RISMEDIA, March 24, 2011—Investor activity dominated a sluggish distress sale market in February as homebuyers are increasingly frustrated by difficulties getting financing, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. For many homebuyers, mortgage financing is becoming an increasing obstacle. This was highlighted in the latest HousingPulse tracking survey as cash transactions set a new record, accounting for a huge 33.7% of purchases in February. The increase in cash purchases paralleled a rise in investor activity. Investors accounted for 23.5 percent of home purchases in February, up from 19.9% percent in only two months.
Real estate agents who participated in the survey of February transactions confirmed the surge in investors. “We are seeing investors come back into the market. One investor told me that one house he wanted came on Wednesday evening and had nine offers by Thursday morning,” stated an agent in New Jersey. “There are a number of investors and businesses buying up the short sale and REO properties and renovating them and then selling them as traditional sales,” reported an agent from Arizona.
In what could normally be viewed as a positive development, the HousingPulse Distressed Property Index or DPI, a key indicator of the health of the housing market, fell from 49.6 percent in January to 47.3 percent in February. This marked the first decline in the DPI seen since last fall.
But the drop in distressed property transactions was not likely the result of a healing housing market. Rather, it appeared linked to a nationwide delay in the listing and sale of distressed properties as mortgage servicers continued to deal with legal and regulatory fallout surrounding title and paperwork issues.
The proportion of move-in ready foreclosed properties or real estate owned—one category of distressed property—took a tumble in February, going from 17.5 percent in January to 15.4 percent in February. Some move-in ready REO may have been converted into damaged REO during extended vacancies caused by mortgage servicer processing delays.
For more information visit www.realestateeconomywatch.com
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Thursday, March 24, 2011
Wednesday, March 23, 2011
Buyers ready to snatch bargains this spring
WASHINGTON – March 23, 2011 – Bargain prices on housing combined with low interest rates below 5 percent may bring the real estate market its busiest spring season in years, economists say.
Distressed sales continue to put downward pressure on home prices, which may lure more buyers off the fence and ready to snag a deal during the typical prime-time buying season.
Some builders are ramping up discounts on new homes as well as boosting commissions to brokers to try to spark more transactions.
Sellers of existing-homes also are getting more competitive in pricing their homes.
“After three years of the housing downturn, people are becoming much more realistic in terms of valuing their homes,” says Lawrence Yun, chief economist at the National Association of Realtors®.
An improved job market with better income potential may also motivate more people to buy, says David Berson of the PMI Group. “Household formations are also very important,” Berson says. “Kids may have moved back in with their parents, or two people may have moved in together because of job concerns. Now they can move into their own place.”
While interest rates are sitting comfortably below 5 percent for now (30-year fixed rates averaged 4.76 percent last week), economists warn the attractive low rates won’t last long.
“Few think mortgage rates are going lower,” says Mark Zandi, Moody’s Analytics chief economist. “It’s more likely they will be 6 percent than 4 percent next spring. This lights a fire under buyers.”
Source: “Discounts expected in spring housing market,” The Wall Street Journal (March 22, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Distressed sales continue to put downward pressure on home prices, which may lure more buyers off the fence and ready to snag a deal during the typical prime-time buying season.
Some builders are ramping up discounts on new homes as well as boosting commissions to brokers to try to spark more transactions.
Sellers of existing-homes also are getting more competitive in pricing their homes.
“After three years of the housing downturn, people are becoming much more realistic in terms of valuing their homes,” says Lawrence Yun, chief economist at the National Association of Realtors®.
An improved job market with better income potential may also motivate more people to buy, says David Berson of the PMI Group. “Household formations are also very important,” Berson says. “Kids may have moved back in with their parents, or two people may have moved in together because of job concerns. Now they can move into their own place.”
While interest rates are sitting comfortably below 5 percent for now (30-year fixed rates averaged 4.76 percent last week), economists warn the attractive low rates won’t last long.
“Few think mortgage rates are going lower,” says Mark Zandi, Moody’s Analytics chief economist. “It’s more likely they will be 6 percent than 4 percent next spring. This lights a fire under buyers.”
Source: “Discounts expected in spring housing market,” The Wall Street Journal (March 22, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Tuesday, March 22, 2011
First-time buyers prepare for best market in recent history
CAMPBELL, Calif. – March 22, 2011 – Inexperienced first-time buyers may not know if the time is right to make a move into real estate.
