Buyers Will Pay More for Good Schools

Buyers Will Pay More for Good Schools

More than 44 percent of home buyers who plan to buy a home within the next two years said they would be willing to go over their budget by up to 10 percent in order to buy in their preferred school boundaries, according to a new survey by realtor.com®. 

Three out of five home buyers surveyed said that school boundaries greatly impact their home purchasing decision. Nearly 9 percent of buyers indicated that they’d be willing to pay 11 to 20 percent above their budget to get a home in a desirable school district, the survey found. About 17 percent of buyers said they want to live within a mile of a school so their children can walk there.

Rising Mortgage Rates Show Impact Rising mortgage rates are beginning to impact the housing market,

Homeowners taking the lead

Homeowners taking the lead

Existing home owners are taking a bigger share of the housing market while investors—who have been the powerhouse until late—are slowly retreating.

“A sustainable housing market typically includes a more balanced share of first-timers, move-up buyers and investors, and that's how the housing recovery is beginning to shake out,” Realty Times reports. 

Taking the lead: Current home owners—whether move-up, move-down, or move-over buyers—accounted for nearly 45 percent of the market share in home sales in June, up from 43.8 percent in May.

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

Blunting the Effects of Rising Interest Rate

Blunting the Effects of Rising Interest Rate

With mortgage rates likely to approach 5 percent next year, normalized underwriting standards are crucial.JULY 2013 | BY LAWRENCE YUN

 We’re keeping a close eye on mortgage rates. After years of historic lows, rates are on the way up and will likely close in on 5 percent by mid-2014 and go even higher in 2015, from an average 3.5 percent in early 2013. That is unwelcome news for buyers, and we can expect some households to be pushed out of the market as a result. For example, there are about 17.8 million renter households with sufficient annual income—at least $36,000—to buy a $177,000 home at a 3.5 percent mortgage rate, compared to 14.9 million at a 
5 percent mortgage rate. Mortgage Rate Relief Coming?

More Renters Say They Want to Own

More Renters Say They Want to Own

The majority of renters say home ownership is one of their highest priorities for their future, Renters are showing stronger desires for home ownership compared to recent years, according to the survey. 

“Home ownership matters to Americans who consistently realize the many benefits it provides to communities, families, and the nation’s economy,” says NAR President Gary Thomas.

“Due to high housing affordability and today’s interest rates it makes sense for people to consider home ownership over renting. In fact, in many parts of the country it’s cheaper to own a home than to rent one. Therefore, it’s no surprise that renters recognize that owning a home offers tremendous long-term benefits and is an investment in their future.” 

BASEL III: How REALTORS® Won Housing posts a win in getting costly capital requirements removed from Federal Reserve's 972-page BASEL III rule. Watch our video to learn more.....

Five More Markets Reach Full Recovery in May

Five More Markets Reach Full Recovery in May

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

Housing markets across the country continue to show improvement. Five more markets joined the list of fully recovered housing markets across the country, bringing the number to 19 as of the end of May, according to this month’s Homes.com Rebound Report released Wednesday.

Also, 39 markets are at least 50 percent recovered, meaning prices in these markets have regained at least half the value they lost during the recession. Salt Lake city one of several markets are more than fully recovered, and in fact, five markets have rebounded more than 200 percent since the recession.

Short Sale Stigma Surfacing?

Short Sale Stigma Surfacing?

In markets with high foreclosure rates, a short sale stigma may exist, and short sales may not be as sought among home buyers. Brokers may be at an advantage if they state in the listing that the nondistressed home they’re selling is “not a short sale,” 

Homes listed as “not short sales” sold for 2 to 5 percent more than nondistressed homes that did not state that. Homes listed as “not a short sale” also sold faster, selling about 10 to 15 percent faster than other similar properties, 

'In some areas, buyers are probably starting to believe that short sales mean a big hassle because they've heard horror stories about waiting months for one or more banks to sign off on the deal,' Johnson says. 

