Distressed Inventory Fading Fast

Distressed Inventory Fading Fast

As Housing Market Strengthens: Foreclosure inventories nationwide fell 32 percent in July compared to a year ago, another sign that the foreclosure crisis may finally be over, according to CoreLogic's latest foreclosure report released Thursday. 

“Completed foreclosures and delinquency rates continue their rapid descent in July,” says Anand Nallathambi, president and CEO of CoreLogic. “Every state posted a year-over-year decline in foreclosures, and serious delinquencies fell to the lowest level since December 2008. Not surprisingly, non-judicial states have come the farthest the fastest in reducing the shadow inventory and lowering delinquency rates.”

The following five states had the highest foreclosure inventory 

Victory for Homebuyers

Victory for Homebuyers

'Realtors® will continue to oppose any regulation that requires unreasonably high downpayments from consumers. We are committed to working on behalf of America’s hardworking families to ensure that anyone who is able and willing to assume the responsibilities of owning a home has the opportunity to pursue that dream, now and into the future.'

NAR President Gary Thomas: 'I am pleased to announce a significant victory for REALTORS® and homebuyers. 'The re-proposed Qualified Residential Mortgage rule announced this morning is a victory for homebuyers and the future of homeownership in this country. 

This version of the QRM rule will give creditworthy buyers access to safe and affordable loan products without overly burdensome downpayment requirements. Lean more watch our video...

Housing in Third Phase of Recovery, Awaiting

Housing in Third Phase of Recovery, Awaiting

Fourth: The housing market is now 64 percent of the way back to “normal,” and we are entering the third phase of the recovery, according to Trulia’s monthly Housing Barometer. 

What we’re waiting on now, according to Trulia, is the fourth phase, in which “young adults finally start moving out of their parents’ homes. 

Rising Rates Prompt Cash Buyers to Act: While higher mortgage rates have been blamed for the slowdown in pending home sales, they may be contributing to an increase in cash purchases, RealtyTrac suggested in a recent report.

Home Prices Edge Closer to Pre-Crash Levels

Home Prices Edge Closer to Pre-Crash Levels

The housing market is inching closer to what it once was: Home prices are now within 15.2 percent nationally from their peak, according to a new report by Lender Processing Services. 

The LPS price index rose in June to $229,000, up 6.9 percent from last year's levels. In June 2006, the peak was $270,000.
 

Family Proximity is Lower Priority for Buyers, More home buyers are saying that living near family members is not an important consideration for them when home-shopping. They’d rather concentrate on property size, crime rates, school district, and length of commute when shopping for a new home rather than focusing on the distance to their in-laws, See The No. 1 driver in their home search?

Shadow Inventory Decline Begins to Accelerate,

Shadow Inventory Decline Begins to Accelerate,

Shadow inventories posted the largest quarter-over-quarter decline since the housing crisis began, and dropped 23 percent year-over-year, according to Compass Point Research & Trading. 

Shadow inventories — homes at risk of default that have yet to hit the market — once posed a big threat to the housing recovery. At its peak in March 2010, shadow inventory was at about 5.5 million loans, according to data compiled by the Mortgage Bankers Association and Bloomberg. For the second quarter of 2013, shadow inventory has fallen to 2.99 million.  The decline is expected to continue as more home owners stay current on their loans and  NAR Projects Slight Increase for Apartment Vacancies; Rents to Rise. 

Homes Receiving Multiple Offers

Homes Receiving Multiple Offers

Time on Market Decreases in July: Homes are selling quickly with multiple offers and favorable prices, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey released Friday.

The average number of weeks a home spent on the market in the three-month period ending in July was 8.6 weeks, down from 9.2 weeks in May. Non-distressed homes that sold in July received an average of 2.3 offers. 

Sellers received close to their full asking price in July. The sales-to-list-price ratio was 98 percent for the month, up from 97.6 percent in May. Non-distressed homes sold for 95 percent of their asking price in July. 

July Home Sales Spike 6.5 percent.

Fixed Mortgage Rise as Market Reacts

Fixed Mortgage Rise as Market Reacts

Average fixed-rate mortgages edged higher this week to the highest average in two years as speculation mounts that the Fed will soon taper its bond purchase program. 

Meeting participants acknowledged mortgage rate increases might restrain housing market activity, but several members expressed confidence the housing recovery would be resilient in the face of higher rates,”Average fixed-rate mortgages edged higher this week to the highest average in two years. Watch our video on what the market and rates are doing.