“It’s not about timing the market. It’s about time in the market,” says Steve Berkowitz, chief executive officer at Move Inc., the online company that oversees operation of Realtor.com. “Once you know how long you expect to own a home, look at the historical value performance of properties in the neighborhood. Be confident about your own job security, downpayment resources and tolerance for upkeep, as well as the lifestyle you want today and in the near term. Today’s housing market, especially for first-time buyers, makes it almost impossible not to think about the possibilities.”
To help first-time buyers decide if they’re ready, Move created a “reality checklist.”
Get your financial house in order
Before you decide to buy a home, make sure your credit is in good shape and repair any damage previously done. Know your credit score: Thirty-five percent of successful buyers recently reported they didn’t know their credit score when they went house shopping, according to a national survey fielded for MortgageMatch.com. Having enough money set aside for a downpayment is a key component. Also, don’t put all your money in the downpayment as other fees or unexpected expenses often arise after closing.
Don’t fall in love with a house you can’t buy
Find out how much you can afford, including how much money will be required for a downpayment and closing costs. Look for special loans available from FHA and government-sponsored loans for first-time homebuyers that reduce the amount of money required to get into a home.
Learn the lingo
Since first-time buyers are new to the market and will finance a significant portion of their purchase, it’s important to get familiar with the processes and terminology associated with home buying. Here are a few key terms from MortgageMatch.com:
• Bait Rate: Misleading mortgages with low rate promises and no contingencies generally for those with extraordinary credit. Rates are based on: credit, debt-to-income and loan-to-value ratios, the size and type of loan, property location and the day you lock your rate, etc. The loan isn’t locked until the application is accepted. By then, it may be too late to find a better rate from another lender.
• Basis Point: A term used in the mortgage industry, which simply means 1/100th of 1 percent.
• Closing Costs: The fees required to process and close your loan. They’re a cash obligation running from three to five percent of the purchase price. Motivated sellers might pay a portion of these costs.
• FHA: Federal Housing Administration, the federal government agency that oversees the U.S. housing market. FHA loans are loans insured by the U.S. Department of Housing and Urban Development.
• FRM and ARM: A fixed-rate mortgage loan (FRM) is a loan where your interest rate stays the same for the life of the loan. ARMs are adjustable rate mortgages with variable interest rates that fluctuate based on an agreed-upon index.
• GFE: The Good Faith Estimate (GFE) is a document explaining all costs involved in getting a loan.
• TIL: The Federal Truth-in-Lending Form is a document that spells out the costs and fees of the loan.
• Lis Pendens: An official notice that there is a pending lawsuit over real estate.
• Per Diem Interest: Interest you pay per day, from the day you close to the last day of the month.
• Underwriting and Underwriting Fees: Underwriting is a process the lender performs to qualify a borrower for a loan, and the fee is what you pay the lender at closing to cover evaluating the risk involved with loaning you money.
• Warranty Deed: A legal document guaranteeing the seller has a right to sell a property, which is very important if you are considering a distressed or discounted property.
If now isn’t the right time, prepare for your future purchase
If now isn’t the right time to buy a home, make a plan with a target date for when you expect to be ready. Improving your credit, paying down debt, stabilizing your work history and calculating exactly how much you can afford, are the best ways to prepare for your future home purchase. It’s also important to refrain from making any new large purchases or applying for new credit.
© 2011 Florida Realtors®
“It’s not about timing the market. It’s about time in the market,” says Steve Berkowitz, chief executive officer at Move Inc., the online company that oversees operation of Realtor.com. “Once you know how long you expect to own a home, look at the historical value performance of properties in the neighborhood. Be confident about your own job security, downpayment resources and tolerance for upkeep, as well as the lifestyle you want today and in the near term. Today’s housing market, especially for first-time buyers, makes it almost impossible not to think about the possibilities.”
To help first-time buyers decide if they’re ready, Move created a “reality checklist.”
Get your financial house in order
Before you decide to buy a home, make sure your credit is in good shape and repair any damage previously done. Know your credit score: Thirty-five percent of successful buyers recently reported they didn’t know their credit score when they went house shopping, according to a national survey fielded for MortgageMatch.com. Having enough money set aside for a downpayment is a key component. Also, don’t put all your money in the downpayment as other fees or unexpected expenses often arise after closing.
