Daily Real Estate News | August 20, 2010
Mortgage Rates Drop to New Lows
Fixed mortgage rates have maintained recent lows or set new ones for more than two months now, sinking to 4.42 percent on 30-year loans for the week ended Aug. 19. The rate is down from 4.44 percent last week and is the lowest ever recorded since Freddie Mac launched its survey almost 40 years ago.
The fixed 15-year average also hit a new low, at 3.9 percent; while five- and one-year adjustable-rate mortgages remained flat at 3.56 percent and 3.53 percent, respectively.
Source: The Wall Street Journal, Amy Hoak (08/20/10)
Daily Real Estate News | August 16, 2010
Shorter-Term Refis Can Save Big Money
Shorter-term loans are gaining favor as rates continue to fall.
On average at today’s rates, a borrower refinancing their 6.5 percent loan would save $70,000 over the life of a $200,000 20-year loan vs. a 30-year loan.
These kinds of refinances are particularly popular among people who are approaching retirement, said Peter Iche, president of Carthage Federal Savings and Loan Association in Carthage, N.Y.
Source: USA Today, Stephanie Armour (08/16/2010)
Daily Real Estate News
| August 9, 2010
Nationwide Housing Inventory Climbs in July
The nationwide inventory of homes for sale increased in July, a month when the number of the homes on the market usually declines.
ZipRealty Inc. says the supply of homes in the 26 major metropolitan areas in which it does business rose 2.6 percent compared to June. This was the seventh straight month-over-month increase. Zelman & Associates research firm says listings have typically declined in July by 0.8 percent.
Western markets saw the high increase with homes for sale up 9.6 percent in Las Vegas; 7.9 percent in Orange County, Calif.; and 6.3 percent in San Diego and the San Francisco Bay area.
Source: The Wall Street Journal, Nick Timiraos (08/06/2010)
Daily Real Estate News | August 2, 2010
Strategic Defaults` Can Damage Credit for Years
Home owners who choose to default on their mortgage even though they can afford the monthly payments can expect to take a significant hit to their creditworthiness, some credit rating firms say.
A record of the default — initially as much as 200 points — stays on a credit report for seven years. This will have an impact on the defaulter’s ability to get credit of all kinds and potentially his or her ability to buy insurance and even get a job.
The debt that foreclosure erases may be considered income, and Uncle Sam may want to collect taxes.
"It`s by no means a move to be undertaken lightly," says Maxine Sweet, vice president of public education for Experian.
Source: ARA Content (07/30/2010)
Daily Real Estate News | July 23, 2010
California Foreclosures Drop to 3-Year Low
The number of home owners in California entering foreclosure in the second quarter dropped to a three-year low, according to research firm MDA DataQuick.
Default notices, the first step in the foreclosure process, fell 43.8 percent in the second quarter compared to the same period last year.
Analysts say the decline is due to banks pushing loan-modification programs and short sales. Also, fewer homes are underwater thanks to a recovery in home prices, so a smaller number of home owners are walking away.
Ironically, regions of the state where homes are cheapest are most likely to see the highest number of default notices. According to DataQuick, neighborhoods with a median sales price of less than $300,000 experienced 10.6 default notices for every 1,000 homes, while neighborhoods with prices above $800,000 accounted for 2.9 notices for every 1,000 homes.
Source: Los Angeles Times, Alejandro Lazo (07/22/2010)
Daily Real Estate News | July 16, 2010
California Home Sales Rise in June
Where California goes, eventually, the rest of the country follows. That’s why it appears to be good news that the state’s home sales rose more than 7 percent in June compared with May, according to real estate tracking firm MDA DataQuick.
Median prices declined about 3 percent. DataQuck says that’s because foreclosures remain high — but down from what they were — and speculative buying continues.
"The next few months should be very interesting," DataQuick President John Walsh says. "We`re about to see how well the housing market can fly on its own. The tax credits no doubt stole some demand from the rest of this year, and soon we`ll see have a better sense of just how much."
