August 19, 2011 (Shirley Allen)
Monthly sales of new and resale homes in Las Vegas declined in July but were above levels from a year ago as distressed property sales increased to 70 percent of all purchases according to the latest data released from DataQuick.
A total of 4,535 new and resale houses and condos closed escrow in the Las Vegas-Paradise metro area in July. Sales were 13.8 percent lower than June, but were 5.2 percent higher than July of 2010. Home sales in the region typically decline 8.4 percent between June and July.
New home sales continued to be a drag on the overall monthly sales totals as new home sales for the month were the third-lowest on record for a July.
Cash buyers were responsible for 53.0 percent of the purchases in July, which was up from 50.3 percent in June and up from 48.2 percent a year earlier. The record for cash purchases was in February 2011, when 56.7 percent of the sales were for cash.
The price that cash buyers paid for a home in July increased to $85,243 from $83,000 in June and down from $108,000 in July 2010.
Absentee buyers, usually investors and vacation home buyers, accounted for 46.5 percent of all homes sold in July. The prices they paid were less than previous months with the median price paid in July being $93,050, which was down from $94,000 in June and down from $115,000 in July of 2010.
The overall median price paid for new and resale homes and condos in July was $115,000, which was unchanged from June, and down from $129,900 in July of last year. Cash buyers and investors accounted for 41.9 percent of the sales for homes under $100,000. A year ago, they accounted for 32.1 percent of those same sales.
The current median price is at its lowest level since October of 1995 when the median home price was $113,000, and it’s 63.1 percent below the peak median price of $312,000 in November 2006.
Distressed sales represented 70.6 percent of the resale market in July as foreclosures accounted for 59.5 percent of the distressed sales and short sales accounted for 11.1 percent of the distressed sales.
Foreclosures continued at a high rate in July with lenders foreclosing on 3,161 single-family homes and condos, down from 3,673 foreclosures in June. The highest number of loans foreclosed by lenders was in May 2011 when lenders foreclosed on 3,818 loans.
Tags: DataQuick, existing home sales, Las Vegas, distressed properties, resale homes, condos, cash buyers, investors, median price
Source:
DataQuick
Thursday, August 25, 2011
Monthly Home Sales Decline in July but Up from Last Year
August 19, 2011 (Brian Moore)
After two months of rising, home sales followed the traditional summer trend and declined in the month of July. Home sales fell 12.7 percent from June, but were up 13.1 percent from July of last year according to RE/MAX’s National Housing Report (NHR).
The impressive increase in sales from a year earlier was the first time that home sales had increased in year-over-year comparisons since January, but is likely due to the huge drop in sales last year following the ending of the home buyer tax credit.
The monthly decline in sales from June to July was also higher than the normal seasonal trend as strict lending standards, bad appraisals and overall concern about the economy contributed to the decline. Mortgage applications were affected by lenders who were already using the lower GSE and FHA loan limits that take effect on September 30.
Forty-five out of the 53 metro areas in the report experienced year-over-year increases in closed transactions. Des Moines, IA (+49.9%), Omaha, NE (+46.8%), Milwaukee, WI (+37.7%), Providence, RI (+32.4%), and Wichita, KS (+29.0%) recorded the highest gains in closed transactions.
Sales prices in July were just 0.18 percent lower than in June and were 4.6 percent lower than in July 2010. The median sales price in July 2011 was $193,042, down from $193,791 in June and down from a median sales price of $202,350 in July of 2010.
Only 11 of the 53 metro areas recorded higher prices in July than they did a year earlier. The best price performers were Detroit, MI (+14.3%), Birmingham, AL (+9.8%), Des Moines, IA (+7.7%), Orlando, FL (+5.5%), and Pittsburgh, PA (+4.4%).
The average number of days it took to sell a home in July was 88, which was down from 90 days in June. Inventory increased in July as the average months supply of inventory increased to 7.2 months, up from 6.9 in June, but down from a 9.3 months supply of homes in July 2010.
Inventory supply decreased the most in Miami, FL (-52.5%), Tampa, FL (-37.3%), Phoenix, AZ (-35.6%), Los Angeles, CA (-32.4%) and Chicago, IL (-26.9%).
“The fact that July home sales were higher than a year ago, and by such a significant amount, gives us reason for great optimism,” said Margaret Kelly, CEO of RE/MAX, LLC. “And now that prices have risen for four of the past five months, the housing market is beginning to show definite signs of recovery.”
Tags: RE/MAX, home sales, home prices, National Housing Report, market recovery, seasonal trends, closed transactions
Source:
RE/MAX
After two months of rising, home sales followed the traditional summer trend and declined in the month of July. Home sales fell 12.7 percent from June, but were up 13.1 percent from July of last year according to RE/MAX’s National Housing Report (NHR).
The impressive increase in sales from a year earlier was the first time that home sales had increased in year-over-year comparisons since January, but is likely due to the huge drop in sales last year following the ending of the home buyer tax credit.
The monthly decline in sales from June to July was also higher than the normal seasonal trend as strict lending standards, bad appraisals and overall concern about the economy contributed to the decline. Mortgage applications were affected by lenders who were already using the lower GSE and FHA loan limits that take effect on September 30.
Forty-five out of the 53 metro areas in the report experienced year-over-year increases in closed transactions. Des Moines, IA (+49.9%), Omaha, NE (+46.8%), Milwaukee, WI (+37.7%), Providence, RI (+32.4%), and Wichita, KS (+29.0%) recorded the highest gains in closed transactions.
Sales prices in July were just 0.18 percent lower than in June and were 4.6 percent lower than in July 2010. The median sales price in July 2011 was $193,042, down from $193,791 in June and down from a median sales price of $202,350 in July of 2010.
Only 11 of the 53 metro areas recorded higher prices in July than they did a year earlier. The best price performers were Detroit, MI (+14.3%), Birmingham, AL (+9.8%), Des Moines, IA (+7.7%), Orlando, FL (+5.5%), and Pittsburgh, PA (+4.4%).
The average number of days it took to sell a home in July was 88, which was down from 90 days in June. Inventory increased in July as the average months supply of inventory increased to 7.2 months, up from 6.9 in June, but down from a 9.3 months supply of homes in July 2010.
Inventory supply decreased the most in Miami, FL (-52.5%), Tampa, FL (-37.3%), Phoenix, AZ (-35.6%), Los Angeles, CA (-32.4%) and Chicago, IL (-26.9%).
“The fact that July home sales were higher than a year ago, and by such a significant amount, gives us reason for great optimism,” said Margaret Kelly, CEO of RE/MAX, LLC. “And now that prices have risen for four of the past five months, the housing market is beginning to show definite signs of recovery.”
Tags: RE/MAX, home sales, home prices, National Housing Report, market recovery, seasonal trends, closed transactions
Source:
RE/MAX
Future Home Value Expectations Remains Low
August 22, 2011 (Brian Michael)
American’s confidence in seeing the value of their homes going up in the next year increased slightly last month with 13 percent of the homeowners surveyed expecting their homes to increase in value over the next 12 months according to the latest Rasmussen Reports poll.
Over the last year, the survey has registered results that ranged from 11 percent to 31 percent, with July’s poll showing that 11 percent of the homeowners believed the value of their home would increase. Last months report was the lowest percentage ever recorded.
Just about half of the homeowners, 48 percent, believed their homes would be worth about the same amount over the next 12 months and 35 percent of the homeowners expect their homes to be worth less in a year from now. In July’s report, 33 percent of the homeowners felt their homes would be worth less.
For the second month in a row, homeowners increasingly believed that their home values would be going up in the long term. Asked if they thought their home’s value would be higher in five years, 40 percent believed that their home's value would be higher. That was up from 37 percent in last month’s poll. A positive trend but still below the expectations of just a few short years ago.
By comparison, in 2008 after the Wall Street financial meltdown, 59 percent believed their home would be worth more in five years and throughout 2010 between 41 percent and 55 percent of homeowners believed their homes would be worth more in five years.
Thirty-two percent of the homeowners believed their home’s value would be the same in five years, down from 35 percent in July’s poll, while 20 percent expected their homes to be worth less over the next five years, unchanged from July’s poll.
A majority of homeowners, 53 percent, believed their home was worth more than what they bought it for, while 17 percent thought their home was about the same as what they paid for it. Twenty-five percent said their home was worth less than what they paid for it.
Rasmussen also found that 62 percent of Americans believe they will be paying higher interest rates over the next 12 months. That was up from 57 percent in July’s report. Twenty-four percent believed they would be paying about the same interest rates, down from 26 percent last month, and seven percent expected to be paying lower interest rates in a year from now.
Tags: Rasmussen Reports, homeowner’s confidence, home values, increased value, worth less, pessimism, interest rates
Source:
Rasmussen Reports
American’s confidence in seeing the value of their homes going up in the next year increased slightly last month with 13 percent of the homeowners surveyed expecting their homes to increase in value over the next 12 months according to the latest Rasmussen Reports poll.
Over the last year, the survey has registered results that ranged from 11 percent to 31 percent, with July’s poll showing that 11 percent of the homeowners believed the value of their home would increase. Last months report was the lowest percentage ever recorded.
Just about half of the homeowners, 48 percent, believed their homes would be worth about the same amount over the next 12 months and 35 percent of the homeowners expect their homes to be worth less in a year from now. In July’s report, 33 percent of the homeowners felt their homes would be worth less.
For the second month in a row, homeowners increasingly believed that their home values would be going up in the long term. Asked if they thought their home’s value would be higher in five years, 40 percent believed that their home's value would be higher. That was up from 37 percent in last month’s poll. A positive trend but still below the expectations of just a few short years ago.
By comparison, in 2008 after the Wall Street financial meltdown, 59 percent believed their home would be worth more in five years and throughout 2010 between 41 percent and 55 percent of homeowners believed their homes would be worth more in five years.
Thirty-two percent of the homeowners believed their home’s value would be the same in five years, down from 35 percent in July’s poll, while 20 percent expected their homes to be worth less over the next five years, unchanged from July’s poll.
A majority of homeowners, 53 percent, believed their home was worth more than what they bought it for, while 17 percent thought their home was about the same as what they paid for it. Twenty-five percent said their home was worth less than what they paid for it.
Rasmussen also found that 62 percent of Americans believe they will be paying higher interest rates over the next 12 months. That was up from 57 percent in July’s report. Twenty-four percent believed they would be paying about the same interest rates, down from 26 percent last month, and seven percent expected to be paying lower interest rates in a year from now.
Tags: Rasmussen Reports, homeowner’s confidence, home values, increased value, worth less, pessimism, interest rates
Source:
Rasmussen Reports
Monthly Home Sales Decline in July but Up from Last Year
August 19, 2011 (Brian Moore)
After two months of rising, home sales followed the traditional summer trend and declined in the month of July. Home sales fell 12.7 percent from June, but were up 13.1 percent from July of last year according to RE/MAX’s National Housing Report (NHR).
The impressive increase in sales from a year earlier was the first time that home sales had increased in year-over-year comparisons since January, but is likely due to the huge drop in sales last year following the ending of the home buyer tax credit.
The monthly decline in sales from June to July was also higher than the normal seasonal trend as strict lending standards, bad appraisals and overall concern about the economy contributed to the decline. Mortgage applications were affected by lenders who were already using the lower GSE and FHA loan limits that take effect on September 30.
Forty-five out of the 53 metro areas in the report experienced year-over-year increases in closed transactions. Des Moines, IA (+49.9%), Omaha, NE (+46.8%), Milwaukee, WI (+37.7%), Providence, RI (+32.4%), and Wichita, KS (+29.0%) recorded the highest gains in closed transactions.
Sales prices in July were just 0.18 percent lower than in June and were 4.6 percent lower than in July 2010. The median sales price in July 2011 was $193,042, down from $193,791 in June and down from a median sales price of $202,350 in July of 2010.
Only 11 of the 53 metro areas recorded higher prices in July than they did a year earlier. The best price performers were Detroit, MI (+14.3%), Birmingham, AL (+9.8%), Des Moines, IA (+7.7%), Orlando, FL (+5.5%), and Pittsburgh, PA (+4.4%).
The average number of days it took to sell a home in July was 88, which was down from 90 days in June. Inventory increased in July as the average months supply of inventory increased to 7.2 months, up from 6.9 in June, but down from a 9.3 months supply of homes in July 2010.
Inventory supply decreased the most in Miami, FL (-52.5%), Tampa, FL (-37.3%), Phoenix, AZ (-35.6%), Los Angeles, CA (-32.4%) and Chicago, IL (-26.9%).
“The fact that July home sales were higher than a year ago, and by such a significant amount, gives us reason for great optimism,” said Margaret Kelly, CEO of RE/MAX, LLC. “And now that prices have risen for four of the past five months, the housing market is beginning to show definite signs of recovery.”
Tags: RE/MAX, home sales, home prices, National Housing Report, market recovery, seasonal trends, closed transactions
Source:
RE/MAX
After two months of rising, home sales followed the traditional summer trend and declined in the month of July. Home sales fell 12.7 percent from June, but were up 13.1 percent from July of last year according to RE/MAX’s National Housing Report (NHR).
The impressive increase in sales from a year earlier was the first time that home sales had increased in year-over-year comparisons since January, but is likely due to the huge drop in sales last year following the ending of the home buyer tax credit.
The monthly decline in sales from June to July was also higher than the normal seasonal trend as strict lending standards, bad appraisals and overall concern about the economy contributed to the decline. Mortgage applications were affected by lenders who were already using the lower GSE and FHA loan limits that take effect on September 30.
Forty-five out of the 53 metro areas in the report experienced year-over-year increases in closed transactions. Des Moines, IA (+49.9%), Omaha, NE (+46.8%), Milwaukee, WI (+37.7%), Providence, RI (+32.4%), and Wichita, KS (+29.0%) recorded the highest gains in closed transactions.
Sales prices in July were just 0.18 percent lower than in June and were 4.6 percent lower than in July 2010. The median sales price in July 2011 was $193,042, down from $193,791 in June and down from a median sales price of $202,350 in July of 2010.
Only 11 of the 53 metro areas recorded higher prices in July than they did a year earlier. The best price performers were Detroit, MI (+14.3%), Birmingham, AL (+9.8%), Des Moines, IA (+7.7%), Orlando, FL (+5.5%), and Pittsburgh, PA (+4.4%).
The average number of days it took to sell a home in July was 88, which was down from 90 days in June. Inventory increased in July as the average months supply of inventory increased to 7.2 months, up from 6.9 in June, but down from a 9.3 months supply of homes in July 2010.
Inventory supply decreased the most in Miami, FL (-52.5%), Tampa, FL (-37.3%), Phoenix, AZ (-35.6%), Los Angeles, CA (-32.4%) and Chicago, IL (-26.9%).
“The fact that July home sales were higher than a year ago, and by such a significant amount, gives us reason for great optimism,” said Margaret Kelly, CEO of RE/MAX, LLC. “And now that prices have risen for four of the past five months, the housing market is beginning to show definite signs of recovery.”
Tags: RE/MAX, home sales, home prices, National Housing Report, market recovery, seasonal trends, closed transactions
Source:
RE/MAX
Housing Affordability Remains at 20 Year Highs
August 19, 2011 (Brian Michael)
Housing affordability in the second quarter of 2011 remained near 20 year highs according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). Nearly three-fourths of all homes in the U.S. were affordable to families earning the national median income.
The newest data indicates that 72.6 percent of all homes in the second quarter of the year were affordable to families earning the national median income of 64,200. That was a decline from a record high of 74.6 percent in the first quarter of this year, but it was the 10th consecutive quarter that the HOI was above the 70 percent threshold.
"At a time when homeownership is within reach of more households than it has been for more than two decades and interest rates are at historically low levels, the sluggish economy and the extremely tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "That said, however, some housing markets across the country have stabilized and are beginning to show signs of a budding recovery."
The most affordable major market area was the Youngstown-Warren-Boardman, Ohio-PA area where 93.7 percent of the homes were affordable to households earning the area’s median family income.
The other top areas in affordability were Syracuse, NY, Indianapolis-Carmel, IN, Dayton, OH, and Lakeland-Winter Haven, FL.
The major market areas that had the least affordable housing during the second quarter were New York-White Plains-Wayne, NJ-NY, San Francisco-San Mateo-Redwood City, CA, Santa Ana-Anaheim-Irvine, CA, Los Angeles-Long Beach-Glendale, CA, and Honolulu.
In the smaller housing markets, the most affordable area during the quarter were Kokomo, IN, Wheeling, WV-OH, Lansing-East Lansing, MI, Bay City, MI, and Sandusky, OH.
The least affordable smaller markets were Ocean City, NJ, Laredo, TX, Santa Cruz-Watsonville, CA, San Luis Obispo, Paso Robles, CA and Santa Barbara-Santa Maria-Goleta, Ca.
Tags: NAHB, Wells Fargo, housing affordability, national median income, HOI
Sources:
NAHB
Housing affordability in the second quarter of 2011 remained near 20 year highs according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). Nearly three-fourths of all homes in the U.S. were affordable to families earning the national median income.
The newest data indicates that 72.6 percent of all homes in the second quarter of the year were affordable to families earning the national median income of 64,200. That was a decline from a record high of 74.6 percent in the first quarter of this year, but it was the 10th consecutive quarter that the HOI was above the 70 percent threshold.
