Source: Housingwire
By Justin T. Hilley
The number of foreclosures completed in July totaled 58,000, down 16% from 69,000 a year earlier and 62,000 in June, according to analytics firm CoreLogic.
“Completed foreclosures remain concentrated in five states, California, Florida, Michigan, Texas and Georgia, accounting for 48% of all completed foreclosures,” CoreLogic Chief Economist Mark Fleming said.
About 1.3 million homes, or 3.2% of all homes with a mortgage, were in the national foreclosure inventory as of July, slightly down from the year-ago figure of 1.5 million, or 3.5%. The national foreclosure inventory — the share of all mortgaged homes in any stage of the foreclosure process — did not change from June to July, CoreLogic reports.
“Alternative resolutions are helping to reduce foreclosures and often result in a more positive transition for the borrower and lower losses for investors and lenders,” CoreLogic Chief Executive Anand Nallathambi said.
Since the financial crisis began in September 2008, about 3.8 million homes have been lost to foreclosure.
URL to original article: http://www.housingwire.com/news/corelogic-foreclosures-decline-16-july
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, August 28, 2012
S&P Case-Shiller: Home prices up across the board
Source: Housingwire
By Kerri Ann Panchuk
Home prices in the second quarter gained across all headline composite indices measured in the latest Standard & Poor's/Case-Shiller report.
This is the first time all three headline composites studied by S&P have reported positive annual growth simultaneously since the summer of 2010.
"This is a clear sign we've turned around," said David Blitzer, managing director and chairman of Standard & Poor's Index Committee in an interview on CNBC.
The national composite for U.S. home prices rose 1.2% from last year in the second quarter and grew 6.9% from the first quarter of 2012.
The 10-city composite index, meanwhile, edged up 0.1% over year ago levels while the 20-City composite grew 0.5%.
Home prices in the 10-city composite rose 2.2% from May to June while the 20-city composite increased 2.3% during the same period.
All 20 cities studied by S&P Dow Jones reported positive price gains for the second consecutive month in a row. Only Charlotte and Dallas saw a deceleration in annual gains during June, while 18 of 20 metro areas posted better price returns over last year.
"There were only six cities – Atlanta, Chicago, Las Vegas, Los Angeles, New York and San Diego – where the annual rates of change were still negative," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices. "Boston's annual rate was flat. We seem to be witnessing exactly what we needed for a sustained recovery; monthly increases coupled with improving annual rates of change. The market may have finally turned around."
Detroit's home prices rose the most from May to June, increasing 6% while Charlotte grew the least with prices up only 1% over the previous month.
"We are aware that we are in the middle of a seasonal buying period, but the combined positive news coming from both monthly and annual rates of change in home prices bode well for the housing market," concluded Blitzer.
URL to original article: http://www.housingwire.com/news/sp-case-shiller-home-prices-across-board
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
Home prices in the second quarter gained across all headline composite indices measured in the latest Standard & Poor's/Case-Shiller report.
This is the first time all three headline composites studied by S&P have reported positive annual growth simultaneously since the summer of 2010.
"This is a clear sign we've turned around," said David Blitzer, managing director and chairman of Standard & Poor's Index Committee in an interview on CNBC.
The national composite for U.S. home prices rose 1.2% from last year in the second quarter and grew 6.9% from the first quarter of 2012.
The 10-city composite index, meanwhile, edged up 0.1% over year ago levels while the 20-City composite grew 0.5%.
Home prices in the 10-city composite rose 2.2% from May to June while the 20-city composite increased 2.3% during the same period.
All 20 cities studied by S&P Dow Jones reported positive price gains for the second consecutive month in a row. Only Charlotte and Dallas saw a deceleration in annual gains during June, while 18 of 20 metro areas posted better price returns over last year.
"There were only six cities – Atlanta, Chicago, Las Vegas, Los Angeles, New York and San Diego – where the annual rates of change were still negative," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices. "Boston's annual rate was flat. We seem to be witnessing exactly what we needed for a sustained recovery; monthly increases coupled with improving annual rates of change. The market may have finally turned around."
Detroit's home prices rose the most from May to June, increasing 6% while Charlotte grew the least with prices up only 1% over the previous month.
"We are aware that we are in the middle of a seasonal buying period, but the combined positive news coming from both monthly and annual rates of change in home prices bode well for the housing market," concluded Blitzer.
URL to original article: http://www.housingwire.com/news/sp-case-shiller-home-prices-across-board
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, August 27, 2012
Demand for apartments drives commercial real estate performance
Source: Housingwire
A slowdown in job creation and ongoing tight loan availability has tempered growth in some of the major commercial real estate sectors, according to the National Association of Realtors quarterly commercial real estate forecast. Although still positive, dampened demand is slightly moderating rent growth with the exception of the multifamily market. “Sharply higher demand for apartments is causing rents to rise at faster rates,” NAR Chief Economist Lawrence Yun says. NAR expects vacancy rates in the apartment rental market to drop from 4.3% in the third quarter to 4.2% in the third quarter of 2013. Vacancy rates below 5% are considered a landlord’s market with demand justifying higher rents. Average apartment rent is likely to increase 4.1% in 2012 and another 4.4% next year, NAR says. With the exception of multifamily, vacancy rates remain above historic averages. Since 1999, the typical vacancy rate sat at 14.4% for the office market, 10.1% in industrial, 8.1% for retail and 5.8% in multifamily. The current commercial real estate cycle has been driven by shifts in demand without an oversupply of new construction. “The difficulty small businesses have in getting commercial real estate loans for leasing or purchase is keeping a lid on demand,” Yun explaind. “Multifamily is the only commercial sector with a notable growth in new space, with some lending provided through government loans.” Areas with the lowest multifamily vacancy rates are Portland, Ore., at 2%; New York City and Minneapolis, both at 2.2%; and New Haven, Conn., and San Jose, Calif., both at 2.4%.
URL to original article: http://www.housingwire.com/content/commercial-real-estate-growth-slows-multifamily-thrives
For further information on Fresno Real Estate check: http://www.londonproperties.com
A slowdown in job creation and ongoing tight loan availability has tempered growth in some of the major commercial real estate sectors, according to the National Association of Realtors quarterly commercial real estate forecast. Although still positive, dampened demand is slightly moderating rent growth with the exception of the multifamily market. “Sharply higher demand for apartments is causing rents to rise at faster rates,” NAR Chief Economist Lawrence Yun says. NAR expects vacancy rates in the apartment rental market to drop from 4.3% in the third quarter to 4.2% in the third quarter of 2013. Vacancy rates below 5% are considered a landlord’s market with demand justifying higher rents. Average apartment rent is likely to increase 4.1% in 2012 and another 4.4% next year, NAR says. With the exception of multifamily, vacancy rates remain above historic averages. Since 1999, the typical vacancy rate sat at 14.4% for the office market, 10.1% in industrial, 8.1% for retail and 5.8% in multifamily. The current commercial real estate cycle has been driven by shifts in demand without an oversupply of new construction. “The difficulty small businesses have in getting commercial real estate loans for leasing or purchase is keeping a lid on demand,” Yun explaind. “Multifamily is the only commercial sector with a notable growth in new space, with some lending provided through government loans.” Areas with the lowest multifamily vacancy rates are Portland, Ore., at 2%; New York City and Minneapolis, both at 2.2%; and New Haven, Conn., and San Jose, Calif., both at 2.4%.
URL to original article: http://www.housingwire.com/content/commercial-real-estate-growth-slows-multifamily-thrives
For further information on Fresno Real Estate check: http://www.londonproperties.com
California enacts law to levy heavy fines for blight
Source: Housingwire
By Jon Prior
California Gov. Jerry Brown signed a bill Monday forcing owners of foreclosed and vacant homes to maintain the property or face up to a $1,000 fine per day of violation. The bill, A.B. 2314, is part of the Homeowner Bill of Rights, a slew of new legislation drafted and introduced through state lawmakers with the assistance of California Attorney General Kamala Harris. The latest enacted bill gives local governments the ability to impose up to a $1,000 fine for code violations. It must give owners, including banks, at least 14 days to start fixing the alleged violation and 30 days to complete the correction before issuing the fine. One of the violations includes "not failing to take action to prevent mosquito larvae from growing in standing water or other conditions that create a public nuisance." A woman in Studio City, Calif. recently diagnosed with the West Nile virus traced the contraction to mosquitoes breeding in a nearby foreclosure's neglected swimming pool. The new bill could be costly for careless owners of these homes. Fannie Mae, for example, owned more than 10,000 REO properties in California as of June 30, according to its latest financial filing. If an investor or homeowner buys a property that was foreclosed on at any point since Jan. 1, 2008, the local government must give at least 60 days to remedy any violations found since taking title. The law does give room to provide less time "if deemed necessary." The gross vacancy rate in California was above 10% in California, down a full percentage point since the foreclosure crisis struck, according to the latest Census Bureau figures. It's still above the 8.6% rate at the start of the housing bubble in 2005. "We need solutions to the problem of blight which threatens the health and safety of California communities hit hardest by the mortgage crisis," said Assembly member Wilmer Amina Carter, D-Rialto, who introduced the bill. "AB 2314 will ensure that local jurisdictions continue to have the tools to prevent and fight neighborhood blight due to foreclosures." The state passed each of the Homeowner Bill of Rights legislation this summer. Gov. Brown signed two into law in July, giving new protections for borrowers and prohibiting the practice of robo-signing and foreclosing on borrowers being considered for a modification. "The foreclosure crisis has had a devastating impact on many families and communities," AG Harris said in a statement Monday. "This legislation will help victims of the crisis who remain in their homes, but have been forced to endure the negative economic, health and safety consequences of blight in their neighborhoods."
URL to original article: http://www.housingwire.com/news/california-gov-signs-bill-bring-heavy-fines-blight
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Jon Prior
California Gov. Jerry Brown signed a bill Monday forcing owners of foreclosed and vacant homes to maintain the property or face up to a $1,000 fine per day of violation. The bill, A.B. 2314, is part of the Homeowner Bill of Rights, a slew of new legislation drafted and introduced through state lawmakers with the assistance of California Attorney General Kamala Harris. The latest enacted bill gives local governments the ability to impose up to a $1,000 fine for code violations. It must give owners, including banks, at least 14 days to start fixing the alleged violation and 30 days to complete the correction before issuing the fine. One of the violations includes "not failing to take action to prevent mosquito larvae from growing in standing water or other conditions that create a public nuisance." A woman in Studio City, Calif. recently diagnosed with the West Nile virus traced the contraction to mosquitoes breeding in a nearby foreclosure's neglected swimming pool. The new bill could be costly for careless owners of these homes. Fannie Mae, for example, owned more than 10,000 REO properties in California as of June 30, according to its latest financial filing. If an investor or homeowner buys a property that was foreclosed on at any point since Jan. 1, 2008, the local government must give at least 60 days to remedy any violations found since taking title. The law does give room to provide less time "if deemed necessary." The gross vacancy rate in California was above 10% in California, down a full percentage point since the foreclosure crisis struck, according to the latest Census Bureau figures. It's still above the 8.6% rate at the start of the housing bubble in 2005. "We need solutions to the problem of blight which threatens the health and safety of California communities hit hardest by the mortgage crisis," said Assembly member Wilmer Amina Carter, D-Rialto, who introduced the bill. "AB 2314 will ensure that local jurisdictions continue to have the tools to prevent and fight neighborhood blight due to foreclosures." The state passed each of the Homeowner Bill of Rights legislation this summer. Gov. Brown signed two into law in July, giving new protections for borrowers and prohibiting the practice of robo-signing and foreclosing on borrowers being considered for a modification. "The foreclosure crisis has had a devastating impact on many families and communities," AG Harris said in a statement Monday. "This legislation will help victims of the crisis who remain in their homes, but have been forced to endure the negative economic, health and safety consequences of blight in their neighborhoods."
URL to original article: http://www.housingwire.com/news/california-gov-signs-bill-bring-heavy-fines-blight
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, August 23, 2012
Mortgage rates extend upward journey
Source: Housingwire
By Justin T. Hilley
Fixed-rate mortgages rose for the fourth week in a row along with other long-term yields after hitting a historic low amid continued positive housing data. The Freddie Mac survey showed the 30-year FRM averaged 3.66% for the week ending Thursday, up from last week’s rise to 3.62%. Last year at this time, the 30-year FRM averaged 4.22%. The 15-year FRM, a popular refinancing choice, averaged 2.89%, ticking up from last week's 2.88%. A year ago, the average rate for a 15-year FRM was 3.44%. Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.8%, up from 2.76% last week and falling from 3.07% a year earlier. One-year, Treasury-indexed ARMs averaged 2.66%, down from last week’s 2.69% and down from 2.93 % last year. Freddie Mac Chief Economist Frank Nothaft cited the Census Bureau when giving context to the rising rates. The bureau’s report stated that residential building permits grew in July, although builders slowed the pace of construction starts on single-family homes in July to the least since March while apartment and condominium building picked up to the most since April. Existing home sales rose in July from June’s eight-month low and the median sales price jumped 9.4% from a year earlier, representing the largest 12-month gain since January 2006. The price gain was broad-based, with annual increases registered in all four regions of the U.S., led by a 24.5% increase in the West. Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM rose to 3.91% from 3.86%, while the 15-year FRM shot up to 3.12% from 3.05%. The 5/1 ARM shrunk to 2.9% from 2.93% for the week.
URL to original article: http://www.housingwire.com/news/mortgage-rates-extend-upward-journey
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Justin T. Hilley
Fixed-rate mortgages rose for the fourth week in a row along with other long-term yields after hitting a historic low amid continued positive housing data. The Freddie Mac survey showed the 30-year FRM averaged 3.66% for the week ending Thursday, up from last week’s rise to 3.62%. Last year at this time, the 30-year FRM averaged 4.22%. The 15-year FRM, a popular refinancing choice, averaged 2.89%, ticking up from last week's 2.88%. A year ago, the average rate for a 15-year FRM was 3.44%. Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.8%, up from 2.76% last week and falling from 3.07% a year earlier. One-year, Treasury-indexed ARMs averaged 2.66%, down from last week’s 2.69% and down from 2.93 % last year. Freddie Mac Chief Economist Frank Nothaft cited the Census Bureau when giving context to the rising rates. The bureau’s report stated that residential building permits grew in July, although builders slowed the pace of construction starts on single-family homes in July to the least since March while apartment and condominium building picked up to the most since April. Existing home sales rose in July from June’s eight-month low and the median sales price jumped 9.4% from a year earlier, representing the largest 12-month gain since January 2006. The price gain was broad-based, with annual increases registered in all four regions of the U.S., led by a 24.5% increase in the West. Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM rose to 3.91% from 3.86%, while the 15-year FRM shot up to 3.12% from 3.05%. The 5/1 ARM shrunk to 2.9% from 2.93% for the week.
URL to original article: http://www.housingwire.com/news/mortgage-rates-extend-upward-journey
For further information on Fresno Real Estate check: http://www.londonproperties.com
Household formation among young adults shows no sign of recovery
Source: Housingwire
The rate at which Americans formed households fell sharply during the Great Recession, with the greatest shortfall among young adults squeezed financially by the weak economy, according to an economic commentary from a Cleveland Federal Reserve official. Tighter lending standards are further complicating the housing sector's ability to recover by reducing access to mortgage credit, the commentary said. “This may have increased the incentive of individuals to delay household formation in order to save for a down payment, build credit histories, or repair tarnished credit scores,” said Tim Dunne, a researcher at the Federal Reserve Bank of Cleveland, who wrote the commentary. Although household formation has recently picked up, it's not fast enough to make up for the shortfall that occurred over the last several years, he said. The analysis shows the biggest dropoff in household formation occurred among adults aged 18 to 34. An additional 2 million younger adults now live in a household headed by their parents, than did before the recession. Although these younger adults make up a relatively small portion of household heads, they account for almost three-quarters of the overall shortfall in household formation. Choice of housing has shifted, as well, for younger adults. Prior to the recession, about one-third of individuals aged 18-34 headed households, with roughly 40% of them in their own homes. In 2010, young adults' homeownership rate declined to 35.5%. This shift into rental housing continued into 2011 and early 2012, with little sign of any abatement. The shortfall in household formation observed over the 2007–2010 period is an outgrowth of the weak economy and should rebound further as individuals who delayed forming households during the recession and initial recovery set out on their own, Dunne said. Still, he concludes that the sharp decline in homeownership rates for younger adults shows little sign of recovering in the near term. When young adults start forming more households, it may have a stronger impact on the demand for rental properties than owner-occupied housing, Dunne said.