Don’t fall in love with a house you can’t buy
Find out how much you can afford, including how much money will be required for a downpayment and closing costs. Look for special loans available from FHA and government-sponsored loans for first-time homebuyers that reduce the amount of money required to get into a home.
Learn the lingo
Since first-time buyers are new to the market and will finance a significant portion of their purchase, it’s important to get familiar with the processes and terminology associated with home buying. Here are a few key terms from MortgageMatch.com:
• Bait Rate: Misleading mortgages with low rate promises and no contingencies generally for those with extraordinary credit. Rates are based on: credit, debt-to-income and loan-to-value ratios, the size and type of loan, property location and the day you lock your rate, etc. The loan isn’t locked until the application is accepted. By then, it may be too late to find a better rate from another lender.
• Basis Point: A term used in the mortgage industry, which simply means 1/100th of 1 percent.
• Closing Costs: The fees required to process and close your loan. They’re a cash obligation running from three to five percent of the purchase price. Motivated sellers might pay a portion of these costs.
• FHA: Federal Housing Administration, the federal government agency that oversees the U.S. housing market. FHA loans are loans insured by the U.S. Department of Housing and Urban Development.
• FRM and ARM: A fixed-rate mortgage loan (FRM) is a loan where your interest rate stays the same for the life of the loan. ARMs are adjustable rate mortgages with variable interest rates that fluctuate based on an agreed-upon index.
• GFE: The Good Faith Estimate (GFE) is a document explaining all costs involved in getting a loan.
• TIL: The Federal Truth-in-Lending Form is a document that spells out the costs and fees of the loan.
• Lis Pendens: An official notice that there is a pending lawsuit over real estate.
• Per Diem Interest: Interest you pay per day, from the day you close to the last day of the month.
• Underwriting and Underwriting Fees: Underwriting is a process the lender performs to qualify a borrower for a loan, and the fee is what you pay the lender at closing to cover evaluating the risk involved with loaning you money.
• Warranty Deed: A legal document guaranteeing the seller has a right to sell a property, which is very important if you are considering a distressed or discounted property.
If now isn’t the right time, prepare for your future purchase
If now isn’t the right time to buy a home, make a plan with a target date for when you expect to be ready. Improving your credit, paying down debt, stabilizing your work history and calculating exactly how much you can afford, are the best ways to prepare for your future home purchase. It’s also important to refrain from making any new large purchases or applying for new credit.
© 2011 Florida Realtors®
Friday, March 4, 2011
5 markets with the largest price drops
MIAMI – March 4, 2011 – The number of homes where sellers have cut their asking price is up 17.6 percent, according to a ZipRealty survey that analyzed MLS-listed properties in 26 markets.
“In more than half of the surveyed markets, sellers are averaging at least two reductions in price,” says John Oldham, director of marketing for ZipRealty. “Inventory has grown throughout much of the year. As sellers face the pressure of more buying options, they seem to be discounting to attract buyers resulting in list prices being cut for over 46 percent of the homes.”
The median reduction amount has averaged 1.7 percent or $19,088.
Florida leads the nation in the largest percentage discount off the original list price, with Orlando (12.5 percent discount), Jacksonville (12.1 percent), and Miami/Fort Lauderdale/Palm Beach (11.9) leading the pack.
The top 5 markets with the largest overall median price reduction in absolute dollars include:
1. San Francisco: $32,500 median price reduction
2. Orange County, Calif.: $31,000
3. San Diego: $29,100
4. Miami/Ft. Lauderdale/Palm Beach: $25,000
5. Seattle: $25,000
Source: “ZipRealty’s monthly price reduction index reports double digit increase in number of price reduced home listings over last year,” ZipRealty (Feb. 10, 2011)
“In more than half of the surveyed markets, sellers are averaging at least two reductions in price,” says John Oldham, director of marketing for ZipRealty. “Inventory has grown throughout much of the year. As sellers face the pressure of more buying options, they seem to be discounting to attract buyers resulting in list prices being cut for over 46 percent of the homes.”
The median reduction amount has averaged 1.7 percent or $19,088.
Florida leads the nation in the largest percentage discount off the original list price, with Orlando (12.5 percent discount), Jacksonville (12.1 percent), and Miami/Fort Lauderdale/Palm Beach (11.9) leading the pack.