"At a time when homeownership is within reach of more households than it has been for more than two decades and interest rates are at historically low levels, the sluggish economy and the extremely tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "That said, however, some housing markets across the country have stabilized and are beginning to show signs of a budding recovery."
The most affordable major market area was the Youngstown-Warren-Boardman, Ohio-PA area where 93.7 percent of the homes were affordable to households earning the area’s median family income.
The other top areas in affordability were Syracuse, NY, Indianapolis-Carmel, IN, Dayton, OH, and Lakeland-Winter Haven, FL.
The major market areas that had the least affordable housing during the second quarter were New York-White Plains-Wayne, NJ-NY, San Francisco-San Mateo-Redwood City, CA, Santa Ana-Anaheim-Irvine, CA, Los Angeles-Long Beach-Glendale, CA, and Honolulu.
In the smaller housing markets, the most affordable area during the quarter were Kokomo, IN, Wheeling, WV-OH, Lansing-East Lansing, MI, Bay City, MI, and Sandusky, OH.
The least affordable smaller markets were Ocean City, NJ, Laredo, TX, Santa Cruz-Watsonville, CA, San Luis Obispo, Paso Robles, CA and Santa Barbara-Santa Maria-Goleta, Ca.
Tags: NAHB, Wells Fargo, housing affordability, national median income, HOI
Sources:
NAHB
Jobs, Not Interest Rates, Will Jump Start Housing
August 18, 2011 (Chris Moore)
The National Association of Realtors (NAR) reported existing home sales fell 3.5 percent in July, declining for the third time in four months. Homes sold at a seasonally adjusted rate of 4.67 million, lagging behind last years pace of 4.91 million homes which were the weakest sales figures in 13 years.
The sales rate was still 21.0 percent above the 3.86 million unit pace in July of last year, which was primarily due to home sales in July of last year suffering from the hangover caused by the expiration of the home buyer tax credit.
The national median existing home price for all housing types also declined to $174,000 in July, a decrease of 4.4 percent from July of last year.
Purchase cancellations, which had spiked from 4 percent in May to 16 percent in June, continued to be a source of concern in July as cancellations caused by declined mortgage applications and low appraised values remained at the same level in July as in June. NAR also cited continuing tight lending standards as one of the other primary reasons for the dismal July sales figures.
Lawrence Yun, NAR chief economist, stated, “Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers.”
Meanwhile, NAR President Ron Phipps added, “Beyond the tight credit problems, all appraisals must be done by valuators with local expertise and using reasonable comparisons – it doesn’t make sense to consistently see so many valuations coming in below negotiated prices, often below replacement construction costs."
All indications are things are going to get worse before they get better. Even President Obama conceded this week that "it will probably take this year and next year for us to see a slow appreciation again in the housing market."
He also stated a housing rebound will require "consumers and banks and the private sector working alongside government." We tend to think, and believe many agree, that the best thing government can do is to get out of the way.
Last month, NAR stated economic uncertainty and the uncertainty over the future direction of the housing market have also caused home buyers to re-think their home purchases as the reason for the sudden elevation in purchase cancellations.
Recent polls would suggest that’s true as consumer confidence in their finances and jobs and the direction the country is heading have plummeted.
Mortgage rates in July hovered near historic lows with 30-year conventional fixed rate mortgages averaging 4.55 percent. And yet despite historically low rates for the last few years, the result has been continuing dismal sales. Even this week, the Mortgage Bankers Association’s weekly mortgage applications index posted record low interest rates, yet purchase applications, a sign of sales activity, declined.
No matter how hard the federal government tries, low interest rates alone won’t fix the housing problem. Most of the "economic uncertainty" centers around jobs...creating jobs for those who want one and keeping the jobs for those who do have one.
The fact is, the one person who has been talking about jobs for the last four years, who went on a campaign tour this week in a $1.1 million bus that the taxpayers paid for, just to announce he had a jobs plan...that won't be revealed until September, has lost the confidence of the American people and the housing market will continue to suffer until there are people out there who can and want to purchase a home.
Distressed property sales accounted for 29 percent of all sales in July, down from 30 percent in June, and down from 32 percent in June of 2010.
Repeat buyers continued to make up the lion’s share of purchasers in July accounting for 50 percent of all purchases, unchanged from June, while first-time home buyer's percentage of purchases inched up slightly, accounting for 32 percent of all purchases, up from 31 percent in June. Investors accounted for the rest of the sales with 18 percent of the purchases made in July.
Regionally, existing home sales in the Northeast increased 2.7 percent to an annual pace of 750,000 sales in July and are 19.0 percent above July 2010 levels, while existing home sales in the Midwest rose 1.0 percent in July to a pace of 1.04 million sales and are 14.0 percent above year ago levels.
In the South, existing home sales declined 1.6 percent to an annual level of 1.84 million sales in July but are 19.5 percent above July 2010 levels, and in the West, existing home sales declined 12.6 percent to an annual pace of 1.04 million sales in July and are 16.9 percent above year ago levels.
The median price in the Northeast was $245,600, a decline of 6.8 percent from a year ago, while the median price in the Midwest was $146,300, down 2.9 percent from July 2010.
The median price in the South was $152,600, a decline of 2.2 percent from a year ago and in the West the median price was $208,300, down 7.1 percent from July 2010.
Tags: NAR, existing home sales, affordable conditions, low mortgage rates, declining prices, low appraisals, cancelled contracts, median home price
Source:
NAR
The National Association of Realtors (NAR) reported existing home sales fell 3.5 percent in July, declining for the third time in four months. Homes sold at a seasonally adjusted rate of 4.67 million, lagging behind last years pace of 4.91 million homes which were the weakest sales figures in 13 years.
The sales rate was still 21.0 percent above the 3.86 million unit pace in July of last year, which was primarily due to home sales in July of last year suffering from the hangover caused by the expiration of the home buyer tax credit.
The national median existing home price for all housing types also declined to $174,000 in July, a decrease of 4.4 percent from July of last year.
Purchase cancellations, which had spiked from 4 percent in May to 16 percent in June, continued to be a source of concern in July as cancellations caused by declined mortgage applications and low appraised values remained at the same level in July as in June. NAR also cited continuing tight lending standards as one of the other primary reasons for the dismal July sales figures.
Lawrence Yun, NAR chief economist, stated, “Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers.”
Meanwhile, NAR President Ron Phipps added, “Beyond the tight credit problems, all appraisals must be done by valuators with local expertise and using reasonable comparisons – it doesn’t make sense to consistently see so many valuations coming in below negotiated prices, often below replacement construction costs."
All indications are things are going to get worse before they get better. Even President Obama conceded this week that "it will probably take this year and next year for us to see a slow appreciation again in the housing market."
He also stated a housing rebound will require "consumers and banks and the private sector working alongside government." We tend to think, and believe many agree, that the best thing government can do is to get out of the way.
Last month, NAR stated economic uncertainty and the uncertainty over the future direction of the housing market have also caused home buyers to re-think their home purchases as the reason for the sudden elevation in purchase cancellations.
Recent polls would suggest that’s true as consumer confidence in their finances and jobs and the direction the country is heading have plummeted.
Mortgage rates in July hovered near historic lows with 30-year conventional fixed rate mortgages averaging 4.55 percent. And yet despite historically low rates for the last few years, the result has been continuing dismal sales. Even this week, the Mortgage Bankers Association’s weekly mortgage applications index posted record low interest rates, yet purchase applications, a sign of sales activity, declined.
No matter how hard the federal government tries, low interest rates alone won’t fix the housing problem. Most of the "economic uncertainty" centers around jobs...creating jobs for those who want one and keeping the jobs for those who do have one.
The fact is, the one person who has been talking about jobs for the last four years, who went on a campaign tour this week in a $1.1 million bus that the taxpayers paid for, just to announce he had a jobs plan...that won't be revealed until September, has lost the confidence of the American people and the housing market will continue to suffer until there are people out there who can and want to purchase a home.
Distressed property sales accounted for 29 percent of all sales in July, down from 30 percent in June, and down from 32 percent in June of 2010.
Repeat buyers continued to make up the lion’s share of purchasers in July accounting for 50 percent of all purchases, unchanged from June, while first-time home buyer's percentage of purchases inched up slightly, accounting for 32 percent of all purchases, up from 31 percent in June. Investors accounted for the rest of the sales with 18 percent of the purchases made in July.
Regionally, existing home sales in the Northeast increased 2.7 percent to an annual pace of 750,000 sales in July and are 19.0 percent above July 2010 levels, while existing home sales in the Midwest rose 1.0 percent in July to a pace of 1.04 million sales and are 14.0 percent above year ago levels.
In the South, existing home sales declined 1.6 percent to an annual level of 1.84 million sales in July but are 19.5 percent above July 2010 levels, and in the West, existing home sales declined 12.6 percent to an annual pace of 1.04 million sales in July and are 16.9 percent above year ago levels.
The median price in the Northeast was $245,600, a decline of 6.8 percent from a year ago, while the median price in the Midwest was $146,300, down 2.9 percent from July 2010.
The median price in the South was $152,600, a decline of 2.2 percent from a year ago and in the West the median price was $208,300, down 7.1 percent from July 2010.
Tags: NAR, existing home sales, affordable conditions, low mortgage rates, declining prices, low appraisals, cancelled contracts, median home price
Source:
NAR
Bay Area Home Sales Decline Twice the Average in July
August 18, 2011 (Brian Michael)
Bay Area home sales and prices lost ground in July after posting their first solid gains of the year in June as sales declined more than twice their historical average and prices remained flat according to data collected by real estate information provider DataQuick.
A total of 6,887 new and resale homes were sold in the nine county Bay Area, which includes Alameda, Contra Costa, Marin, Napa, Santa Clara, San Francisco, San Mateo, Solano and Sonoma Counties, in July 2011. That was a decline of 13.9 percent from June’s 7,998 sales, but still up 1.7 percent from the 6,773 sales posted in July of 2010.
The Bay Area historically sees a sales decrease of 6.8 percent between June and July as the spring/summer selling season starts to wind down, however, sales this July were the third lowest on record for the month of July since 1988 when DataQuick began tracking statistics.
Home sales in the Bay Area were 26.8 percent below the historic July average. The lowest amount of homes sold in the Bay Area in July since 1988 was 6,666 in 1995, while the highest amount of homes sold was 14,258 in 2004.
"Last year's tax credits were by and large gone by July, so last month's year-over-year comparison is pretty much apples and apples. We’re still looking at a dysfunctional market. Distribution curves are lopsided, bottom-feeding is still prevalent and the lending market is just plain weird. We’re off bottom by all metrics, but far from anything resembling normal," said John Walsh, DataQuick president.
The median price for new and resale homes and condos declined 1.0 percent to $374,000 in July compared to $377,750 in June. The median price was down 7.0 percent from $402,000 in July of 2010, the tenth straight month that year-over-year home prices have dropped.
By comparison, the lowest median price posted during the current real estate cycle was $290,000 in March 2009, while the peak median price was $665,000 in June/July 2007.
Distressed home sales made up 45.4 percent of the Bay Area’s resale market last month, with foreclosure re-sales accounting for 26.6 percent of re-sales in July, while short sales made up about 18.8 percent of Bay Area’s sales last month.
Foreclosure re-sales peaked at 52.0 percent in February 2009 while the historic rate of foreclosure re-sales is about nine percent.
Tags: Bay Area, DataQuick, home sales, home prices, spring selling season, median sales price, new homes, re-sale homes
Source:
DataQuick
Bay Area home sales and prices lost ground in July after posting their first solid gains of the year in June as sales declined more than twice their historical average and prices remained flat according to data collected by real estate information provider DataQuick.
A total of 6,887 new and resale homes were sold in the nine county Bay Area, which includes Alameda, Contra Costa, Marin, Napa, Santa Clara, San Francisco, San Mateo, Solano and Sonoma Counties, in July 2011. That was a decline of 13.9 percent from June’s 7,998 sales, but still up 1.7 percent from the 6,773 sales posted in July of 2010.
The Bay Area historically sees a sales decrease of 6.8 percent between June and July as the spring/summer selling season starts to wind down, however, sales this July were the third lowest on record for the month of July since 1988 when DataQuick began tracking statistics.
Home sales in the Bay Area were 26.8 percent below the historic July average. The lowest amount of homes sold in the Bay Area in July since 1988 was 6,666 in 1995, while the highest amount of homes sold was 14,258 in 2004.
"Last year's tax credits were by and large gone by July, so last month's year-over-year comparison is pretty much apples and apples. We’re still looking at a dysfunctional market. Distribution curves are lopsided, bottom-feeding is still prevalent and the lending market is just plain weird. We’re off bottom by all metrics, but far from anything resembling normal," said John Walsh, DataQuick president.
The median price for new and resale homes and condos declined 1.0 percent to $374,000 in July compared to $377,750 in June. The median price was down 7.0 percent from $402,000 in July of 2010, the tenth straight month that year-over-year home prices have dropped.
By comparison, the lowest median price posted during the current real estate cycle was $290,000 in March 2009, while the peak median price was $665,000 in June/July 2007.
Distressed home sales made up 45.4 percent of the Bay Area’s resale market last month, with foreclosure re-sales accounting for 26.6 percent of re-sales in July, while short sales made up about 18.8 percent of Bay Area’s sales last month.
Foreclosure re-sales peaked at 52.0 percent in February 2009 while the historic rate of foreclosure re-sales is about nine percent.
Tags: Bay Area, DataQuick, home sales, home prices, spring selling season, median sales price, new homes, re-sale homes
Source:
DataQuick
Homes in the Southeast Taking the Longest to Sell
August 18, 2011 (Chris Moore)
Housing inventories continued to decline in July and what was available took even longer to sell, especially in the Southeast, where homes in many regions of the area are taking up to 50 percent longer to sell than in most other regions of the country according to the latest data released by Realtor.com
Total listings of existing homes decreased 1.2 percent from June with a total of 2,311,279 single-family homes, condos, townhomes, and co-ops listed for sale in July. The number of homes listed for sale in July was 17.6 percent lower than in July of last year.
The median list price for an existing home in July was $189,900, unchanged from the median list price in June. The median list price was also unchanged from July of 2010.
The area with the largest year-over-year decline in the median list price was Chicago, IL, where the median price has dropped 14.9 percent since July of 2010. The median list price for the area was unchanged from June to July.
The area with the largest year-over-year increase in the median list price was once again the Fort Myers-Cape Coral, FL area where the median price has increased 31.9 percent since July of last year. Miami was a close second with year-over-year list prices increasing by 24.5 percent.
The average list price for an existing home in July was $319,046, which was a 0.69 percent increase from June’s average list price of $316,846 and 1.05 percent higher than July 2010.
The average number of days that an existing home spent on the market climbed up to 97 in July compared to 93 days in June. Homeowners in the Southeast had to show the most patience when selling their homes, as the region dominated the list of existing homes that spent the longest average number of days on the market.
Topping the list of homes that spent the longest average number of days on the market was the South Regional Statistical Area (RSA) of South Carolina where homes averaged 166 days on the market, followed by Naples, FL, at 153 days, Savanna, GA, at 150 days, Punta Gorda, FL, at 150 days, Myrtle Beach, SC, at 149 days, Wilmington, NC, at 148 days, the Central RSA in Florida at 143 days, Gainesville, FL, at 141 days, Ocala, FL, at 140 days, and West Palm Beach-Boca Raton, FL, at 139 days.
Tags: Realtor.com, housing inventory, listed homes, home prices, median sales price, average list price
Source:
Realtor.com
Housing inventories continued to decline in July and what was available took even longer to sell, especially in the Southeast, where homes in many regions of the area are taking up to 50 percent longer to sell than in most other regions of the country according to the latest data released by Realtor.com
Total listings of existing homes decreased 1.2 percent from June with a total of 2,311,279 single-family homes, condos, townhomes, and co-ops listed for sale in July. The number of homes listed for sale in July was 17.6 percent lower than in July of last year.
The median list price for an existing home in July was $189,900, unchanged from the median list price in June. The median list price was also unchanged from July of 2010.
The area with the largest year-over-year decline in the median list price was Chicago, IL, where the median price has dropped 14.9 percent since July of 2010. The median list price for the area was unchanged from June to July.
The area with the largest year-over-year increase in the median list price was once again the Fort Myers-Cape Coral, FL area where the median price has increased 31.9 percent since July of last year. Miami was a close second with year-over-year list prices increasing by 24.5 percent.
The average list price for an existing home in July was $319,046, which was a 0.69 percent increase from June’s average list price of $316,846 and 1.05 percent higher than July 2010.
The average number of days that an existing home spent on the market climbed up to 97 in July compared to 93 days in June. Homeowners in the Southeast had to show the most patience when selling their homes, as the region dominated the list of existing homes that spent the longest average number of days on the market.
Topping the list of homes that spent the longest average number of days on the market was the South Regional Statistical Area (RSA) of South Carolina where homes averaged 166 days on the market, followed by Naples, FL, at 153 days, Savanna, GA, at 150 days, Punta Gorda, FL, at 150 days, Myrtle Beach, SC, at 149 days, Wilmington, NC, at 148 days, the Central RSA in Florida at 143 days, Gainesville, FL, at 141 days, Ocala, FL, at 140 days, and West Palm Beach-Boca Raton, FL, at 139 days.