URL to original article: http://www.housingwire.com/news/household-formation-among-young-adults-shows-no-sign-recovery-0
For further information on Fresno Real Estate check: http://www.londonproperties.com
The rate at which Americans formed households fell sharply during the Great Recession, with the greatest shortfall among young adults squeezed financially by the weak economy, according to an economic commentary from a Cleveland Federal Reserve official. Tighter lending standards are further complicating the housing sector's ability to recover by reducing access to mortgage credit, the commentary said. “This may have increased the incentive of individuals to delay household formation in order to save for a down payment, build credit histories, or repair tarnished credit scores,” said Tim Dunne, a researcher at the Federal Reserve Bank of Cleveland, who wrote the commentary. Although household formation has recently picked up, it's not fast enough to make up for the shortfall that occurred over the last several years, he said. The analysis shows the biggest dropoff in household formation occurred among adults aged 18 to 34. An additional 2 million younger adults now live in a household headed by their parents, than did before the recession. Although these younger adults make up a relatively small portion of household heads, they account for almost three-quarters of the overall shortfall in household formation. Choice of housing has shifted, as well, for younger adults. Prior to the recession, about one-third of individuals aged 18-34 headed households, with roughly 40% of them in their own homes. In 2010, young adults' homeownership rate declined to 35.5%. This shift into rental housing continued into 2011 and early 2012, with little sign of any abatement. The shortfall in household formation observed over the 2007–2010 period is an outgrowth of the weak economy and should rebound further as individuals who delayed forming households during the recession and initial recovery set out on their own, Dunne said. Still, he concludes that the sharp decline in homeownership rates for younger adults shows little sign of recovering in the near term. When young adults start forming more households, it may have a stronger impact on the demand for rental properties than owner-occupied housing, Dunne said.
URL to original article: http://www.housingwire.com/news/household-formation-among-young-adults-shows-no-sign-recovery-0
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, August 22, 2012
Rise in US home sales reflects steady improvement
Source: The Business Journal
(AP) — Americans bought more homes in July than in June, the latest evidence that the housing market is slowly, but steadily, improving. Sales of previously occupied homes rose to a seasonally adjusted annual rate of 4.47 million in July, a 2.3 percent increase from the previous month's rate, the National Association of Realtors said Wednesday. The industry's recovery has grown more consistent, though it remains sluggish and uneven. July sales were below the 4.6 million annual pace reached in April and May. And the annual sales pace is below the roughly 5.5 million that economists consider healthy. Still, sales have increased 10.4 percent compared with a year ago. The sales increase last month was broad-based. Purchases rose for single-family homes and condominiums. And sales rose in three of four U.S. regions. They were flat in the West. "Rising single-family home sales indicate that households are feeling increasingly confident taking on larger purchases as their (finances) improve," Joseph LaVorgna, chief U.S. economist at Deutsche Bank, said in a note to clients. The sales gains are being driven in part by higher-priced homes. Luxury home builder Toll Brothers said Wednesday that its net income jumped 46 percent in the May-July quarter. "We are enjoying the most sustained demand we've experienced in over five years," CEO Douglas Yearley said. The Realtors' report said the median home price dipped in July from June to $187,300. Still, that's up 9.4 percent from a year ago. It's the fifth straight month in which the median price, as measured year over year, has risen. A big reason for the price increase is that sales for pricier homes have picked up, while sales of homes below $100,000 have fallen, the Realtors' group said. The number of first-time homebuyers, critical to a housing rebound, rose to 34 percent of sales, up slightly from June. In a healthy market, first-time buyers make up about 40 percent of sales. Purchases are being restrained by low levels of homes available for sale and by tight credit standards, the Realtors' group said. Other recent reports have contributed to the picture of a healing industry. Home prices are rising nationwide. And builders are growing increasingly confident because they're seeing more traffic from potential buyers. An index of builder confidence rose to its highest level in five years in August. Builders responded by applying for the largest number of building permits in nearly four years last month. They broke ground on slightly fewer new homes in July than in June. But that was after the number of housing starts had reached a 3½-year high in June. In July, the number of unsold homes ticked up to 2.4 million. It would take about 6.4 months to exhaust that supply at the current sales pace. That's just above the six months' inventory that typically exists in a healthy economy. Even with near-record-low mortgage rates, many would-be buyers are having difficulty qualifying for loans or can't afford the larger down payments being required by banks. Hiring picked up a bit in July, which could support more home sales in the coming months. Job growth helps consumers feel more secure about their finances and typically encourages more of them to buy a house. Employers added 163,000 jobs last month, the most since February. Job gains had averaged only 73,000 in the April-June quarters, raising fears that the economy was faltering and might even slip into recession.
URL to orginal article: http://www.thebusinessjournal.com/news/national/3005-rise-in-us-home-sales-reflects-steady-improvement
For further information on Fresno Real Estate check: http://www.londonproperties.com
(AP) — Americans bought more homes in July than in June, the latest evidence that the housing market is slowly, but steadily, improving. Sales of previously occupied homes rose to a seasonally adjusted annual rate of 4.47 million in July, a 2.3 percent increase from the previous month's rate, the National Association of Realtors said Wednesday. The industry's recovery has grown more consistent, though it remains sluggish and uneven. July sales were below the 4.6 million annual pace reached in April and May. And the annual sales pace is below the roughly 5.5 million that economists consider healthy. Still, sales have increased 10.4 percent compared with a year ago. The sales increase last month was broad-based. Purchases rose for single-family homes and condominiums. And sales rose in three of four U.S. regions. They were flat in the West. "Rising single-family home sales indicate that households are feeling increasingly confident taking on larger purchases as their (finances) improve," Joseph LaVorgna, chief U.S. economist at Deutsche Bank, said in a note to clients. The sales gains are being driven in part by higher-priced homes. Luxury home builder Toll Brothers said Wednesday that its net income jumped 46 percent in the May-July quarter. "We are enjoying the most sustained demand we've experienced in over five years," CEO Douglas Yearley said. The Realtors' report said the median home price dipped in July from June to $187,300. Still, that's up 9.4 percent from a year ago. It's the fifth straight month in which the median price, as measured year over year, has risen. A big reason for the price increase is that sales for pricier homes have picked up, while sales of homes below $100,000 have fallen, the Realtors' group said. The number of first-time homebuyers, critical to a housing rebound, rose to 34 percent of sales, up slightly from June. In a healthy market, first-time buyers make up about 40 percent of sales. Purchases are being restrained by low levels of homes available for sale and by tight credit standards, the Realtors' group said. Other recent reports have contributed to the picture of a healing industry. Home prices are rising nationwide. And builders are growing increasingly confident because they're seeing more traffic from potential buyers. An index of builder confidence rose to its highest level in five years in August. Builders responded by applying for the largest number of building permits in nearly four years last month. They broke ground on slightly fewer new homes in July than in June. But that was after the number of housing starts had reached a 3½-year high in June. In July, the number of unsold homes ticked up to 2.4 million. It would take about 6.4 months to exhaust that supply at the current sales pace. That's just above the six months' inventory that typically exists in a healthy economy. Even with near-record-low mortgage rates, many would-be buyers are having difficulty qualifying for loans or can't afford the larger down payments being required by banks. Hiring picked up a bit in July, which could support more home sales in the coming months. Job growth helps consumers feel more secure about their finances and typically encourages more of them to buy a house. Employers added 163,000 jobs last month, the most since February. Job gains had averaged only 73,000 in the April-June quarters, raising fears that the economy was faltering and might even slip into recession.
URL to orginal article: http://www.thebusinessjournal.com/news/national/3005-rise-in-us-home-sales-reflects-steady-improvement
For further information on Fresno Real Estate check: http://www.londonproperties.com
Nearly half of Fannie Mae REO unable to reach market
Source: Housingwire
By Jon Prior
Only half of the previously foreclosed homes owned by Fannie Mae are either on the market or being prepared for sale. The remaining properties are currently locked away in some step of the foreclosure system. The National Association of Realtors said in its existing home sales report Wednesday that its officials were pressuring government agencies to release more of their REO in markets short of inventory. Many market participants long claimed the government – including Fannie, Freddie Mac and the Department of Housing and Urban Development – are deliberately holding these homes off the market in order to get more for them when home prices recover. Fannie disclosed for the first time this year where these properties are in the lengthy and complicated REO process. In its second quarter financial filing, the government-sponsored enterprise said 23% of its more than 109,000 repossessed are currently available for sale. That's down from 28% at the end of last year. An offer has been accepted on another 19%, and 11% have an appraisal pending, Fannie said. But 47% of its inventory is unable to be marketed. Roughly 14% of Fannie's entire REO inventory is redemption status, meaning the time frame borrowers and second-lien holders can redeem the property under various state laws. The timelines vary and have come under much change across the country. In Michigan, for example, lawmakers passed a bill last year to extend the redemption period to as much as one year in some cases. The bill was referred back to a state committee in March. Fannie said another 13% of its properties are still occupied by the borrower. The eviction process just hadn't been completed. Interestingly, 8% of its inventory – slightly less than 9,000 homes – are being rented as part of its piloted Tenant in Place or Deed for Lease programs, where the home is rented back to the borrower. Its other piloted program to sell roughly 2,500 homes to investors, who were approved in recent months to rent the properties out, will close at some point in the third quarter. "The properties we own are either on the market or in the process of being brought to market. Fannie Mae's goal is to sell HomePath properties at market competitive rates as quickly as we can so that neighborhoods stabilize and recover," a Fannie spokesman said. In its financial filing, Fannie showed it's taking fewer losses on its REO sales. The GSE recovered an average 65% of the unpaid principal balance from REO sales in the second quarter, up from a low of 59% at the beginning of last year. But even this metric varies widely across the country. It was able to recover an average 78% of the unpaid principal through REO sales in Texas but only 50% of the original mortgage balance in Nevada sales. Home prices began to steadily improve in 2012, pushing profits up for the GSE. It signaled to investors that the major hurdle holding back REO sales isn't its own management of the properties but of mortgage servicer difficulties, specifically at the five largest banks. Fannie sold only 5,000 more REO than the 43,700 homes acquired in the second quarter. "We continue to manage our REO inventory to minimize costs and maximize sales proceeds," Fannie said in its filing. "However, as we are unable to market and sell a higher portion of our inventory, the pace at which we can dispose of our properties slows, resulting in higher foreclosed property expenses related to costs associated with ensuring that the property is vacant and costs of maintaining the property."
URL to original article: http://www.housingwire.com/news/nearly-half-fannie-reo-unable-reach-market
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Jon Prior
Only half of the previously foreclosed homes owned by Fannie Mae are either on the market or being prepared for sale. The remaining properties are currently locked away in some step of the foreclosure system. The National Association of Realtors said in its existing home sales report Wednesday that its officials were pressuring government agencies to release more of their REO in markets short of inventory. Many market participants long claimed the government – including Fannie, Freddie Mac and the Department of Housing and Urban Development – are deliberately holding these homes off the market in order to get more for them when home prices recover. Fannie disclosed for the first time this year where these properties are in the lengthy and complicated REO process. In its second quarter financial filing, the government-sponsored enterprise said 23% of its more than 109,000 repossessed are currently available for sale. That's down from 28% at the end of last year. An offer has been accepted on another 19%, and 11% have an appraisal pending, Fannie said. But 47% of its inventory is unable to be marketed. Roughly 14% of Fannie's entire REO inventory is redemption status, meaning the time frame borrowers and second-lien holders can redeem the property under various state laws. The timelines vary and have come under much change across the country. In Michigan, for example, lawmakers passed a bill last year to extend the redemption period to as much as one year in some cases. The bill was referred back to a state committee in March. Fannie said another 13% of its properties are still occupied by the borrower. The eviction process just hadn't been completed. Interestingly, 8% of its inventory – slightly less than 9,000 homes – are being rented as part of its piloted Tenant in Place or Deed for Lease programs, where the home is rented back to the borrower. Its other piloted program to sell roughly 2,500 homes to investors, who were approved in recent months to rent the properties out, will close at some point in the third quarter. "The properties we own are either on the market or in the process of being brought to market. Fannie Mae's goal is to sell HomePath properties at market competitive rates as quickly as we can so that neighborhoods stabilize and recover," a Fannie spokesman said. In its financial filing, Fannie showed it's taking fewer losses on its REO sales. The GSE recovered an average 65% of the unpaid principal balance from REO sales in the second quarter, up from a low of 59% at the beginning of last year. But even this metric varies widely across the country. It was able to recover an average 78% of the unpaid principal through REO sales in Texas but only 50% of the original mortgage balance in Nevada sales. Home prices began to steadily improve in 2012, pushing profits up for the GSE. It signaled to investors that the major hurdle holding back REO sales isn't its own management of the properties but of mortgage servicer difficulties, specifically at the five largest banks. Fannie sold only 5,000 more REO than the 43,700 homes acquired in the second quarter. "We continue to manage our REO inventory to minimize costs and maximize sales proceeds," Fannie said in its filing. "However, as we are unable to market and sell a higher portion of our inventory, the pace at which we can dispose of our properties slows, resulting in higher foreclosed property expenses related to costs associated with ensuring that the property is vacant and costs of maintaining the property."
URL to original article: http://www.housingwire.com/news/nearly-half-fannie-reo-unable-reach-market
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, August 21, 2012
Report: Fresno job growth projected at 2% this year
Source: The Business Journal
A report out of the University of the Pacific projects an increase in jobs and labor force for the Fresno metropolitan statistical area this year and a continual decrease in the unemployment rate over the next three years. The August 2012 California & Metro Forecast expects the number of jobs in the Fresno area to rise by 1.8 percent in 2012 and the labor force will grow by 0.7 percent this year and 1.2 percent in 2013. The real personal income for the area’s residents will improve by 2 percent this year, followed by 2.9 percent in 2013. The unemployment rate will drop to 15.2 percent this year, followed by 14.5 percent next year and 13.7 percent in 2014. However the forecast does not expect the unemployment rate to sink below 12 percent in the foreseeable future. The Fresno area’s overall population will grow by 1.3 percent each year for the next four years, according to the report. The report anticipates the number of jobs in the state to increase at a pace of 1.8 percent per year but the California unemployment rate is expected to hover around its current 10.7 percent for the next two years.
URL to original article: http://www.thebusinessjournal.com/news/economy/3000-report-fresno-job-growth-projected-at-2-this-year
For further information on Fresno Real Estate check: http://www.londonproperties.com
A report out of the University of the Pacific projects an increase in jobs and labor force for the Fresno metropolitan statistical area this year and a continual decrease in the unemployment rate over the next three years. The August 2012 California & Metro Forecast expects the number of jobs in the Fresno area to rise by 1.8 percent in 2012 and the labor force will grow by 0.7 percent this year and 1.2 percent in 2013. The real personal income for the area’s residents will improve by 2 percent this year, followed by 2.9 percent in 2013. The unemployment rate will drop to 15.2 percent this year, followed by 14.5 percent next year and 13.7 percent in 2014. However the forecast does not expect the unemployment rate to sink below 12 percent in the foreseeable future. The Fresno area’s overall population will grow by 1.3 percent each year for the next four years, according to the report. The report anticipates the number of jobs in the state to increase at a pace of 1.8 percent per year but the California unemployment rate is expected to hover around its current 10.7 percent for the next two years.