Real Estate's New Big Buyers Middle-Aged Women:

Some States Still Bogged Down By Foreclosures

Some States Still Bogged Down By Foreclosures

The backlog of homes in foreclosure is still clogging the pipeline in some states, according to a report by the Federal Reserve Bank of New York. 

The large volume of loans in states that have a judicial process for foreclosures appears to be hampering the housing recovery, the report states.

States with judicial foreclosures have maintained higher foreclosure rates than states that do not require foreclosures to be approved by the courts. The length of time a loan remains in the foreclosure process in judicial states is significantly longer, the New York Fed notes, calling out Florida, New Jersey, and New York as the most extreme examples of this. States with judicial foreclosures, however, have seen a “modest” improvement in home prices. See more.....

Current Homeowners Increase Purchases

Current Homeowners Increase Purchases

Investors Exit Market: Current homeowners are playing a bigger role as housing market participants amid a sharp slowdown in investor activity,

Among three buyer types-current homeowner, first-time homebuyer, and investor-the survey showed current homeowners were the only group to see activity rise in June. Last month, current homeowners represented 44.6 percent of the purchase market, up from 43.8 percent in May based on a three-month moving average. “Inventory conditions will continue to broadly favor sellers and contribute to above-normal price growth,” Yun predicted. Watch the video to learn more....

Are Young Home Buyers Being Left Behind?

Are Young Home Buyers Being Left Behind?

Young, first-time buyers are struggling to purchase a home. With low inventories of homes for sale, young first-timers are finding themselves competing against other bidders who are willing to pay cash. Meanwhile, many young buyers are having trouble qualifying for a loan, often due to high student loan debt. 

Overall, young buyers have been left out of the housing recovery more than any other age group, according to a new USA Today analysis. The home ownership rate for 25 to 34 year olds has gone from 46.7 percent in 2006 to 29.7 percent in 2011 — a decline of 7 percentage points. As comparison, the 45-54 age group has seen home ownership rates fall 3.8 percent. 

No Need to Fear Rising Mortgage RatesHistory shows us that we don’t need to fear the recent spikes in mortgage rates because they won’t have an impact on home prices, according to Fannie Mae researchers in a new report. 

Beware: Crack Down on Squatters

Beware: Crack Down on Squatters

States are tightening up their adverse possession laws and making it tougher for squatters to make claims to properties they don’t own. Adverse possession laws allow squatters to obtain title to a home after they’ve lived in the property for several years. 

Florida is the latest state to change its law and now prohibits “acquiring title to real property by possession.” 

Several squatters have made headlines in recent years, taking up residence even in million-dollar homes and then citing squatters rights to try to make claim to the property. 

Florida’s new law was prompted after 106 home owners pushed for the change when a rapper named Andre Barbosa moved into a multimillion-dollar Boca Raton home and refused to vacate, citing squatter rights. The man created a rap video about his squatting in the property, sparking more outrage among residents. 

New Wave of Buyers

New Wave of Buyers

Ready to Hit the Real Estate Market: “Boomerang buyers”—former home owners who have gone through a short sale, foreclosure, or bankruptcy in the past few years and are saving up for a down payment to purchase a home again—are coming back. They're expected to flood markets in some of the hardest hit areas for short sales and foreclosures in the coming years.

Rising rents and the desire to own again now that the economy is more stable are driving many boomerang buyers to re-enter the market. They also want to jump in before interest rates and home prices climb too much higher. Borrowers have typically been required to wait five to seven years to qualify for another loan, but mortgage giants have begun to change their rules to allow home owners who underwent a foreclosure or short sale to qualify sooner. Rule changes ...

Where Housing Bargains May Still Lurk

Where Housing Bargains May Still Lurk

Foreclosures have fallen by 35 percent nationwide in the last year, according to data from RealtyTrac. However, where such proceedings must first get approved by the courts—which are known for having a lengthy process.