Tags: Realtor.com, housing inventory, listed homes, home prices, median sales price, average list price
Source:
Realtor.com
Wednesday, August 17, 2011
Shorter Term Mortgages Becoming Popular as Mortgage Rates Fall
August 17, 2011 (Shirley Allen)
Shorter term mortgages have grown more attractive to borrowers as interest rates on fixed rate loans continue to decline fueling a 31 percent increase in 15-year fixed rate mortgage requests according to the data collected by LendingTree’s Weekly Mortgage Rate Pulse.
Fixed Rate Mortgages (FRM) as of August 16, 2011:
The average home loan rates offered by network lenders for 30 year FRMs was 4.35 percent (4.59% APR), which is down from 4.49 percent reported the previous week.
The lowest mortgage rate offered for a 30 year FRM was 3.875 percent (4.01% APR), which is down from 4.125 percent offered the week before.
The average home loan rates offered by network lenders for 15 year FRMs was 3.59 percent (3.68% APR), a drop from 3.72 percent reported the previous week
The lowest mortgage rate offered for a 15 year FRM was 3.125 percent (3.36% APR), which is down from 3.25 percent offered the week before.
Adjustable Rate Mortgages (ARM) as of August 16, 2011:
The average home loan rate offered by network lenders for 5/1 adjustable rate mortgages (ARM) was 3.56 percent (3.80% APR), which was up from 3.40 percent reported last week.
The lowest mortgage rate offered for a 5/1 ARM was 2.5 percent (3.04% APR), which is down from 2.625 percent offered the week before.
"Lenders on the network have recently seen more borrowers make the rational switch to shorter-term mortgages," says Mark Fowler, senior vice president of exchange operations at LendingTree. "With rates as low as we're seeing today, it makes sense to consider shorter term loan options where borrowers can quickly build equity and pay less interest. Homeowners who want to refinance should at least look into less popular loan options like a 15-year fixed-rate mortgage. If it financially makes, you'll be able to shave years off the loan"
The LendingTree Weekly Mortgage Rate Pulse is a snapshot of the lowest and average home loan rates available within the LendingTree network of lenders and is compiled every Wednesday from data that is gathered from the previous day to reflect the most up to date information on current mortgage rates.
Why do we use LendingTree’s Weekly Mortgage Rate Pulse? LendingTree is one the largest providers of mortgages on the internet who utilizes a large network of lenders that provide a more realistic snapshot of current market rates.
See how your state compares below by comparing mortgage data including a snapshot of the lowest 30-year fixed rates offered by lenders on the LendingTree network, average loan-to-value ratio and percentage of consumers with negative equity:
Home loan rates above are reflective of actual rates offered to borrowers by lenders on the LendingTree network. Lowest rates shown reflect the payment of one discount point. Rates will vary based on the borrower's loan details and credit profile.
More information is available here:
Shorter term mortgages have grown more attractive to borrowers as interest rates on fixed rate loans continue to decline fueling a 31 percent increase in 15-year fixed rate mortgage requests according to the data collected by LendingTree’s Weekly Mortgage Rate Pulse.
Fixed Rate Mortgages (FRM) as of August 16, 2011:
The average home loan rates offered by network lenders for 30 year FRMs was 4.35 percent (4.59% APR), which is down from 4.49 percent reported the previous week.
The lowest mortgage rate offered for a 30 year FRM was 3.875 percent (4.01% APR), which is down from 4.125 percent offered the week before.
The average home loan rates offered by network lenders for 15 year FRMs was 3.59 percent (3.68% APR), a drop from 3.72 percent reported the previous week
The lowest mortgage rate offered for a 15 year FRM was 3.125 percent (3.36% APR), which is down from 3.25 percent offered the week before.
Adjustable Rate Mortgages (ARM) as of August 16, 2011:
The average home loan rate offered by network lenders for 5/1 adjustable rate mortgages (ARM) was 3.56 percent (3.80% APR), which was up from 3.40 percent reported last week.
The lowest mortgage rate offered for a 5/1 ARM was 2.5 percent (3.04% APR), which is down from 2.625 percent offered the week before.
"Lenders on the network have recently seen more borrowers make the rational switch to shorter-term mortgages," says Mark Fowler, senior vice president of exchange operations at LendingTree. "With rates as low as we're seeing today, it makes sense to consider shorter term loan options where borrowers can quickly build equity and pay less interest. Homeowners who want to refinance should at least look into less popular loan options like a 15-year fixed-rate mortgage. If it financially makes, you'll be able to shave years off the loan"
The LendingTree Weekly Mortgage Rate Pulse is a snapshot of the lowest and average home loan rates available within the LendingTree network of lenders and is compiled every Wednesday from data that is gathered from the previous day to reflect the most up to date information on current mortgage rates.
Why do we use LendingTree’s Weekly Mortgage Rate Pulse? LendingTree is one the largest providers of mortgages on the internet who utilizes a large network of lenders that provide a more realistic snapshot of current market rates.
See how your state compares below by comparing mortgage data including a snapshot of the lowest 30-year fixed rates offered by lenders on the LendingTree network, average loan-to-value ratio and percentage of consumers with negative equity:
STATE-BY-STATE MORTGAGE DATA 8/16/11 *Updated Quarterly |
|||
STATE |
LOWEST MORTGAGE RATE |
LOAN-TO-VALUE RATIO* |
NEGATIVE EQUITY* |
US Average |
3.88% (4.02% APR) |
69.7% |
33.1% |
Alabama |
3.88% (4.02% APR) |
67.4% |
27.9% |
Alaska |
3.88% (4.00% APR) |
65.9% |
17.6% |
Arizona |
4.00% (4.14% APR) |
93.6% |
38.9% |
Arkansas |
4.00% (4.12% APR) |
72.2% |
41.7% |
California |
4.00% (4.15% APR) |
70.1% |
34.6% |
Colorado |
3.88% (4.04% APR) |
71.8% |
21.9% |
Connecticut |
3.88% (3.99% APR) |
59.5% |
43.9% |
Delaware |
3.88% (3.98% APR) |
66.4% |
37.9% |
District of Columbia |
3.88% (4.10% APR) |
58.7% |
26.1% |
Florida |
3.88% (4.00% APR) |
88.8% |
39.1% |
Georgia |
3.88% (4.01% APR) |
80.8% |
25.7% |
Hawaii |
4.13% (4.25% APR) |
54.0% |
26.3% |
Idaho |
3.88% (4.01% APR) |
72.6% |
29.5% |
Illinois |
4.00% (4.13% APR) |
72.2% |
31.7% |
Indiana |
4.00% (4.18% APR) |
69.3% |
27.8% |
Iowa |
4.38% (4.51% APR) |
66.9% |
42.1% |
Kansas |
4.38% (4.51% APR) |
70.2% |
30.9% |
Kentucky |
3.88% (4.02% APR) |
67.7% |
51.9% |
Louisiana |
4.38% (4.51% APR) |
74.7% |
79.6% |
Maine |
4.00% (4.12% APR) |
58.4% |
29.7% |
Maryland |
3.88% (4.01% APR) |
70.1% |
25.5% |
Massachusetts |
4.00% (4.12% APR) |
60.9% |
45.4% |
Michigan |
4.00% (4.14% APR) |
84.2% |
32.6% |
Minnesota |
3.88% (3.98% APR) |
66.2% |
21.8% |
Mississippi |
4.38% (4.51% APR) |
78.5% |
29.5% |
Missouri |
3.88% (4.02% APR) |
71.7% |
31.0% |
Montana |
4.38% (4.51% APR) |
60.5% |
32.5% |
Nebraska |
4.38% (4.51% APR) |
72.7% |
44.1% |
Nevada |
3.88% (4.00% APR) |
114.7% |
54.0% |
New Hampshire |
4.00% (4.12% APR) |
70.7% |
25.4% |
New Jersey |
3.88% (3.96% APR) |
62.3% |
29.3% |
New Mexico |
3.88% (4.02% APR) |
67.3% |
41.3% |
New York |
3.88% (3.98% APR) |
48.4% |
35.1% |
North Carolina |
3.88% (4.01% APR) |
71.1% |
32.0% |
North Dakota |
4.38% (4.51% APR) |
60.6% |
35.3% |
Ohio |
4.00% (4.12% APR) |
75.4% |
27.0% |
Oklahoma |
4.00% (4.12% APR) |
75.5% |
53.5% |
Oregon |
3.88% (4.03% APR) |
69.7% |
19.5% |
Pennsylvania |
4.00% (4.12% APR) |
60.6% |
42.3% |
Rhode Island |
4.38% (4.51% APR) |
62.8% |
36.8% |
South Carolina |
4.00% (4.12% APR) |
70.9% |
28.1% |
South Dakota |
4.00% (4.12% APR) |
N/A |
N/A |
Tennessee |
4.00% (4.12% APR) |
71.3% |
29.5% |
Texas |
3.88% (4.00% APR) |
68.4% |
30.5% |
Utah |
3.88% (4.11% APR) |
73.3% |
22.3% |
Vermont |
4.38% (4.51% APR) |
N/A |
N/A |
Virginia |
3.88% (4.01% APR) |
70.8% |
24.6% |
Washington |
3.88% (4.02% APR) |
68.0% |
21.3% |
West Virginia |
4.38% (4.51% APR) |
66.5% |
57.6% |
Wisconsin |
4.38% (4.51% APR) |
68.5% |
34.4% |
Wyoming |
3.88% (4.01% APR) |
63.5% |
22.7% |
More information is available here:
Refinance Application Volume Continues to Surge
August 17, 2011 (Chris Moore)
Mortgage interest rates continued their march downward fueling refinance applications for the second consecutive week according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 12, 2011. The Market Composite Index, a measure of mortgage loan application volume increased 4.1 percent as refinance applications surged to almost 79 percent if all mortgage applications.
On an unadjusted basis, the Index increased 3.6 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is up 6.9 percent.
Purchase Applications:
The seasonally adjusted Purchase Index decreased 9.1 percent from one week earlier. The four week moving average is down 2.2 percent for the adjusted Purchase Index.
The unadjusted Purchase Index decreased 10.1 percent compared with the previous week, and is 1.1 percent lower than the same week one year ago.
Refinance Activity:
The Refinance Index increased 8.0 percent from the previous week. The four week moving average is up 10.1 percent.
The refinance share of mortgage activity increased to 78.8 percent of total applications from 75.6 percent last week.
Mortgage Interest Rates:
30-year fixed-rate mortgage (FRM): The average contract interest rate decreased to 4.32 percent from 4.37 percent last week, with points decreasing to 0.87 from 1.07 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate decreased from last week.
15-year fixed-rate mortgage (FRM): The average contract interest rate decreased to 3.47 percent from 3.52 percent last week, with points increasing to 1.08 from 0.96 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
ARMs:
The adjustable-rate mortgage (ARM) share of activity decreased to 5.8 percent from 6.1 percent the previous week.
“Unprecedented volatility in the stock market last week amid additional signs that the economy has slowed led to further drops in mortgage rates, with the 15-year rate reaching a new low for the MBA survey,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Purchase application activity fell sharply over the previous week, likely the result of potential homebuyers hesitant to purchase in this highly volatile and uncertain environment.”
Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate
Sources:
Mortgage Bankers Association
Mortgage interest rates continued their march downward fueling refinance applications for the second consecutive week according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 12, 2011. The Market Composite Index, a measure of mortgage loan application volume increased 4.1 percent as refinance applications surged to almost 79 percent if all mortgage applications.
On an unadjusted basis, the Index increased 3.6 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is up 6.9 percent.
Purchase Applications:
The seasonally adjusted Purchase Index decreased 9.1 percent from one week earlier. The four week moving average is down 2.2 percent for the adjusted Purchase Index.
The unadjusted Purchase Index decreased 10.1 percent compared with the previous week, and is 1.1 percent lower than the same week one year ago.
Refinance Activity:
The Refinance Index increased 8.0 percent from the previous week. The four week moving average is up 10.1 percent.
The refinance share of mortgage activity increased to 78.8 percent of total applications from 75.6 percent last week.
Mortgage Interest Rates:
30-year fixed-rate mortgage (FRM): The average contract interest rate decreased to 4.32 percent from 4.37 percent last week, with points decreasing to 0.87 from 1.07 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate decreased from last week.
15-year fixed-rate mortgage (FRM): The average contract interest rate decreased to 3.47 percent from 3.52 percent last week, with points increasing to 1.08 from 0.96 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
ARMs:
The adjustable-rate mortgage (ARM) share of activity decreased to 5.8 percent from 6.1 percent the previous week.
“Unprecedented volatility in the stock market last week amid additional signs that the economy has slowed led to further drops in mortgage rates, with the 15-year rate reaching a new low for the MBA survey,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Purchase application activity fell sharply over the previous week, likely the result of potential homebuyers hesitant to purchase in this highly volatile and uncertain environment.”
Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate
Sources:
Mortgage Bankers Association
July Home Sales Not So Golden in California
August 17, 2011 (Shirley Allen)
After a dismal spring of declining home sales, things started looking up for California in June when home sales jumped up 9.7 percent, but it all ended in one giant thud in July as sales of new and existing homes plummeted 11.0 percent according real estate information provider DataQuick.
An estimated total of 34,695 new and resale houses and condos were sold in the Golden State in July. That was down from 38,975 sales in June and down 1.4 percent from July 2010. Historically, California averages 46,577 home sales in the month of July.
The median price for a home in July decreased 1.6 percent to $252,000 from June’s median price of $253,000, and is down 6.0 percent from a median price of $268,000 in July of 2010. The statewide current cycle peak price was $484,000 in early 2007.
Distressed properties continued to dominate the California market as 51.9 percent of all re-sales in July were distressed sales with homes that had been foreclosed on in the previous twelve months making up 34.6 percent of the existing home sales in July.
That was down from 35.1 percent posted in the previous month of June and down from 35.2 posted in July of 2010.
Short sales decreased to 17.3 percent of re-sales last month compared to 17.6 percent in June and down from 18.6 percent in July of 2010.
The typical mortgage payment for home buyers in July remained virtually unchanged for the third consecutive month at $1027, which was also $57 less than the $1,084 payment observed in July 2010. July’s typical mortgage payment is 62.7 percent lower than it was during the current cycle’s peak in July 2006.
“Indicators of market distress continue to move in different directions. Foreclosure activity has declined sharply from its peaks in recent years, but remains high by historical standards. Financing with multiple mortgages is low, down payment sizes are stable, cash and non-owner occupied buying has eased a bit in recent months but remains relatively high,” DataQuick reported.
Tags: DataQuick, new and re-sale homes, condos, sales, median home prices, distressed properties, short sales, typical mortgage payment
Source:
DataQuick
After a dismal spring of declining home sales, things started looking up for California in June when home sales jumped up 9.7 percent, but it all ended in one giant thud in July as sales of new and existing homes plummeted 11.0 percent according real estate information provider DataQuick.
An estimated total of 34,695 new and resale houses and condos were sold in the Golden State in July. That was down from 38,975 sales in June and down 1.4 percent from July 2010. Historically, California averages 46,577 home sales in the month of July.
The median price for a home in July decreased 1.6 percent to $252,000 from June’s median price of $253,000, and is down 6.0 percent from a median price of $268,000 in July of 2010. The statewide current cycle peak price was $484,000 in early 2007.
Distressed properties continued to dominate the California market as 51.9 percent of all re-sales in July were distressed sales with homes that had been foreclosed on in the previous twelve months making up 34.6 percent of the existing home sales in July.
That was down from 35.1 percent posted in the previous month of June and down from 35.2 posted in July of 2010.
Short sales decreased to 17.3 percent of re-sales last month compared to 17.6 percent in June and down from 18.6 percent in July of 2010.
The typical mortgage payment for home buyers in July remained virtually unchanged for the third consecutive month at $1027, which was also $57 less than the $1,084 payment observed in July 2010. July’s typical mortgage payment is 62.7 percent lower than it was during the current cycle’s peak in July 2006.
“Indicators of market distress continue to move in different directions. Foreclosure activity has declined sharply from its peaks in recent years, but remains high by historical standards. Financing with multiple mortgages is low, down payment sizes are stable, cash and non-owner occupied buying has eased a bit in recent months but remains relatively high,” DataQuick reported.
Tags: DataQuick, new and re-sale homes, condos, sales, median home prices, distressed properties, short sales, typical mortgage payment
Source:
DataQuick
HUD Selling REO Properties to Assist Tornado Victims
August 17, 2011 (Brian Michael)
The Department of Housing and Urban Development (HUD) has announced an “unprecedented” pilot program that provides housing assistance to families affected by the catastrophic tornadoes in Joplin, MO, and central Alabama.
In this first of its kind program, HUD plans on selling nearly 90 “move-in ready” REO properties to public housing authorities in the affected areas at a discount price.
The public housing authorities will then make the properties available for lease or sale to any person displaced by the tornadoes within two months.
The REO properties in Alabama are available in the following counties:
Autauga, Calhoun, Elmore, Jefferson, Limestone, Madison, Marion, Marshall and Tallapoosa
Due to Joplin’s close proximity to neighboring states, REO properties are being offered within a 20 mile radius of Joplin’s city limits. The states and counties that REO properties are being offered in are:
Kansas: Cherokee County
Missouri: Jasper and Newton Counties
Oklahoma: Ottawa County
“After witnessing first-hand the size and scope of the devastation in Alabama, I knew we must do more,” said HUD Secretary Shaun Donovan. “For the first-time, HUD has designed a pilot program that will bring families affected by a significant disaster closer to stability by quickly providing them with an opportunity to purchase or lease a home. We hope to be able to use this draft purchase agreement as a model to assist other families displaced after a disaster.”
