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
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