Big Predictions for Housing for Next 2 Years

Big Predictions for Housing for Next 2 Years

Home sales are projected to post some big gains in the next two years, according to Fannie Mae’s latest monthly economic outlook. Fannie Mae economists predict that existing-home sales will rise by 10.5 percent this year, and by 6.2 percent in 2014. The economists made even bolder projections for new single-family home sales -- growing 15.1 percent this year and 44.1 percent in 2014.

'We expect home prices to firm further amid a durable housing recovery, continuing to boost household net worth, gradually diminishing the population of underwater borrowers, and reducing incentive for strategic defaults,' according to Fannie Mae’s report.

Fannie Mae projects that mortgage rates will stay low by historical averages this year, but the 30-year fixed-rate mortgage will rise from an average of 3.5 percent during the first quarter to an average of 4 percent during the final three months of 2013. See Rates ...

Foreclosures at Lowest Level Since 2007

Foreclosures at Lowest Level Since 2007
Data from CoreLogic shows 54,000 homes were lost to foreclosure in February of this year, a 7 percent decline from January’s downwardly revised 58,000.

The data provider reported a steeper 19 percent year-over-year decrease for completed foreclosures.
“February’s 54,000 completed foreclosures is the lowest level nationally since September 2007, with most major metropolitan areas experiencing improvements,” said Dr. Mark Fleming, chief economist for CoreLogic.
Although completed foreclosures are lower than their year- and month-ago figures, the number is still elevated compared to pre-crisis levels when completed foreclosures averaged 21,000 between 2000 and 2006. CoreLogic also found a declining trend in foreclosure inventory, or homes in the foreclosure process. Read more ...

Pending Home Sales Slip, But Stay above last Year

Pending Home Sales Slip, But Stay above last Year

February pending home sales flattened with limited buyer choices, but remained at the second highest level in nearly three years, according to the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, slipped 0.4 percent to 104.8 in February from a downwardly revised 105.2 in January, but is 8.4 percent higher than February 2012 when it was 96.6. Contract activity has been above year-ago levels for the past 22 months; the data reflect contracts but not closings.

Before January, the last time the index showed a higher reading was in April 2010 when it was 110.9, shortly before the deadline for the home buyer tax credit. Read More...

Buyers Feel Urgency From Price Appreciation

Buyers Feel Urgency From Price Appreciation

Home prices are inching higher and mortgage rates are expected to soon follow, and more potential home buyers are weighing whether to jump in now or risk paying more by purchasing a house later, The New York Times reports.  Salt Lake City-Ogden. UT Average List Prices

 Home prices are rising rapidly in some areas, particularly the Sunbelt states. The 30-year fixed-rate mortgage is expected to also move from its 3.5 percent average to above 4 percent some time later this year, some economists say. 

For buyers who are able to qualify for financing, “getting in a little earlier would be preferable before prices and rates rise too much,” says Lawrence Yun, chief economist for the National Association of REALTORS®.

Read more.....

Foreclosures Fall in Utah, Across Nation

Foreclosures Fall in Utah, Across Nation

The number of foreclosures in February across Utah and the nation, continued a long downward trend that began in October 2010, according to a new report by RealtyTrac. In Utah, there were 245 foreclosure completions in February, a 54 percent decrease compared to completions in February 2012.

Utah home sales rose for the ninth consecutive month in February. With 500 more homes sold than last year, this was the strongest February for residential sales since 2007. See more February numbers in this week's Podcast Connection. Click on photo to watch video.

At least one of every 713 housing units in the Beehive State received some type of foreclosure filing in February, slightly higher than the national rate of one of every 849 units. Watch Video to learn more...

Fighting the Foreclosure Nightmare that Never Ends

Fighting the Foreclosure Nightmare that Never Ends

Shari Olefson is an attorney-mediator and author ofFinancial Fresh Start: Your Five-Step Plan for Adapting and Prospering in the New Economy. Her quotes/comments can be found in publications such as the Wall Street Journal, Forbes, and USA Today, and she makes appearances onCNN, CNBC, Fox, PBS, MSNBC, and CBS.

There’s no question that the housing market is well along the road to recovery. Sales are going up, prices are increasing, and that’s good news for all of us. But for some folks, the nightmare is not even close to over yet. Instead, an estimated 2 million homeowners are in the land of the zombie foreclosure.
The foreclosure process varies by state, but inevitably begins with the bank sending the homeowner a Notice of Default. That initial notice is then followed by the balance of the state’s foreclosure process, which is lengthy and can be prolonged by numerous delays. Learn more...