Families and individuals who have been displaced by the tornadoes in the affected areas and are interested in purchasing or leasing one of these properties, or needs more information on how to apply, can contact one of the local public housing authorities listed here.
Tags: tornado assistance, HUD, REO properties, Joplin, housing assistance, Alabama, public housing authorities, displaced families
Source:
HUD
The Department of Housing and Urban Development (HUD) has announced an “unprecedented” pilot program that provides housing assistance to families affected by the catastrophic tornadoes in Joplin, MO, and central Alabama.
In this first of its kind program, HUD plans on selling nearly 90 “move-in ready” REO properties to public housing authorities in the affected areas at a discount price.
The public housing authorities will then make the properties available for lease or sale to any person displaced by the tornadoes within two months.
The REO properties in Alabama are available in the following counties:
Autauga, Calhoun, Elmore, Jefferson, Limestone, Madison, Marion, Marshall and Tallapoosa
Due to Joplin’s close proximity to neighboring states, REO properties are being offered within a 20 mile radius of Joplin’s city limits. The states and counties that REO properties are being offered in are:
Kansas: Cherokee County
Missouri: Jasper and Newton Counties
Oklahoma: Ottawa County
“After witnessing first-hand the size and scope of the devastation in Alabama, I knew we must do more,” said HUD Secretary Shaun Donovan. “For the first-time, HUD has designed a pilot program that will bring families affected by a significant disaster closer to stability by quickly providing them with an opportunity to purchase or lease a home. We hope to be able to use this draft purchase agreement as a model to assist other families displaced after a disaster.”
Families and individuals who have been displaced by the tornadoes in the affected areas and are interested in purchasing or leasing one of these properties, or needs more information on how to apply, can contact one of the local public housing authorities listed here.
Tags: tornado assistance, HUD, REO properties, Joplin, housing assistance, Alabama, public housing authorities, displaced families
Source:
HUD
Mortgage Delinquency Rate Increases 4.7 Percent in Last Two Months
August 17, 2011 (Shirley Allen)
Mortgage delinquency rates increased by 2.4 percent for the second consecutive month in July while foreclosure inventories declined according to the latest “First Look” Mortgage Report released by Lender Processing Services (LPS), which is derived from its loan-level database of nearly 40 million loans.
The total number of loans that are 30 days or more past due, but not yet in foreclosure, climbed from 8.15 percent in June to 8.34 percent in July, a gain of 2.4, however, compared to July of 2010, the delinquency rate continued to be significantly less, with a year-over-year decline of 10.4 percent.
It was the second consecutive month that the mortgage delinquency rate has shown an increase adding an additional 195,000 delinquent mortgages since the beginning of June, an increase of 4.7 percent.
The number of properties in foreclosure decreased 0.4 percent from 2,167,000 in June to 2,156,000 in July.
The “First Look” report contains highlights of the company’s forthcoming Mortgage Monitor report which will provide a more in-depth review including an analysis of data supplemented by in-depth charts and graphs that reflect trend and point-in-time observations.
Early highlights of the report include:
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 8.34% compared to 8.15% in June 2011
Month-over-month change in delinquency rate: 2.4% compared to 2.4% in June 2011
Year-over-year change in delinquency rate: -10.4% compared to -14.7% in June 2011
Total U.S foreclosure pre-sale inventory rate: 4.11% compared to 4.12% in June 2011
Month-over-month change in foreclosure presale inventory rate: -0.4% compared to 0.2% in June 2011
Year-over-year change in foreclosure presale inventory rate: 9.7% compared to 12.8% in June 2011
Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,382,000 compared to 4,285,000 in June 2011
Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,899,000 compared to 1,906,000 in June 2011
Number of properties in foreclosure pre-sale inventory: (B) 2,156,000 compared to 2,167,000 in June 2011
Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,538,000 compared to 6,452,000 in June 2011
States with highest percentage of non-current* loans: FL, NV, MS, NJ, IL (FL, NV, MS, NJ, IL in June 2011)
States with the lowest percentage of non-current* loans: MT, WY, AK, SD, ND (MT, WY, AK, SD, ND in June 2011)
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Notes:
(1) Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.
Tags: LPS, mortgage delinquency rate, foreclosure inventory, non-current loans
Source:
LPS
Mortgage delinquency rates increased by 2.4 percent for the second consecutive month in July while foreclosure inventories declined according to the latest “First Look” Mortgage Report released by Lender Processing Services (LPS), which is derived from its loan-level database of nearly 40 million loans.
The total number of loans that are 30 days or more past due, but not yet in foreclosure, climbed from 8.15 percent in June to 8.34 percent in July, a gain of 2.4, however, compared to July of 2010, the delinquency rate continued to be significantly less, with a year-over-year decline of 10.4 percent.
It was the second consecutive month that the mortgage delinquency rate has shown an increase adding an additional 195,000 delinquent mortgages since the beginning of June, an increase of 4.7 percent.
The number of properties in foreclosure decreased 0.4 percent from 2,167,000 in June to 2,156,000 in July.
The “First Look” report contains highlights of the company’s forthcoming Mortgage Monitor report which will provide a more in-depth review including an analysis of data supplemented by in-depth charts and graphs that reflect trend and point-in-time observations.
Early highlights of the report include:
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 8.34% compared to 8.15% in June 2011
Month-over-month change in delinquency rate: 2.4% compared to 2.4% in June 2011
Year-over-year change in delinquency rate: -10.4% compared to -14.7% in June 2011
Total U.S foreclosure pre-sale inventory rate: 4.11% compared to 4.12% in June 2011
Month-over-month change in foreclosure presale inventory rate: -0.4% compared to 0.2% in June 2011
Year-over-year change in foreclosure presale inventory rate: 9.7% compared to 12.8% in June 2011
Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,382,000 compared to 4,285,000 in June 2011
Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,899,000 compared to 1,906,000 in June 2011
Number of properties in foreclosure pre-sale inventory: (B) 2,156,000 compared to 2,167,000 in June 2011
Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,538,000 compared to 6,452,000 in June 2011
States with highest percentage of non-current* loans: FL, NV, MS, NJ, IL (FL, NV, MS, NJ, IL in June 2011)
States with the lowest percentage of non-current* loans: MT, WY, AK, SD, ND (MT, WY, AK, SD, ND in June 2011)
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Notes:
(1) Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.
Tags: LPS, mortgage delinquency rate, foreclosure inventory, non-current loans
Source:
LPS
New Home Construction Falters in July
August 17, 2011 (Chris Moore)
Construction of new residential housing lost momentum in July as declines in new single-family housing starts were partly offset by gains in apartment construction according to the latest data released by the Census Bureau.
Privately owned housing starts declined by 1.5 percent in July compared to June with a seasonally adjusted annual rate of 604,000 starts reported in July compared to June’s revised estimate of 613,000 starts. Housing starts were 9.8 percent higher than July 2010’s rate of 550,000 starts.
Single-family housing starts in July decreased from June’s revised figure of 447,000 to 425,000, a decline of 4.9 percent, and multi-family dwellings increased 6.3 percent from a revised 160,000 starts in June to 170,000 in July.
The number of building permits issued in July were slightly lower than June as builders were authorized a seasonally adjusted annual rate of 597,000 permits in July compared to a revised 617,000 in June, a decline of 3.2 percent. The number of permits issued were above last years levels, which had an estimated 575,000 permits authorized.
Single-family building permit authorizations were 0.5 percent higher in July than June with 404,000 permits authorized compared to a revised 402,000 in June. Multi-family dwelling permits in July declined to 170,000 authorizations compared to a revised amount of 194,000 in June.
Housing completions increased in July compared to June with a seasonally adjusted annual rate of 636,000 completions reported compared to June’s 569,000 completions. Housing completions in July were also 9.5 percent higher than July 2010’s rate of 581,000 completions.
Single-family completions in July were at a rate of 470,000, an increase of 6.1 percent from June’s revised rate of 443,000. Multi-family completions in July were at a rate of 158,000, a large increase from June’s 111,000 completions.
Regionally, housing starts increased in two of the four regions with the Northeast and the South experiencing gains of 34.7 percent and 5.6 percent, respectively, with the Midwest and West experiencing declines of 37.7 percent and 3.0 percent, respectively.
Compared to a year ago, three of the four regions posted increases in housing starts with only the Midwest region posting a decline.
Building permit authorizations declined in three of the four regions in July compared to June. In the Midwest, authorizations declined 7.1 percent and in the South authorizations increased 3.6 percent. In the West, building permit authorizations declined 7.8 percent while the Northeast reported a decline of 18.3 percent in authorizations.
Tags: housing starts, single-family homes, multi-family dwellings, building permits, housing completions
Source:
Census Bureau
Construction of new residential housing lost momentum in July as declines in new single-family housing starts were partly offset by gains in apartment construction according to the latest data released by the Census Bureau.
Privately owned housing starts declined by 1.5 percent in July compared to June with a seasonally adjusted annual rate of 604,000 starts reported in July compared to June’s revised estimate of 613,000 starts. Housing starts were 9.8 percent higher than July 2010’s rate of 550,000 starts.
Single-family housing starts in July decreased from June’s revised figure of 447,000 to 425,000, a decline of 4.9 percent, and multi-family dwellings increased 6.3 percent from a revised 160,000 starts in June to 170,000 in July.
The number of building permits issued in July were slightly lower than June as builders were authorized a seasonally adjusted annual rate of 597,000 permits in July compared to a revised 617,000 in June, a decline of 3.2 percent. The number of permits issued were above last years levels, which had an estimated 575,000 permits authorized.
Single-family building permit authorizations were 0.5 percent higher in July than June with 404,000 permits authorized compared to a revised 402,000 in June. Multi-family dwelling permits in July declined to 170,000 authorizations compared to a revised amount of 194,000 in June.
Housing completions increased in July compared to June with a seasonally adjusted annual rate of 636,000 completions reported compared to June’s 569,000 completions. Housing completions in July were also 9.5 percent higher than July 2010’s rate of 581,000 completions.
Single-family completions in July were at a rate of 470,000, an increase of 6.1 percent from June’s revised rate of 443,000. Multi-family completions in July were at a rate of 158,000, a large increase from June’s 111,000 completions.
Regionally, housing starts increased in two of the four regions with the Northeast and the South experiencing gains of 34.7 percent and 5.6 percent, respectively, with the Midwest and West experiencing declines of 37.7 percent and 3.0 percent, respectively.
Compared to a year ago, three of the four regions posted increases in housing starts with only the Midwest region posting a decline.
Building permit authorizations declined in three of the four regions in July compared to June. In the Midwest, authorizations declined 7.1 percent and in the South authorizations increased 3.6 percent. In the West, building permit authorizations declined 7.8 percent while the Northeast reported a decline of 18.3 percent in authorizations.
Tags: housing starts, single-family homes, multi-family dwellings, building permits, housing completions
Source:
Census Bureau
Freddie Mac Offers “Condo Cash”
August 16, 2011 (Shirley Allen)
Freddie Mac is offering a new round of buyer assistance on homes in its HomeSteps foreclosure inventory now through November 15, 2011. The new program, “Condo Cash,” provides cash assistance to eligible condominium buyers for standard association dues.
The offer is only valid for owner-occupant buyers who purchase an eligible condominium that has been on the market for at least 120 days through Freddie Mac’s HomeSteps real estate sales unit.
The program provides for buyer assistance of up to $1,500 for standard condominium association dues. Condo Cash is available to buyers who submit an offer between August 15 and November 15, 2011 and close escrow on or before December 20, 2011.
Some homes may also qualify for a two year Home Protect limited home warranty that covers electrical, plumbing, air conditioning, heating and other major systems and appliances. Home Protect also provides discounts of up to 30 percent on the purchase of appliances.
Freddie Mac strives to have the best property and sales standards in the country through HomeSteps, requiring their supplier network to adhere to its HomeSteps Good Neighbor Practices.
The Good Neighbor Practices protects neighborhood values by requiring participating agents to show a clean and maintained home and sell them at market prices.
Additional information can be found on the HomeSteps website.
Tags: HomeSteps, Freddie Mac, condo cash, home protection warranty, best property, market prices, maintained homes
Source:
Freddie Mac
Freddie Mac is offering a new round of buyer assistance on homes in its HomeSteps foreclosure inventory now through November 15, 2011. The new program, “Condo Cash,” provides cash assistance to eligible condominium buyers for standard association dues.
The offer is only valid for owner-occupant buyers who purchase an eligible condominium that has been on the market for at least 120 days through Freddie Mac’s HomeSteps real estate sales unit.
The program provides for buyer assistance of up to $1,500 for standard condominium association dues. Condo Cash is available to buyers who submit an offer between August 15 and November 15, 2011 and close escrow on or before December 20, 2011.
Some homes may also qualify for a two year Home Protect limited home warranty that covers electrical, plumbing, air conditioning, heating and other major systems and appliances. Home Protect also provides discounts of up to 30 percent on the purchase of appliances.
Freddie Mac strives to have the best property and sales standards in the country through HomeSteps, requiring their supplier network to adhere to its HomeSteps Good Neighbor Practices.
The Good Neighbor Practices protects neighborhood values by requiring participating agents to show a clean and maintained home and sell them at market prices.
Additional information can be found on the HomeSteps website.
Tags: HomeSteps, Freddie Mac, condo cash, home protection warranty, best property, market prices, maintained homes
Source:
Freddie Mac
Wells Fargo Institutes New Loan Limits
August 16, 2011 (Chris Moore)
Without a deal on the table to extend or make permanent current conforming loan limits on government-backed mortgages by Fannie Mae and Freddie Mac, Wells Fargo will no longer accept applications for loans that fall under the soon to expire temporary loan limits.
Congress temporarily raised the conforming loan limits from $417,000 to $729,750 in 2008 to help the slumping housing industry, but the current loan limits are set to expire on October 1st.
Once the temporary loan limits expire, the maximum conforming loan limit for the Federal Housing Administration (FHA), Freddie Mac, and Fannie Mae will decline to $625,500 with many areas that have enjoyed the higher loan limits falling far below the new maximum.
Wells Fargo’s deadline for accepting loan applications under the temporary loan limits ended yesterday, August 15th, and all application for loans of $625,501 or more will now be considered as jumbo loans.
Housing industry heavyweights such as the National Association of Realtors (NAR), the National Association of Home Builders (NAHB), and the Mortgage Bankers Association (MBA) have advocated making permanent or extending the higher current conforming loan limits.
There is still a possibility that the current loan limits could be extended as a bill that was introduced by Rep. John Campbell (R-CA) and Rep. Gary Ackerman (D-NY) that extends the current loan limits for two more years is waiting for Congress to consider when they come back from their summer recess in September. The bill has wide support from within the housing industry.
Housing advocates fear that the higher down payment requirements and interest rates that typically accompany non-conforming and jumbo loans will have a negative impact on the housing industry, with as many as 17 million homes nationwide being affected by the reduced loan limits according to NAR.
Tag: conforming loan limits, Wells Fargo, NAR, HAHB, MBA, jumbo loans, housing industry, temporary loan limits, FHA, Freddie Mac, Fannie Mae
Source:
California Association of Realtors
Without a deal on the table to extend or make permanent current conforming loan limits on government-backed mortgages by Fannie Mae and Freddie Mac, Wells Fargo will no longer accept applications for loans that fall under the soon to expire temporary loan limits.
Congress temporarily raised the conforming loan limits from $417,000 to $729,750 in 2008 to help the slumping housing industry, but the current loan limits are set to expire on October 1st.
Once the temporary loan limits expire, the maximum conforming loan limit for the Federal Housing Administration (FHA), Freddie Mac, and Fannie Mae will decline to $625,500 with many areas that have enjoyed the higher loan limits falling far below the new maximum.
Wells Fargo’s deadline for accepting loan applications under the temporary loan limits ended yesterday, August 15th, and all application for loans of $625,501 or more will now be considered as jumbo loans.
Housing industry heavyweights such as the National Association of Realtors (NAR), the National Association of Home Builders (NAHB), and the Mortgage Bankers Association (MBA) have advocated making permanent or extending the higher current conforming loan limits.
There is still a possibility that the current loan limits could be extended as a bill that was introduced by Rep. John Campbell (R-CA) and Rep. Gary Ackerman (D-NY) that extends the current loan limits for two more years is waiting for Congress to consider when they come back from their summer recess in September. The bill has wide support from within the housing industry.
Housing advocates fear that the higher down payment requirements and interest rates that typically accompany non-conforming and jumbo loans will have a negative impact on the housing industry, with as many as 17 million homes nationwide being affected by the reduced loan limits according to NAR.
Tag: conforming loan limits, Wells Fargo, NAR, HAHB, MBA, jumbo loans, housing industry, temporary loan limits, FHA, Freddie Mac, Fannie Mae
Source:
California Association of Realtors
Southern California Home Sales Sink in July
August 16, 2011 (Chris Moore)
New and existing home sales in Southern California fell to the lowest levels for a July in four years according to real estate information provider DataQuick as new home sales continued to decline to record low levels.
Sales in the Southern California region, which includes Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties, totaled 18,090 new and re-sale homes in July. That was down 11.9 percent from the 20,532 homes sold in June and 4.5 percent below July’s historical average of 18,946 sold homes. Sales typically fall 4.8 percent from June to July.