July Existing-Home Sales at Highest Level

July Existing-Home Sales at Highest Level

Since 2009: Existing-home sales soared 6.5 percent in July to an annual sales rate of 5.39 million—the highest level since November 2009—as the price of a single-family home slipped 0.2 percent, the National Association of Realtors reported Wednesday.

The boost in sales came two months after a sharp jump in NAR’s Pending Home Sales Index, which was 111.3 in May, up 5.8 percent from April.
Existing-home sales continue to be plagued though by a tight inventory. The number of homes on the market in July was down 120,000 from a year earlier. Though flat in June, months’ supply of homes for sale—computed using the number of homes for sale and the sales pace—was down 1.2 months from a year earlier. The months’ supply has been down year-over-year for 25 straight months. Watch our video to learn more...

Borrowers Who Experienced Foreclosure 'FHA Trims'

Borrowers Who Experienced Foreclosure 'FHA Trims'
Waiting Period: The Federal Housing Administration (FHA)
 is allowing borrowers who went through a bankruptcy, foreclosure, deed-in-lieu, or short sale to reenter the market in as little as 12 months, according to a mortgage letter released Friday. In order to be eligible for the more lenient approval process, provided documents must show “certain credit impairments” were from loss of employment or loss of income that was beyond the borrower’s control. The new guidance is for case numbers assigned on or after August 15, 2013, and is effective through September 30, 2016. Read more ....

Surprising foreclosure hot spots

Surprising foreclosure hot spots
While housing markets across the country are recovering from the deepest throes of the foreclosure crisis, others are just stumbling into it -- and they aren't exactly the places you'd expect.
Many U.S. housing markets are recovering from the worst of the foreclosure crisis, but others are getting slammed. 'That tells me that the difference has not much to do with underlying fundamentals of the housing market but the way the crisis was handled,' Blomquist concluded. If you Live in this state here may be a great way to own a home. Become a Home Owner for $1 In Gary, Ind.,

The Wild Ride in Housing Prices

The Wild Ride in Housing Prices
Salt Lake home prices have increased 32 percent since April 2012. 
Is this a sign of a second housing bubble? Home prices climbed in the second quarter of 2013, marking 15 consecutive months of rising prices.The median single-family home price in the April through June period in Salt Lake County increased to $249,700, up 17.2 percent compared to $213,000 in the second quarter of 2012. Since April 2012, home prices in the Salt Lake area have increased every month year-over-year. See The top three highest-priced sales areas.

REO Isn't Dead

REO Isn't Dead

Commentary: Is it possible that we have turned the corner on the nation’s real estate crisis? Some economic indicators seem to be pointing in that direction. 

The National Association of Realtors recently reported existing-home sales rose 4.2 percent in May 2013 to an annual pace of 5.18 million; this is the largest increase in sales since November 2009-a very positive sign that suggests we are on the right track.In as much as there are tangible measurements, which have evolved into positive forecast discussions, we are not out of the woods just yet. The foreclosure process remains in the spotlight.  It is evident that REO sales do not claim as large a role in the marketplace as in recent years. REO sales will remain a viable market for real estate sales in the near future.

Mortgage Rates Stabilize, with 30-Year

Mortgage Rates Stabilize, with 30-Year
Having spent the last several months bouncing around, average fixed mortgage rates were little changed over the last week as market speculation settled.

Freddie Mac’s Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage (FRM) 

” Nothaft also noted that the average 30-year fixed rate is now 1.1 percentage points above their all-time low recorded in November 2012—translating into $125 more per month in mortgage payments on a $200,000 loan. Read More..

Cost of Renting,Owning Unaffordable 'Many Workers'

Cost of Renting,Owning Unaffordable 'Many Workers'

Across the U.S: With the home price recovery moving along faster than income growth, many workers across the country are finding hard work is not enough to pay the bills, according to the 2013 Paycheck to Paycheck report from the Center for Housing Policy.

“One of the most overlooked aspects of this recovery is that for many workers, incomes are not rebounding in step with local housing markets,” said CHP. “Even in a strong sector like travel and tourism, wages have not kept pace with the rising costs of renting or homeownership and  ”Is there a stigma with 'short sales'? Home buyers once saw short sales as big bargains.

Ogden-Clearfield has topped affordability chart

Ogden-Clearfield has topped affordability chart For the past four quarters: 
While rising home prices across the nation may be good news as they imply recovering markets, the trend may dampen housing affordability. 