The top 5 markets with the largest overall median price reduction in absolute dollars include:
1. San Francisco: $32,500 median price reduction
2. Orange County, Calif.: $31,000
3. San Diego: $29,100
4. Miami/Ft. Lauderdale/Palm Beach: $25,000
5. Seattle: $25,000
Source: “ZipRealty’s monthly price reduction index reports double digit increase in number of price reduced home listings over last year,” ZipRealty (Feb. 10, 2011)
Thursday, March 3, 2011
Stubborn sellers stand firm on price
COLUMBIA, S.C. – March 3, 2011 – Some sellers say they are unwilling to lower their home’s price to reflect the current real estate market, which some housing experts say is contributing to high inventories and souring the real estate market in their areas.
For example, in Columbia, S.C., some sellers are keeping their prices high and waiting for the market to change, which is causing home sales in the city to continue to slump, even though other parts of the country are already seeing a rebound. The median price for single-family homes in Columbia rose 3.3 percent in January compared to January 2010, but the number of homes sold fell 11.6 percent in January. Home sales have dropped 40 percent since its peak in 2006 in the area.
“This is a price-driven market,” says Doug Bridges, a real estate agent with Coldwell Banker United, Realtors®, in Northeast Richland, S.C. “You’ve gotta have your house better positioned than the next guy’s.” By not lowering the price, the homes linger on the market or have to be put up on the market multiple times, and a buyer often never comes forward.
Seller Jim Brodeur says he refuses to lower the $149,000 price on his two-bedroom, 1,200-square-foot bungalow in Columbia, S.C. He has unsuccessfully put the home up for sale himself three times in the past six years.
Brodeur says a lot of home buyers are looking for a steal nowadays, and “I don’t feel the urge to help anybody steal anything,” says Brodeur. “I don’t have to sell it, and I’m not going to give it away. If I lost my job, it would be different.”
Meanwhile, Bridges suggests sellers get an up-to-date appraisal of their property and have it available to buyers. He says buyers shouldn’t expect to nab the same price they could get a few years ago when housing prices were at their peak.
Source: “Many home sellers won’t budge on price,” The State (Feb. 27, 2011)
For example, in Columbia, S.C., some sellers are keeping their prices high and waiting for the market to change, which is causing home sales in the city to continue to slump, even though other parts of the country are already seeing a rebound. The median price for single-family homes in Columbia rose 3.3 percent in January compared to January 2010, but the number of homes sold fell 11.6 percent in January. Home sales have dropped 40 percent since its peak in 2006 in the area.
“This is a price-driven market,” says Doug Bridges, a real estate agent with Coldwell Banker United, Realtors®, in Northeast Richland, S.C. “You’ve gotta have your house better positioned than the next guy’s.” By not lowering the price, the homes linger on the market or have to be put up on the market multiple times, and a buyer often never comes forward.
Seller Jim Brodeur says he refuses to lower the $149,000 price on his two-bedroom, 1,200-square-foot bungalow in Columbia, S.C. He has unsuccessfully put the home up for sale himself three times in the past six years.
Brodeur says a lot of home buyers are looking for a steal nowadays, and “I don’t feel the urge to help anybody steal anything,” says Brodeur. “I don’t have to sell it, and I’m not going to give it away. If I lost my job, it would be different.”
Meanwhile, Bridges suggests sellers get an up-to-date appraisal of their property and have it available to buyers. He says buyers shouldn’t expect to nab the same price they could get a few years ago when housing prices were at their peak.
Source: “Many home sellers won’t budge on price,” The State (Feb. 27, 2011)
Market rebound for Florida
Until recently Florida was always in the top 2 or 3 for the highest number of foreclosures. This report from CNBC shows that we are now at number 9 and more importantly the change from a year ago is dramatic. The number of foreclosures in this state in down by a whopping 53%! This is HUGE and signals a positive change in our market statewide. Now is the time to buy. As our market continues to improve, prices WILL go up.
Here are the top ten states with the highest number of foreclosures.
10. Colorado
Here are the top ten states with the highest number of foreclosures.