URL to original article: http://www.thebusinessjournal.com/news/economy/3000-report-fresno-job-growth-projected-at-2-this-year
For further information on Fresno Real Estate check: http://www.londonproperties.com
Price your house to sell quickly
Source: Inman News
By Dian Hymer
A first-quarter survey of homebuyers and sellers done by HomeGain.com, a real estate services website, revealed that 76 percent of homeowners believe their home is worth more than the list price recommended by their real estate agent. Homebuyers usually have a better grasp of current market value in the area where they're looking to buy than do sellers who own and live there. Buyers look at a lot of new listings. They make offers, know what sells quickly and for how much, and what doesn't and why. HomeGain reported that homebuyers still think sellers are overpricing their homes. Your home is worth what a buyer will pay for it given current market conditions. This may not be the same as your opinion of what your home will sell for, or what you hope it's worth. Relying on emotion rather than logic when selecting a list price can lead to disappointing results. The prime opportunity for selling a home is when it's new on the market. This is when it is most marketable. Buyers wait for the new listings. Usually, listings receive the most showings and have the busiest open houses during the first couple of weeks they are on the market. This is the opportunity to show your house off to advantage with a list price that attracts buyers' attention. Listings that sell today are priced right for the market. Buyers need to feel comfortable that they are getting a good deal. Buyers won't overpay if they feel home prices are still declining, and in some areas of the country, they still are. In areas of strong sales, buyers may shy away from multiple-offer situations if they feel the recovery is fragile and that prices may slide further before stabilizing. Even in areas where home sales have been strong in the first half of 2012, local practitioners wonder how long the uptick will last. HOUSE HUNTING TIP: When selecting a list price, it helps to understand how real estate agents and appraisers establish an expected selling price or price range for your home. They research the recent listing inventory for homes similar to yours that sold. The most recent sales give the best indication of the direction of the market. They analyze these comparable sales giving more value to your home for attributes that it has that the comparables don't, like a remodeled kitchen. Value is subtracted from your home for features it lacks when compared to the sold comparables, like an easily accessible, level backyard. It's difficult for sellers to step back and take an attitude of detached interest in their home. But it's essential to do so if you want to sell successfully in this market. For example, your home could actually sell for less, not more, than a comparable sale because you added a swimming pool in an area where most homebuyers would rather have a yard with a generous lawn. If the comparable sale information suggests that the value of homes like yours is declining, select a list price that undercuts the competition to drive buyers -- and hopefully offers -- to your home. You can take a more aggressive stance on pricing if the comparables show that prices are moving up. If there is high demand for homes like yours, you may receive more than one offer. But don't list too high. It's better to stay in the range shown by the comparables and expose the house to the market before accepting offers. The market will drive the price up if it's warranted.
THE CLOSING: Don't rely on rumors circulating in the neighborhood about how high a home sold. Prices tend to get inflated when passed from one person to another. Select your list price based on hard facts.
URL to original article: http://www.inman.com/buyers-sellers/columnists/dianhymer/price-your-house-sell-quickly
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Dian Hymer
A first-quarter survey of homebuyers and sellers done by HomeGain.com, a real estate services website, revealed that 76 percent of homeowners believe their home is worth more than the list price recommended by their real estate agent. Homebuyers usually have a better grasp of current market value in the area where they're looking to buy than do sellers who own and live there. Buyers look at a lot of new listings. They make offers, know what sells quickly and for how much, and what doesn't and why. HomeGain reported that homebuyers still think sellers are overpricing their homes. Your home is worth what a buyer will pay for it given current market conditions. This may not be the same as your opinion of what your home will sell for, or what you hope it's worth. Relying on emotion rather than logic when selecting a list price can lead to disappointing results. The prime opportunity for selling a home is when it's new on the market. This is when it is most marketable. Buyers wait for the new listings. Usually, listings receive the most showings and have the busiest open houses during the first couple of weeks they are on the market. This is the opportunity to show your house off to advantage with a list price that attracts buyers' attention. Listings that sell today are priced right for the market. Buyers need to feel comfortable that they are getting a good deal. Buyers won't overpay if they feel home prices are still declining, and in some areas of the country, they still are. In areas of strong sales, buyers may shy away from multiple-offer situations if they feel the recovery is fragile and that prices may slide further before stabilizing. Even in areas where home sales have been strong in the first half of 2012, local practitioners wonder how long the uptick will last. HOUSE HUNTING TIP: When selecting a list price, it helps to understand how real estate agents and appraisers establish an expected selling price or price range for your home. They research the recent listing inventory for homes similar to yours that sold. The most recent sales give the best indication of the direction of the market. They analyze these comparable sales giving more value to your home for attributes that it has that the comparables don't, like a remodeled kitchen. Value is subtracted from your home for features it lacks when compared to the sold comparables, like an easily accessible, level backyard. It's difficult for sellers to step back and take an attitude of detached interest in their home. But it's essential to do so if you want to sell successfully in this market. For example, your home could actually sell for less, not more, than a comparable sale because you added a swimming pool in an area where most homebuyers would rather have a yard with a generous lawn. If the comparable sale information suggests that the value of homes like yours is declining, select a list price that undercuts the competition to drive buyers -- and hopefully offers -- to your home. You can take a more aggressive stance on pricing if the comparables show that prices are moving up. If there is high demand for homes like yours, you may receive more than one offer. But don't list too high. It's better to stay in the range shown by the comparables and expose the house to the market before accepting offers. The market will drive the price up if it's warranted.
THE CLOSING: Don't rely on rumors circulating in the neighborhood about how high a home sold. Prices tend to get inflated when passed from one person to another. Select your list price based on hard facts.
URL to original article: http://www.inman.com/buyers-sellers/columnists/dianhymer/price-your-house-sell-quickly
For further information on Fresno Real Estate check: http://www.londonproperties.com
Housing recovery brightens Fannie Mae economic outlook
Source: Housingwire
By Kerri Ann Panchuk
Housing remains a bright spot in an economy where consumer spending dropped nearly a percentage point in the second quarter and a looming year-end fiscal cliff is haunting the financial markets, Fannie Mae's Economic & Strategic Research Group said Tuesday. The group released its August 2012 Economic Outlook, which shows housing doing well with residential investment projected to contribute at least 0.2 percentage points to real gross domestic product in 2012. If that does occur, it will be residential real estate's first contribution to annual GDP since 2005. The expected increase in home sales is supposed to come in at 9% above 2011 levels. Inventories also dropped over the past 12 months, leading to a smaller supply and a gradual uptick in homebuilding in certain markets. While housing may be brighter today, Fannie Mae's chief economist Doug Duncan remains cautious about the remainder of the year. "The July data hasn't changed our forecast for slow growth in 2012, but we're increasingly focused on the looming 'fiscal cliff' near year-end," Duncan said. "The debt ceiling debate, as well as current legislation that could create a drag of more than 4% on GDP in 2013, may spur further caution among consumers and businesses alike. On the bright side, we continue to see positive trends in the housing sector, which is showing signs of a durable, long-term recovery." The economy itself remains shaky with inflation-adjusted consumer spending falling nearly a percentage point in the second quarter — the first spending drop since last August. Those factors were offset by stronger July retail sales and the strongest jobs report in five months with 163,000 positions created last month. Duncan suggested consistent job growth could lift the ailing economy and the confidence of small businesses, but risks to the overall economic outlook remain on the downside.
URL to original article: http://www.housingwire.com/news/fannie-mae-housing-outlook-second-half-remains-positive
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
Housing remains a bright spot in an economy where consumer spending dropped nearly a percentage point in the second quarter and a looming year-end fiscal cliff is haunting the financial markets, Fannie Mae's Economic & Strategic Research Group said Tuesday. The group released its August 2012 Economic Outlook, which shows housing doing well with residential investment projected to contribute at least 0.2 percentage points to real gross domestic product in 2012. If that does occur, it will be residential real estate's first contribution to annual GDP since 2005. The expected increase in home sales is supposed to come in at 9% above 2011 levels. Inventories also dropped over the past 12 months, leading to a smaller supply and a gradual uptick in homebuilding in certain markets. While housing may be brighter today, Fannie Mae's chief economist Doug Duncan remains cautious about the remainder of the year. "The July data hasn't changed our forecast for slow growth in 2012, but we're increasingly focused on the looming 'fiscal cliff' near year-end," Duncan said. "The debt ceiling debate, as well as current legislation that could create a drag of more than 4% on GDP in 2013, may spur further caution among consumers and businesses alike. On the bright side, we continue to see positive trends in the housing sector, which is showing signs of a durable, long-term recovery." The economy itself remains shaky with inflation-adjusted consumer spending falling nearly a percentage point in the second quarter — the first spending drop since last August. Those factors were offset by stronger July retail sales and the strongest jobs report in five months with 163,000 positions created last month. Duncan suggested consistent job growth could lift the ailing economy and the confidence of small businesses, but risks to the overall economic outlook remain on the downside.
URL to original article: http://www.housingwire.com/news/fannie-mae-housing-outlook-second-half-remains-positive
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, August 20, 2012
California's median sales price reaches a 4-year high
Source: Housingwire
California is seeing a housing recovery of sorts with the median sales price reaching a four-year high in July and home sales rising 15.3% from last year, the California Association of Realtors said. The month of July brought 529,230 home sales in California, up 2% from June's rate of 518,680 sales. Closed escrow sales for existing, single-family homes also grew 15.3% from last year when the state's sales pace reached 459,140 units, C.A.R added. Looking at the median price, it reached a four-year high of $333,860 in July, up 4.2% from $320,540 in June and 12.7% from a revised $296,160 in July 2011. That's the highest median price recorded since August 2008 when the median hit $352,730. "It's hard to generalize the state of California's housing market because the markets are so diverse and are performing so differently," said C.A.R. president LeFrancis Arnold. "REO-dominated areas such as those in the Inland Empire and Central Valley are experiencing sales constraints due to an extreme shortage of available homes. On the other hand, a robust economy in the San Francisco Bay area and a relatively larger inventory at higher price levels is helping to fuel sales and prices." The median price went higher as sales in the lower-range of the pricing market declined and more sales occurred in the above-$500,000 market. "As an example, in July, sales of homes priced below $200,000 declined 9.4% from the previous year, and homes priced above $500,000 climbed 27.7% from a year ago," CAR said. The median number of days it took to sell a California single-family home in July fell slightly from 43.4 days in June to 43.2 days in July. Last year, it took about 51.9 days to sell a home in the state.
URL to original article: http://www.housingwire.com/content/californias-median-sales-price-reaches-4-year-high
For further information on Fresno Real Estate check: http://www.londonproperties.com
California is seeing a housing recovery of sorts with the median sales price reaching a four-year high in July and home sales rising 15.3% from last year, the California Association of Realtors said. The month of July brought 529,230 home sales in California, up 2% from June's rate of 518,680 sales. Closed escrow sales for existing, single-family homes also grew 15.3% from last year when the state's sales pace reached 459,140 units, C.A.R added. Looking at the median price, it reached a four-year high of $333,860 in July, up 4.2% from $320,540 in June and 12.7% from a revised $296,160 in July 2011. That's the highest median price recorded since August 2008 when the median hit $352,730. "It's hard to generalize the state of California's housing market because the markets are so diverse and are performing so differently," said C.A.R. president LeFrancis Arnold. "REO-dominated areas such as those in the Inland Empire and Central Valley are experiencing sales constraints due to an extreme shortage of available homes. On the other hand, a robust economy in the San Francisco Bay area and a relatively larger inventory at higher price levels is helping to fuel sales and prices." The median price went higher as sales in the lower-range of the pricing market declined and more sales occurred in the above-$500,000 market. "As an example, in July, sales of homes priced below $200,000 declined 9.4% from the previous year, and homes priced above $500,000 climbed 27.7% from a year ago," CAR said. The median number of days it took to sell a California single-family home in July fell slightly from 43.4 days in June to 43.2 days in July. Last year, it took about 51.9 days to sell a home in the state.
URL to original article: http://www.housingwire.com/content/californias-median-sales-price-reaches-4-year-high
For further information on Fresno Real Estate check: http://www.londonproperties.com
HomeGain: Home sellers more successful with real estate agent
Source: Housingwire
Some homeowners may have a strong preference for selling their own properties, but a new poll by HomeGain suggests having a real estate agents improves a person's odds of offloading their home. HomeGain is an online marketing solutions provider for real estate agents. The firm recently conducted a survey of 400 homeowners, asking them whether they attempted to sell their homes on their own or through an agent. About 66% of homeowners who utilized the services of a Realtor, for example, managed to sell their home — while only 30% of those who attempted to sell their own properties were successful. 22% of those who attempted to list properties on their own eventually enlisted the help of a real estate agents. Of those homeowners, 55% were eventually able to sell. The survey period ran from July 31 through Aug. 10.
URL to original article: http://www.housingwire.com/content/homegain-home-sellers-more-successful-realtor
For further information on Fresno Real Estate check: http://www.londonproperties.com
Some homeowners may have a strong preference for selling their own properties, but a new poll by HomeGain suggests having a real estate agents improves a person's odds of offloading their home. HomeGain is an online marketing solutions provider for real estate agents. The firm recently conducted a survey of 400 homeowners, asking them whether they attempted to sell their homes on their own or through an agent. About 66% of homeowners who utilized the services of a Realtor, for example, managed to sell their home — while only 30% of those who attempted to sell their own properties were successful. 22% of those who attempted to list properties on their own eventually enlisted the help of a real estate agents. Of those homeowners, 55% were eventually able to sell. The survey period ran from July 31 through Aug. 10.
URL to original article: http://www.housingwire.com/content/homegain-home-sellers-more-successful-realtor
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, August 17, 2012
Housing market conditions strongest in five years: NAHB
Source: Housingwire
By Justin T. Hilley
Current and prospective sales conditions for the next six months are better than they have been in more than five years, Barry Rutenberg, chairman of the National Association of Home Builders, said. “While there is still much room for improvement, we have come a long way from the depths of the recession and the outlook appears to be brightening,” Rutenberg said. The comments arrive on the tail of the just-released National Association of Home Builders/Wells Fargo Housing Market Index. The index revealed that builder confidence in the market for newly built, single-family homes improved for a fourth straight month in August with a two-point gain to 37. The gain builds on a six-point increase in July, the index’s steepest one-month increase in over a decade, and takes it to its highest level since February 2007. Analysts at Barclays Capital expected a two-point decline to 35, while the market consensus expected no change. “Housing has clearly been the bright spot in the recovery recently, with starts, sales, and prices all up significantly from their year-ago levels,” Barclays said. July housing starts will be released Thursday. Analysts at Barclays are looking for the number to come in at 758,000, which is well above the second-quarter average of 739,000 and the first-quarter average of 715,000. And builder confidence in older homeowners is accelerating as buyers slowly return to the 55 and older housing market caused by an improvement home prices. Builder confidence in the single-family housing market for mortgage borrowers aged 55 and older doubled in the second quarter from a year earlier. It’s helping to unlock some of the pent-up demand from 55-plus consumers who have been sitting on the sidelines waiting to sell their homes at a reasonable price. However, NAHB Chief Economist David Crowe warned that “we are still at a very fragile stage of this process and builders continue to express frustration regarding the inventory of distressed properties, inaccurate appraisal values, and the difficulty of accessing credit for both building and buying homes.” Each index component posted gains in August. The components gauging current sales conditions and traffic of prospective buyers each rose three points, to 39 and 31, respectively, while the component gauging sales expectations in the next six months inched up one point to 44. All were at their highest levels in more than five years. Regionally, builder confidence rose nine points to 42 in the Midwest and two points to 35 in the South, but declined nine points to 25 in the Northeast and three points to 40 in the West in August. Housing markets improved in 80 metropolitan statistical areas over the last six months, according to the NAHB and First American ($19.40 -0.1%). "The list of improving housing markets in August includes metros across every region of the country, all of which have distinctly different characteristics in terms of their economic and employment bases as well as other factors," Rutenberg said. "One thing that most markets have in common, however, is the tight lending environment for both builders and buyers that continues to drag on their positive momentum,” he added.