Having been historically high for the past few years, affordability dipped somewhat in the second quarter of this year, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity index.

At the same time, affordability fell from 73.7 percent in this year’s first quarter to 69.3 percent—meaning 69.3 percent of Americans earning the national median income could afford a home sold during the quarter. 
Nationally, the median home price rose from $185,000 in Q2 2012 

Backbone of Housing Recovery

Backbone of Housing Recovery

Repeat Buyers: The growing ranks of repeat home buyers are helping to drive the housing recovery, making up for the dwindling numbers of first-time buyers. 

Repeat home buyers accounted for 54 percent of existing-home sales in June, up from 49 percent just one year prior, according to the National Association of REALTORS®. 

Meanwhile, first-time buyers — who usually account for 40 percent of the market share — shrank to 29 percent in June. A lack of lower-priced homes and strict lending requirements are edging more first-time buyers out of the market.“What we’re seeing are these buyers who’ve waited around and who have finally realized this is a good time to move,” Slowdown in Home Prices No Reason to Panic?  Prices are still going to rise

Moody's: Privatizing Mortgage Finance

Moody's: Privatizing Mortgage Finance

Will Cost Borrowers: If Congress shuts down Fannie Mae and Freddie Mac, borrowers likely will end up paying slightly higher mortgage rates.  Proposed House and Senate bills would wind down the two firms over five years and scale back the government intervention in guaranteeing mortgage securities. 

The House GOP bill would virtually privatize the mortgage market, while the Senate's bipartisan plan would limit Washington's role in insuring mortgage securities and retain the federal government as an insurer of last resort.  Both plans are meant to shift more mortgage financing risk from the government to the private sector in order to prevent future taxpayer-funded bailouts. 

FHFA to Cities: Don't Abuse Eminent Domain 

Solving the Wrong Problem

Solving the Wrong Problem
Mortgage giant Freddie Mac reported a $5 billion net income for the second quarter of this year — the second-largest profit in its history — and says it will pay a dividend of $4.4 billion to the U.S. Treasury. So far, Freddie Mac has paid back $41 billion of what it owes to taxpayers.

It still owes $30 billion more, and company officials say it hopes to continue paying that down this year

.

Freddie Mac came under federal conservatorship in 2008 during the financial crisis. 

Just like the man looking for his keys, President Obama is trying to solve the wrong problem by calling, as he did in his speech in Phoenix, for the end of Fannie Mae and Freddie Mac as we know it.Read the story of a Good Samaritan walking down the street one evening spotting a man on his hands and knees patting the ground.

Foreclosure Fears Less Haunting

Foreclosure Fears Less Haunting

Fears over a large overhang of potential foreclosures that could threaten the housing recovery have failed to materialize — and aren’t likely to do so — according to the Mortgage Bankers 
The number of home owners behind on their mortgage payments or facing foreclosure dropped to a five-year low in the second quarter,according to a report released Thursday by the Mortgage Bankers Association.  At the end of June, nearly 6 percent of home mortgages were 90 days or longer past due or in the foreclosure process. That’s down from a 9.7 percent high set in late 2009, and down from 7.3 percent last year at this time.

 “At a national level, all of the indicators are good. The numbers are down where they should be down. In the 6-minute video Why ‘PATH’ Approach to Fannie, Freddie Phase-out is Troubling 

Americans Upbeat on Housing

Americans Upbeat on Housing

Despite Rates: Survey shows Americans are increasingly optimistic about the housing market, despite the threat of a continued rise in mortgage rates, a new survey shows. 

Fifty-three percent of Americans expect home prices to increase by an average of 3.9 percent over the next 12 months, according to Fannie Mae’s July National Housing Survey of 1,000 home owners.

Only 6 percent expect prices to fall, a new low in the survey's three-year history. 

“Expectations for continued improvement in housing persist, and sentiment toward the current buying and selling environment is back on track from its dip last month Learn more about Fannie Mae..

Township in Salt Lake County

Township in Salt Lake County
Settlement of the area began in 1851 shortly after the Mormon pioneers reached the Salt Lake Valley. Early Farmers settled in 1868 at the base of the northern Oquirrh Mountains and called their community Pleasant Green. By 1900, there were about 20 families in the area. 

During the 1970s, as part of a general west valley suburbanization trend, the community experienced more dramatic growth. Inexpensive land south and east of the historic town center began being developed into moderate priced single-family homes. The new neighborhoods trended to attract middle-income working class couples with younger families. 