Source: Associated Press (07/15/2010)
Daily Real Estate News | July 14, 2010
Home Prices Continue Gains Over 2009
U.S. home prices, including distressed sales, increased by 2.9 percent compared to the same month last year, according to CoreLogic in its monthly index.May was the fourth straight month prices showed a year-over-year increase. "Home price appreciation stabilized as home buyer tax credit-driven sales peaked in late spring," says Mark Fleming, chief economist for CoreLogic. "But given that the labor market and income growth remain tepid, we expect prices to moderate and possibly decline the rest of the year."Source: CoreLogic (07/13/2010)
Daily Real Estate News | July 8, 2010
Global Interest in U.S. Homeownership Gains
International home buyers are increasingly attracted to property in the U.S., according to the National Association of REALTORS®’ 2010 Profile of International Home Buying Activity. Several factors, including the strength of the dollar, the value and desirability of U.S. real estate, and the emerging economic recovery, continue to drive international interest in owning a home in this country. “While all real estate in the U.S. is local, the same is not true for property owners,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox Real Estate in Tucson, Ariz. “The U.S. continues to be a top destination for international buyers from all over the world. Foreign buyers understand the value of owning a home in this country and can rely on REALTORS® to help guide them through the complex process of buying property in the U.S. With expertise, knowledge and experience, REALTORS® have a global perspective.”The survey, released today, covers the period between April 1, 2009, and March 31, 2010. During that time foreign buyers, including those with residency outside the U.S. as well as recent immigrants and temporary visa holders, are estimated to have purchased $66 billion of U.S. residential property, or 7 percent of the residential market. Slightly more than a quarter of REALTORS®, 28 percent, reported working with at least one international client in the past year. This is a significant increase from the 2009 report, when 23 percent of REALTORS® worked with foreign clients. Eighteen percent of all REALTORS® were estimated to have completed at least one sale, compared to 12 percent last year. “Several factors have contributed to an increase in international buyer interest in the U.S.,” said Golder. “A large majority of REALTORS® report the changes in value to the U.S. dollar have had a strong impact on the international real estate business. In addition, perceptions abroad about trends in the U.S. real estate market have led many international clients to believe purchasing a home in the U.S. is more affordable than in their country and holds more value.”International buyers came from 53 different countries around the world. The top four countries were Canada, Mexico, the U.K. and China/Hong Kong. With 23 percent of international buyers coming from Canada, the country has remained the largest buying group in the past three years. Foreign buyers from Mexico have been steadily increasing. In 2010 Mexico replaced the U.K. as the second largest buying group with 10 percent of buyers. Buyers from the U.K. buyers decreased from 10.5 percent in 2009 to nine percent in 2010. Eight percent of recent buyers came from China/Hong Kong.Two factors important to international clients when purchasing property in the U.S. are proximity to their home country and the convenience of air transportation. Florida typically attracts European, Canadian and South American buyers while the East Coast draws Europeans. The West Coast brings Asian buyers and the Southwest attracts Mexicans. International buyers were reported in 39 states in 2010, but a slight majority of the total buyers are concentrated in Florida, California, Arizona and Texas. These four states account for 53 percent of purchases and have remained the top destinations for the past three years, with Florida and California remaining the top two destinations. The median price paid by international buyers for a home in the U.S. was $219,400, a decrease from 2009’s median price of $247,100. However, the median price paid by foreign buyers was significantly higher than the overall median market price, which was $172,500 in 2009. On average, foreign buyers tend to purchase closer to the upper end of the market; 16 percent of the total international purchases were for homes priced at more than $500,000. According to REALTORS®, this was because international buyers are typically looking for a second home. A majority of international buyers, 66 percent, purchased single-family detached homes. However, more international buyers purchased a condo than did their U.S. counterparts, at 23 percent and 7 percent, respectively. Only 44 percent of international buyers used a mortgage to pay for their home, compared to 92 percent of domestic buyers. Fifty-five percent of foreign buyers paid all cash. REALTORS® reported that a majority of international buyers use all cash because of the difficulty in establishing international credit in the U.S. Over one-third, 34 percent, of potential foreign buyers was unable to complete transactions because of financing problems in the U.S.Source: NAR
Daily Real Estate News | July 2, 2010
Mortgage Bonds Boom Drives Rates Down
Residential mortgage bonds backed by the U.S. government have become a safe haven for investors again, helping to drive mortgage rates to record lows.
The average interest on 30-year fixed loans fell this week to 4.58 percent, down from 4.69 percent a week ago, reports Freddie Mac.
Relatively few home owners are refinancing at the bargain rates, however, in large part because many eligible borrowers did so when rates were almost as low last year.
Source: The Wall Street Journal, Mark Gongloff (07/02/10)
Daily Real Estate News | June 30, 2010
Foreclosures Account for 31% of Sales
Online foreclosure marketplace RealtyTrac reported today that homes in foreclosures accounted for 31 percent of the residential sales in the first quarter of 2010. The average sales price of these properties was nearly 27 percent below the average sales price of properties not in foreclosure.
RealtyTrac expects foreclosure discounts to stay between 25 percent and 30 percent as lenders steadily release foreclosures. The average price of foreclosed properties is $171,971.
Overall, foreclosures are down 14 percent in the first quarter compared to the fourth quarter of 2009. They are down 33 percent from the peak during the first quarter of 2009.
Source: RealtyTrac and Bloomberg, Dan Levy (06/30/2010)