URL to original article: http://www.housingwire.com/news/homes-sales-buyer-traffic-conditions-strongest-five-years-nahb
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Justin T. Hilley
Current and prospective sales conditions for the next six months are better than they have been in more than five years, Barry Rutenberg, chairman of the National Association of Home Builders, said. “While there is still much room for improvement, we have come a long way from the depths of the recession and the outlook appears to be brightening,” Rutenberg said. The comments arrive on the tail of the just-released National Association of Home Builders/Wells Fargo Housing Market Index. The index revealed that builder confidence in the market for newly built, single-family homes improved for a fourth straight month in August with a two-point gain to 37. The gain builds on a six-point increase in July, the index’s steepest one-month increase in over a decade, and takes it to its highest level since February 2007. Analysts at Barclays Capital expected a two-point decline to 35, while the market consensus expected no change. “Housing has clearly been the bright spot in the recovery recently, with starts, sales, and prices all up significantly from their year-ago levels,” Barclays said. July housing starts will be released Thursday. Analysts at Barclays are looking for the number to come in at 758,000, which is well above the second-quarter average of 739,000 and the first-quarter average of 715,000. And builder confidence in older homeowners is accelerating as buyers slowly return to the 55 and older housing market caused by an improvement home prices. Builder confidence in the single-family housing market for mortgage borrowers aged 55 and older doubled in the second quarter from a year earlier. It’s helping to unlock some of the pent-up demand from 55-plus consumers who have been sitting on the sidelines waiting to sell their homes at a reasonable price. However, NAHB Chief Economist David Crowe warned that “we are still at a very fragile stage of this process and builders continue to express frustration regarding the inventory of distressed properties, inaccurate appraisal values, and the difficulty of accessing credit for both building and buying homes.” Each index component posted gains in August. The components gauging current sales conditions and traffic of prospective buyers each rose three points, to 39 and 31, respectively, while the component gauging sales expectations in the next six months inched up one point to 44. All were at their highest levels in more than five years. Regionally, builder confidence rose nine points to 42 in the Midwest and two points to 35 in the South, but declined nine points to 25 in the Northeast and three points to 40 in the West in August. Housing markets improved in 80 metropolitan statistical areas over the last six months, according to the NAHB and First American ($19.40 -0.1%). "The list of improving housing markets in August includes metros across every region of the country, all of which have distinctly different characteristics in terms of their economic and employment bases as well as other factors," Rutenberg said. "One thing that most markets have in common, however, is the tight lending environment for both builders and buyers that continues to drag on their positive momentum,” he added.
URL to original article: http://www.housingwire.com/news/homes-sales-buyer-traffic-conditions-strongest-five-years-nahb
For further information on Fresno Real Estate check: http://www.londonproperties.com
July housing starts beat year-ago levels but decline from June
Source: Housingwire
By Kerri Ann Panchuk
Housing starts in July soared above year ago levels with 746,000 units under construction, up 21.5% from 614,000 starts in July 2011, the U.S. Census Bureau said. Still, starts fell 1.1% from 754,000 units in June. Single-family housing starts hit 502,000 units in July, down 6.5% from 537,000 a month earlier. Construction projects with five housing units or more resulted in 229,000 starts. New housing construction projects completed in July also rose 7.1% to 668,000 units, up from 624,000 completions in June. Completed construction projects grew 5.4% from July of 2011 when only 634,000 units were completed. Building permits, a measure of future construction, rose 6.8% from June to July, with 812,000 permits filed last month, compared to 760,000 in June. That figure also is up 29.5% from last year when permits reached a more modest level of 627,000. Analysts with Econoday called the report "net positive with starts close to expectations and permits notably above." "With recently improved homebuilder sentiment corroborating, it looks like housing is on a modest uptrend," Econoday said. "Equity futures were little changed on the news. Released at the same time, jobless claims were very close to expectations."
URL to original article: http://www.housingwire.com/news/july-housing-starts-rise-215-over-last-year
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
Housing starts in July soared above year ago levels with 746,000 units under construction, up 21.5% from 614,000 starts in July 2011, the U.S. Census Bureau said. Still, starts fell 1.1% from 754,000 units in June. Single-family housing starts hit 502,000 units in July, down 6.5% from 537,000 a month earlier. Construction projects with five housing units or more resulted in 229,000 starts. New housing construction projects completed in July also rose 7.1% to 668,000 units, up from 624,000 completions in June. Completed construction projects grew 5.4% from July of 2011 when only 634,000 units were completed. Building permits, a measure of future construction, rose 6.8% from June to July, with 812,000 permits filed last month, compared to 760,000 in June. That figure also is up 29.5% from last year when permits reached a more modest level of 627,000. Analysts with Econoday called the report "net positive with starts close to expectations and permits notably above." "With recently improved homebuilder sentiment corroborating, it looks like housing is on a modest uptrend," Econoday said. "Equity futures were little changed on the news. Released at the same time, jobless claims were very close to expectations."
URL to original article: http://www.housingwire.com/news/july-housing-starts-rise-215-over-last-year
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, August 16, 2012
Annual job fair draws 5,000 to fairgrounds
Source: The Business Journal
Approximately 5,000 people braved the heat to come out for The Big Fresno Fair’s second annual job fair on Wednesday. The job fair is held in order to fill 800 jobs that become available when the Big Fresno Fair takes place. Positions range from ticket sellers to parking attendants and security. “Our goal with the Job Fair is to create a greater level of awareness among Central Valley residents that these job opportunities exist at The Big Fresno Fair,” said John C. Alkire, CEO of The Big Fresno Fair, in a release. “The fact that we’re hiring hundreds of hard working local residents creates a big opportunity for those looking for work.” Last year the fair needed to fill 1,000 positions and 7,000 showed up for the job fair. The Big Fresno Fair has been around for 129 years and will take place Oct. 3-14 at the Fresno Fairgrounds on Kings Canyon Road in Fresno. An estimated 550,000 people attend the fair each year.
URL to the original article: http://www.thebusinessjournal.com/news/employment/2952-annual-job-fair-draws-5000-to-fairgrounds
For further information on Fresno Real Estate check: http://www.londonproperties.com
Approximately 5,000 people braved the heat to come out for The Big Fresno Fair’s second annual job fair on Wednesday. The job fair is held in order to fill 800 jobs that become available when the Big Fresno Fair takes place. Positions range from ticket sellers to parking attendants and security. “Our goal with the Job Fair is to create a greater level of awareness among Central Valley residents that these job opportunities exist at The Big Fresno Fair,” said John C. Alkire, CEO of The Big Fresno Fair, in a release. “The fact that we’re hiring hundreds of hard working local residents creates a big opportunity for those looking for work.” Last year the fair needed to fill 1,000 positions and 7,000 showed up for the job fair. The Big Fresno Fair has been around for 129 years and will take place Oct. 3-14 at the Fresno Fairgrounds on Kings Canyon Road in Fresno. An estimated 550,000 people attend the fair each year.
URL to the original article: http://www.thebusinessjournal.com/news/employment/2952-annual-job-fair-draws-5000-to-fairgrounds
For further information on Fresno Real Estate check: http://www.londonproperties.com
Stocks mostly higher on signs of economic growth
Source: The Business Journal
Written by PALLAVI GOGOI, AP Business Writer (AP) —
Signs that the U.S. economic recovery is advancing, albeit slowly, sent stocks bouncing up and down in narrow ranges for much of the day Wednesday. The Dow Jones industrial average closed with a loss of 7.36 points at 13,164.78. The broader Standard & Poor's 500 index was up 1.60 points at 1,405.53 and the Nasdaq composite rose 13.95 points to 3,030.93. U.S. industrial production increased last month as factories made more cars, computers and airplanes, according to the Federal Reserve. It was a sign that manufacturing is recovering after a weak spring. Also, consumer prices were unchanged in July from June, as a small drop in energy costs offset slightly higher food prices. The consumer price index hasn't changed since March, which means that inflation is in check. Lower inflation gives the Federal Reserve more leeway to launch new programs intended to rekindle the economy. The Fed signaled at a meeting in late July that it is ready to act if growth and hiring stays weak. Recent reports have suggested that the economy improved somewhat in July. Employers created the most jobs in five months, while consumers spent a little more at stores after three months of declines. Many investors wonder if the economy is fragile enough to create the sense of urgency for policy makers to act proactively. The slightly better outlook for the economy could prompt the Fed to hold off on taking action when its policy committee next meets in September. "We're in a period of very slow growth, though interest rates are low, and very little inflation," said David Kotok, chief investment officer at Cumberland Advisors. "Unless the U.S. economy goes into a swoon and there is no pick up in retail sales and deterioration in jobs growth or major shocks from Europe and China, the Fed will not take any action for now." The bond market is betting that the Fed is not likely to act. Investors have been selling low-risk U.S. government bonds, sending the yield on the benchmark 10-year Treasury note up to 1.81 percent Wednesday. That's up from 1.73 percent Tuesday and 1.66 percent late Monday. As investors shuffled their money around, the Russell 2000 index of small stocks gained the most of the major indexes, 0.9 percent. The S&P was up 0.1 percent, the Nasdaq 0.5 percent. In the last few weeks of the summer, trading volumes in the stock market have been low. On Wednesday, the number of shares changing hands on the New York Stock Exchange totaled just 2.6 billion, compared to an average of 4 billion on an average day. Investors may also be holding off on taking aggressive positions ahead of a meeting of the U.S. Federal Reserve in Wyoming at the end of this month. On Wednesday, the Dow traded within a range of just 54 points. U.S. earnings were mixed. Target rose $1.12 to $64.50 after the retailer reported earnings that beat analysts' expectations and raised its profit forecast for the year. Target is preparing its first expansion out of the U.S., into Canada. Deere plummeted $5.03 to $75.10 after the agriculture machinery maker reported results that were well below Wall Street's expectations. The company attributed its poor results to a slowing global economy and the effects of a prolonged U.S. drought. Deere also cut its revenue forecast for the year. Staples dropped $1.96 to $11.49 after the office and school supplies store said its income dropped 32 percent following weak sales in North America and Europe. The results fell short of analysts' expectations and the company cut its full-year earnings forecast. Abercrombie & Fitch struggled to sell its preppy jeans and T-shirts in the previous quarter, but its results weren't as bad as analysts had forecast. The teen fashion leader also laid out plans for updating its fashions. The stock soared 9 percent, or $2.90, to $35.23.
URL to original article: http://74.53.121.200/news/national/2929-stocks-mostly-higher-on-signs-of-economic-growth
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by PALLAVI GOGOI, AP Business Writer (AP) —
Signs that the U.S. economic recovery is advancing, albeit slowly, sent stocks bouncing up and down in narrow ranges for much of the day Wednesday. The Dow Jones industrial average closed with a loss of 7.36 points at 13,164.78. The broader Standard & Poor's 500 index was up 1.60 points at 1,405.53 and the Nasdaq composite rose 13.95 points to 3,030.93. U.S. industrial production increased last month as factories made more cars, computers and airplanes, according to the Federal Reserve. It was a sign that manufacturing is recovering after a weak spring. Also, consumer prices were unchanged in July from June, as a small drop in energy costs offset slightly higher food prices. The consumer price index hasn't changed since March, which means that inflation is in check. Lower inflation gives the Federal Reserve more leeway to launch new programs intended to rekindle the economy. The Fed signaled at a meeting in late July that it is ready to act if growth and hiring stays weak. Recent reports have suggested that the economy improved somewhat in July. Employers created the most jobs in five months, while consumers spent a little more at stores after three months of declines. Many investors wonder if the economy is fragile enough to create the sense of urgency for policy makers to act proactively. The slightly better outlook for the economy could prompt the Fed to hold off on taking action when its policy committee next meets in September. "We're in a period of very slow growth, though interest rates are low, and very little inflation," said David Kotok, chief investment officer at Cumberland Advisors. "Unless the U.S. economy goes into a swoon and there is no pick up in retail sales and deterioration in jobs growth or major shocks from Europe and China, the Fed will not take any action for now." The bond market is betting that the Fed is not likely to act. Investors have been selling low-risk U.S. government bonds, sending the yield on the benchmark 10-year Treasury note up to 1.81 percent Wednesday. That's up from 1.73 percent Tuesday and 1.66 percent late Monday. As investors shuffled their money around, the Russell 2000 index of small stocks gained the most of the major indexes, 0.9 percent. The S&P was up 0.1 percent, the Nasdaq 0.5 percent. In the last few weeks of the summer, trading volumes in the stock market have been low. On Wednesday, the number of shares changing hands on the New York Stock Exchange totaled just 2.6 billion, compared to an average of 4 billion on an average day. Investors may also be holding off on taking aggressive positions ahead of a meeting of the U.S. Federal Reserve in Wyoming at the end of this month. On Wednesday, the Dow traded within a range of just 54 points. U.S. earnings were mixed. Target rose $1.12 to $64.50 after the retailer reported earnings that beat analysts' expectations and raised its profit forecast for the year. Target is preparing its first expansion out of the U.S., into Canada. Deere plummeted $5.03 to $75.10 after the agriculture machinery maker reported results that were well below Wall Street's expectations. The company attributed its poor results to a slowing global economy and the effects of a prolonged U.S. drought. Deere also cut its revenue forecast for the year. Staples dropped $1.96 to $11.49 after the office and school supplies store said its income dropped 32 percent following weak sales in North America and Europe. The results fell short of analysts' expectations and the company cut its full-year earnings forecast. Abercrombie & Fitch struggled to sell its preppy jeans and T-shirts in the previous quarter, but its results weren't as bad as analysts had forecast. The teen fashion leader also laid out plans for updating its fashions. The stock soared 9 percent, or $2.90, to $35.23.
URL to original article: http://74.53.121.200/news/national/2929-stocks-mostly-higher-on-signs-of-economic-growth
For further information on Fresno Real Estate check: http://www.londonproperties.com
Mortgage rates rise for third straight week
Source: Housingwire
By Justin T. Hilley
Stronger economic activity placed upward pressure on long-term Treasury yields, and, in turn, lifted mortgage rates up for a third straight week. The Freddie Mac survey showed the 30-year, fixed-rate mortgage averaged 3.62% for the week ending Thursday, up from last week’s rise to 3.59%. Last year at this time, the 30-year FRM averaged 4.15%. The 15-year FRM, a popular refinancing choice, averaged 2.88%, increasing from last week‘s record low of 2.84%. A year ago, the average rate for a 15-year FRM was 3.36%. Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.76%, down from 2.77% last week and falling from 3.08% a year earlier. And one-year, Treasury-indexed ARMs averaged 2.69%, up from last week’s 2.65% and down from 2.86 % last year. Fixed mortgage rates are heightening at a time of low inflation and stronger economic activity. Twelve-month growth in the core consumer price index fell for a second month to 2.1% in July. At the same time, industrial production rose .6% in July after a .1% increase in June. And retail sales jumped .8% in July from a .7% decline in June. Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM rose to 3.86% from 3.81%, while the 15-year FRM ticked up to 3.05% from 3%. The 5/1 ARM sits at 2.93%, up from 2.91% for the week.
URL to original article: http://www.housingwire.com/news/mortgage-rates-rise-third-straight-week-0
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Justin T. Hilley
Stronger economic activity placed upward pressure on long-term Treasury yields, and, in turn, lifted mortgage rates up for a third straight week. The Freddie Mac survey showed the 30-year, fixed-rate mortgage averaged 3.62% for the week ending Thursday, up from last week’s rise to 3.59%. Last year at this time, the 30-year FRM averaged 4.15%. The 15-year FRM, a popular refinancing choice, averaged 2.88%, increasing from last week‘s record low of 2.84%. A year ago, the average rate for a 15-year FRM was 3.36%. Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.76%, down from 2.77% last week and falling from 3.08% a year earlier. And one-year, Treasury-indexed ARMs averaged 2.69%, up from last week’s 2.65% and down from 2.86 % last year. Fixed mortgage rates are heightening at a time of low inflation and stronger economic activity. Twelve-month growth in the core consumer price index fell for a second month to 2.1% in July. At the same time, industrial production rose .6% in July after a .1% increase in June. And retail sales jumped .8% in July from a .7% decline in June. Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM rose to 3.86% from 3.81%, while the 15-year FRM ticked up to 3.05% from 3%. The 5/1 ARM sits at 2.93%, up from 2.91% for the week.