Home Values Climb 16th Straight Month in February

Home Values Climb 16th Straight Month in February

February existing-home sales and prices affirm a healthy recovery is underway in the housing sector, according to the National Association of REALTORS®. Sales have been above year-ago levels for 20 consecutive months, while prices show 12 consecutive months of year-over-year price increases.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.8 percent to a seasonally adjusted annual rate of 4.98 million in February from an upwardly revised 4.94 million in January, and are 10.2 percent above the 4.52 million-unit level seen in February 2012. February sales were at the highest level since the tax credit period of November 2009. Learn more watch our Video

Fed to Keep Rates Low, But for How Much Longer?

Fed to Keep Rates Low, But for How Much Longer?

The Federal Reserve’s policy-making committee announced it will continue to hold down short-term interest rates, which in turn will help keep mortgage rates low. But there is question of how much longer the central bank will do this.  

The Fed said it will continue to buy $85 billion a month in Treasuries and mortgage-backed securities, but would reduce its asset purchase — known as “quantitative easing” — if job growth continues at its current pace. 

Last year, the Fed committed to holding short-term interest rates near zero for as long as unemployment remained above 6.5 percent. In February, the unemployment rate was 7.7 percent. Many economists don’t expect unemployment to drop to levels around 6.5 percent until 2015. 

Housing is “coming back, it’s real, and it’s going to be a positive driver,”

Trulia: Owning Costs 44% Less than Renting

Trulia: Owning Costs 44% Less than Renting
Home price gains may be outpacing increases in rent, but the cost of being a homeowner is still much less than that of a renter, according to Trulia’s Winter 2013 Rent vs. Buy report.

After factoring all cost components including transaction costs, taxes, and opportunity costs, Trulia found buying a home is 44 percent cheaper than renting, down slightly from 46 percent a year ago.
“Although buying a home is still cheaper than renting, the gap is closing,” said Jed Kolko, Trulia’s chief economist. “In 2013, home prices should rise faster than rents, and mortgage rates are likely to rise in the next year as the economy improves.
By next year, buying could be more expensive than renting in some housing markets, even for people with the best credit.” Learn more...

1.7M Homes Moved into Positive Territory in 2012

1.7M Homes Moved into Positive Territory in 2012

In the fourth quarter of 2012, about 200,000 residential properties transitioned out of a state of negative equity, bringing the 2012 yearly total to 1.7 million properties,CoreLogic reported Tuesday.

According to the data provider, there were still 10.4 million homeowners who were underwater as of the end of Q4; the figure represents 21.5 percent of all residential properties with a mortgage. At the end of Q3, the total stood at 10.6 million properties, or 22 percent of all mortgages.
Out of the 10.4 million properties in negative equity, 1.8 million have a loan-to-value (LTV) ratio between 100 and 105 percent. 'Owning a home is at the heart of most Americans' dreams,' 

More than 1/3 of Listed Homes Sold Within 2 Weeks

More than 1/3 of Listed Homes Sold Within 2 Weeks

More than one-third of homes were taken off the market in two weeks or less last month, Redfin revealed in its most recent monthly housing report. 

Homes are selling faster as buyer demand picks up, leaving a very low supply of homes  left for sale, according to the latest February MLS data figures from Realtor.com. Homes in February sold faster than in any February since 2007, according to the site. 

In February, homes were on the market for a median of 98 days—that’s down from 123 days in February 2011. 
With home sales picking up pace, buyers and sellers are less likely to see price reductions on homes and to see more multiple offer situations, Curt Beardsley, vice president with Move, which operates Realtor.com told USA Today. Learn more...

Homeowners 'Springing' into Action

Homeowners 'Springing' into Action

Recent data show homeowners are getting ahead of the curve and listing their properties earlier than in previous years as the spring selling season approaches.

A report by Realtor.com shows listing inventories increased by 1.15 percent month-over-month in February, and houses stayed on the market for an average of 98 days, down 9.26 percent from January. Month-over-month list prices also increased to $189,900.
“As we enter the busiest time of the year for home buyers and sellers, our latest housing trend data shows just how competitive the market is with a significant national housing recovery well underway, Read more ...

Foreclosure Starts Tick Up in February

Foreclosure Starts Tick Up in February
REOs Down to 65-Month Low: Foreclosure starts in February showed some pick-up in activity month-over-month, while REOs fell to their lowest level since September 2007, according to RealtyTrac’s foreclosure market report for February.

RealtyTrac reported a 10 percent increase in foreclosure starts from January after three straight months of declines. Year-over-year, foreclosure starts were still down 25 percent.