In some states, a glut of foreclosures remain, and foreclosures tend to sell at discounts. Many of these properties will likely enter the market in the next six to 12 months, says Daren Blomquist, vice president of RealtyTrac. 

“If you missed the bottom of the housing market, this might be the last chance to get a bargain on one of these foreclosure homes,” he says.
Inventories Rising Faster Than Usual

Propose Act to Save Housing Finance

Propose Act to Save Housing Finance

House Republicans: With criticism for the Obama administration and the shortcomings of the Dodd Frank Act, the “House of Representatives Financial Services Committee”announced Thursday a new plan to fix housing finance and end the bailout for good.

The Protecting American Taxpayers and Homeowners Act (PATH) aims to end the federal bailout of Fannie Mae and Freddie Mac within five years; increase competition in the housing finance market; and offer consumers more choices when shopping for mortgages.
After 11 hearings comprised of testimonies from 41 witnesses over the past five months, the committee deems the PATH Act superior to Dodd-Frank and assures it will protect both taxpayers and homeowners. Learn more ....

Report Suggests Intentional Underbuilding

Report Suggests Intentional Underbuilding

“New-home builders don’t appear too anxious to help meet the demand,” says Michael Orr, a real estate expert at ASU’s W.P. Carey School of Business.

A few years ago, during the housing bubble, homebuilding outpaced population growth. But builders are taking the opposite approach this time around. In an environment with tight underwriting for loans, builders are exercising some caution and restraint. 
 7 Best Midsize Cities for Job Growth Provo-Orem, Utah comes in second on best Midsize Cities,

Mortgage rates continued to trend higher this week

Mortgage rates continued to trend higher this week

Mortgage rates continued to trend higher this week following last week’s release of the June employment report.

According to Freddie Mac’s Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.51 percent (0.8 point) for the week ending July 11, up from 4.29 percent last week and almost a full percentage point higher than the same week last year (3.56 percent).

The 15-year FRM averaged 3.53 percent (0.8 point), up from 3.39 percent previously. Tax Reform CFA: Do No Harm

Foreclosures Down 29% From Year Ago

Foreclosures Down 29% From Year Ago

Foreclosures are continuing a steady fall, as home prices rise and the housing market picks up nationwide. 

About 1 million homes were in some stage of foreclosure in May, down from 1.4 million in May 2012, a 29 percent decline, according to CoreLogic’s latest foreclosure report. As of May, the foreclosure inventory represented 2.6 percent of all homes with a mortgage -- down from 3.5 percent a year prior. Will Rising Mortgage Rates Cool the Market?

Shadow Inventory Falls 34% from 2010 Peak

Shadow Inventory Falls 34% from 2010 Peak

Fewer than 2 million homes remain in shadow inventory as of April, CoreLogic reported Tuesday.

This puts shadow inventory at a supply of 5.3 months and represents an 18 percent year-over-year decrease. The data provider also reported shadow inventory is 34 percent lower than the 2010 peak of 3 million. For its estimate, CoreLogic counts unlisted properties that are seriously delinquent, in foreclosure, or held as REOs as shadow inventory.
 Also  47% of Bankers Expect Delinquencies to Decrease

July State of Market, Where Cost Per Square Foot

July State of Market, Where Cost Per Square Foot

The list price per square foot is gaining in many areas, rising to $181 in June, according to real estate brokerage Movoto’s national housing report. 

 The increase in list price per square foot was the most dramatic in Sacramento, where it rose from $91 per square foot in June 2012 to $153 per square foot last month—about a 68 percent increase. 

The following cities have seen the largest year-over-year increases (June 2012 to June 2013) in price per square footage:
Don't Let Credit Checks Derail You,

First-Time Buyers Have Smaller Budget,

First-Time Buyers Have Smaller Budget,
Interest in Foreclosures: First-time homebuyers tend to work with smaller budgets compared to repeat buyers, which increases the incentive to buy a foreclosure, according to blog from Doorsteps.com, a website that provides information to help potential homebuyers.