URL to original article: http://www.housingwire.com/news/mortgage-rates-rise-third-straight-week-0
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, August 15, 2012
The problem with price predictions
Source: CALCULATED RISK
by Bill McBride
Those making the argument for further house price declines usually start with “shadow inventory”. Although there is no formal definition of “shadow inventory” it usually includes 1) some properties with homeowners who are current on their mortgages, but have negative equity in their homes, and 2) properties not listed for sale, but where the homeowner is seriously delinquent on their mortgage or already in the foreclosure process. This can lead to some pretty scary numbers being bandied about. As an example, CoreLogic recently reported that “11.4 million, or 23.7 percent, of all residential properties with a mortgage were in negative equity at the end of the first quarter of 2012”. And LPS reported 1.6 million loans were 90+ days delinquent at the end of June, and another 2.1 million are in the foreclosure process. These numbers suggest a coming “flood” of foreclosures to those arguing house prices will fall further. I think this is incorrect. If we look at negative equity, it is a serious issue for many homeowners, but it seems unlikely they will default en masse. Recent homebuyers who have negative equity are probably less than 10% underwater. And homeowners with significant negative equity probably bought in the 2004 through 2006 period; and they’ve been paying their mortgage for 6 to 8 years – so it is unlikely they will just default without some unfortunate event (divorce, death, disease). Probably the biggest impact on the housing market is that people with negative equity can’t sell, and this restricts supply (the opposite of the “shadow inventory” argument). For more on this, see: Zillow chief economist Stan Humphries has been discussing this: The Connection Between Negative Equity, Inventory Shortage and Increasing Home Values: Why the Bottom Won’t Be as Boring as We Expected And I expect with the recent increase in house prices that the number of reported homeowners with negative equity will be down sharply in Q2. The HARP refinance program will help too. A more immediate concern is the 3.7 million homeowners currently 90+ days delinquent or in the foreclosure process. Many of these properties will eventually be a distressed sale, either a foreclosure or short sale, although some will receive loan modifications. It is important to remember that some of these homes are already listed for sale (so they are included in the “visible inventory”), and there has been a significant shift by lenders from foreclosures to short sales (short sales have less of an impact on prices than foreclosures). But here is the key: Although forecasting house prices is very complex, we can make some simplifying assumptions and think in terms of supply and demand with foreclosures being a supply shock (increased supply). It is important to remember that national prices are an aggregate of many local prices (although there are national impacts, housing markets are local). And housing prices are more complex than say commodity prices (as an example, house prices tend to be stick downwards). Imagine a multi-year supply shock with a bell curve shape. The supply shock shifts the supply curve to the right relative to the height of the bell curve. Prices will bottom when the supply shock is at the peak, NOT when the supply shock is over. The supply shock from foreclosures probably peaked in late 2008, with a second smaller peak in 2010. Prices didn’t bottom in 2008 because 1) prices are sticky downwards (so the bottom happens after the peak of the supply shock) and 2) fundamentals such as price-to-income and price-to-rent were still out of line. Now fundamentals are close to normal, and any supply shock will probably be smaller than the 2008 or 2010 peaks. And this analysis assumed demand was stable. Actually there was a demand shock too (less demand) due to tighter lending, and buyer psychology (potential buyers were afraid that prices would fall further). There were few investors in 2008 when the supply shock hit – just a few individual and small group investors buying REOs. Now there are large well capitalized groups looking to buy. Of course lending standards are still tight, but as the recent Senior Loan Officer showed, demand is picking up. The bottom line is house prices have probably bottomed, and the concern about more distressed sales coming is real – but will probably not push house prices to new post-bubble lows. Note: For reference, back in April 2005 I argued that prices were way out of line and that speculation was the key, and that speculation could be modeled as storage, see: Housing: Speculation is the Key
URL to original article: http://www.calculatedriskblog.com/2012/08/house-prices-and-foreclosure-supply.html#ZghAZ05UbXX7zOlz.99
For further information on Fresno Real Estate check: http://www.londonproperties.com
by Bill McBride
Those making the argument for further house price declines usually start with “shadow inventory”. Although there is no formal definition of “shadow inventory” it usually includes 1) some properties with homeowners who are current on their mortgages, but have negative equity in their homes, and 2) properties not listed for sale, but where the homeowner is seriously delinquent on their mortgage or already in the foreclosure process. This can lead to some pretty scary numbers being bandied about. As an example, CoreLogic recently reported that “11.4 million, or 23.7 percent, of all residential properties with a mortgage were in negative equity at the end of the first quarter of 2012”. And LPS reported 1.6 million loans were 90+ days delinquent at the end of June, and another 2.1 million are in the foreclosure process. These numbers suggest a coming “flood” of foreclosures to those arguing house prices will fall further. I think this is incorrect. If we look at negative equity, it is a serious issue for many homeowners, but it seems unlikely they will default en masse. Recent homebuyers who have negative equity are probably less than 10% underwater. And homeowners with significant negative equity probably bought in the 2004 through 2006 period; and they’ve been paying their mortgage for 6 to 8 years – so it is unlikely they will just default without some unfortunate event (divorce, death, disease). Probably the biggest impact on the housing market is that people with negative equity can’t sell, and this restricts supply (the opposite of the “shadow inventory” argument). For more on this, see: Zillow chief economist Stan Humphries has been discussing this: The Connection Between Negative Equity, Inventory Shortage and Increasing Home Values: Why the Bottom Won’t Be as Boring as We Expected And I expect with the recent increase in house prices that the number of reported homeowners with negative equity will be down sharply in Q2. The HARP refinance program will help too. A more immediate concern is the 3.7 million homeowners currently 90+ days delinquent or in the foreclosure process. Many of these properties will eventually be a distressed sale, either a foreclosure or short sale, although some will receive loan modifications. It is important to remember that some of these homes are already listed for sale (so they are included in the “visible inventory”), and there has been a significant shift by lenders from foreclosures to short sales (short sales have less of an impact on prices than foreclosures). But here is the key: Although forecasting house prices is very complex, we can make some simplifying assumptions and think in terms of supply and demand with foreclosures being a supply shock (increased supply). It is important to remember that national prices are an aggregate of many local prices (although there are national impacts, housing markets are local). And housing prices are more complex than say commodity prices (as an example, house prices tend to be stick downwards). Imagine a multi-year supply shock with a bell curve shape. The supply shock shifts the supply curve to the right relative to the height of the bell curve. Prices will bottom when the supply shock is at the peak, NOT when the supply shock is over. The supply shock from foreclosures probably peaked in late 2008, with a second smaller peak in 2010. Prices didn’t bottom in 2008 because 1) prices are sticky downwards (so the bottom happens after the peak of the supply shock) and 2) fundamentals such as price-to-income and price-to-rent were still out of line. Now fundamentals are close to normal, and any supply shock will probably be smaller than the 2008 or 2010 peaks. And this analysis assumed demand was stable. Actually there was a demand shock too (less demand) due to tighter lending, and buyer psychology (potential buyers were afraid that prices would fall further). There were few investors in 2008 when the supply shock hit – just a few individual and small group investors buying REOs. Now there are large well capitalized groups looking to buy. Of course lending standards are still tight, but as the recent Senior Loan Officer showed, demand is picking up. The bottom line is house prices have probably bottomed, and the concern about more distressed sales coming is real – but will probably not push house prices to new post-bubble lows. Note: For reference, back in April 2005 I argued that prices were way out of line and that speculation was the key, and that speculation could be modeled as storage, see: Housing: Speculation is the Key
URL to original article: http://www.calculatedriskblog.com/2012/08/house-prices-and-foreclosure-supply.html#ZghAZ05UbXX7zOlz.99
For further information on Fresno Real Estate check: http://www.londonproperties.com
US housing inventory falls 19% in July as prices slowly rise
Source: Housingwire
The housing market is in recovery mode as evidenced by plummeting inventory levels and rising median prices, Realtor.com noted in its National & Local Market Trends report. The total number of single-family, condo, townhome and co-op listings hit 1.86 million in July, down 19.26% from a year earlier and well below the nation's peak inventory of 3.10 million units in Sept. 2007. The median age of the nation's inventory is hovering around 88 days, down 9.27% from last year, while the median list price hit $194,900, up 2.63%, Realtor.com said. Overall, list prices still remain well below their 2007 peak of $250,000. Rising or stable prices combined with lower inventory levels are generally a sign of a market in recovery mode, the report noted. Older industrialized parts of the U.S. economy continue to show signs of weakness when it comes to housing. On the other hand, for-sale inventories declined in most U.S. markets, except for Shreveport, Los Angeles and Pennsylvania. List prices grew in 91 of the 146 surveyed markets and declined in only 22 markets. "This pattern is in stark contrast to trends observed in July 2011, when median list prices were down -1% or more on an annual basis in 58 of the 146 markets covered by Realtor.com," the report noted.
URL to original article: http://www.housingwire.com/content/us-housing-inventory-falls-19-july-prices-slowly-rise
For further information on Fresno Real Estate check: http://www.londonproperties.com
The housing market is in recovery mode as evidenced by plummeting inventory levels and rising median prices, Realtor.com noted in its National & Local Market Trends report. The total number of single-family, condo, townhome and co-op listings hit 1.86 million in July, down 19.26% from a year earlier and well below the nation's peak inventory of 3.10 million units in Sept. 2007. The median age of the nation's inventory is hovering around 88 days, down 9.27% from last year, while the median list price hit $194,900, up 2.63%, Realtor.com said. Overall, list prices still remain well below their 2007 peak of $250,000. Rising or stable prices combined with lower inventory levels are generally a sign of a market in recovery mode, the report noted. Older industrialized parts of the U.S. economy continue to show signs of weakness when it comes to housing. On the other hand, for-sale inventories declined in most U.S. markets, except for Shreveport, Los Angeles and Pennsylvania. List prices grew in 91 of the 146 surveyed markets and declined in only 22 markets. "This pattern is in stark contrast to trends observed in July 2011, when median list prices were down -1% or more on an annual basis in 58 of the 146 markets covered by Realtor.com," the report noted.
URL to original article: http://www.housingwire.com/content/us-housing-inventory-falls-19-july-prices-slowly-rise
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, August 14, 2012
95% of refinancing borrowers select fixed-rate mortgages
Source: Housingwire
Borrowers refinancing home loans in the second quarter overwhelming chose fixed-rate mortgages even if they previously held variable-interest rate loans, Freddie Mac said in its Quarterly Product Transition Report. Of those borrowers refinancing out of hybrid ARMs, 81% moved into fixed-rate loans in 2Q, the highest transition from variable to fixed-rate loans since the second quarter of 2010. The remaining 19% chose to refinance into the same type of ARM product. Of those who refinanced, 30% managed to reduce their loan terms, while 67% kept the same terms. Only twenty-five percent of borrowers refinancing through the government's Home Affordable Refinance Program shortened the terms of their mortgages, while 30% of those refinancing outside of HARP managed to do so. Meanwhile, ninety-five percent of borrowers refinancing out of an ARM using HARP chose to transition to a fixed-rate mortgage. Much of the new refinancing activity was spurred along by low interest rates. "Fixed mortgage rates averaged 3.79% for 30-year loans and 3.04% for 15-year products during the second quarter in Freddie Mac's primary mortgage market survey," said Frank Nothaft, Freddie Mac's vice president and chief economist. "The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 5% percent during the second quarter of 2012. It's no wonder we continue to see strong refinance activity into fixed-rate loans."
URL to original article: http://www.housingwire.com/content/95-refinancing-borrowers-select-fixed-rate-mortgages
For further information on Fresno Real Estate check: http://www.londonproperties.com
Borrowers refinancing home loans in the second quarter overwhelming chose fixed-rate mortgages even if they previously held variable-interest rate loans, Freddie Mac said in its Quarterly Product Transition Report. Of those borrowers refinancing out of hybrid ARMs, 81% moved into fixed-rate loans in 2Q, the highest transition from variable to fixed-rate loans since the second quarter of 2010. The remaining 19% chose to refinance into the same type of ARM product. Of those who refinanced, 30% managed to reduce their loan terms, while 67% kept the same terms. Only twenty-five percent of borrowers refinancing through the government's Home Affordable Refinance Program shortened the terms of their mortgages, while 30% of those refinancing outside of HARP managed to do so. Meanwhile, ninety-five percent of borrowers refinancing out of an ARM using HARP chose to transition to a fixed-rate mortgage. Much of the new refinancing activity was spurred along by low interest rates. "Fixed mortgage rates averaged 3.79% for 30-year loans and 3.04% for 15-year products during the second quarter in Freddie Mac's primary mortgage market survey," said Frank Nothaft, Freddie Mac's vice president and chief economist. "The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 5% percent during the second quarter of 2012. It's no wonder we continue to see strong refinance activity into fixed-rate loans."
URL to original article: http://www.housingwire.com/content/95-refinancing-borrowers-select-fixed-rate-mortgages
For further information on Fresno Real Estate check: http://www.londonproperties.com
California: Dream or nightmare for renters?
Source: Housingwire
About 45% of California households are comprised of renters, but calling the state a renters' paradise is a stretch, considering many of its residents simply cannot afford homeownership, Local Market Monitor said in a new report. Local Market Monitor, a real estate data firm that reports on local and national trends, believes high home prices keep California renters from homeownership alternatives, feeding the state's reputation as a nonownership society. Making matters worse is California's glut of vacant properties due to the recent boom-bust cycle in real estate that left many foreclosures and underwater borrowers in its wake. Smaller inland markets took a substantial hit with units sitting vacant after speculators built up more affordable markets, leaving behind a glut of housing. California also lost 400,000 manufacturing jobs in the past 10 years and another 400,000 construction positions, hurting income levels throughout the state. Some of these employment numbers dissuade certain investors. "Unemployment is very high in much of the state, limiting the immediate opportunities for investors in rental properties," wrote Ingo Winzer with Local Market Monitor. "On the other hand, job growth has been strong in some markets, which will lead to stronger rental demand in the next couple of years. The best job growth in the past year has been in Stockton, Redding, Santa Cruz, San Jose, Salinas, Vallejo, San Francisco and Bakersfield."
URL to original article: http://www.housingwire.com/content/california-renters-dream-or-nightmare
For further information on Fresno Real Estate check: http://www.londonproperties.com
About 45% of California households are comprised of renters, but calling the state a renters' paradise is a stretch, considering many of its residents simply cannot afford homeownership, Local Market Monitor said in a new report. Local Market Monitor, a real estate data firm that reports on local and national trends, believes high home prices keep California renters from homeownership alternatives, feeding the state's reputation as a nonownership society. Making matters worse is California's glut of vacant properties due to the recent boom-bust cycle in real estate that left many foreclosures and underwater borrowers in its wake. Smaller inland markets took a substantial hit with units sitting vacant after speculators built up more affordable markets, leaving behind a glut of housing. California also lost 400,000 manufacturing jobs in the past 10 years and another 400,000 construction positions, hurting income levels throughout the state. Some of these employment numbers dissuade certain investors. "Unemployment is very high in much of the state, limiting the immediate opportunities for investors in rental properties," wrote Ingo Winzer with Local Market Monitor. "On the other hand, job growth has been strong in some markets, which will lead to stronger rental demand in the next couple of years. The best job growth in the past year has been in Stockton, Redding, Santa Cruz, San Jose, Salinas, Vallejo, San Francisco and Bakersfield."