Bank repossessions, or REOs, hit a 65-month low in February, according to RealtyTrac, and were 11 percent lower from the previous month and down 29 percent from February 2012. Learn more..

Mortgages rates up

Mortgages rates up

How high will rates go?

If the economy continues to improve, rates could reach 4 percent or slightly higher by summer, Roth says.

Freddie Mac(OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey(R) (PMMS^®), showing average fixed mortgage rates rising this week on stronger signs of jobs growth and consumer spending. The 30-year fixed averaged 3.63 percent, its highest reading since the week of August 23, 2012. The 30-year fixed hit its average all-time record low of 3.31 percent the week of November 21, 2012. Read more...

No Signs of a Slowdown for Prices

No Signs of a Slowdown for Prices

Market Poised for Supply Increase

Housing inventory is now at its lowest level since January 1994; home sales have exceeded listings for the past 25 months; and the upward trajectory in home prices starting at the end of last year continues, according to the latest “US Housing Market Monthly” from Capital Economics.

Home sales are “normal” relative to population, but supply remains low, according to the firm.
Declining foreclosures are contributing to the current environment of tight inventory. In fact, Capital Economics points out the latest data from the Mortgage Bankers Association (MBA) reveals the foreclosure inventory rate fell from 4 percent of mortgages in the third quarter of 2012 to 3.7 percent in the fourth quarter. The foreclosure start rate has fallen to its lowest level since the second quarter of 2007—about 0.7 percent, according to MBA data. Read more.

'Boomerang buyer return'

'Boomerang buyer return'

Home owners who once lost their home to foreclosure have returned to the market, eager to buy once again. 

These “boomerang buyers” could make up a large number of the future housing market, considering their numbers. Since the housing crash, 4.8 million borrowers have lost their home to foreclosure and 2.2 million did a short sale, according to RealtyTrac data. 

As these borrowers get their finances in shape, repair their credit scores, and save up for a down payment, they’ll be looking to buy again, but their struggle will be over when they’ll be eligible to buy again. 

Fannie Mae and Freddie Mac require those who once defaulted on their mortgages to wait five years and have a minimum of a 680 credit score and a 10 percent down payment. If they don’t have all that, they’ll have to wait seven years to qualify again. By seven years, a foreclosure is removed from a person’s credit report. 

But if a defaulter can show the foreclosure was due to a hardship -- like losing a job or illness -- the wait may be reduced to three years, CNNMoney reports. Learn more...

Vanishing Foreclosure Discounts

Vanishing Foreclosure Discounts
Foreclosure discounts have nearly dried up due to low inventory levels, according to the latest housing reports. The average discount nationwide for foreclosure properties has fallen to 7.7 percent, according to Zillow research. In some parts of the country, there is no foreclosure discount when compared to other sales. 

INVENTORY DOWN 64%

Lack of housing inventory is driving the demand and increasing prices. NAR Chief Economist Lawrence Yun predicted a 5.1 percent increase in median home prices for 2013.

See where the Smallest and Largest foreclosures can be found: Read more..

Utah home sales rise for ninth consecutive month

Utah home sales rise for ninth consecutive month
With the excess supply being absorbed, sellers are using fewer discounts. In February, sellers received an average of 91 percent of original list price. That’s up 3 percent from 88 percent received last year.

As real estate conditions improved, homes spent less time on the market. In February, it took an average of 95 days to sell a home compared to 101 days last year.

The median sales price was $169,000 in February, down 3.4 percent from the same month a year prior. That represents the smallest decline in more than a year.

Although the median price declined over the past year, there are indications that the trend won’t last long. In fact, it already may be changing. 

The number of properties available for sale in active status at the end of a given month.

Based on the improving numbers, Realtor.com recently named Salt Lake City as the sixth best market in the country to invest in real estate. The organization built the top 10 list analyzing housing inventories, price trends and unemployment rates. Read more..

More Consumers Say Now Is a Good Time to Sell

More Consumers Say Now Is a Good Time to Sell

In Fannie Mae’s most recent housing survey, consumers maintained their optimism toward home prices, while the share of consumers who said now is a good time to sell reached a record high. However, consumers in the survey were less optimistic about the economy and their own financial situation.

Nearly half, or 48 percent, of respondents in the February survey said they expect home prices to rise in the next 12 months, up from 45 percent in January. On average, consumers expect prices to rise by 2.9 percent over a year, up from 2.4 percent the month before.
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Home Prices Expected to Rise at Least 3.3 Percent

Home Prices Expected to Rise at Least 3.3 Percent

Home prices are expected to continue their trajectory upward, projected to rise 3.7 percent between the third quarters of 2013 and 2014, according to Fiserv, which used data from the Federal Housing Finance Agency for its projection. 