A total of 1,022 new homes were sold across the six counties last month, down from 1,395 sold the previous month and a 7.3 percent drop from July of last year. It was the lowest amount of new home sales for the month of July since DataQuick started keeping records in 1988.
"The latest sales figures look a bit worse than they really are, given this July was a fairly short month, but they still suggest some potential homebuyers got spooked. Reports on the economy became increasingly downbeat and, no doubt, some people fretted over the possibility the country would default on its obligations," said John Walsh, DataQuick president. "If there's a shred of good news in the data it's that last month's sales weren't much worse than a year earlier. For the first time in many months, we get an apples-to-apples comparison to year-ago sales, given that in July 2010 the market lost its crutch -- federal homebuyer tax credits."
Sales of homes priced above $800,000 declined 20.5 percent from June, while sales of homes priced in the $300,000 to $800,000 range declined 13.3 percent and sales of homes priced below $200,000 declined 11.2 percent.
The median price for homes in the region decreased slightly from the previous month. The median price paid for all new and re-sale homes in the Southern California region in July was $283,000, which was down from $285,000 last month. The median price was also down 4.1 percent from $295,000 in July of 2010. The median price for a home in the area at the current housing cycle’s peak in mid-2007 was $505,000.
Distressed properties accounted for about half of the re-sale market in July with approximately one in three re-sale homes being a foreclosure, and about one in five being a short sale.
Foreclosures re-sales made up 32.5 percent of the market in July while short sales made up an estimated 17.3 percent of re-sales.
Investors continued to play a significant role in the market as absentee buyers who paid cash purchased 23.8 percent of the homes sold in the area in July. Total cash purchases accounted for 28.2 percent of the homes sold for the month. Absentee buyers paid a median price of $212,000 for the homes they purchased, while cash buyers paid a median price of $214,000 for the homes they purchased in July.
Tags: DataQuick, new homes, re-sale homes, median price, home sales, investors, absentee buyers, tight credit, weak job growth
Source:
DataQuick
New and existing home sales in Southern California fell to the lowest levels for a July in four years according to real estate information provider DataQuick as new home sales continued to decline to record low levels.
Sales in the Southern California region, which includes Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties, totaled 18,090 new and re-sale homes in July. That was down 11.9 percent from the 20,532 homes sold in June and 4.5 percent below July’s historical average of 18,946 sold homes. Sales typically fall 4.8 percent from June to July.
A total of 1,022 new homes were sold across the six counties last month, down from 1,395 sold the previous month and a 7.3 percent drop from July of last year. It was the lowest amount of new home sales for the month of July since DataQuick started keeping records in 1988.
"The latest sales figures look a bit worse than they really are, given this July was a fairly short month, but they still suggest some potential homebuyers got spooked. Reports on the economy became increasingly downbeat and, no doubt, some people fretted over the possibility the country would default on its obligations," said John Walsh, DataQuick president. "If there's a shred of good news in the data it's that last month's sales weren't much worse than a year earlier. For the first time in many months, we get an apples-to-apples comparison to year-ago sales, given that in July 2010 the market lost its crutch -- federal homebuyer tax credits."
Sales of homes priced above $800,000 declined 20.5 percent from June, while sales of homes priced in the $300,000 to $800,000 range declined 13.3 percent and sales of homes priced below $200,000 declined 11.2 percent.
The median price for homes in the region decreased slightly from the previous month. The median price paid for all new and re-sale homes in the Southern California region in July was $283,000, which was down from $285,000 last month. The median price was also down 4.1 percent from $295,000 in July of 2010. The median price for a home in the area at the current housing cycle’s peak in mid-2007 was $505,000.
Distressed properties accounted for about half of the re-sale market in July with approximately one in three re-sale homes being a foreclosure, and about one in five being a short sale.
Foreclosures re-sales made up 32.5 percent of the market in July while short sales made up an estimated 17.3 percent of re-sales.
Investors continued to play a significant role in the market as absentee buyers who paid cash purchased 23.8 percent of the homes sold in the area in July. Total cash purchases accounted for 28.2 percent of the homes sold for the month. Absentee buyers paid a median price of $212,000 for the homes they purchased, while cash buyers paid a median price of $214,000 for the homes they purchased in July.
Tags: DataQuick, new homes, re-sale homes, median price, home sales, investors, absentee buyers, tight credit, weak job growth
Source:
DataQuick
New Home Builder Optimism Remains Low
August 16, 2011 (Brian Michael)
Confidence among the nation’s new single-family home builders remained at low levels in August according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) as economic uncertainty continues to discourage potential buyers from considering new home purchases.
The HMI is derived from a survey that NAHB has been conducting for over 20 years. The index gauges builder perceptions of current single family home sales and sales expectations for the next six months as “good, fair, or poor.” Builders are also asked to rate traffic of prospective buyers as “high to very high, average or low to very low.” Each component is then used to calculate a seasonally adjusted index where a score over 50 indicates builder’s view sales conditions as good.
The HMI in August remained unchanged from July at a low level of 15.
Two of the three components that make up the HMI increased modestly from the previous month. The component gauging sales expectations over the next six months, which rose 6 points last month, slipped two points to a level of 19 in August.
The component gauging current sales conditions increased from 15 last month to16 in August and the component gauging traffic of prospective buyers also rose one point from last month to13 in August.
Regionally, the Midwest dropped two points from last month slipping to10, the South remained unchanged at 17, and the West picked up one point moving up to 15. The Northeast gained four points, bringing its HMI score to 19 for the month.
"Builders continue to confront the same major challenges they have seen over the past year, including competition from the large inventory of distressed homes on the market, inaccurate appraisal values, and issues with their buyers not being able to sell an existing home or qualify for favorable mortgage rates because of overly tight underwriting requirements," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. He noted that 41 percent of respondents to a special questions section of the HMI indicated they had lost sales contracts due to buyers' inability to sell their current homes.”
Tags: NAHB, Wells Fargo, Housing Market Index, HMI, homebuilders, sales expectations, builder confidence, single-family homes, competition, distressed properties, appraisals
Source:
NAHB
Confidence among the nation’s new single-family home builders remained at low levels in August according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) as economic uncertainty continues to discourage potential buyers from considering new home purchases.
The HMI is derived from a survey that NAHB has been conducting for over 20 years. The index gauges builder perceptions of current single family home sales and sales expectations for the next six months as “good, fair, or poor.” Builders are also asked to rate traffic of prospective buyers as “high to very high, average or low to very low.” Each component is then used to calculate a seasonally adjusted index where a score over 50 indicates builder’s view sales conditions as good.
The HMI in August remained unchanged from July at a low level of 15.
Two of the three components that make up the HMI increased modestly from the previous month. The component gauging sales expectations over the next six months, which rose 6 points last month, slipped two points to a level of 19 in August.
The component gauging current sales conditions increased from 15 last month to16 in August and the component gauging traffic of prospective buyers also rose one point from last month to13 in August.
Regionally, the Midwest dropped two points from last month slipping to10, the South remained unchanged at 17, and the West picked up one point moving up to 15. The Northeast gained four points, bringing its HMI score to 19 for the month.
"Builders continue to confront the same major challenges they have seen over the past year, including competition from the large inventory of distressed homes on the market, inaccurate appraisal values, and issues with their buyers not being able to sell an existing home or qualify for favorable mortgage rates because of overly tight underwriting requirements," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. He noted that 41 percent of respondents to a special questions section of the HMI indicated they had lost sales contracts due to buyers' inability to sell their current homes.”
Tags: NAHB, Wells Fargo, Housing Market Index, HMI, homebuilders, sales expectations, builder confidence, single-family homes, competition, distressed properties, appraisals
Source:
NAHB
Refinancing Borrowers Opting for Fixed Rate Loans
August 15, 2011 (Chris Moore)
Ninety-five percent of refinancing borrowers picked a fixed rate loan in the second quarter of 2011 according to Freddie Mac’s Quarterly Product Transition Report regardless of whether their previous loan was a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM).
A larger share of borrowers also chose to take advantage of the historically low interest rates and shortened the term of their loans during the second quarter. Thirty-seven percent of the borrowers who refinanced a 30 FRM chose a 15-year or a 20- year mortgage to replace their original loan, the highest share of borrowers to do so since the third quarter of 2003.
More than half of the borrowers, fifty-five percent, who refinanced a hybrid ARM chose a fixed rate loan during the quarter. Forty-five percent of borrowers who refinanced a hybrid ARM chose to refinance into the same type of product.
The share of borrowers who refinanced from a hybrid ARM to another hybrid ARM was the highest since the second quarter of 2004.
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, "Compared to a 30-year fixed-rate mortgage, the interest rate on 15-year fixed was about 0.8 percentage points lower during the second quarter. For borrowers motivated to refinance by low fixed-rates, they could obtain even lower rates by shortening their term. The initial interest rate on a 5/1 hybrid ARM was about 1.2 percentage points lower than on a 30-year fixed-rate loan. For borrowers who plan to remain in their current home for only a few years, the hybrid ARM allows for even a greater interest-rate savings."
Refinancing borrowers whose original loan was a 30-year FRM chose another 30-year FRM sixty-one percent of the time, a 20-year FRM thirteen percent of the time and a 15-year FRM twenty-four percent of the time.
Borrowers who originally had a 15-year FRM chose to stay with that product eighty-one percent of the time. Fifteen percent lengthened the term of their loans to 30 years and two percent lengthened their loans to 20 years.
Tags: Freddie Mac, refinancing borrowers, Transition Report, fixed rte mortgage, adjustable rate mortgage, hybrid ARM, interest rate savings
Source:
Freddie Mac
Ninety-five percent of refinancing borrowers picked a fixed rate loan in the second quarter of 2011 according to Freddie Mac’s Quarterly Product Transition Report regardless of whether their previous loan was a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM).
A larger share of borrowers also chose to take advantage of the historically low interest rates and shortened the term of their loans during the second quarter. Thirty-seven percent of the borrowers who refinanced a 30 FRM chose a 15-year or a 20- year mortgage to replace their original loan, the highest share of borrowers to do so since the third quarter of 2003.
More than half of the borrowers, fifty-five percent, who refinanced a hybrid ARM chose a fixed rate loan during the quarter. Forty-five percent of borrowers who refinanced a hybrid ARM chose to refinance into the same type of product.
The share of borrowers who refinanced from a hybrid ARM to another hybrid ARM was the highest since the second quarter of 2004.
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, "Compared to a 30-year fixed-rate mortgage, the interest rate on 15-year fixed was about 0.8 percentage points lower during the second quarter. For borrowers motivated to refinance by low fixed-rates, they could obtain even lower rates by shortening their term. The initial interest rate on a 5/1 hybrid ARM was about 1.2 percentage points lower than on a 30-year fixed-rate loan. For borrowers who plan to remain in their current home for only a few years, the hybrid ARM allows for even a greater interest-rate savings."
Refinancing borrowers whose original loan was a 30-year FRM chose another 30-year FRM sixty-one percent of the time, a 20-year FRM thirteen percent of the time and a 15-year FRM twenty-four percent of the time.
Borrowers who originally had a 15-year FRM chose to stay with that product eighty-one percent of the time. Fifteen percent lengthened the term of their loans to 30 years and two percent lengthened their loans to 20 years.
Tags: Freddie Mac, refinancing borrowers, Transition Report, fixed rte mortgage, adjustable rate mortgage, hybrid ARM, interest rate savings
Source:
Freddie Mac
Are Foreclosure Prevention Programs Delaying a Housing Recovery?
August 15, 2011 (Brian Michael)
Foreclosure activity decreased four percent from June to July, and was 35 percent below year ago levels, as processing and procedural delays and national and state-level foreclosure prevention programs may be contributing to a delay in the recovery of the housing market according to RealtyTrac’s Foreclosure Market Report for July 2011.
A total of 212,794 U.S. properties received foreclosure filings, either default notices, auction sale notes, or bank repossessions, in July, with one in every 611 U.S. housing units receiving a foreclosure filing.
The reduction in foreclosure filings is not a result of a recovery in the housing market, but has been caused by continuing processing and procedural delays, and a smorgasbord of foreclosure prevention efforts. This has resulted in lenders slowing the pace of foreclosures which RealtyTrac says “should extend current housing market woes into 2012 and beyond.”
“July foreclosure activity dropped 35 percent from a year ago, marking the 10th straight month of year-over-year decreases in foreclosure activity and the lowest monthly total since November 2007,” said James J. Saccacio, chief executive officer of RealtyTrac. “This string of decreases was initially triggered by the robo-signing controversy back in October 2010, which forced lenders to substantially slow the pace of foreclosing, but the downward trend in foreclosure activity has now taken on a life of its own. It appears that the foreclosure processing delays, combined with the smorgasbord of national and state-level foreclosure prevention efforts — including loan modifications, lender-borrower mediations and mortgage payment assistance for the unemployed — may be allowing more distressed homeowners to stave off foreclosure.”
Nevada, California, and Arizona maintained the top three spots with the highest foreclosure rates in July. Nevada again led the pack with one in every 115 housing units receiving at least one foreclosure filing. California was second with one in every 239 and Arizona was third with one in every 273 housing units receiving a foreclosure filing in July. All three states posted significant declines in year-over-year foreclosure activity.
Rounding out the top ten in foreclosure rates were Georgia, Utah, Florida, Michigan, Idaho, Illinois and Wisconsin.
In sheer numbers, California had the most foreclosure filings with 56,193 properties receiving a foreclosure filing in July, followed by Florida (22,377), Georgia (11,461), Michigan (10,894), Illinois (10,627), Texas (10,571), Arizona (10,098), Nevada (9,930), Ohio (8,376) and Wisconsin (4,534).
The above 10 states accounted for 73 percent of all U.S. foreclosure activity in July.
Tags: RealtyTrac, foreclosures activity, foreclosure filings, default notices, auction sale notes, and bank repossessions, robo-signing
Source:
RealtyTrac
Foreclosure activity decreased four percent from June to July, and was 35 percent below year ago levels, as processing and procedural delays and national and state-level foreclosure prevention programs may be contributing to a delay in the recovery of the housing market according to RealtyTrac’s Foreclosure Market Report for July 2011.
A total of 212,794 U.S. properties received foreclosure filings, either default notices, auction sale notes, or bank repossessions, in July, with one in every 611 U.S. housing units receiving a foreclosure filing.
The reduction in foreclosure filings is not a result of a recovery in the housing market, but has been caused by continuing processing and procedural delays, and a smorgasbord of foreclosure prevention efforts. This has resulted in lenders slowing the pace of foreclosures which RealtyTrac says “should extend current housing market woes into 2012 and beyond.”
“July foreclosure activity dropped 35 percent from a year ago, marking the 10th straight month of year-over-year decreases in foreclosure activity and the lowest monthly total since November 2007,” said James J. Saccacio, chief executive officer of RealtyTrac. “This string of decreases was initially triggered by the robo-signing controversy back in October 2010, which forced lenders to substantially slow the pace of foreclosing, but the downward trend in foreclosure activity has now taken on a life of its own. It appears that the foreclosure processing delays, combined with the smorgasbord of national and state-level foreclosure prevention efforts — including loan modifications, lender-borrower mediations and mortgage payment assistance for the unemployed — may be allowing more distressed homeowners to stave off foreclosure.”
Nevada, California, and Arizona maintained the top three spots with the highest foreclosure rates in July. Nevada again led the pack with one in every 115 housing units receiving at least one foreclosure filing. California was second with one in every 239 and Arizona was third with one in every 273 housing units receiving a foreclosure filing in July. All three states posted significant declines in year-over-year foreclosure activity.
Rounding out the top ten in foreclosure rates were Georgia, Utah, Florida, Michigan, Idaho, Illinois and Wisconsin.
In sheer numbers, California had the most foreclosure filings with 56,193 properties receiving a foreclosure filing in July, followed by Florida (22,377), Georgia (11,461), Michigan (10,894), Illinois (10,627), Texas (10,571), Arizona (10,098), Nevada (9,930), Ohio (8,376) and Wisconsin (4,534).
The above 10 states accounted for 73 percent of all U.S. foreclosure activity in July.
Tags: RealtyTrac, foreclosures activity, foreclosure filings, default notices, auction sale notes, and bank repossessions, robo-signing
Source:
RealtyTrac
Freddie Mac Posts $2.1 Billion Loss in Second Quarter
August 15, 2011 (Shirley Allen)
Government Sponsored Enterprise (GSE) Freddie Mac reports that it posted a net loss of $2.1 billion in the second quarter of 2011, compared to a net profit of $676 million in the first quarter of 2011. The second quarter results were still significantly less than the same quarter in 2010 when the GSE lost $4.7 billion.
The mortgage giant also stated in its Second Quarter Results report that it was making a $1.6 billion dividend payment to the Treasury Department, as a consequence, Freddie Mac’s net worth deficit was $1.5 billion as of June 30, 2011, prompting the Acting Director of the Federal Housing Finance Agency (FHFA) to submit a request for $1.5 billion in funds to the Treasury Department to eliminate the mortgage giant’s net worth deficit.
FHFA oversees the operation of Freddie Mac since the company was taken over by the government in September of 2008 after massive loses threatened to topple the company when the housing market collapsed.
The latest request for funds puts the total cost to taxpayers for Freddie Mac alone at $66.2 billion.
Despite significant losses in its portfolio, Freddie Mac reports that credit quality of single-family loans acquired after 2008 has been strong as measured by original loan-to-value (LTV) ratios, FICO scores, and the proportion of loans underwritten with fully documented income and expects better performance from its portfolio in the future.