10. Colorado
Rate: One in every 438 households
Properties with filings in 2010: 4,946
Change from Nov. 2010: -3.46%
Change from Dec. 2009: -1.65%
Properties with filings in 2010: 4,946
Change from Nov. 2010: -3.46%
Change from Dec. 2009: -1.65%
9. Florida
Rate: One in every 409 households
Properties with filings in 2010: 21,671
Change from Dec. 2010: -15.48%
Change from Jan. 2010: -53.96%
Properties with filings in 2010: 21,671
Change from Dec. 2010: -15.48%
Change from Jan. 2010: -53.96%
8. Illinois
Rate: One in every 402 households
Properties with filings in 2010: 13,164
Change from Dec. 2010: -6.25%
Change from Jan. 2010: -27.35%
Properties with filings in 2010: 13,164
Change from Dec. 2010: -6.25%
Change from Jan. 2010: -27.35%
7. Georgia
Rate: One in every 318 households
Properties with filings in 2010: 12,772
Change from Dec. 2010: 15.67%
Change from Jan. 2010: 13.29%
Properties with filings in 2010: 12,772
Change from Dec. 2010: 15.67%
Change from Jan. 2010: 13.29%
6. Michigan
Rate: One in every 272 households
Properties with filings in January: 16,716
Change from Dec. 2010: 4.08%
Change from Jan. 2010: -4.88%
Properties with filings in January: 16,716
Change from Dec. 2010: 4.08%
Change from Jan. 2010: -4.88%
5. Utah
Rate: One in every 265 households
Properties with filings in January: 3,601
Change from Dec. 2010: 8.11%
Change from Jan. 2010: -11.89%
Properties with filings in January: 3,601
Change from Dec. 2010: 8.11%
Change from Jan. 2010: -11.89%
4. Idaho
Rate: One in every 241 households
Properties with filings in January: 2,686
Change from Dec. 2010: 29.38%
Change from Jan. 2010: 3.19%
Properties with filings in January: 2,686
Change from Dec. 2010: 29.38%
Change from Jan. 2010: 3.19%
3. California
Rate: One in every 200 households
Properties with filings in January: 67,072
Change from Dec. 2010: 1.76%
Change from Jan. 2010: -6.61%
Brevard Christian Realty is dedicated to providing exceptional, honest service and value to home buyers and sellers based on Christian principles.
Contact us today at 321-684-9900
Properties with filings in January: 67,072
Change from Dec. 2010: 1.76%
Change from Jan. 2010: -6.61%
2. Arizona
Rate: One in every 175 households
Properties with filings in January: 15,757
Change from Dec 2010: 16.19%
Change from Jan. 2010: -25.14%
Properties with filings in January: 15,757
Change from Dec 2010: 16.19%
Change from Jan. 2010: -25.14%
1. Nevada
Rate: One in every 93 households
Properties with filings in January: 12,263
Change from Dec. 2010: -8.97%
Change from Jan. 2010: 3.45%
Properties with filings in January: 12,263
Change from Dec. 2010: -8.97%
Change from Jan. 2010: 3.45%
Brevard Christian Realty is dedicated to providing exceptional, honest service and value to home buyers and sellers based on Christian principles.
Contact us today at 321-684-9900
Wednesday, March 2, 2011
Sellers better off using a Realtor
EMERYVILLE, Calif. – March 1, 2011 – Real estate website HomeGain conducted a survey of 1,000 sellers to gauge their opinion on For Sale By Owner (FSBO) compared to using a Realtor.
Of the sellers surveyed, 83 percent used a Realtor while 17 percent attempted to sell their house on their own. Of those who used a Realtor, 59 percent sold their home; of FSBOs, only 39 percent successfully found a buyer and closed.
Of the successful sellers who used a Realtor, 88 percent said they would do so again; of all Realtor-represented sellers, 81 percent said they would use a Realtor again.
Of FSBOs who successfully sold their homes on their own, 71 percent would attempt to do so again.
However, the survey also found that nearly a quarter of FSBOs ultimately turned to a Realtor to help them sell their properties.
Source: RISMedia (02/25/11)
Of the sellers surveyed, 83 percent used a Realtor while 17 percent attempted to sell their house on their own. Of those who used a Realtor, 59 percent sold their home; of FSBOs, only 39 percent successfully found a buyer and closed.
Of the successful sellers who used a Realtor, 88 percent said they would do so again; of all Realtor-represented sellers, 81 percent said they would use a Realtor again.
Of FSBOs who successfully sold their homes on their own, 71 percent would attempt to do so again.
However, the survey also found that nearly a quarter of FSBOs ultimately turned to a Realtor to help them sell their properties.
Source: RISMedia (02/25/11)
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