and personalized experiences. Unlocking the full potential of RCS will require widespread adoption across mobile carriers, operating systems, businesses, and consumers.

Sinch is uniquely positioned to lead this transformation, leveraging our strong carrier relationships, longstanding partnerships with companies like Google, and our proven ability to drive industry change.

With our robust product suite—including solutions like RCS Upscale and Conversation API—we simplify access to RCS, making it easier for businesses to adopt and integrate, further accelerating the shift toward this new communication standard.

As RCS adoption grows, next year’s Black Friday and Cyber Monday shopping season is set to be redefined by dynamic, real-time customer interactions. Leading this evolution, Sinch empowers brands with innovative tools to fully harness these technologies and elevate customer engagement.

For more information about Sinch’s RCS and AI solutions, please visit the Sinch website.

For further information, please contact:    
Janet Lennon, Director of Global PR & Communications
janet.lennon@sinch.com |1-206-914-6175

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Technology

Translink Corporate Finance experts say the Nordic region is a hotbed for tech investors

Published

51 mins ago

October 17, 2024

HELSINKI and OSLO, Norway, Oct. 17, 2024 /PRNewswire/ — The 2024 Translink Corporate Finance Megatrends Report reveals that global IT spending reached $4.7 trillion in 2023, a 4.3% increase from 2022. Finland and Norway have emerged as dynamic hubs for IT development, innovation, and investment within this thriving global technology sector.

Finland’s thriving tech ecosystem

Ruben Moring, Partner at Translink Corporate Finance Finland, says, “Finland’s tech scene represents a thriving ecosystem that fosters early-stage innovation across various sectors. The country excels in gaming, artificial intelligence, databases, analytics, and cleantech. Advancements in industrial AI, IoT construction tech, healthcare, and sustainable technologies are propelling Finland’s startup scene forward.”

Norway’s robust startup environment

Norway has developed a strong startup ecosystem with approximately 70 000 new companies created annually. Nora Håberg, Partner at Translink Corporate Finance Norway, says, “We’re driving innovation in renewables and cleantech while fostering an environment of trust, cooperation, and flat hierarchies. This creates unique opportunities for investors interested in the green transition.”

Government support fuels innovation

Both countries have implemented robust government initiatives to support technological innovation and digitalisation. “The Finnish government’s support for AI development has led to success stories like Silo AI, acquired by AMD in an all-cash transaction for $665 million,” explains Moring.

Håberg adds, “Norway’s Innovation Norway provided 7.1 billion NOK (€617 million) in financial support in 2023 through subsidies, loans, and guarantees.”

Sustainability is a core Nordic focus

Sustainability is ingrained in Finland and Norway’s tech sectors. The Nordic countries offer some of Europe’s cheapest and cleanest energy, attracting investments like Microsoft and Google data centres.”

In Norway, hydropower accounted for 89.2% of the electricity production in 2023, drawing foreign investment like Google’s 600 million EUR investment in a green data centre in Skien.

The Nordic talent pool is driving innovation

Finland and Norway boast highly educated workforces. Finland attracts international talent with its vibrant startup scene and high quality of life. In Norway, 48.1% of the adult population had tertiary education in 2022, above the OECD average.

Nordic M&A investment opportunities

Translink observes numerous mid-market opportunities in the region. In Norway, about 60% of announced M&A transactions in 2023 were cross-border.

Håberg concludes, “Finland and Norway’s tech ecosystems are continually evolving, with emerging innovation clusters and an increasing focus on deep tech. Translink Corporate Finance offers expertise to help mid-market investors navigate the new investment opportunities in the Nordic region.

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Technology

Finastra and LPBank Modernize Treasury Management Operations in Record Time

Published

51 mins ago

October 17, 2024

SINGAPORE, Oct. 17, 2024 /PRNewswire/ — Finastra, a global provider of financial services software applications, has announced the implementation of its front-to-back treasury solution, Kondor, at Fortune Vietnam Joint Stock Commercial Bank (LPBank) to modernize the bank’s treasury management operations and capabilities. This strategic collaboration is part of LPBank’s concerted effort to accelerate its digital transformation strategy and enhance its competitiveness in the market.

Achieving deployment in just six months, the rapid timeline was achieved through an agile approach, flexibility, and a collaborative working relationship that facilitated a seamless integration of new systems with existing technology infrastructure and workflow processes. The initiation of the project was carefully designed to help LPBank meet the rising demands of managing more sophisticated treasury and liquidity products for clients, as well as supporting general risk management decisions across the bank.

Ho Nam Tien, Standing Deputy Chairman of LPBank said, “The successful deployment of this innovative project is testament to our deep commitment toward digital transformation and creating value for our customers. It also speaks volumes to Finastra’s technological expertise as a partner. While we are in the early phase of recognizing the full potential of this investment on our treasury operations, we have already seen steady improvements to trading volumes, transaction quality, and reduced transaction times. LPBank is well positioned to further advance its leadership position in Vietnam.”

Finastra’s Treasury and Capital Markets business is built on a comprehensive platform of solutions that empower financial institutions like LPBank to achieve higher levels of efficiency, compliance, and growth across the trade and liquidity management lifecycle. Central to this current partnership is Finastra’s Kondor solution, which offers powerful risk analytics, trade processing, position management, and real-time risk coverage, enabling high-volume treasury trading while supporting complex derivatives, options, and structured transactions.

Richard Zhu, Managing Director, Capital Markets, Asia Pacific, Finastra said, “We are proud to be part of LPBank’s ambitious digitalization and modernization journey. In today’s landscape, digital transformation is a necessity for financial institutions hoping to keep pace with the shifting needs of customers and the rising pressures of competition and regulations. The ongoing support from LPBank’s senior leadership team was instrumental to the project’s success. It demonstrates an inspirational commitment to transforming the bank’s entire ecosystem with best-of-breed digital solutions which drive efficiency, sustainability and growth akin to Finastra’s Open Finance vision. This collaboration not only enhances LPBank’s operational capabilities but also sets a benchmark for innovation in the region.”

For more information on Kondor, please visit Finastra Kondor.

About Finastra
Finastra is a global provider of financial services software applications across Lending, Payments, Treasury and Capital Markets, and Universal (retail and digital) Banking. Committed to unlocking the potential of people, businesses and communities everywhere, its vision is to accelerate the future of open finance through technology and collaboration, and its pioneering approach is why it is trusted by ~8,100 financial institutions, including 45 of the world’s top 50 banks. For more information, visit finastra.com.

About LPBank
LPBank is one of the largest retail commercial banks in Vietnam with advantage of an extensive nationwide network. LPBank’s products and services serve customers through a nationwide network of branches and transaction offices covering 63 provinces in Vietnam. Its vision is to become the most trusted financial partner and the first choice of individuals, households and small and medium enterprises in rural and urban areas. For more information, visit lpbank.com.vn.

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