As of June 30, 2011, approximately 46 percent of the company’s single-family guarantee portfolio of mortgage loans was originated after 2008.
Freddie Mac’s single-family serious delinquency rate dropped to 3.5 percent at the end of the second quarter, down from 3.63 percent at the end of the first quarter of 2011.
The mortgage giant was also able to help 53,777 borrowers avoid foreclosure in the second quarter which included 31,049 loan modifications, 7,981 repayment plans, 3,709 forbearance agreements, and 11,038 short sales and Deed-in-lieu transactions.
“Freddie Mac again played a leading role in the housing finance system and the U.S. economy, providing nearly $180 billion in needed liquidity to the market in the first half of 2011 while helping over 116,000 families avoid foreclosure,” said Freddie Mac Chief Executive Officer Charles E. Haldeman Jr. shedding some positive light on an otherwise dreary quarter-over-quarter loss. “We also continued to make progress in our efforts to strengthen the company and build value for the mortgage industry. One of our biggest priorities has been implementing the Servicing Alignment Initiative, an essential and joint effort with Fannie Mae that will improve the industry’s ability to help borrowers facing foreclosures."
Tags: Freddie Mac, Second Quarter Results, FHFA, mortgage market, loan modifications, mortgage giant, GSE, single-family mortgages
Source:
Freddie Mac
Government Sponsored Enterprise (GSE) Freddie Mac reports that it posted a net loss of $2.1 billion in the second quarter of 2011, compared to a net profit of $676 million in the first quarter of 2011. The second quarter results were still significantly less than the same quarter in 2010 when the GSE lost $4.7 billion.
The mortgage giant also stated in its Second Quarter Results report that it was making a $1.6 billion dividend payment to the Treasury Department, as a consequence, Freddie Mac’s net worth deficit was $1.5 billion as of June 30, 2011, prompting the Acting Director of the Federal Housing Finance Agency (FHFA) to submit a request for $1.5 billion in funds to the Treasury Department to eliminate the mortgage giant’s net worth deficit.
FHFA oversees the operation of Freddie Mac since the company was taken over by the government in September of 2008 after massive loses threatened to topple the company when the housing market collapsed.
The latest request for funds puts the total cost to taxpayers for Freddie Mac alone at $66.2 billion.
Despite significant losses in its portfolio, Freddie Mac reports that credit quality of single-family loans acquired after 2008 has been strong as measured by original loan-to-value (LTV) ratios, FICO scores, and the proportion of loans underwritten with fully documented income and expects better performance from its portfolio in the future.
As of June 30, 2011, approximately 46 percent of the company’s single-family guarantee portfolio of mortgage loans was originated after 2008.
Freddie Mac’s single-family serious delinquency rate dropped to 3.5 percent at the end of the second quarter, down from 3.63 percent at the end of the first quarter of 2011.
The mortgage giant was also able to help 53,777 borrowers avoid foreclosure in the second quarter which included 31,049 loan modifications, 7,981 repayment plans, 3,709 forbearance agreements, and 11,038 short sales and Deed-in-lieu transactions.
“Freddie Mac again played a leading role in the housing finance system and the U.S. economy, providing nearly $180 billion in needed liquidity to the market in the first half of 2011 while helping over 116,000 families avoid foreclosure,” said Freddie Mac Chief Executive Officer Charles E. Haldeman Jr. shedding some positive light on an otherwise dreary quarter-over-quarter loss. “We also continued to make progress in our efforts to strengthen the company and build value for the mortgage industry. One of our biggest priorities has been implementing the Servicing Alignment Initiative, an essential and joint effort with Fannie Mae that will improve the industry’s ability to help borrowers facing foreclosures."
Tags: Freddie Mac, Second Quarter Results, FHFA, mortgage market, loan modifications, mortgage giant, GSE, single-family mortgages
Source:
Freddie Mac
Mortgage Delinquency Rates Drop in All States But One
August 12, 2011 (Shirley Allen)
Forty-nine states and the District of Columbia experienced declines in mortgage delinquency rates during the second quarter of 2011 according to data released by credit reporting giant TransUnion.
It was the sixth consecutive quarter that the national mortgage delinquency rate (based on the rate of borrowers 60 or more days past due) decreased, dropping to 5.82 percent.
It was also the largest improvement in quarter-over-quarter delinquency rates since the recession officially ended two years ago, dropping 5.98 percent from the first quarter of 2011 to the second quarter.
"While relatively low home prices and high unemployment continue to exert upward pressure on delinquency rates, they are more than offset by the impact of more conservative lending policies reflecting consumers with higher credit scores," said Tim Martin, group vice president of the U.S. Housing Market in TransUnion's financial services business unit. "Not only are these consumers less likely to default if house prices continue to edge downward throughout the year, but their willingness to repay their debt obligations in the face of high unemployment rates is greater. It is because of these dynamics that lenders today take a much closer look at the borrower's income history and overall debt situation than before the recession began in 2007."
Vermont was the only state to post an increased mortgage delinquency rate from the first quarter to the second quarter.
Seventy-nine percent of the metropolitan statistical areas (MSAs) posted a decline in their mortgage delinquency rates, up from 68 percent in the first quarter and a vast improvement from the fourth quarter of 2010 when only 44 percent of the MSAs posted declines in their mortgage delinquency rates.
The four states that posted the highest mortgage delinquency rates in the second quarter of 2011 were Florida (13.91%), Nevada (13.04%), California (7.83%), and Arizona (7.78%).
The four states that posted the lowest mortgage delinquency rates in the second quarter were North Dakota (1.45%), South Dakota (2.31%), Nebraska (2.43%), and Alaska (2.64%).
TransUnion forecasts a continuing downward trend in delinquency rates for the remainder of 2011 as economic conditions improve and improved loan performance through tighter lending standards offset the impact of falling home prices.
Tags: TransUnion, mortgage delinquency rate, improvement, low home prices, high unemployment, improved loan performance, tighter lending standards
Source:
TransUnion
Forty-nine states and the District of Columbia experienced declines in mortgage delinquency rates during the second quarter of 2011 according to data released by credit reporting giant TransUnion.
It was the sixth consecutive quarter that the national mortgage delinquency rate (based on the rate of borrowers 60 or more days past due) decreased, dropping to 5.82 percent.
It was also the largest improvement in quarter-over-quarter delinquency rates since the recession officially ended two years ago, dropping 5.98 percent from the first quarter of 2011 to the second quarter.
"While relatively low home prices and high unemployment continue to exert upward pressure on delinquency rates, they are more than offset by the impact of more conservative lending policies reflecting consumers with higher credit scores," said Tim Martin, group vice president of the U.S. Housing Market in TransUnion's financial services business unit. "Not only are these consumers less likely to default if house prices continue to edge downward throughout the year, but their willingness to repay their debt obligations in the face of high unemployment rates is greater. It is because of these dynamics that lenders today take a much closer look at the borrower's income history and overall debt situation than before the recession began in 2007."
Vermont was the only state to post an increased mortgage delinquency rate from the first quarter to the second quarter.
Seventy-nine percent of the metropolitan statistical areas (MSAs) posted a decline in their mortgage delinquency rates, up from 68 percent in the first quarter and a vast improvement from the fourth quarter of 2010 when only 44 percent of the MSAs posted declines in their mortgage delinquency rates.
The four states that posted the highest mortgage delinquency rates in the second quarter of 2011 were Florida (13.91%), Nevada (13.04%), California (7.83%), and Arizona (7.78%).
The four states that posted the lowest mortgage delinquency rates in the second quarter were North Dakota (1.45%), South Dakota (2.31%), Nebraska (2.43%), and Alaska (2.64%).
TransUnion forecasts a continuing downward trend in delinquency rates for the remainder of 2011 as economic conditions improve and improved loan performance through tighter lending standards offset the impact of falling home prices.
Tags: TransUnion, mortgage delinquency rate, improvement, low home prices, high unemployment, improved loan performance, tighter lending standards
Source:
TransUnion
Denver Experiences Seasonal Home Sales Increase in June
August 9, 2011 (Shirley Allen)
Home sales in Denver experienced seasonal increases from May to June but were at the lowest levels for a June in 13 years according to real estate information provider DataQuick. Home prices increased year-over-year for the second month in a row.
A total of 4,285 new and resale homes and condos closed escrow in the Denver-Aurora metro area in June. Sales were 13.5 percent higher than May, but were 12.3 percent lower than June of 2010.
Home sales in the region typically increase 14.4 percent between May and June, but this month’s total sales were still 44.9 percent below average for June sales. It was the lowest level of combined home sales for any June since 1998.
Cash buyers were responsible for 23.2 percent of the purchases in June and paid a median price of $161,250 for those homes.
Absentee buyers, usually investors and vacation homebuyer’s, accounted for 20.6 percent of all homes sold in June, down from 22.8 percent in May, but still up from 17.7 percent a year earlier.
The overall median price paid for new and resale homes and condos in June was $220,000, which was up 2.3 percent from May and also up 1.2 percent from June of last year.
The current median price is 11.1 percent below the peak median price of $247,569 in June 2006.
Short sales represented 9.7 percent of sales in June. That was up from 9.5 percent in May, but was down from 11.2 percent of sales in June of 2010.
Tags: DataQuick, existing home sales, Denver, distressed properties, resale homes, condos, cash buyers, investors, median price
Source:
DataQuick
Home sales in Denver experienced seasonal increases from May to June but were at the lowest levels for a June in 13 years according to real estate information provider DataQuick. Home prices increased year-over-year for the second month in a row.
A total of 4,285 new and resale homes and condos closed escrow in the Denver-Aurora metro area in June. Sales were 13.5 percent higher than May, but were 12.3 percent lower than June of 2010.
Home sales in the region typically increase 14.4 percent between May and June, but this month’s total sales were still 44.9 percent below average for June sales. It was the lowest level of combined home sales for any June since 1998.
Cash buyers were responsible for 23.2 percent of the purchases in June and paid a median price of $161,250 for those homes.
Absentee buyers, usually investors and vacation homebuyer’s, accounted for 20.6 percent of all homes sold in June, down from 22.8 percent in May, but still up from 17.7 percent a year earlier.
The overall median price paid for new and resale homes and condos in June was $220,000, which was up 2.3 percent from May and also up 1.2 percent from June of last year.
The current median price is 11.1 percent below the peak median price of $247,569 in June 2006.
Short sales represented 9.7 percent of sales in June. That was up from 9.5 percent in May, but was down from 11.2 percent of sales in June of 2010.
Tags: DataQuick, existing home sales, Denver, distressed properties, resale homes, condos, cash buyers, investors, median price
Source:
DataQuick
July Housing Scorecard a “Mixed Picture”
August 8, 2011 (Chris Moore)
Housing data through June continues to paint a housing market that is a mixed picture that remains fragile with continued strain from foreclosures and distressed properties while home prices improved slightly according to the latest release of the Obama Administrations Housing Scorecard.
At the end of June, prime mortgages that were at least 30 days of more late increased to 4.4 percent from 4.3 percent in May, down from the peak of 5.9 percent seen in 2010.
Performance of sub-prime mortgages continues to improve also as 30 days or more delinquencies dropped to 32.5 percent, down from 36.4 percent a year reported a year earlier.
Seriously delinquent mortgages, those that are more than 90 days delinquent or in foreclosure, also continued to drop. Seriously delinquent prime mortgages numbered 1,490,000 at the end of June compared to 1,864,000 a year earlier and seriously delinquent subprime mortgages numbered 1,744,000 compared to 1,973,000 in June of last year.
Since the beginning of the Homeowner Affordable Modification Program (HAMP) program in 2009 until the end of May 2011, nearly 5 million modification arrangements have been started. In June, 31,600 homeowners received a permanent loan modification through HAMP raising the total amount of permanent modifications to 763,100.
There were 24,700 new HAMP trial modifications started in June, down from 26,700 in May. HOPE Now proprietary modifications also declined in June, dropping to 52,000 modifications from 57,000 modifications in May. Total HOPE Now modifications now number 2,367,300.
"This month's housing data paint a mixed picture of conditions in the market – despite growing evidence of progress in the broader economy," said HUD Assistant Secretary Raphael Bostic. "We're continuing to see a slight improvement in home prices and a decline in mortgage defaults as our foreclosure prevention programs reach more borrowers upstream in the process. But we have much more work to do to help the market recover and to reach the many households there and across the nation who still face trouble."
Tags: July Housing Scorecard, Obama Administration, loan modification, foreclosure completions, monthly payment reduction, housing prices, mortgage delinquencies, foreclosure starts, foreclosure completions
Source:
Treasury.gov
Housing data through June continues to paint a housing market that is a mixed picture that remains fragile with continued strain from foreclosures and distressed properties while home prices improved slightly according to the latest release of the Obama Administrations Housing Scorecard.
At the end of June, prime mortgages that were at least 30 days of more late increased to 4.4 percent from 4.3 percent in May, down from the peak of 5.9 percent seen in 2010.
Performance of sub-prime mortgages continues to improve also as 30 days or more delinquencies dropped to 32.5 percent, down from 36.4 percent a year reported a year earlier.
Seriously delinquent mortgages, those that are more than 90 days delinquent or in foreclosure, also continued to drop. Seriously delinquent prime mortgages numbered 1,490,000 at the end of June compared to 1,864,000 a year earlier and seriously delinquent subprime mortgages numbered 1,744,000 compared to 1,973,000 in June of last year.
Since the beginning of the Homeowner Affordable Modification Program (HAMP) program in 2009 until the end of May 2011, nearly 5 million modification arrangements have been started. In June, 31,600 homeowners received a permanent loan modification through HAMP raising the total amount of permanent modifications to 763,100.
There were 24,700 new HAMP trial modifications started in June, down from 26,700 in May. HOPE Now proprietary modifications also declined in June, dropping to 52,000 modifications from 57,000 modifications in May. Total HOPE Now modifications now number 2,367,300.
"This month's housing data paint a mixed picture of conditions in the market – despite growing evidence of progress in the broader economy," said HUD Assistant Secretary Raphael Bostic. "We're continuing to see a slight improvement in home prices and a decline in mortgage defaults as our foreclosure prevention programs reach more borrowers upstream in the process. But we have much more work to do to help the market recover and to reach the many households there and across the nation who still face trouble."
Tags: July Housing Scorecard, Obama Administration, loan modification, foreclosure completions, monthly payment reduction, housing prices, mortgage delinquencies, foreclosure starts, foreclosure completions
Source:
Treasury.gov
Wells Fargo Reports Almost 10K Trial and Completed Mods in June
August 8, 2011 (Brian Michael)
Wells Fargo reports that 9,759 active trial or completed loan mortgage modifications were posted in the month of June. As of June 31, 2011, Wells Fargo says it has completed or has in active trial, 696,085 mortgage loan modifications since 2009.
Eighty-five percent of those loans, 591,941, were modified through the company's own loan modification programs while the remaining 15 percent, 104,864, were modified through the federal government’s Home Affordable Modification Program (HAMP).
"Wells Fargo is committed to working with borrowers to help identify all available options that may help borrowers retain their home or avoid foreclosure," said Michael DeVito, with Wells Fargo Home Mortgage Default Servicing. "To support that commitment, we are in the process of expanding the one-on-one customer contact model we initiated with loan modifications in June 2010 so that borrowers will move through all phases of loss mitigation with one dedicated home preservation specialist."
Since January of 2009, Wells Fargo says it has helped more than 4.3 million homeowners obtain new low rate loans, either to purchase a home or to refinance their existing loan.
Wells Fargo also says that over the last 12 months less than two percent of the loans in its portfolio have proceeded to a foreclosure sale and that 93 percent of its home loan customers are current on their mortgage payments as of the second quarter of 2011.
Part of Wells Fargo’s success can be attributed to the Home Preservations Workshops that it hosts throughout the country. So far, Wells Fargo has helped over 23,000 borrowers at 35 events with their financial challenges.
The next Home Preservations Workshop will be held in Chicago on August 17th and 18th, with 12 additional workshops scheduled to follow.
Tags: Wells Fargo, trial modification, completed modifications, loan modifications, HAMP, borrowers, Home Preservation Workshops
Source:
Wells Fargo
Wells Fargo reports that 9,759 active trial or completed loan mortgage modifications were posted in the month of June. As of June 31, 2011, Wells Fargo says it has completed or has in active trial, 696,085 mortgage loan modifications since 2009.
Eighty-five percent of those loans, 591,941, were modified through the company's own loan modification programs while the remaining 15 percent, 104,864, were modified through the federal government’s Home Affordable Modification Program (HAMP).
"Wells Fargo is committed to working with borrowers to help identify all available options that may help borrowers retain their home or avoid foreclosure," said Michael DeVito, with Wells Fargo Home Mortgage Default Servicing. "To support that commitment, we are in the process of expanding the one-on-one customer contact model we initiated with loan modifications in June 2010 so that borrowers will move through all phases of loss mitigation with one dedicated home preservation specialist."
Since January of 2009, Wells Fargo says it has helped more than 4.3 million homeowners obtain new low rate loans, either to purchase a home or to refinance their existing loan.
Wells Fargo also says that over the last 12 months less than two percent of the loans in its portfolio have proceeded to a foreclosure sale and that 93 percent of its home loan customers are current on their mortgage payments as of the second quarter of 2011.
Part of Wells Fargo’s success can be attributed to the Home Preservations Workshops that it hosts throughout the country. So far, Wells Fargo has helped over 23,000 borrowers at 35 events with their financial challenges.
