June Marks 20 Months of Declines

June Marks 20 Months of Declines

Foreclosure Inventory: Completed foreclosures and distressed inventory continued their downfall in June, 

Data for last month showed 55,000 homes were lost to foreclosure, down 20 percent from June 2012. The decrease represents the 19th month-in-a-row completed foreclosures have ticked down. However, on a monthly basis, completed foreclosures inched up by 2.5 percent.
Since the financial crisis began in September 2008, about 4.5 million homes have been lost to foreclosure.
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

Brace Your Buyers for Higher Home Prices

Brace Your Buyers for Higher Home Prices

Home prices are rising across the country and the prices for new homes in particular may increase significantly in the near future. Economist predicts newly-built homes could see a 9 percent increase in price by the end of the year. 

“Here's what's happening: Land values are going up very fast right now in prime locations, what we call the ‘A’ locations,” Hunter explains. “In the best A (and B) markets, we expect prices to rise by 11 percent to 15 percent. Builders are desperate to buy lots, which in some cases are 30 percent to 50 percent higher than last year.”

Home Prices Up 10% To 13%
Homebuyers Locking In Affordability
Fully aware both home prices and mortgage interest rates are on the rise, home buyers are hedging their bets with fixed rate mortgages (FRMs) and sizable down payments to lock in affordable housing.

Fannie Mae Maintains Forecast for Faster Growth

Fannie Mae Maintains Forecast for Faster Growth

Despite Rising Rates: With July approaching its last week, economists at Fannie Mae are maintaining their forecast for greater economic growth in the second half of 2013.

In its latest Economic and Housing Outlook, Fannie Mae’s Economic and Strategic Research Group points to steady year-to-date job creation, high consumer confidence, and positive housing data as proof the economy is on a positive, though modest, growth path.

“We are keeping a very close eye on the effect of rising mortgage rates on the housing market and the economy, but our July forecast is little changed from last month,” said Doug Duncan, chief economist at Fannie Mae. “We continue to see growth in housing, partly due to an increase in existing home sales as buyers choose to act while rates remain near historic lows.”  Mortgage Rate Relief Coming?

Where cash is King 'Housing markets'

Home buyers who require financing for their home purchase can struggle to compete against buyers who have offers of all-cash.

Where are all-cash deals are the most prevalent? Cash deals represented 80 percent of home sales in June in Vermont; 58 percent in Nevada; 57 percent in Florida, and 51 percent in New York, according to RealtyTrac. Cash deals represent a very small percentage in Texas, Utah, and New Mexico. 

The markets with the most all-cash transactions tend to have a high number of foreclosures and depressed home prices, which attracts investors and private equity firms. The following 10 metros had 40 percent or more all-cash deals out of the total home sales in June. Watch our video to learn more BASEL III: How REALTORS® Won  Housing posts a win in getting costly capital requirements removed from Federal Reserve's 972-page BASEL III rule.

Short Sales Pick Up

Short Sales Pick Up As Investor Purchases Slow Over Last Year: With the exception of short sales, activity for distressed sales was relatively calm in June, according to data from RealtyTrac.

Last month, institutional investors, or non-lending entities that bought at least 10 properties in the last 12 months, accounted for 9 percent of residential sales. The share represents a slight increase from 8 percent in May, and a small decrease from 10 percent in June 2012.REO sales remained stable, accounting for 9 percent of sales, down from 10 percent in May and unchanged from a year ago.Meanwhile, short sales saw a significant increase over the last year, representing 14 percent of all sales in June, up from 8 percent a year ago. In May, short sales represented 15 percent of sales.Five More Markets Reach Full Recovery 

Report Shows Salt Lake City and Provo-Orem Highest Year-over-Year Increase:

Real Estate's New Big Buyers

Real Estate's New Big Buyers
Middle-Aged Women: Middle-aged women have become the fastest growing group of single female home owners, 
The number of 45- to 54-year-old single female home owners has soared 120 percent from 1982 to 2012. 

“Probable causes for this phenomenon include the large baby boomer population entering this age group over the last several decades and the prevalence of divorce leading to the creation of more female-headed households,”

 Short Sale Stigma Surfacing?

Fast Rise in Mortgage Rates Could Hurt

Fast Rise in Mortgage Rates Could Hurt

Fannie: The rise in mortgage rates over the last couple of months has been “significant” and could hamper the housing recovery, economists note in Fannie Mae’s Economic Strategic Report for July. 

However, home sales so far have been little affected by the spikes, they say. 

The 30-year fixed-rate mortgage has risen more than 110 basis points from the first week of May to the end of June. In early July, it started to ease somewhat. Still, the report says that despite the increases, rates are still near historical lows. It’s the sudden rise in such a short time that has been alarming, the economists note. 

 See where rates are today....