Just click here to see the virtual tour on this home we just listed. 

How to Identify a Healthy Housing Market

How to Identify a Healthy Housing Market

Houston-based real estate consulting firm Metrostudy uses 'drive-bys' to help it gauge the health of the residential market in different U.S. metro areas.  Employees drive through newly built—or still under construction.. 

If there are toys on a house's front lawn, for example, that is a good sign that a family has moved in.  Another positive sign is if a garden hose is attached to the side of the house.  Not only is the home occupied, it also has an owner who cares about his or her property. 

Among the bad signs are the absence of curtains in the windows, a high number of empty lots, and newly completed but clearly vacant houses.  Metrostudy researchers say these are indicators that a developer may have badly overestimated demand and could soon be saddled with inventory. Download here: Common Closing Costs for Buyers

Closing Costs Rise 6% Over Last Year

Closing Costs Rise 6% Over Last Year

Mortgage closing costs are up 6 percent over the past year, according to a report from Bankrate.com. 

The average closing cost across the United States rose over the year to $2,402. Origination fees increased 8 percent to $1,730—accounting for the bulk of the increase in closing costs—while third-party fees rose 1 percent to $672. 

Demand for Non-Traditional, Sub-prime Loans Up: Adding to concerns of a new housing bubble, lenders reported an increase in demand for “non-traditional” 

Rising Mortgage Rates Show Impact

Rising Mortgage Rates Show Impact

Rising mortgage rates are beginning to impact the housing market, as pending home sales declined in June after reaching the highest level in more than six years, according to the National Association of REALTORS®. May but still 10.9 percent higher than June 2012.

“Mortgage interest rates began to rise in May, taking some of the momentum out of contract activity in June,” said NAR chief economist Lawrence Yun. He noted that a persistent lack of inventory also contributed to lower contract signings. See Rates: Mortgage Rates Bounce Around This Week  Mortgage rates ticked up this week but still remain “relatively low 

Home prices rose 'Near Five-Year High'

Home prices rose 'Near Five-Year High'

Case-Shiller Indices: Home prices rose to their highest levels in almost five years in May, increasing by a non-seasonally adjusted 2.5 percent, according to the Case-Shiller Home Price Indices released Tuesday.

The 10-city index rose to its highest level since September 2008, and the 20-city index to its highest level since October 2008.

All 20 cities included in the survey improved both month-to-month and year-to-year.

Construction Spending Dipped in June: Housing construction, meanwhile, was flat for the month, with a gain in remodeling offsetting a decline of 0.8 percent in single-family construction and a drop of 3.3 percent in multifamily housing development. Even with the slowdown, residential construction activity was 18.1 percent higher than in June 2012.

Eminent Domain for Troubled Mortgages

Eminent Domain for Troubled Mortgages

City Moving Forward: Despite national controversy surrounding the issue of using eminent domain to stop foreclosures, the city of Richmond, Calif., will become the first to implement the practice.

The city plans to use eminent domain to buy underwater mortgages and reduce home owner debt by refinancing the loans. The intention is to keep struggling home owners in their homes. 

About two dozen local and state governments — including Newark, N.J., Seattle, and several other cities in California — have been considering similar uses of eminent domain. 

But strong opposition has kept other cities from moving forward with such a plan. Lawmakers, banks, and members of the real estate industry — including the National Association of REALTORS® — have argued against using eminent domain in such a way, calling it unconstitutional and unprecedented.  “The banks have warned that such a move will bring down a hail of lawsuits and all but halt mortgage lending in any city with the temerity to try it,”  See Report....

Is Home Ownership Becoming Too Exclusive?

Is Home Ownership Becoming Too Exclusive?

Homeownership Rate at Its Lowest Since 1995: The home ownership rate dipped to 65.1 percent in the second quarter, falling to the lowest level since the fourth quarter of 1995, the Census Bureau reported Tuesday.

The drop coincides with efforts by consumer groups and lawmakers to try to make home ownership more inclusive, particularly at a time when affordability is still high. 

In 2004, the U.S. home ownership rate soared to a record 69.2 percent. But the home ownership rate will likely reach bottom at about 64 percent in the next year due to the high number of foreclosures in the pipeline and rise in rental homes, capital Economics Inc. analysts predict. Meanwhile, lawmakers and consumer groups are trying to make home ownership more within reach to more families. Watch our video:Home Sales Index Falters in June Remain High on Annual Basis: Responding to higher mortgage rates,