URL to original article: http://www.housingwire.com/content/california-renters-dream-or-nightmare
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, August 10, 2012
Fresno home prices rise in June
Source: The Business Journal
Written by Business Journal Staff
Fresno home prices, including distressed sales, increased by 3.4 percent in June, compared to June 2011, according to CoreLogic, a provider of consumer, financial and property information based in Santa Ana. In May, Fresno’s home prices, including distressed sales, rose by 2.5 percent compared to May of last year. Excluding distressed sales, year-over-year prices for homes in Fresno increased by 3.3 percent in June, compared to June 2011 and by 2.9 percent in May 2012, compared to May one year ago. In the Hanford-Corcoran area home prices including distressed sales grow by 1.63 percent in June 2012, compared to June 2011. In the Madera-Chowchilla area, home prices including distressed sales jumped 10.46 percent in June, compared to the same month one year ago. In the Visalia-Porterville area home prices including distressed sales grew by a slim margin of .22 percent in June, compare to the same month in 2011. With distressed sales excluded, home prices fell by 1.14 percent in Hanford-Corcoran, while rising 1.09 percent in Madera-Chowchilla and 2.96 percent in Visalia-Porterville over the same one-year period. Nationwide, home prices, including distressed sales, grew by 2.5 percent in June, compared to June 2011. On a month-over-month basis, including distressed sales home prices increased by 1.3 percent in June 2012, compared to May 2012. The June 2012 figures mark the fourth consecutive increase in home prices nationally on both a year-over-year and month-over-month basis. “Home prices are responding positively to reductions in both visible and shadow inventory over the past year,” said Mark Fleming, chief economist for CoreLogic in a release. “This trend is a bright spot because the decline in shadow inventory translates to fewer distressed sales, which helps sustain price appreciation.” The CoreLogic home index survey found that the five states with the highest appreciation including distressed sales, were: Arizona at plus-13.8 percent, Idaho at plus-10.4 percent, South Dakota at plus-10.1 percent, Utah at Plus-8.3 percent and Wyoming at plus-7.7 percent.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/2843-fresno-home-prices-rise-in-june
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Business Journal Staff
Fresno home prices, including distressed sales, increased by 3.4 percent in June, compared to June 2011, according to CoreLogic, a provider of consumer, financial and property information based in Santa Ana. In May, Fresno’s home prices, including distressed sales, rose by 2.5 percent compared to May of last year. Excluding distressed sales, year-over-year prices for homes in Fresno increased by 3.3 percent in June, compared to June 2011 and by 2.9 percent in May 2012, compared to May one year ago. In the Hanford-Corcoran area home prices including distressed sales grow by 1.63 percent in June 2012, compared to June 2011. In the Madera-Chowchilla area, home prices including distressed sales jumped 10.46 percent in June, compared to the same month one year ago. In the Visalia-Porterville area home prices including distressed sales grew by a slim margin of .22 percent in June, compare to the same month in 2011. With distressed sales excluded, home prices fell by 1.14 percent in Hanford-Corcoran, while rising 1.09 percent in Madera-Chowchilla and 2.96 percent in Visalia-Porterville over the same one-year period. Nationwide, home prices, including distressed sales, grew by 2.5 percent in June, compared to June 2011. On a month-over-month basis, including distressed sales home prices increased by 1.3 percent in June 2012, compared to May 2012. The June 2012 figures mark the fourth consecutive increase in home prices nationally on both a year-over-year and month-over-month basis. “Home prices are responding positively to reductions in both visible and shadow inventory over the past year,” said Mark Fleming, chief economist for CoreLogic in a release. “This trend is a bright spot because the decline in shadow inventory translates to fewer distressed sales, which helps sustain price appreciation.” The CoreLogic home index survey found that the five states with the highest appreciation including distressed sales, were: Arizona at plus-13.8 percent, Idaho at plus-10.4 percent, South Dakota at plus-10.1 percent, Utah at Plus-8.3 percent and Wyoming at plus-7.7 percent.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/2843-fresno-home-prices-rise-in-june
For further information on Fresno Real Estate check: http://www.londonproperties.com
55+ market does some spry stepping
Source: NAHB EYE ON HOUSING
Builder Confidence in the 55+ Market Improves in the Second Quarter According to NAHB’s latest 55+ Housing Market Index (HMI) survey, builder confidence in the market for new 55+ single-family homes increased significantly in the second quarter of 2012. Compared to the same period a year ago, the 55+HMI for new single-family homes more than doubled from 13 to 29. (Because the survey results are not yet seasonally adjusted, numbers should only be compared year-over-year.) The 55+ single-family HMI measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic). An index number below 50 indicates that more builders view conditions as poor than good. The 55+ single-family HMI is a weighted averages of current sales, traffic and expected sales. Although the index components remain below the break-even point of 50, all have increased considerably from a year ago. Present sales more than doubled (from 12 to 30), while expected sales for the next six months increased 17 points to 35 and traffic of prospective buyers rose nine points to 22. Meanwhile, the 55+ multifamily rental indices recovered substantially last year, and are now holding steady: present production climbed three points to 31, expected future production increased three points to 32, current demand for existing units dropped one point to 42 and expected future demand decreased two points to 42. Buyers are likely returning to the 55+ housing market as home prices begin to improve, helping to unlock some of the pent-up demand from 55+ consumers who have been sitting on the sidelines until they are able to sell their current homes at a more favorable price.
URL to original article: http://eyeonhousing.wordpress.com/2012/08/09/builder-confidence-in-the-55-market-improves-in-the-second-quarter/
For further information on Fresno Real Estate check: http://www.londonproperties.com
Builder Confidence in the 55+ Market Improves in the Second Quarter According to NAHB’s latest 55+ Housing Market Index (HMI) survey, builder confidence in the market for new 55+ single-family homes increased significantly in the second quarter of 2012. Compared to the same period a year ago, the 55+HMI for new single-family homes more than doubled from 13 to 29. (Because the survey results are not yet seasonally adjusted, numbers should only be compared year-over-year.) The 55+ single-family HMI measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic). An index number below 50 indicates that more builders view conditions as poor than good. The 55+ single-family HMI is a weighted averages of current sales, traffic and expected sales. Although the index components remain below the break-even point of 50, all have increased considerably from a year ago. Present sales more than doubled (from 12 to 30), while expected sales for the next six months increased 17 points to 35 and traffic of prospective buyers rose nine points to 22. Meanwhile, the 55+ multifamily rental indices recovered substantially last year, and are now holding steady: present production climbed three points to 31, expected future production increased three points to 32, current demand for existing units dropped one point to 42 and expected future demand decreased two points to 42. Buyers are likely returning to the 55+ housing market as home prices begin to improve, helping to unlock some of the pent-up demand from 55+ consumers who have been sitting on the sidelines until they are able to sell their current homes at a more favorable price.
URL to original article: http://eyeonhousing.wordpress.com/2012/08/09/builder-confidence-in-the-55-market-improves-in-the-second-quarter/
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, August 9, 2012
Fresno-area gun stores doing brisk business
Written by Michael Kincheloe, The Business Journal
In the wake of the July 20 movie theater shooting in Colorado and with fall elections fast approaching, many Fresno-area gun storeowners are reporting that sales are on the rise. Gun sales generally spike after major tragedies, including the Sept. 11 terrorist attacks, the 2007 Virginia Tech shootings and the attempted assassination of Rep. Gabrielle Giffords in Tucson last year. Eli Smedley, general manager of PRK Arms in Fresno, saw an almost immediate rise in gun sales after the Colorado killings, which happened shortly after midnight on a Friday. “The Tuesday after that we did have a spike in sales,” said Smedley, whose store is closed Sundays and Mondays. “I can’t say that it is in response to what happened, but it appeared so.” Fresno Firearms owner Marylyn Panek has seen an increase in customers, but not as a result of the movie theater massacre. Panek’s firearm sales have been swelling due to the fact that President Obama is campaigning for re-election. “It’s been going up since the election is coming up — same problem as four years ago,” Panek said. “A lot of them are thinking that Obama will bring back the ban on guns that can use high-capacity magazines.” The Public Safety and Recreational Firearms Use Protection Act of 1994 banned some semi-automatic weapons as well as magazines designed to hold more than 10 rounds. Sometimes called the “assault weapons” ban, the law took effect in September 1994 and expired 10 years later. There have been several attempts to restore the ban, but none have been successful. New gun restrictions are currently being debated in the state legislature. Smedley said that his customers are concerned about SB 249, a bill proposed by Sen. Leland Yee that would ban semi-automatic rifles from having easily interchangeable magazines. Yee says that while most gun owners are law-abiding, he is concerned about these weapons getting into the wrong hands and resulting in mass casualties of civilians or law enforcement officers. “With the political climate in California, gun sales are going up,” Smedley said. He agrees with Panek about the upcoming elections in November. “Any time there’s an election, there’s a spike in gun sales,” Smedley said. Nathan Green, owner of Central Valley Gun Sales in Selma, said that many of his customers purchase firearms for home protection. He sees quite a few repeat customers, especially those buying ammunition. “They’re pretty steady,” Green said of his ammo customers. “We sell pretty much everything we get from wholesalers.” More people are purchasing ammo these days, especially when they can buy it in volume, Panek said. She doesn’t sell ammunition in bulk, but many gun show vendors do. A gun show is planned at the Fresno County Fairgrounds and begins Sept. 15. “People at gun shows are spending $3,000 to $5,000 on bulk ammo because they don’t have to pay shipping like they would if they bought it online,” Panek said. The Fresno County Jail’s current policy of releasing inmates early due to overcrowding has caused a certain amount of apprehension among many of Smedley’s customers. “People are concerned for their safety,” he said. Smedley said that on the Tuesday following the Colorado shooting, PRK Arms had approximately 100 customers — a typical number — but there were a higher number of purchases. “Whenever there’s some crazy guy gunning people down, people feel the need for protection,” Smedley said.
URL to original article: http://www.thebusinessjournal.com/news/retail/2883-fresno-area-gun-stores-doing-brisk-business
For further information on Fresno Real Estate check: http://www.londonproperties.com
In the wake of the July 20 movie theater shooting in Colorado and with fall elections fast approaching, many Fresno-area gun storeowners are reporting that sales are on the rise. Gun sales generally spike after major tragedies, including the Sept. 11 terrorist attacks, the 2007 Virginia Tech shootings and the attempted assassination of Rep. Gabrielle Giffords in Tucson last year. Eli Smedley, general manager of PRK Arms in Fresno, saw an almost immediate rise in gun sales after the Colorado killings, which happened shortly after midnight on a Friday. “The Tuesday after that we did have a spike in sales,” said Smedley, whose store is closed Sundays and Mondays. “I can’t say that it is in response to what happened, but it appeared so.” Fresno Firearms owner Marylyn Panek has seen an increase in customers, but not as a result of the movie theater massacre. Panek’s firearm sales have been swelling due to the fact that President Obama is campaigning for re-election. “It’s been going up since the election is coming up — same problem as four years ago,” Panek said. “A lot of them are thinking that Obama will bring back the ban on guns that can use high-capacity magazines.” The Public Safety and Recreational Firearms Use Protection Act of 1994 banned some semi-automatic weapons as well as magazines designed to hold more than 10 rounds. Sometimes called the “assault weapons” ban, the law took effect in September 1994 and expired 10 years later. There have been several attempts to restore the ban, but none have been successful. New gun restrictions are currently being debated in the state legislature. Smedley said that his customers are concerned about SB 249, a bill proposed by Sen. Leland Yee that would ban semi-automatic rifles from having easily interchangeable magazines. Yee says that while most gun owners are law-abiding, he is concerned about these weapons getting into the wrong hands and resulting in mass casualties of civilians or law enforcement officers. “With the political climate in California, gun sales are going up,” Smedley said. He agrees with Panek about the upcoming elections in November. “Any time there’s an election, there’s a spike in gun sales,” Smedley said. Nathan Green, owner of Central Valley Gun Sales in Selma, said that many of his customers purchase firearms for home protection. He sees quite a few repeat customers, especially those buying ammunition. “They’re pretty steady,” Green said of his ammo customers. “We sell pretty much everything we get from wholesalers.” More people are purchasing ammo these days, especially when they can buy it in volume, Panek said. She doesn’t sell ammunition in bulk, but many gun show vendors do. A gun show is planned at the Fresno County Fairgrounds and begins Sept. 15. “People at gun shows are spending $3,000 to $5,000 on bulk ammo because they don’t have to pay shipping like they would if they bought it online,” Panek said. The Fresno County Jail’s current policy of releasing inmates early due to overcrowding has caused a certain amount of apprehension among many of Smedley’s customers. “People are concerned for their safety,” he said. Smedley said that on the Tuesday following the Colorado shooting, PRK Arms had approximately 100 customers — a typical number — but there were a higher number of purchases. “Whenever there’s some crazy guy gunning people down, people feel the need for protection,” Smedley said.
URL to original article: http://www.thebusinessjournal.com/news/retail/2883-fresno-area-gun-stores-doing-brisk-business
For further information on Fresno Real Estate check: http://www.londonproperties.com
Mortgage rates continue upward
Source: Housingwire
By Justin T. Hilley
Mortgage rates continued upward after reports showed unexpected employment gains in July. The Freddie Mac survey showed the 30-year, fixed-rate mortgage averaged 3.59% for the week ending Thursday, up from last week’s rise to 3.55%. Last year at this time, the 30-year FRM averaged 4.32%. It’s the second straight week the average rate on the 30-year FRM rose after falling or matching record-low levels in 13 of the previous 14 weeks. The 15-year FRM, a popular refinancing choice, averaged 2.84%, inching up from last week‘s record low of 2.83%. A year ago, the average rate for a 15-year FRM was 3.5%. Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.77%, up from 2.75% last week and falling from 3.13% a year earlier. And one-year, Treasury-indexed ARMs averaged 2.65%, down from last week’s 2.7% and down from 2.89 % last year. Freddie Mac Chief Economist Frank Nothaft attributed the increased rates to the addition of 163,000 jobs to the U.S economy in July, well above the market consensus forecast of 100,000. It’s the largest increase since February. The number of announced corporate layoffs fell 45% in July throughout the previous 12 months. It’s the third time this year that announced layoffs were less than the same month in 2011, according to The Challenger Report. “This suggests further net gains in employment are likely in the near future,” Nothaft said. Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM rose to 3.81% from 3.77%, while the 15-year FRM ticked up to 3% from 2.99%. The 5/1 ARM increased stayed at 2.91% for the week.
URL to original article: http://www.housingwire.com/news/mortgage-rates-continue-upward-movement
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Justin T. Hilley
Mortgage rates continued upward after reports showed unexpected employment gains in July. The Freddie Mac survey showed the 30-year, fixed-rate mortgage averaged 3.59% for the week ending Thursday, up from last week’s rise to 3.55%. Last year at this time, the 30-year FRM averaged 4.32%. It’s the second straight week the average rate on the 30-year FRM rose after falling or matching record-low levels in 13 of the previous 14 weeks. The 15-year FRM, a popular refinancing choice, averaged 2.84%, inching up from last week‘s record low of 2.83%. A year ago, the average rate for a 15-year FRM was 3.5%. Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.77%, up from 2.75% last week and falling from 3.13% a year earlier. And one-year, Treasury-indexed ARMs averaged 2.65%, down from last week’s 2.7% and down from 2.89 % last year. Freddie Mac Chief Economist Frank Nothaft attributed the increased rates to the addition of 163,000 jobs to the U.S economy in July, well above the market consensus forecast of 100,000. It’s the largest increase since February. The number of announced corporate layoffs fell 45% in July throughout the previous 12 months. It’s the third time this year that announced layoffs were less than the same month in 2011, according to The Challenger Report. “This suggests further net gains in employment are likely in the near future,” Nothaft said. Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM rose to 3.81% from 3.77%, while the 15-year FRM ticked up to 3% from 2.99%. The 5/1 ARM increased stayed at 2.91% for the week.