Citing a survey from the National Association of Realtors (NAR), the website noted 65 percent of first-time buyers are open to the idea of purchasing a foreclosure despite all of the uncertainties surrounding distressed properties.

In addition, first-time buyers are also more likely to buy a foreclosure compared to a repeat buyer, according to the website.
Delinquencies See Biggest Year-to-Date Drop Since 2002:

Homes Harder to Finance

Homes Harder to Finance
Eclectic: Oddball properties -- such as a domed house or a home designed to resemble a medieval castle -- can trip up buyers when they sit down to work out financing.  Unique architecture or unusual characteristics complicate the task of gauging market value, causing many lenders to back away from funding a buyer's purchase. Banks that do take on such properties may do so at a cost: 
Are Short Sales Becoming a Thing of the Past?

Home Prices Post Biggest Jump in 7 Years

Home Prices Post Biggest Jump in 7 Years

Home prices are moving up at a quicker pace, rising in May by their largest annual amount in more than seven years with more to come, according to the latest report released by CoreLogic. 

Home prices increased 2.6 percent in May over April and have shot up 12.2 percent compared to last year’s prices. CoreLogic economists are predicting that home prices will rise by another 2.9 percent in June, making the yearly price gain 13.2 percent year-over-year.

We expect that trend to continue to drive up prices throughout the balance of the summer months. Read more.....

Timing the Market Right:

Timing the Market Right:
Some Buyers Still Lingering: Home prices and mortgage rates are rising, but there is still a crop of home buyers out there who are pondering whether now is the right time to buy a home or whether they should continue to wait a few more months.

Have they missed the boat completely, or could waiting pay off? 

Mortgage rates have jumped more than half a percentage point in the last few weeks, with more jumps expected in the coming months. While rates are still low from a historical perspective, any rate increases can impact housing affordability. Above-Normal Price Growth, Strong Metro Area Gains Report Projects:  

Forty-five of the top 50 metropolitan

Millennials' ball-and-chain

Millennials' ball-and-chain

Marriage, a house, and family will have to wait for many 20 and 30-somethings. Instead, paying off student loan debt is taking priority, USA Today reports.

Student loan debt is becoming a big thorn in the side of many Millennials. The average student loan debt has climbed to $27,500, according to data from the Project on Student Debt. In 1993, less than half of students graduated with debt. For those who did, their debt averaged $9,350 (or about $15,000 in today’s dollars).

Cash Offers Make Home Buying Competitive 

All-cash offers can represent stiff competition for traditional buyers.

Rising Rates soared to a two-year high last week.

Rising Rates soared to a two-year high last week.

Will Rising Rates Lead to Buyer Rush? Mortgage rates soared to a two-year high last week, rising by the largest pace since 1987. Freddie Mac reported the average 30-year fixed-rate mortgage climbed.

Home buyers may be concerned that the rising rates will dampen housing affordability. But economists say that rising rates shouldn’t derail the housing market recovery. 

As rates have edged up recently, pending home sales have moved up too. They rose 6.7 percent in May from April—at the highest rate since late 2006, First-time buyers losing out as home sales rise, As home prices rise, first-time home buyers may increasingly get left on the sidelines

Forecast Points to Steady Price Growth

Forecast Points to Steady Price Growth

Led by California: When it comes to price appreciation, California markets are expected to continue leading growth over the next year, while certain areas concentrated in the Northeast should see a decline in home values, according to Veros Real Estate Solutions’ most recent forecast ending June 1, 2014.

Among the top 100 markets, Veros’ home price index (HPI) projects a 3.1 percent increase, marking the fourth straight quarterly gain. Veros also added nearly 90 percent of U.S. markets covered should see a bump in prices, up from 75 percent in the previous quarter.

“It’s encouraging to see steadily rising appreciation expectations,” 

Housing Market 61% 'Back to Normal'