The next Home Preservations Workshop will be held in Chicago on August 17th and 18th, with 12 additional workshops scheduled to follow.
Tags: Wells Fargo, trial modification, completed modifications, loan modifications, HAMP, borrowers, Home Preservation Workshops
Source:
Wells Fargo
Monthly Home Sales Improve in Portland
August 5, 2011 (Shirley Allen)
Home sales in Portland improved from May to June but were at the second lowest level for a June since 1994 as new home sales fell to their lowest level on record according to real estate information provider DataQuick.
Home sales in Portland improved from May to June but were at the second lowest level for a June since 1994 as new home sales fell to their lowest level on record according to real estate information provider DataQuick.
Fannie Mae Reports Net Loss of $2.9 Billion in 2Q
August 5, 2011 (Shirley Allen)
Government Sponsored Enterprise (GSE) Fannie Mae reports that it suffered a net loss of $2.9 billion in the second quarter of 2011, compared to a net loss of $6.5 billion in the first quarter of 2011, citing continued weakness in the housing and mortgage markets and the cost of loan modifications as contributors to its losses in the quarter.
The mortgage giant also stated in its Second Quarter Results report that it was making a $2.3 billion dividend payment to the Treasury Department making the quarter's total net loss $5.2 billion.
As a consequence, Fannie Mae’s net worth deficit was $5.1 billion as of June 30, 2011, prompting the Acting Director of the Federal Housing Finance Agency (FHFA) to submit a request for $5.1 billion in funds to the Treasury Department to eliminate the mortgage giant’s net worth deficit.
The latest request for funds puts the total cost to taxpayers for Fannie Mae alone at $104.8 billion.
FHFA oversees the operation of Fannie Mae since the company was taken over by the government in September of 2008 after massive loses threatened to topple the company when the housing market collapsed.
Fannie Mae along with its sibling, Freddie Mac, currently own or guarantee about half of all mortgages in the United States and backed nearly 90 percent of the mortgages in the past year.
Since January 1, 2009, government agencies Fannie Mae, Freddie Mac, and Ginnie Mae have collectively guaranteed more than 80 percent of all single-family mortgages in the United States.
Fannie Mae has suffered $130 billion in single-family credit losses from January 1, 2009 through June 30, 2011, with the vast majority of those losses attributable to loans the company acquired from 2005 through 2008.
But Fannie Mae says the future looks brighter as 47 percent of its single-family guaranty book of business as of June 30, 2011 consisted of loans it had purchased or guaranteed since the beginning of 2009 which have a strong overall credit profile, are performing well and should be profitable over their lifetime.
Tags: Fannie Mae, Second Quarter Results, FHFA, mortgage market, loan modifications, mortgage giant, GSE, single-family mortgages
Source:
Fannie Mae
Government Sponsored Enterprise (GSE) Fannie Mae reports that it suffered a net loss of $2.9 billion in the second quarter of 2011, compared to a net loss of $6.5 billion in the first quarter of 2011, citing continued weakness in the housing and mortgage markets and the cost of loan modifications as contributors to its losses in the quarter.
The mortgage giant also stated in its Second Quarter Results report that it was making a $2.3 billion dividend payment to the Treasury Department making the quarter's total net loss $5.2 billion.
As a consequence, Fannie Mae’s net worth deficit was $5.1 billion as of June 30, 2011, prompting the Acting Director of the Federal Housing Finance Agency (FHFA) to submit a request for $5.1 billion in funds to the Treasury Department to eliminate the mortgage giant’s net worth deficit.
The latest request for funds puts the total cost to taxpayers for Fannie Mae alone at $104.8 billion.
FHFA oversees the operation of Fannie Mae since the company was taken over by the government in September of 2008 after massive loses threatened to topple the company when the housing market collapsed.
Fannie Mae along with its sibling, Freddie Mac, currently own or guarantee about half of all mortgages in the United States and backed nearly 90 percent of the mortgages in the past year.
Since January 1, 2009, government agencies Fannie Mae, Freddie Mac, and Ginnie Mae have collectively guaranteed more than 80 percent of all single-family mortgages in the United States.
Fannie Mae has suffered $130 billion in single-family credit losses from January 1, 2009 through June 30, 2011, with the vast majority of those losses attributable to loans the company acquired from 2005 through 2008.
But Fannie Mae says the future looks brighter as 47 percent of its single-family guaranty book of business as of June 30, 2011 consisted of loans it had purchased or guaranteed since the beginning of 2009 which have a strong overall credit profile, are performing well and should be profitable over their lifetime.
Tags: Fannie Mae, Second Quarter Results, FHFA, mortgage market, loan modifications, mortgage giant, GSE, single-family mortgages
Source:
Fannie Mae
Consumer Confidence Hits Yet Another 2011 Low
August 5, 2011 (Brian Michael)
The Rasmussen Consumer Index fell to another new low in 2011 of 61.2, the lowest level since March of 2009.The Index is down eight points from a month ago and down 18 points from three months ago.
Only 13 percent of those polled now believe the economy is getting better, down from 21 percent in July, while 64 percent believe it’s getting worse, which is up from 58 percent in July.
At the beginning of the year, 30 percent said they thought the economy was getting better, while 45 percent said they believe the economy was getting worse.
Rasmussen's Consumer Index uses a baseline of 100.0 established in October 2001. Readings above 100.0 indicate that confidence is higher than the baseline month.
American's opinions about the value of homeownership also diminished greatly in just a month's time as 43 percent of American adults believe that buying a home is the best investment a family can make, that’s down from 47 percent in June and a new record low in home-buying confidence.
The number of Americans who felt that purchasing a home was not a good investment choice dropped from 32 percent in June to 26 percent in July with more Americans, 31 percent, not sure if purchasing a home was a good investment, up from 22 percent in June.
When it came to selling a home, only 13 percent of all adults said it was a good time to sell a home, which was up from 11 percent in June. Seventy-two percent of the adults said it was not a good time to sell a home and 16 percent were not sure.
Tags: Rasmussen Reports, polls, surveys, consumer confidence, personal finances, economy, purchasing a home
Source:
Rasmussen Reports
The Rasmussen Consumer Index fell to another new low in 2011 of 61.2, the lowest level since March of 2009.The Index is down eight points from a month ago and down 18 points from three months ago.
Only 13 percent of those polled now believe the economy is getting better, down from 21 percent in July, while 64 percent believe it’s getting worse, which is up from 58 percent in July.
At the beginning of the year, 30 percent said they thought the economy was getting better, while 45 percent said they believe the economy was getting worse.
Rasmussen's Consumer Index uses a baseline of 100.0 established in October 2001. Readings above 100.0 indicate that confidence is higher than the baseline month.
American's opinions about the value of homeownership also diminished greatly in just a month's time as 43 percent of American adults believe that buying a home is the best investment a family can make, that’s down from 47 percent in June and a new record low in home-buying confidence.
The number of Americans who felt that purchasing a home was not a good investment choice dropped from 32 percent in June to 26 percent in July with more Americans, 31 percent, not sure if purchasing a home was a good investment, up from 22 percent in June.
When it came to selling a home, only 13 percent of all adults said it was a good time to sell a home, which was up from 11 percent in June. Seventy-two percent of the adults said it was not a good time to sell a home and 16 percent were not sure.
Tags: Rasmussen Reports, polls, surveys, consumer confidence, personal finances, economy, purchasing a home
Source:
Rasmussen Reports
Average Loan in Foreclosure Delinquent a Record 587 Days
August 5, 2011 (Shirley Allen)
Foreclosure timelines continue to lengthen with the average loan in foreclosure now being delinquent for a record 587 days according to the June Mortgage Monitor Report by Lender Processing Services (LPS).
More than 40 percent of the homeowners whose loans were 90+ days past due have not made a payment in more than a year and 35 percent of the loans in foreclosure have been delinquent for more than two years.
The disparity in the foreclosure timelines between judicial and non-judicial states also continues to grow. The foreclosure pipeline ratio, the number of loans either 90+ days delinquent or in foreclosure divided by the six-month average of foreclosure sales, is more than three times higher in states that use the judicial foreclosure process than the states that use the non-judicial process.
Foreclosure starts gained momentum in June as the number of starts increased by more than 10 percent. For the year, foreclosure starts are still down 16.4 percent. More trouble may be brewing though as delinquencies were up 2.4 percent from May to June. The number of loans that were 90+ days delinquent or in foreclosure stood at 4.1 million at the end of June, 12.8 percent higher than in June of last year.
LPS also examined the possible impact of what the proposed Qualified Residential Mortgage (QRM) provisions could have had on loans that have been originated since 2005 and found that nearly half of the loans could have been ineligible under the proposed QRM rules, far higher than the 30 percent many industry analysts have predicted that QRM will affect if implemented.
Earlier highlights from LPS’s "First Look" report include:
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 8.15% compared to 7.96% in May 2011
Month-over-month change in delinquency rate: 2.4% compared to -0.1% in May 2011
Year-over-year change in delinquency rate: -14.7% compared to -18.3% in May 2011
Total U.S foreclosure pre-sale inventory rate: 4.12% compared to 4.11% in May 2011
Month-over-month change in foreclosure presale inventory rate: 0.2% compared to -0.7% in May 2011
Year-over-year change in foreclosure presale inventory rate: 12.8% compared to 12.3% in May 2011
Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,285,000 compared to 4,187,000 in May 2011
Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,906,000 compared to 1,921,000 in May 2011
Number of properties in foreclosure pre-sale inventory: (B) 2,167,000 compared to 2,164,000 in May 2011
Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,452,000 compared to 6,350,000 in May 2011
States with highest percentage of non-current* loans: FL, NV, MS, NJ, IL (FL, NV, MS, NJ, IL in May 2011)
States with the lowest percentage of non-current* loans: MT, WY, AK, SD, ND (MT, WY, AK, SD, ND in May 2011)
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Notes:
(1) Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.
Tags: LPS, mortgage delinquency rate, foreclosure inventory, non-current loans, Mortgage Monitor, foreclosure starts, foreclosure timelines
Source:
LPS
Foreclosure timelines continue to lengthen with the average loan in foreclosure now being delinquent for a record 587 days according to the June Mortgage Monitor Report by Lender Processing Services (LPS).
More than 40 percent of the homeowners whose loans were 90+ days past due have not made a payment in more than a year and 35 percent of the loans in foreclosure have been delinquent for more than two years.
The disparity in the foreclosure timelines between judicial and non-judicial states also continues to grow. The foreclosure pipeline ratio, the number of loans either 90+ days delinquent or in foreclosure divided by the six-month average of foreclosure sales, is more than three times higher in states that use the judicial foreclosure process than the states that use the non-judicial process.
Foreclosure starts gained momentum in June as the number of starts increased by more than 10 percent. For the year, foreclosure starts are still down 16.4 percent. More trouble may be brewing though as delinquencies were up 2.4 percent from May to June. The number of loans that were 90+ days delinquent or in foreclosure stood at 4.1 million at the end of June, 12.8 percent higher than in June of last year.
LPS also examined the possible impact of what the proposed Qualified Residential Mortgage (QRM) provisions could have had on loans that have been originated since 2005 and found that nearly half of the loans could have been ineligible under the proposed QRM rules, far higher than the 30 percent many industry analysts have predicted that QRM will affect if implemented.
Earlier highlights from LPS’s "First Look" report include:
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 8.15% compared to 7.96% in May 2011
Month-over-month change in delinquency rate: 2.4% compared to -0.1% in May 2011
Year-over-year change in delinquency rate: -14.7% compared to -18.3% in May 2011
Total U.S foreclosure pre-sale inventory rate: 4.12% compared to 4.11% in May 2011
Month-over-month change in foreclosure presale inventory rate: 0.2% compared to -0.7% in May 2011
Year-over-year change in foreclosure presale inventory rate: 12.8% compared to 12.3% in May 2011
Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,285,000 compared to 4,187,000 in May 2011
Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,906,000 compared to 1,921,000 in May 2011
Number of properties in foreclosure pre-sale inventory: (B) 2,167,000 compared to 2,164,000 in May 2011
Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,452,000 compared to 6,350,000 in May 2011
States with highest percentage of non-current* loans: FL, NV, MS, NJ, IL (FL, NV, MS, NJ, IL in May 2011)
States with the lowest percentage of non-current* loans: MT, WY, AK, SD, ND (MT, WY, AK, SD, ND in May 2011)
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Notes:
(1) Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.
Tags: LPS, mortgage delinquency rate, foreclosure inventory, non-current loans, Mortgage Monitor, foreclosure starts, foreclosure timelines
Source:
LPS
REO Saturation Plays Key Role in Market Prices
August 4, 2011 (Brian Michael)
U.S. home prices increased by 4.1 percent in the latest rolling quarter according to Clear Capital’s Home Data Index (HDI), but the seasonal gains were not nearly enough to offset the declines recorded last winter as year-over-year prices are still down 7.9 percent as REO sales continue to apply downward pressure on market prices.
All four regions posted quarterly gains for the first time, without any tax credit stimulus, since 2006. The largest price gains were in the Midwest (6.3%), followed by the Northeast (5.2%), the South (4.2%), and the West (0.7%).
All regions posted year-over-year declines with the Midwest suffering the largest decline of 13.1 percent followed by the West (-7.8%), the South (-7.3%), and the Northeast (-2.9%).
The Real Estate Owned (REO) saturation rate declined nationally to 28.7 percent at the end of the recent quarter compared to 33.7 percent at the end of the previous quarter.
“Building off last month’s minimal quarterly gains, prices continue to correct from winter’s extended declines,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital. “Although this is encouraging, many markets are still near, or at record lows as REO saturation remains a significant proportion of all sales activity.”
There continues to be a strong correlation between distressed sales activities and home prices in the highest and lowest performing markets. The higher the REO saturation rate, the lower home prices fall.
In the highest performing markets, 4 of the 15 markets experienced year-over-year price gains and extremely low REO saturation rates. Rochester posted a year-over-year price gain of 2.2 percent with an REO saturation rate of only 3.6 percent, Pittsburgh posted a price gain of 2.1 percent and a saturation rate of 7.7 percent, Washington D.C. posted a 2.7 percent price gain with a saturation rate of 14.8 percent, and New York posted price gains of 1.5 percent with a saturation rate of 8.4 percent.
The average saturation rate in the 15 highest performing markets was 22.7 percent.
Conversely, in the lowest performing markets, large year-over-year price declines were posted in areas with the highest REO saturation rates. Detroit posted a year-over-year price decline of 24.3 percent with an REO saturation rate of 56.1 percent, Columbus posted a price decline of 21.6 percent and a saturation rate of 39.1 percent, Tucson posted a price decline of 15.9 percent and a saturation rate of 38.8 percent, and Jacksonville posted a price decline of 12.7 percent and a saturation rate of 35.5 percent.
The average REO saturation rate in the lowest performing markets was 33.3 percent
“Economic fundamentals have been re-defined in this post crash marketplace to not only include the traditional measures such as employment and consumer confidence, but also the inescapable presence of distressed activity which is defining many of the markets. Here, distressed activity has formed a divide that separates markets,” the report says.
Tags: Clear Capital, housing prices, price declines, REO, saturation rate, consumer demand, metropolitan areas
Source:
Clear Capital
U.S. home prices increased by 4.1 percent in the latest rolling quarter according to Clear Capital’s Home Data Index (HDI), but the seasonal gains were not nearly enough to offset the declines recorded last winter as year-over-year prices are still down 7.9 percent as REO sales continue to apply downward pressure on market prices.
All four regions posted quarterly gains for the first time, without any tax credit stimulus, since 2006. The largest price gains were in the Midwest (6.3%), followed by the Northeast (5.2%), the South (4.2%), and the West (0.7%).
All regions posted year-over-year declines with the Midwest suffering the largest decline of 13.1 percent followed by the West (-7.8%), the South (-7.3%), and the Northeast (-2.9%).
The Real Estate Owned (REO) saturation rate declined nationally to 28.7 percent at the end of the recent quarter compared to 33.7 percent at the end of the previous quarter.
“Building off last month’s minimal quarterly gains, prices continue to correct from winter’s extended declines,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital. “Although this is encouraging, many markets are still near, or at record lows as REO saturation remains a significant proportion of all sales activity.”
There continues to be a strong correlation between distressed sales activities and home prices in the highest and lowest performing markets. The higher the REO saturation rate, the lower home prices fall.
In the highest performing markets, 4 of the 15 markets experienced year-over-year price gains and extremely low REO saturation rates. Rochester posted a year-over-year price gain of 2.2 percent with an REO saturation rate of only 3.6 percent, Pittsburgh posted a price gain of 2.1 percent and a saturation rate of 7.7 percent, Washington D.C. posted a 2.7 percent price gain with a saturation rate of 14.8 percent, and New York posted price gains of 1.5 percent with a saturation rate of 8.4 percent.
The average saturation rate in the 15 highest performing markets was 22.7 percent.
Conversely, in the lowest performing markets, large year-over-year price declines were posted in areas with the highest REO saturation rates. Detroit posted a year-over-year price decline of 24.3 percent with an REO saturation rate of 56.1 percent, Columbus posted a price decline of 21.6 percent and a saturation rate of 39.1 percent, Tucson posted a price decline of 15.9 percent and a saturation rate of 38.8 percent, and Jacksonville posted a price decline of 12.7 percent and a saturation rate of 35.5 percent.