URL to original article: http://www.housingwire.com/news/mortgage-rates-continue-upward-movement
For further information on Fresno Real Estate check: http://www.londonproperties.com
RealtyTrac: Foreclosure filings fall 3% in July, down 10% from a year ago
Source: Housingwire
By Kerri Ann Panchuk
Foreclosure filings on U.S. properties declined 3% from June to July, with 191,925 properties facing a notice last month, RealtyTrac said Thursday. Filings also declined 10% from year-ago levels. The falling foreclosure activity levels are attributed to a 21% year-over-year drop in bank repossessions and REOs, according to the Irvine, Calif.-based research firm. Still, RealtyTrac says 27 states saw starts increase year-over-year. Starts went up the most in the judicial foreclosure states of Connecticut (201% increase); New Jersey (164% increase); Pennsylvania (139%); Indiana (83%); and Massachusetts (65%). "U.S. foreclosure activity continued its uneven descent in July as the overall numbers declined on an annual basis for the 22nd straight month, but properties starting the foreclosure process increased on an annual basis for the third straight month," said Daren Blomquist, vice president of RealtyTrac. "Recent foreclosure activity patterns vary significantly from state to state, often hinging on the level of dysfunction that exists in each state’s foreclosure process. In states like Florida, Illinois and New Jersey, where processing and procedural issues slowed foreclosure activity to a crawl last year, foreclosure numbers continue to rebound off those artificially low levels." In nonjudicial foreclosure states such as Texas, Arizona and Virginia, the average foreclosure time is well below the national average of 378 days and foreclosure activity continues to fall. Blomquist suggests recent legislation and court decisions could lengthen the foreclosure process in some of the states. "Case in point is a new Oregon law that took effect in July and gives homeowners in default — or at risk of default — the right to request mediation to avoid foreclosure," Blomquist said. "Oregon foreclosure activity dropped 42% from June to July, hitting a five-year low, but we would expect the Oregon numbers to trend back higher sometime in the next several months based on the pattern we’ve seen in other states with similar legislation."
URL to original article: http://www.housingwire.com/news/foreclosure-filings-fall-3-july
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
Foreclosure filings on U.S. properties declined 3% from June to July, with 191,925 properties facing a notice last month, RealtyTrac said Thursday. Filings also declined 10% from year-ago levels. The falling foreclosure activity levels are attributed to a 21% year-over-year drop in bank repossessions and REOs, according to the Irvine, Calif.-based research firm. Still, RealtyTrac says 27 states saw starts increase year-over-year. Starts went up the most in the judicial foreclosure states of Connecticut (201% increase); New Jersey (164% increase); Pennsylvania (139%); Indiana (83%); and Massachusetts (65%). "U.S. foreclosure activity continued its uneven descent in July as the overall numbers declined on an annual basis for the 22nd straight month, but properties starting the foreclosure process increased on an annual basis for the third straight month," said Daren Blomquist, vice president of RealtyTrac. "Recent foreclosure activity patterns vary significantly from state to state, often hinging on the level of dysfunction that exists in each state’s foreclosure process. In states like Florida, Illinois and New Jersey, where processing and procedural issues slowed foreclosure activity to a crawl last year, foreclosure numbers continue to rebound off those artificially low levels." In nonjudicial foreclosure states such as Texas, Arizona and Virginia, the average foreclosure time is well below the national average of 378 days and foreclosure activity continues to fall. Blomquist suggests recent legislation and court decisions could lengthen the foreclosure process in some of the states. "Case in point is a new Oregon law that took effect in July and gives homeowners in default — or at risk of default — the right to request mediation to avoid foreclosure," Blomquist said. "Oregon foreclosure activity dropped 42% from June to July, hitting a five-year low, but we would expect the Oregon numbers to trend back higher sometime in the next several months based on the pattern we’ve seen in other states with similar legislation."
URL to original article: http://www.housingwire.com/news/foreclosure-filings-fall-3-july
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, August 8, 2012
Big Fresno Fair job fair Aug. 15
Source: The Business Journal
The Big Fresno Fair will hold its 2nd annual job fair from 9 a.m. to 2 p.m. Aug. 15 for people interested in working at the fair. Department supervisors will accept applications to fill nearly 800 positions for the 2012 Big Fresno Fair. Available positions include ticket sellers and takers, parking attendants, customer service representatives, janitorial staff, office workers, barn crew attendants, horse racing and carnival staff and security guards. Fair management and department supervisors are seeking people with a strong work ethic and a high level of customer service who want to be part of the Central Valley’s largest annual event. Interested applicants must bring their photo identification and a social security card to apply. The Big Fresno Fair hires between 800 and 1,000 people each year to work at the event. “We are looking for top-notch workers who believe in keeping The Big Fresno Fair a place where families can expect superior customer service,” said John Alkire, chief executive officer of the fair in a release. “Our goal with the job fair is to create a greater level of awareness among Central Valley residents that these job opportunities exist at The Big Fresno Fair.” The fair, the fifth largest in California, runs from Oct. 3-14. Applications will be available to fill out on-site. Additional information can be found at www.fresnofair.com/fairgrounds-employment
URL to original article: http://www.thebusinessjournal.com/news/employment/2852-big-fresno-fair-job-fair-aug-15
For further information on Fresno Real Estate check: http://www.londonproperties.com
The Big Fresno Fair will hold its 2nd annual job fair from 9 a.m. to 2 p.m. Aug. 15 for people interested in working at the fair. Department supervisors will accept applications to fill nearly 800 positions for the 2012 Big Fresno Fair. Available positions include ticket sellers and takers, parking attendants, customer service representatives, janitorial staff, office workers, barn crew attendants, horse racing and carnival staff and security guards. Fair management and department supervisors are seeking people with a strong work ethic and a high level of customer service who want to be part of the Central Valley’s largest annual event. Interested applicants must bring their photo identification and a social security card to apply. The Big Fresno Fair hires between 800 and 1,000 people each year to work at the event. “We are looking for top-notch workers who believe in keeping The Big Fresno Fair a place where families can expect superior customer service,” said John Alkire, chief executive officer of the fair in a release. “Our goal with the job fair is to create a greater level of awareness among Central Valley residents that these job opportunities exist at The Big Fresno Fair.” The fair, the fifth largest in California, runs from Oct. 3-14. Applications will be available to fill out on-site. Additional information can be found at www.fresnofair.com/fairgrounds-employment
URL to original article: http://www.thebusinessjournal.com/news/employment/2852-big-fresno-fair-job-fair-aug-15
For further information on Fresno Real Estate check: http://www.londonproperties.com
Freddie Mac: Threat of shadow inventory subsides, home prices rise
Source: Housingwire
By Kerri Ann Panchuk
It's often feared a shadow inventory of homes will flood the housing market derailing the fragile recovery that some now believe is under way. But a new report from Freddie Mac says this view may be too pessimistic given today's rising home prices and falling REO levels.
While the real estate market has its share of distressed loans and assets looming on the sidelines, the nation's excess supply of vacant properties continues to fall, simultaneously making room for more REO absorption, Freddie said in its August "U.S. Economic & Housing Market Outlook" report.
"This continuing shrinkage in excess vacant stock is important because it means that in most markets the REO homes on the for-sale market are not competing with an oversized vacant housing inventory," the government-sponsored enterprise asserted in its report. "Thus, REO homes may be more attractive to investors and first-time buyers because fewer vacant homes are available, and REO sales will have less effect on other home sales or home values. "
The rental vacancy rate alone fell to 8.6% in the latest Freddie report, its lowest point since 2002. The for-sale vacancy rate also declined to 2.1%, a six-year low. The market also is seeing fewer REOs with CoreLogic's sales database revealing that REO sales made up only 13.5% of all May sales, their lowest share in four years.
The good news is a smaller supply of REOs can buoy home prices. That trend is already occurring with Freddie's home price index rising 4.8% from March to June, the largest quarterly increase in 8 years. The national index also posted a year-over-year gain of 1%.
Thirty-four states and the District of Columbia saw home values rise during the 12-month period leading up to June 2012, the largest number of states with positive annual appreciation in five years.
Just a few years ago, the nation faced an "unprecedented oversupply of housing stock," Freddie said. But with homebuilding suppressed for years and more households finally forming, a great deal of that excess inventory has already been absorbed, the GSE said.
URL to original article: http://www.housingwire.com/news/freddie-mac-threat-shadow-inventory-subsides-home-prices-rise
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
It's often feared a shadow inventory of homes will flood the housing market derailing the fragile recovery that some now believe is under way. But a new report from Freddie Mac says this view may be too pessimistic given today's rising home prices and falling REO levels.
While the real estate market has its share of distressed loans and assets looming on the sidelines, the nation's excess supply of vacant properties continues to fall, simultaneously making room for more REO absorption, Freddie said in its August "U.S. Economic & Housing Market Outlook" report.
"This continuing shrinkage in excess vacant stock is important because it means that in most markets the REO homes on the for-sale market are not competing with an oversized vacant housing inventory," the government-sponsored enterprise asserted in its report. "Thus, REO homes may be more attractive to investors and first-time buyers because fewer vacant homes are available, and REO sales will have less effect on other home sales or home values. "
The rental vacancy rate alone fell to 8.6% in the latest Freddie report, its lowest point since 2002. The for-sale vacancy rate also declined to 2.1%, a six-year low. The market also is seeing fewer REOs with CoreLogic's sales database revealing that REO sales made up only 13.5% of all May sales, their lowest share in four years.
The good news is a smaller supply of REOs can buoy home prices. That trend is already occurring with Freddie's home price index rising 4.8% from March to June, the largest quarterly increase in 8 years. The national index also posted a year-over-year gain of 1%.
Thirty-four states and the District of Columbia saw home values rise during the 12-month period leading up to June 2012, the largest number of states with positive annual appreciation in five years.
Just a few years ago, the nation faced an "unprecedented oversupply of housing stock," Freddie said. But with homebuilding suppressed for years and more households finally forming, a great deal of that excess inventory has already been absorbed, the GSE said.
URL to original article: http://www.housingwire.com/news/freddie-mac-threat-shadow-inventory-subsides-home-prices-rise
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, August 6, 2012
To strategically default or not? That is the question
Source: Housingwire
The housing crisis brought several new words into the American lexicon, including the oft used phrase "strategic default." But is the strategic default option worth it for homeowners who are underwater and might be risking their credit histories to break free? That question remains one of Shakespearian proportions, with the answer to the "default or not to default" question often depending on whom you ask. In the foreclosure-challenged state of Nevada, 45% of Nevadans surveyed said there is nothing wrong with strategic default, according to the Nevada Association of Realtors, which issued the report. An equal number disagreed, saying they have a problem with the idea. "This year's report shows it's more socially acceptable to strategically default on your mortgage. I hope banks and government leaders will look at this to help them get ahead of these issues," NVAR's president Blane Johnson said. At the same time, Nevada citizens are less optimistic about government intervention to help distressed borrowers. Only 9% of those facing a foreclosure and only 10% of all the state citizens surveyed believe foreclosure prevention programs have actually helped. Despite low levels of confidence, 55% of Nevadans think government still has a key role to play in addressing the problem. Johnson believes government officials and financial institutions should get ahead of future strategic defaults by working harder to streamline and encourage short sales as well as other loss-mitigation strategies. Even if strategic default makes financial sense, economists and homeowners showed reluctance to pull the plug on an underwater property in the most recent Zillow Home Price Expectations Survey from Zillow and Pulsenomics. Seventy-one percent of the economists interviewed said they would not strategically default even if they owed at least 40% more than their home's current worth. Fifty-nine percent of the homeowners interviewed also said they would not strategically default in the same situation. About 37% of those homeowners cited moral reasons, while another 35% said it didn't make sense because they intended to stay in their current property for a long time. "We were initially surprised that so few economists would be willing to strategically default, since when you do the math, it can often be the best economic choice, if you leave aside moral and ethical considerations," said Zillow Chief Economist Stan Humphries. "Of course, strategic default is not just a mathematical decision. The most common reason for avoiding strategic default cited by homeowners was that it is a moral issue. That likely comes into play with economists and analysts, as well."
URL to original article: http://www.housingwire.com/rewired/strategically-default-or-not-question
For further information on Fresno Real Estate check: http://www.londonproperties.com
The housing crisis brought several new words into the American lexicon, including the oft used phrase "strategic default." But is the strategic default option worth it for homeowners who are underwater and might be risking their credit histories to break free? That question remains one of Shakespearian proportions, with the answer to the "default or not to default" question often depending on whom you ask. In the foreclosure-challenged state of Nevada, 45% of Nevadans surveyed said there is nothing wrong with strategic default, according to the Nevada Association of Realtors, which issued the report. An equal number disagreed, saying they have a problem with the idea. "This year's report shows it's more socially acceptable to strategically default on your mortgage. I hope banks and government leaders will look at this to help them get ahead of these issues," NVAR's president Blane Johnson said. At the same time, Nevada citizens are less optimistic about government intervention to help distressed borrowers. Only 9% of those facing a foreclosure and only 10% of all the state citizens surveyed believe foreclosure prevention programs have actually helped. Despite low levels of confidence, 55% of Nevadans think government still has a key role to play in addressing the problem. Johnson believes government officials and financial institutions should get ahead of future strategic defaults by working harder to streamline and encourage short sales as well as other loss-mitigation strategies. Even if strategic default makes financial sense, economists and homeowners showed reluctance to pull the plug on an underwater property in the most recent Zillow Home Price Expectations Survey from Zillow and Pulsenomics. Seventy-one percent of the economists interviewed said they would not strategically default even if they owed at least 40% more than their home's current worth. Fifty-nine percent of the homeowners interviewed also said they would not strategically default in the same situation. About 37% of those homeowners cited moral reasons, while another 35% said it didn't make sense because they intended to stay in their current property for a long time. "We were initially surprised that so few economists would be willing to strategically default, since when you do the math, it can often be the best economic choice, if you leave aside moral and ethical considerations," said Zillow Chief Economist Stan Humphries. "Of course, strategic default is not just a mathematical decision. The most common reason for avoiding strategic default cited by homeowners was that it is a moral issue. That likely comes into play with economists and analysts, as well."
URL to original article: http://www.housingwire.com/rewired/strategically-default-or-not-question
For further information on Fresno Real Estate check: http://www.londonproperties.com
Mortgage closing costs drop 7% over 12-month period
Source: Housingwire
Closing costs on mortgage transactions fell 7% over the past year, hitting $3,754 in the latest closing costs survey reported by Bankrate.com. Comparatively, the average tally of origination and title fees in a mid-2011 Bankrate survey hit $4,070 for mortgages in the $200,000 range. Title insurance and other third-party fees also declined 12% from 2011. "This is the second year in which lenders are required to estimate third-party fees within 10% of the final cost. It seems like they're getting more accurate, which helps explain the sharp decrease in these fees over the past year," said Greg McBride, Bankrate.com's senior financial analyst. "The main lesson of this survey for consumers is to shop around for at least three different estimates. While no one is going to move to a new state just because closing costs are lower, it's important for people to realize that there is variation even within their neighborhood, and that they can save by being an educated consumer." New York has the most expensive closings costs with the average tally coming in at $5,435. Texas, Pennsylvania, Florida and Oklahoma also have high closing costs. Meanwhile, Missouri is the least expensive with closing costs hitting $3,006 on average.
URL to original article: http://www.housingwire.com/content/mortgage-closing-costs-drop-7-over-12-month-period
For further information on Fresno Real Estate check: http://www.londonproperties.com
Closing costs on mortgage transactions fell 7% over the past year, hitting $3,754 in the latest closing costs survey reported by Bankrate.com. Comparatively, the average tally of origination and title fees in a mid-2011 Bankrate survey hit $4,070 for mortgages in the $200,000 range. Title insurance and other third-party fees also declined 12% from 2011. "This is the second year in which lenders are required to estimate third-party fees within 10% of the final cost. It seems like they're getting more accurate, which helps explain the sharp decrease in these fees over the past year," said Greg McBride, Bankrate.com's senior financial analyst. "The main lesson of this survey for consumers is to shop around for at least three different estimates. While no one is going to move to a new state just because closing costs are lower, it's important for people to realize that there is variation even within their neighborhood, and that they can save by being an educated consumer." New York has the most expensive closings costs with the average tally coming in at $5,435. Texas, Pennsylvania, Florida and Oklahoma also have high closing costs. Meanwhile, Missouri is the least expensive with closing costs hitting $3,006 on average.