Following the third quarter of 2014, Fiserv predicts home prices to rise an average 3.3 percent annually over the next three years. Read more...

Asking Prices Rise in February; Inventory Falls

Asking Prices Rise in February; Inventory Falls

National asking home prices have risen 7.0 percent year-over-year since bottoming out last February, Trulia revealed in its February Price Monitor Report.

Seasonally adjusted, asking prices increased about 1.4 percent from January and 3.0 percent quarter-over-quarter, marking two post-recession highs.
Nationally, inventory fell 23 percent year-over-year in February, according to data provided from Department of Numbers. Inventory fell year-over-year in all of the 50-plus markets tracked, dropping more than 50 percent in several California metros. Trulia noted that nearly all of the metros with the biggest inventory declines also had year-over-year price increases in the double-digits,  Read more ...

Prices Up 9.7% Market Poised for Strong Spring

Prices Up 9.7% Market Poised for Strong Spring

Unhindered by winter weather, the home price recovery pressed on in January as CoreLogic’s home price index (HPI) rose nearly 10 percent year-over-year.

When including distressed sales, January prices were up 9.7 percent from a year ago, representing the biggest increase since April 2006, CoreLogic reported Tuesday.
From December 2012 to January 2013, prices managed to show positive growth and inched up by 0.7 percent.
“The HPI showed strong growth during the typically slow winter season,” said Mark Fleming, chief economist for CoreLogic. “With these gains, the housing market is poised to enter the spring selling season on sound footing.  Read more...

Mortgage Shoppers Value Stress-Free Experience

Mortgage Shoppers Value Stress-Free Experience

Ease and convenience matter as much as cost to some people shopping for mortgages in the wake of the foreclosure crisis. When shopping for a mortgage, many say that ease and convenience matter just as much as cost, according to a survey of 618 consumers conducted by Carlisle & Gallagher Consulting Group.

About a third of consumers say they’re willing to pay more for a mortgage if it comes with superior customer service and less stress. The 18-to-35 age group particularly seemed more willing to pay for convenience and direct access. 

Overall, one of the biggest pet peeves identified by consumers when shopping for a mortgage: Slow execution of the loan, followed by difficult communication and an inability to track an application’s status. Read more ...

Inventory Shortage Frustrates Buyers

Inventory Shortage Frustrates Buyers

Prospective homebuyers are starting to feel stung as the market slips away from them.

The survey shows a shortage of inventory and rising prices—both of which naturally benefit sellers—are creating frustration for buyers trying to get in on the ground floor of the housing recovery. 
According to Redfin’s findings, 79 percent of buyers who responded to the survey now believe home prices will increase in their neighborhood over the next year, up from 71 percent in Q4 2012. 
The share of buyers who believe prices will rise “a lot” more than doubled, increasing to 22 percent from 10 percent previously. Read more...

January Pending Home Sales Up in All Regions

January Pending Home Sales Up in All Regions

Pending home sales rose in January, and have been above year-ago levels for the past 21 months, according to the National Association of REALTORS®. There were healthy monthly gains in all regions but the West, which, despite being constrained by limited inventory, still improved slightly.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 4.5 percent to 105.9 in January from a downwardly revised 101.3 in December and is 9.5 percent above January 2012, when it was 96.7. The data reflect contracts but not closings.

The January index is the highest reading since April 2010, when it hit 110.9, just before the deadline for the home buyer tax credit. Aside from spikes induced by the tax credits, the last time there was a higher reading was in February 2007 when it reached 107.9.

 Lawrence Yun, NAR chief economist, said inventory is the key to this year’s housing market. “Favorable affordability conditions and job growth have unleashed a pent-up demand. Most areas are drawing down housing inventory, which has shifted the supply-demand balance to sellers in much of the country. It’s also why we’re experiencing the strongest price growth in more than seven years,” he said. Learn more watch the video..

Foreclosure Inventory Shrinks 21% from Year Ago

Foreclosure Inventory Shrinks 21% from Year Ago

While still at an elevated level, foreclosure inventory is fading and has fallen for 15 straight months as of January 2013, CoreLogic reported Thursday.

According to the data provider’s foreclosure inventory report, the number of homes in some stage of the foreclosure process is now down to 1.2 million as of January. Year-over-year, foreclosure inventory has fallen 21 percent from 1.5 million. Month-over-month, foreclosure inventory shrunk by 3.3 percent. At the same time, foreclosure inventory accounted for 2.3 percent of all homes with a mortgage, down from 3.5 percent in January 2012. Read more..