The average REO saturation rate in the lowest performing markets was 33.3 percent
“Economic fundamentals have been re-defined in this post crash marketplace to not only include the traditional measures such as employment and consumer confidence, but also the inescapable presence of distressed activity which is defining many of the markets. Here, distressed activity has formed a divide that separates markets,” the report says.
Tags: Clear Capital, housing prices, price declines, REO, saturation rate, consumer demand, metropolitan areas
Source:
Clear Capital
Equity Cash-Outs Lowest in 15 Years
August 4, 2011 (Brian Michael)
Falling home values have left home equity piggy-banks pretty empty as of late. According to a recent report by Freddie Mac, the total amount of cash that borrowers who refinanced their first-lien mortgages took out of their homes was less than 10 percent of the total amount of cash that they took out just five years ago.
The report found that 23 percent of all refinanced loans in the second quarter of 2011 were “cash-out” borrowers, those that increased their loan by at least five percent, with an estimated net dollars of home equity converted to cash estimated to be $7.5 billion.
That’s less than nine percent of the total amount that borrowers took from their homes compared to when cash-out refinance volume peaked in the second quarter of 2006 at $83.7 billion.
Combining the second quarter of 2011 with the first quarter of this year, which saw a similar level of refinance activity, and adjusting for inflation, the amount of equity cashed-out was at the lowest level since the second half of 1996.
Not only has the amount of home equity borrowers cashed-out decreased, so has the number of borrowers compared to previous years. The average percentage of cash-outs during the 1985-2010 period was 46 percent, today the amount is half of that.
Most homeowners who refinanced their first-lien home mortgage either maintained the same the same loan amount or lowered their principal by putting “cash-in.” Over half, 51 percent, maintained about the same loan amount while 26 percent of refinancing homeowners put cash in, reducing their principal.
For 30 year fixed rate mortgages, the median interest rate reduction was about 1 percentage point, a savings of over $1550 in interest payments in the first year of the loan with a principal of $200,000.
Frank Nothaft, Vice President and chief economist of Freddie Mac stated, “This is primarily a 'rate-and-term' market, meaning that the typical homeowner is looking to cut their interest rate or shorten their loan term. More than three-in-four borrowers are keeping their loan balance about the same or reducing their loan balance when they refinance.”
"Savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 50 years to lock in interest savings. Over the first half of 2011, fixed-rate mortgage rates hit a low during June, with 30-year product averaging 4.50 percent and 15-year averaging 3.68 percent over the last four weeks of June, according to our Primary Mortgage Market Survey," he added.
Tags: Freddie Mac, home equity, piggy-bank, borrowers, refinance, cash-out, cash-in, principal, interest, interest rate reduction
Source:
Freddie Mac
Falling home values have left home equity piggy-banks pretty empty as of late. According to a recent report by Freddie Mac, the total amount of cash that borrowers who refinanced their first-lien mortgages took out of their homes was less than 10 percent of the total amount of cash that they took out just five years ago.
The report found that 23 percent of all refinanced loans in the second quarter of 2011 were “cash-out” borrowers, those that increased their loan by at least five percent, with an estimated net dollars of home equity converted to cash estimated to be $7.5 billion.
That’s less than nine percent of the total amount that borrowers took from their homes compared to when cash-out refinance volume peaked in the second quarter of 2006 at $83.7 billion.
Combining the second quarter of 2011 with the first quarter of this year, which saw a similar level of refinance activity, and adjusting for inflation, the amount of equity cashed-out was at the lowest level since the second half of 1996.
Not only has the amount of home equity borrowers cashed-out decreased, so has the number of borrowers compared to previous years. The average percentage of cash-outs during the 1985-2010 period was 46 percent, today the amount is half of that.
Most homeowners who refinanced their first-lien home mortgage either maintained the same the same loan amount or lowered their principal by putting “cash-in.” Over half, 51 percent, maintained about the same loan amount while 26 percent of refinancing homeowners put cash in, reducing their principal.
For 30 year fixed rate mortgages, the median interest rate reduction was about 1 percentage point, a savings of over $1550 in interest payments in the first year of the loan with a principal of $200,000.
Frank Nothaft, Vice President and chief economist of Freddie Mac stated, “This is primarily a 'rate-and-term' market, meaning that the typical homeowner is looking to cut their interest rate or shorten their loan term. More than three-in-four borrowers are keeping their loan balance about the same or reducing their loan balance when they refinance.”
"Savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 50 years to lock in interest savings. Over the first half of 2011, fixed-rate mortgage rates hit a low during June, with 30-year product averaging 4.50 percent and 15-year averaging 3.68 percent over the last four weeks of June, according to our Primary Mortgage Market Survey," he added.
Tags: Freddie Mac, home equity, piggy-bank, borrowers, refinance, cash-out, cash-in, principal, interest, interest rate reduction
Source:
Freddie Mac
Existing Home Sales Reach Four Year High in Seattle
August 4, 2011 (Shirley Allen)
Existing home sales in Seattle hit a four year high in June, but were still slightly lower than the levels seen a year ago. Meanwhile, new home sales fell to their lowest level in 17 years according to real estate information provider DataQuick.
A total of 4,406 new and resale homes and condos closed escrow in the Seattle-Tacoma-Bellevue metro area in June. Sales were 16.5 percent higher than May, but were 2.4 percent lower than June of 2010.
Home sales in the region typically increase 10.1 percent between May and June, but even with this month's impressive figures, sales were still 29.7 percent below the historical average for the month and were the third lowest for a June, only surpassed in futility by June of 2008 and 2009.
A total of 3,822 existing homes and condos were sold in June, the most since June of 2007, however, new home sales remained at depressed levels with only 584 new homes closing escrow.
Cash buyers were responsible for 20.9 percent of the purchases in June, which was the same as in May, but up from 16.5 percent a year earlier.
The price that cash buyers are paying continues to decline as the median price paid by a cash buyer in June was $212,750, which is down 5.4 percent from May, and 23.9 percent lower than June of 2010.
Absentee buyers, usually investors and vacation home buyer’s, accounted for 15.6 percent of all homes sold in June. The prices they paid were also less than previous months with the median price paid in June being $210,000, down 4.1 percent from May and down 21.6 percent from June of last year.
The overall median price paid for new and resale homes and condos in June was $268,000, which was up 1.5 percent from May, but down 9.4 percent from June of last year.
The current median price is 26.6 percent below the peak median price of $365,200 in November 2006.
Distressed sales represented 42.7 percent of the resale market in June as foreclosures accounted for 28.8 percent of the distressed sales and short sales accounted for 13.9 percent of the distressed sales.
Foreclosures continued at a high rate in June with lenders foreclosing on 1,079 single-family homes and condos, down 7.7 percent in May, but up 24.5 percent from June of 2010. Foreclosures are up 46.6 percent during the first six months of 2011 compared to the same period in 2010.
Tags: DataQuick, existing home sales, Seattle, distressed properties, resale homes, condos, cash buyers, investors, median price
Source:
DataQuick
Existing home sales in Seattle hit a four year high in June, but were still slightly lower than the levels seen a year ago. Meanwhile, new home sales fell to their lowest level in 17 years according to real estate information provider DataQuick.
A total of 4,406 new and resale homes and condos closed escrow in the Seattle-Tacoma-Bellevue metro area in June. Sales were 16.5 percent higher than May, but were 2.4 percent lower than June of 2010.
Home sales in the region typically increase 10.1 percent between May and June, but even with this month's impressive figures, sales were still 29.7 percent below the historical average for the month and were the third lowest for a June, only surpassed in futility by June of 2008 and 2009.
A total of 3,822 existing homes and condos were sold in June, the most since June of 2007, however, new home sales remained at depressed levels with only 584 new homes closing escrow.
Cash buyers were responsible for 20.9 percent of the purchases in June, which was the same as in May, but up from 16.5 percent a year earlier.
The price that cash buyers are paying continues to decline as the median price paid by a cash buyer in June was $212,750, which is down 5.4 percent from May, and 23.9 percent lower than June of 2010.
Absentee buyers, usually investors and vacation home buyer’s, accounted for 15.6 percent of all homes sold in June. The prices they paid were also less than previous months with the median price paid in June being $210,000, down 4.1 percent from May and down 21.6 percent from June of last year.
The overall median price paid for new and resale homes and condos in June was $268,000, which was up 1.5 percent from May, but down 9.4 percent from June of last year.
The current median price is 26.6 percent below the peak median price of $365,200 in November 2006.
Distressed sales represented 42.7 percent of the resale market in June as foreclosures accounted for 28.8 percent of the distressed sales and short sales accounted for 13.9 percent of the distressed sales.
Foreclosures continued at a high rate in June with lenders foreclosing on 1,079 single-family homes and condos, down 7.7 percent in May, but up 24.5 percent from June of 2010. Foreclosures are up 46.6 percent during the first six months of 2011 compared to the same period in 2010.
Tags: DataQuick, existing home sales, Seattle, distressed properties, resale homes, condos, cash buyers, investors, median price
Source:
DataQuick
Wednesday, August 3, 2011
Mortgage Interest Rates Plunge to November Lows
August 3, 2011 (Shirley Allen)
According to the data collected on August 2, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders were 4.56 percent (4.81% APR) for 30-year fixed mortgages, which is down from 4.74 percent reported the previous week, 3.80 percent (4.20% APR) for 15-year fixed mortgages, which is down from 3.89 percent reported the previous week, and 3.31 percent (3.55% APR) for 5/1 adjustable rate mortgages (ARM), which was down from 3.37 percent reported last week.
The lowest mortgage rates offered on the same day by lenders on the LendingTree network were 4.25 percent (4.39% APR) for a 30-year fixed mortgage, which is down from 4.375 percent offered last week, 3.25 percent (3.49% APR) for a 15-year fixed mortgage, which is a decline from 3.375 percent offered last week, and 2.625 percent (3.08% APR) for a 5/1 ARM, which is down from 2.75 percent offered the week before.
"Mortgage rates on the LendingTree marketplace have unexpectedly dropped to the record-breaking levels we saw back in November 2010, which marked a historic low," said Doug Lebda, Chairman and CEO of LendingTree. "This aggressive dip in rates coupled with the economic forecasts of rate increases in the coming months signals that now may be the best opportunity to lock-in the lowest rates of 2011. Borrowers should ensure they are shopping around multiple lenders to negotiate the best deal possible given the volatility of the current rate market."
The LendingTree Weekly Mortgage Rate Pulse is a snapshot of the lowest and average home loan rates available within the LendingTree network of lenders and is compiled every Wednesday from data that is gathered from the previous day to reflect the most up to date information on current mortgage rates.
Why do we use LendingTree’s Weekly Mortgage Rate Pulse? LendingTree is one the largest providers of mortgages on the internet who utilizes a large network of lenders that provide a more realistic snapshot of current market rates.
See how your state compares below by comparing mortgage data including a snapshot of the lowest 30-year fixed rates offered by lenders on the LendingTree network, average loan-to-value ratio and percentage of consumers with negative equity:
Home loan rates above are reflective of actual rates offered to borrowers by lenders on the LendingTree network. Lowest rates shown reflect the payment of one discount point. Rates will vary based on the borrower's loan details and credit profile.
More information is available here:
According to the data collected on August 2, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders were 4.56 percent (4.81% APR) for 30-year fixed mortgages, which is down from 4.74 percent reported the previous week, 3.80 percent (4.20% APR) for 15-year fixed mortgages, which is down from 3.89 percent reported the previous week, and 3.31 percent (3.55% APR) for 5/1 adjustable rate mortgages (ARM), which was down from 3.37 percent reported last week.
The lowest mortgage rates offered on the same day by lenders on the LendingTree network were 4.25 percent (4.39% APR) for a 30-year fixed mortgage, which is down from 4.375 percent offered last week, 3.25 percent (3.49% APR) for a 15-year fixed mortgage, which is a decline from 3.375 percent offered last week, and 2.625 percent (3.08% APR) for a 5/1 ARM, which is down from 2.75 percent offered the week before.
"Mortgage rates on the LendingTree marketplace have unexpectedly dropped to the record-breaking levels we saw back in November 2010, which marked a historic low," said Doug Lebda, Chairman and CEO of LendingTree. "This aggressive dip in rates coupled with the economic forecasts of rate increases in the coming months signals that now may be the best opportunity to lock-in the lowest rates of 2011. Borrowers should ensure they are shopping around multiple lenders to negotiate the best deal possible given the volatility of the current rate market."
The LendingTree Weekly Mortgage Rate Pulse is a snapshot of the lowest and average home loan rates available within the LendingTree network of lenders and is compiled every Wednesday from data that is gathered from the previous day to reflect the most up to date information on current mortgage rates.
Why do we use LendingTree’s Weekly Mortgage Rate Pulse? LendingTree is one the largest providers of mortgages on the internet who utilizes a large network of lenders that provide a more realistic snapshot of current market rates.
See how your state compares below by comparing mortgage data including a snapshot of the lowest 30-year fixed rates offered by lenders on the LendingTree network, average loan-to-value ratio and percentage of consumers with negative equity:
STATE-BY-STATE MORTGAGE DATA 8/3/11 *Updated Quarterly |
|||
STATE |
LOWEST MORTGAGE RATE |
LOAN-TO-VALUE RATIO* |
NEGATIVE EQUITY* |
US Average |
4.25% (4.39% APR) |
69.7% |
33.1% |
Alabama |
4.25% (4.38% APR) |
67.4% |
27.9% |
Alaska |
4.38% (4.51% APR) |
65.9% |
17.6% |
Arizona |
4.25% (4.39% APR) |
93.6% |
38.9% |
Arkansas |
4.13% (4.24% APR) |
72.2% |
41.7% |
California |
4.13% (4.24% APR) |
70.1% |
34.6% |
Colorado |
4.25% (4.42% APR) |
71.8% |
21.9% |
Connecticut |
4.25% (4.37% APR) |
59.5% |
43.9% |
Delaware |
4.13% (4.23% APR) |
66.4% |
37.9% |
District of Columbia |
4.25% (4.48% APR) |
58.7% |
26.1% |
Florida |
4.13% (4.25% APR) |
88.8% |
39.1% |
Georgia |
4.25% (4.39% APR) |
80.8% |
25.7% |
Hawaii |
4.25% (4.37% APR) |
54.0% |
26.3% |
Idaho |
4.25% (4.39% APR) |
72.6% |
29.5% |
Illinois |
4.25% (4.37% APR) |
72.2% |
31.7% |
Indiana |
4.25% (4.38% APR) |
69.3% |
27.8% |
Iowa |
4.38% (4.51% APR) |
66.9% |
42.1% |
Kansas |
4.38% (4.51% APR) |
70.2% |
30.9% |
Kentucky |
4.25% (4.38% APR) |
67.7% |
51.9% |
Louisiana |
4.38% (4.51% APR) |
74.7% |
79.6% |
Maine |
4.25% (4.37% APR) |
58.4% |
29.7% |
Maryland |
4.25% (4.34% APR) |
70.1% |
25.5% |
Massachusetts |
4.25% (4.37% APR) |
60.9% |
45.4% |
Michigan |
4.25% (4.37% APR) |
84.2% |
32.6% |
Minnesota |
4.13% (4.23% APR) |
66.2% |
21.8% |
Mississippi |
4.38% (4.51% APR) |
78.5% |
29.5% |
Missouri |
4.25% (4.38% APR) |
71.7% |
31.0% |
Montana |
4.38% (4.51% APR) |
60.5% |
32.5% |
Nebraska |
4.38% (4.51% APR) |
72.7% |
44.1% |
Nevada |
4.25% (4.40% APR) |
114.7% |
54.0% |
New Hampshire |
4.25% (4.37% APR) |
70.7% |
25.4% |
New Jersey |
4.13% (4.23% APR) |
62.3% |
29.3% |
New Mexico |
4.25% (4.40% APR) |
67.3% |
41.3% |
New York |
4.13% (4.23% APR) |
48.4% |
35.1% |
North Carolina |
4.25% (4.39% APR) |
71.1% |
32.0% |
North Dakota |
4.38% (4.51% APR) |
60.6% |
35.3% |
Ohio |
4.13% (4.24% APR) |
75.4% |
27.0% |
Oklahoma |
4.25% (4.37% APR) |
75.5% |
53.5% |
Oregon |
4.25% (4.41% APR) |
69.7% |
19.5% |
Pennsylvania |
4.13% (4.23% APR) |
60.6% |
42.3% |
Rhode Island |
4.38% (4.51% APR) |
62.8% |
36.8% |
South Carolina |
4.25% (4.38% APR) |
70.9% |
28.1% |
South Dakota |
4.25% (4.37% APR) |
N/A |
N/A |
Tennessee |
4.25% (4.38% APR) |
71.3% |
29.5% |
Texas |
4.13% (4.25% APR) |
68.4% |
30.5% |
Utah |
4.25% (4.49% APR) |
73.3% |
22.3% |
Vermont |
4.38% (4.51% APR) |
N/A |
N/A |
Virginia |
4.25% (4.37% APR) |
70.8% |
24.6% |
Washington |
4.25% (4.39% APR) |
68.0% |
21.3% |
West Virginia |
4.38% (4.51% APR) |
66.5% |
57.6% |
Wisconsin |
4.38% (4.51% APR) |
68.5% |
34.4% |
Wyoming |
4.25% (4.39% APR) |
63.5% |
22.7% |
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