URL to original article: http://www.housingwire.com/content/mortgage-closing-costs-drop-7-over-12-month-period
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, August 2, 2012
Index: Economy growing at 'unspectacular pace'
Source: The Business Journal
Written by Business Journal staff
Economic growth slowed once again in July in the San Joaquin Valley but is still positive, according to the San Joaquin Valley Business Conditions Index, released on Wednesday by the Craig School of Business at Fresno State. The overall index dropped last month to 51.6 from 55.4 in June. The employment index posted almost identical numbers, as that decreased to 51.3 from 55.4 in June. “The area has been adding jobs at a slow and unspectacular pace for the last several months,” said Ernie Goss, the research associate heading the monthly report, in a release. “Our index points to a continuation of this positive trend. Both durable and non-durable manufacturing firms are expanding. Food processing is experiencing solid job additions.” Business confidence fell dramatically to a discouraging 39.5 — 10 full points lower than its 49.5 June index. The trade index didn’t fare much better, as it went from 67.7 in June to 44.6 in July. The inventories index maintained its 60.4 index. “An inventory index above growth neutral is an indicator of an improving outlook by businesses. Businesses are adding to inventories in anticipation of growth in sales and production in the months ahead,” Goss said.
URL to original article: http://www.thebusinessjournal.com/news/economy/2780-index-economy-growing-at-unspectacular-pace
For further information on Fresno Real Estate check: http://www.londonproperties.com
Written by Business Journal staff
Economic growth slowed once again in July in the San Joaquin Valley but is still positive, according to the San Joaquin Valley Business Conditions Index, released on Wednesday by the Craig School of Business at Fresno State. The overall index dropped last month to 51.6 from 55.4 in June. The employment index posted almost identical numbers, as that decreased to 51.3 from 55.4 in June. “The area has been adding jobs at a slow and unspectacular pace for the last several months,” said Ernie Goss, the research associate heading the monthly report, in a release. “Our index points to a continuation of this positive trend. Both durable and non-durable manufacturing firms are expanding. Food processing is experiencing solid job additions.” Business confidence fell dramatically to a discouraging 39.5 — 10 full points lower than its 49.5 June index. The trade index didn’t fare much better, as it went from 67.7 in June to 44.6 in July. The inventories index maintained its 60.4 index. “An inventory index above growth neutral is an indicator of an improving outlook by businesses. Businesses are adding to inventories in anticipation of growth in sales and production in the months ahead,” Goss said.
URL to original article: http://www.thebusinessjournal.com/news/economy/2780-index-economy-growing-at-unspectacular-pace
For further information on Fresno Real Estate check: http://www.londonproperties.com
People still want to buy homes: Fannie Mae
Source: Housingwire
By Kerri Ann Panchuk
An overwhelming 85% of Americans prefer homeownership over renting, Fannie Mae said in a new study. However, while this remains the prevalent attitude, economic realities still keep many from actualizing this dream.
Demographics such as income, age, marital status and employment status are still considered significant drivers in the decision of buying a home or renting, Fannie found that beliefs about housing help determine whether Americans intend to rent or buy their next residence.
"The whole world thinks about underwriting or what's my income (when evaluating the homebuying decision), but what is driving consumers seems to fall more in this attitudinal world," said Steve Deggendorf, one of the authors of the study. "People are thinking about this process (of buying a home) as being very deliberate, but with most people it is complex." He even describes it as emotional, and in most cases, employing a series of subjective and objective beliefs on the consumer's part.
Fannie produced the national housing survey based on feedback from 12,014 interviews that occurred in 2011.
When looking at feedback from Americans who already have a mortgage, 40% cited attitudes about finances—such as the ease of getting a mortgage, affordability, homeownership benefits and financial stressors—as drivers that will shape whether they buy or rent their next property. About 39% of homeowners in the same group cite attitudes about housing as influencing their next move, while 21% say demographics such as income, age, marital status, employment, race or urbanicity will be primary drivers of their next decision.
"Traditionally people tend to focus on demographics and the underwriting process," said Li-Ning Huang, product manager and one of the report's authors. "But everybody's situation is different and for some current mortgage owners, the top driver is whether they can afford a new mortgage or are they qualified."
The key drivers of homeownership change when analyzing the responses of Americans who are currently renters. With this group, the majority — or 42% — suggest attitudes about housing such as whether renting or owning makes more sense, flexibility, good or bad market timing, negative experiences and underwater status — are driving whether they rent or own their next residence. Thirty-three percent of current renters say demographics like employment, age, income and marital status also are important homeownership drivers, while only 25% cite financial attitudes as having an impact on their next housing decision.
Sixty-five percent of homeowners who own their homes outright are driven by demographic considerations such as employment, income and age. Only 17% of these homeowners cite their attitudes toward housing as a driver behind their housing decisions, while only 19% consider financial concerns as the main driver.
The takeaway from the study, according to Deggendorf, is that "for a large number of people, emotions rule." He added, "We need to think about how they approach the housing decision and think about the kind of help that they may need (in the process)."
Even in the wake of a financial crisis with many homeowners underwater, the number of survey respondents who cite the negative financial effects of the housing crash as key drivers of their next housing decision is minimal, according to Fannie's research team.
"We asked people whether they have ever been underwater or have been thinking about delinquencies," Deggendorf said. "Those factors did not rise to the top of the list. It is very interesting to see those were not big drivers of the homeownership or rental decision."
What's keeping homeownership alive is the fact that it's not a stock or bond, but something desirable for individuals and families to live in even without a significant return on investment. "The nonfinancial benefits that people derive from the consumption of housing mitigate the negative financial experiences that many homeowners have had," said Deggendorf.
Still, Deggendorf and Huang believe the report suggests real estate professionals need to address the underlying attitudes that drive homebuyer decisions.
"If we helped people understand these attitudes that are driving their decision-making process, it would help them make better housing decisions," he said.
Rather than just having consumers chase the home they dream about, a more conscious, direct approach would be to help them balance their wants against what they can afford, Deggendorf and Huang said. The research team says it's important to educate and inform potential homebuyers since many of them may be ignoring their ability to safely buy a home, while others are potentially overbuying by listening more to their emotional desires.
Fannie's research team believes prudential regulators also should be informed of the attitudes shaping homeownership to ensure any steps they take are in line with the consumer population.
The good news is homeownership as a goal for Americans hasn't changed in the past six years.
"Our study shows that the negative housing events of the past few years have not discouraged people from wanting to own a home," the Fannie study concluded. "Exposure to mortgage default, perceived home value appreciation/depreciation, and self-reported underwater status are not significant factors in the models in predicting individuals’ intentions to own a home for their next move."
URL to original article: http://www.housingwire.com/news/demographics-alone-do-not-shape-homeownership-demand-fannie
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
An overwhelming 85% of Americans prefer homeownership over renting, Fannie Mae said in a new study. However, while this remains the prevalent attitude, economic realities still keep many from actualizing this dream.
Demographics such as income, age, marital status and employment status are still considered significant drivers in the decision of buying a home or renting, Fannie found that beliefs about housing help determine whether Americans intend to rent or buy their next residence.
"The whole world thinks about underwriting or what's my income (when evaluating the homebuying decision), but what is driving consumers seems to fall more in this attitudinal world," said Steve Deggendorf, one of the authors of the study. "People are thinking about this process (of buying a home) as being very deliberate, but with most people it is complex." He even describes it as emotional, and in most cases, employing a series of subjective and objective beliefs on the consumer's part.
Fannie produced the national housing survey based on feedback from 12,014 interviews that occurred in 2011.
When looking at feedback from Americans who already have a mortgage, 40% cited attitudes about finances—such as the ease of getting a mortgage, affordability, homeownership benefits and financial stressors—as drivers that will shape whether they buy or rent their next property. About 39% of homeowners in the same group cite attitudes about housing as influencing their next move, while 21% say demographics such as income, age, marital status, employment, race or urbanicity will be primary drivers of their next decision.
"Traditionally people tend to focus on demographics and the underwriting process," said Li-Ning Huang, product manager and one of the report's authors. "But everybody's situation is different and for some current mortgage owners, the top driver is whether they can afford a new mortgage or are they qualified."
The key drivers of homeownership change when analyzing the responses of Americans who are currently renters. With this group, the majority — or 42% — suggest attitudes about housing such as whether renting or owning makes more sense, flexibility, good or bad market timing, negative experiences and underwater status — are driving whether they rent or own their next residence. Thirty-three percent of current renters say demographics like employment, age, income and marital status also are important homeownership drivers, while only 25% cite financial attitudes as having an impact on their next housing decision.
Sixty-five percent of homeowners who own their homes outright are driven by demographic considerations such as employment, income and age. Only 17% of these homeowners cite their attitudes toward housing as a driver behind their housing decisions, while only 19% consider financial concerns as the main driver.
The takeaway from the study, according to Deggendorf, is that "for a large number of people, emotions rule." He added, "We need to think about how they approach the housing decision and think about the kind of help that they may need (in the process)."
Even in the wake of a financial crisis with many homeowners underwater, the number of survey respondents who cite the negative financial effects of the housing crash as key drivers of their next housing decision is minimal, according to Fannie's research team.
"We asked people whether they have ever been underwater or have been thinking about delinquencies," Deggendorf said. "Those factors did not rise to the top of the list. It is very interesting to see those were not big drivers of the homeownership or rental decision."
What's keeping homeownership alive is the fact that it's not a stock or bond, but something desirable for individuals and families to live in even without a significant return on investment. "The nonfinancial benefits that people derive from the consumption of housing mitigate the negative financial experiences that many homeowners have had," said Deggendorf.
Still, Deggendorf and Huang believe the report suggests real estate professionals need to address the underlying attitudes that drive homebuyer decisions.
"If we helped people understand these attitudes that are driving their decision-making process, it would help them make better housing decisions," he said.
Rather than just having consumers chase the home they dream about, a more conscious, direct approach would be to help them balance their wants against what they can afford, Deggendorf and Huang said. The research team says it's important to educate and inform potential homebuyers since many of them may be ignoring their ability to safely buy a home, while others are potentially overbuying by listening more to their emotional desires.
Fannie's research team believes prudential regulators also should be informed of the attitudes shaping homeownership to ensure any steps they take are in line with the consumer population.
The good news is homeownership as a goal for Americans hasn't changed in the past six years.
"Our study shows that the negative housing events of the past few years have not discouraged people from wanting to own a home," the Fannie study concluded. "Exposure to mortgage default, perceived home value appreciation/depreciation, and self-reported underwater status are not significant factors in the models in predicting individuals’ intentions to own a home for their next move."
URL to original article: http://www.housingwire.com/news/demographics-alone-do-not-shape-homeownership-demand-fannie
For further information on Fresno Real Estate check: http://www.londonproperties.com
Jobless claims rise to 365,000
Source: Housingwire
Unemployment insurance claims filed by American workers grew to 365,000 filings for the week ending July 28, an increase of 8,000 claims from a week earlier, the Labor Department said. Revised figures for the previous week put jobless claims at 357,000 filings. Meanwhile, the 4-week moving average hit 365,500, a decline of 2,750 claims from the previous week. About 47 economists surveyed by Bloomberg News projected jobless claims for the recent week would rise to 370,000, according to the news agency. Econoday analysts also were not surprised by the data and showed little distress over the uptick in their analysis. "Initial jobless claims rose 8,000 in the July 28 week in what is the smallest change after three weeks of severe volatility tied to adjustment for summer auto retooling," Econoday wrote. "The latest level of 365,000 is right in line with the 4-week average of 365,500 which offers an interesting gauge for the full-month July to June comparison, and this comparison, which is down more than 20,000 from the late June average, points to improvement in the labor market."
URL to original article: http://www.housingwire.com/content/jobless-claims-rise-365000
For further information on Fresno Real Estate check: http://www.londonproperties.com
Unemployment insurance claims filed by American workers grew to 365,000 filings for the week ending July 28, an increase of 8,000 claims from a week earlier, the Labor Department said. Revised figures for the previous week put jobless claims at 357,000 filings. Meanwhile, the 4-week moving average hit 365,500, a decline of 2,750 claims from the previous week. About 47 economists surveyed by Bloomberg News projected jobless claims for the recent week would rise to 370,000, according to the news agency. Econoday analysts also were not surprised by the data and showed little distress over the uptick in their analysis. "Initial jobless claims rose 8,000 in the July 28 week in what is the smallest change after three weeks of severe volatility tied to adjustment for summer auto retooling," Econoday wrote. "The latest level of 365,000 is right in line with the 4-week average of 365,500 which offers an interesting gauge for the full-month July to June comparison, and this comparison, which is down more than 20,000 from the late June average, points to improvement in the labor market."
URL to original article: http://www.housingwire.com/content/jobless-claims-rise-365000
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, August 1, 2012
Refinance mortgage applications hit a 3-year high
Source: Housingwire
By Kerri Ann Panchuk
Mortgage applications edged up slightly during the week ending July 27, as the refinance index reached its highest level in three years, an industry trade group said Wednesday. Still, analysts viewed the report as a sign of general malaise in the mortgage lending market. Overall mortgage applications edged up 0.2% from a week earlier while the refinance index grew 0.8%, reaching its highest level since April 17, 2009, the Mortgage Bankers Association said. Despite a mild pick up in refinancings, the refinance index felt the sting of a 6% drop in government loan applications. Home purchases also cooled with the purchase index falling 2% from the previous report. Meanwhile, the adjustable-rate share of mortgage activity fell to represent 4.1% of all mortgage applications. Capital Economics responded to the report saying, "The latest mortgage applications data provide further evidence that record low mortgage rates are doing little to boost demand among mortgage-dependent buyers. Meanwhile, the FHFA has reaffirmed its opposition to principal forgiveness on mortgages held by Fannie Mae and Freddie Mac." The 30-year, fixed-rate mortgage with a conforming loan balance increased slightly to 3.75% from 3.74% a week earlier. In addition, the average interest rate for the 30-year, FRM with a jumbo loan increased to 4.01% from 3.99%. The average contract interest rate for a 30-year, FRM loan backed by FHA remained unchanged at 3.52%, the lowest FHA rate in the survey's history. In addition, the 15-year, FRM grew to 3.09% from 3.07%, while the average contract interest rate for the 5/1 ARM increased to 2.73% from 2.68%.
URL to original article: http://www.housingwire.com/news/refinance-mortgage-applications-hit-3-year-high
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Kerri Ann Panchuk
Mortgage applications edged up slightly during the week ending July 27, as the refinance index reached its highest level in three years, an industry trade group said Wednesday. Still, analysts viewed the report as a sign of general malaise in the mortgage lending market. Overall mortgage applications edged up 0.2% from a week earlier while the refinance index grew 0.8%, reaching its highest level since April 17, 2009, the Mortgage Bankers Association said. Despite a mild pick up in refinancings, the refinance index felt the sting of a 6% drop in government loan applications. Home purchases also cooled with the purchase index falling 2% from the previous report. Meanwhile, the adjustable-rate share of mortgage activity fell to represent 4.1% of all mortgage applications. Capital Economics responded to the report saying, "The latest mortgage applications data provide further evidence that record low mortgage rates are doing little to boost demand among mortgage-dependent buyers. Meanwhile, the FHFA has reaffirmed its opposition to principal forgiveness on mortgages held by Fannie Mae and Freddie Mac." The 30-year, fixed-rate mortgage with a conforming loan balance increased slightly to 3.75% from 3.74% a week earlier. In addition, the average interest rate for the 30-year, FRM with a jumbo loan increased to 4.01% from 3.99%. The average contract interest rate for a 30-year, FRM loan backed by FHA remained unchanged at 3.52%, the lowest FHA rate in the survey's history. In addition, the 15-year, FRM grew to 3.09% from 3.07%, while the average contract interest rate for the 5/1 ARM increased to 2.73% from 2.68%.
URL to original article: http://www.housingwire.com/news/refinance-mortgage-applications-hit-3-year-high
For further information on Fresno Real Estate check: http://www.londonproperties.com
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