Skip to main content

Performance of SFR Securitizations Remains Strong Team Thayer Real Estate #realestate #Housing #News

The vacancy and delinquency rates generally remain low and stable across 22 single-family rental (SFR) securitizations through the end of October, Morningstar Credit Ratings’ November 2015 Performance Summary Covering All Morningstar-Related Securitizations released Monday.
The low delinquency rates and vacancy rates suggest that the overall performance of SFR securitizations is strong two years after the first transaction, IH 2013-SFR1 (Invitation Homes), in the asset class closed, according to Morningstar.
Through the end of October, only two of the 22 transactions in Morningstar’s summary had a vacancy rate above 7 percent and only eight out of the 22 had a delinquency rate higher than 1 percent. In addition, the retention rates across the securitizations remained stable and within Morningstar’s expectations during October.
“The percentage of month-to-month tenants remains in line with recent history, but Morningstar notes that 16.7 percent of properties in TAH 2015-SFR1 (Tricon American Homes) are occupied by MTM (month-to-month) tenants,” the report stated. “The TAH transaction has historically had the highest percentage among all deals, but this is an increase.”
For most transactions covered in the summary, vacancy rates remained under 6 percent in October. The highest vacancy rate for the month went to AH4R 2015-SFR1 (American Homes for Rent) with 8.3 percent, the same as it was in September. However, 60 percent of the 4,661 properties in that transaction had leases expire over the past five months; and properties that have more leases expiring in a given month will generally have a higher vacancy rate. One example of that is the PRD 2015-SFR2 (Progressive Residential), which experienced a vacancy rate increase for the fourth consecutive month in October. This transaction saw 20.1 percent of leases expire in September and October combined, which resulted in an increase in vacancy rate from 3.3 percent in August up to 4.6 percent in September and 6.3 percent in October.
The vacancy rate for the ARP 2014-SFR1 (American Residential Properties) deal has also been on the rise, albeit at a slower rate than that of PRD 2015-SFR2. For ARP 2014-SFR1, the vacancy rate has jumped from 6.3 percent in August to 6.9 percent in September to 7.2 percent in October, the second-highest vacancy rate for the month among the 22 transactions behind only AH4R 2015-SFR1.
The transaction with the lowest vacancy rate among the 22 securitizations in October was IH 2013-SFR1, which in October 2013 became the very first SFR securitization closed. In October, the vacancy rate for that deal was 3.1 percent.
Morningstar’s monthly summary has been developed to give SFR market participants detailed property level information for each securitization, given the limited amount of historical data available for the relatively new asset class
Team Thayer
Add caption

Location: Eugene, OR 97401, USA

Popular posts from this blog

Grass Seed Video

Read more

When Will Bank Foreclosurews ‘Normalize’? Team Thayer #realestate #investor #housing #market #news #oregon

With much of the talk surrounding the housing market centered on “normalization” or returning to its pre-crisis state, one metric which the market is watching is the distressed sales share—the share of REO and short sales that comprise total residential home sales. For February 2016, the distressed sales share declined by 2.9 percentage points over-the-year (and 0.4 percentage points over-the month) down to 11 percent, according to  data released by CoreLogic  on Thursday. At their peak in January 2009, distressed sales accounted for nearly one-third of all residential home sales (32.4 percent) but has been declining steadily since then. By comparison, the pre-crisis share of distressed sales was typically around 2 percent; CoreLogic estimates that if the current rate of year-over-year decline continues, the distressed sales share will reach the “normal” pre-crisis level in slightly more than two years. “Prior to the housing crash, the distressed share of total...
Read more

Bankruptcy Filings Dip Even Lower! Team Thayer #realestate #housing #market #investor #News #oregon

Bankruptcy Filings Dip Lower Nationwide bankruptcy filings were 5 percent lower in October 2016 compared with a year earlier, falling even lower than last month’s reported decrease, according to October 2016 AACER bankruptcy data reported by Epiq Systems. Bankruptcy filings totaled 63,042 in October, which was an increase from September’s total of 64,614, and was approximately 2.4 percent higher than October 2015’s total of 63,042 (an increase of 1,572).  Year-to-date, there have been 656,125 bankruptcy filings nationwide for the past nine months of 2016 (about 65,613 per month), down from 2015’s year-to-date total through the end of October of 700,014 (about 70,001 per month). The average number of filings per day in October 2016 was 3,152 over 20 days, which is an increase from September’s daily average of 3,077 over 21 days. The extra filing day in September compared to October accounts for the slight increase in the number of filings in September; had October feature...
Read more