Showing posts with label QC. Show all posts
Showing posts with label QC. Show all posts

Monday, May 18, 2015

12 Most Popular New-Home Amenities in 2015

Master bedroom walk-in-closets and a laundry rooms are the top features that builders are most likely to include in a new home this year, according to a survey of builders conducted by the National Association of Home Builders.
"Both features speak to improving organization and storage characteristics of new homes," according to NAHB on its Eye on Housing blog.
Greater energy efficiency amenities also were ranked more important, with low-E Windows coming in No. 3 on the most likely amenity list on new homes. Energy-Star rated appliances and windows as well as a programmable thermostat also rated high.
The following were ranked as the most likely features and amenities to be included on an average single-family home in 2015:
  1. Walk-in closet in master bedroom
  2. Laundry room
  3. Low-E windows
  4. Great room (kitchen-family room-living room)
  5. Energy-Star rated windows
  6. Ceiling height on the first floor of 9 feet or more
  7. 2-car garage
  8. Programmable thermostat
  9. Granite countertop in the kitchen
  10. Central island in the kitchen
  11. Bathroom linen closet
  12. Front porch
On the other hand, the features identified in the survey as the most likely to be included in new homes this year are:
  1. Outdoor kitchen (cooking, refrigerators and sinks)
  2. Laminate countertops in the kitchen
  3. Outdoor fireplace
  4. Sunroom
  5. Two-story family room
  6. Media room
  7. Two-story foyer
  8. Walking/jogging trails in the community
  9. Whirlpool in the master bathroom
  10.  Carpeting as the flooring on the main level
Source: "What Builders Are Building," National Association of Home Builders Eye on Housing Blog (May 13, 2015)


Friday, February 20, 2015

Bet on These Home Improvements in 2015

If you're considering giving your home an upgrade this year, it can be overwhelming to choose what home features need an overhaul. Trends seem to change all the time, and the last thing you want is to spend money on costly improvements that will soon be out of date.
What's Hot In Design?
Real estate brokerage Redfin recently analyzed home features that are most desirable to potential home buyers. First, they asked local real estate agents to take note to what features were cropping up the most on home tours. Then they searched for those design keywords and took note of what trends experienced the most growth in popularity in the last five years.
So what seven home improvements made their list of the safest bets?  
  1. Quartz Countertops: For years it was all about the granite counters, but it appears that quartz is all the rage these days for buyers. According to Redfin, quartz has experienced a huge increase since 2012, due to its durability and overall buyer granite fatigue.
  2. Smart Homes: While Smart Home design is overall still a niche with buyers, it's a phrase that has experienced an explosion in listing mentions since 2012. Redfin agents caution that buyers really need to choose a smart home system with the most up-to-date software since smart home technology is rapidly evolving.
  3. Stainless Steel Appliances: This trend is here to stay, and it has only increased in popularity since 2011. According to a Redfin agent, stainless steel is "the gold standard for kitchens these days" and it appears to be a very safe home improvement bet.
  4. Fire Pits: Buyers are still interested in turning their backyards into relaxing areas with multiple focal points that encourages interaction and socializing, and adding a fire pit remains a popular upgrade.
  5. Tasting Rooms: In the high-end and luxury market, the term "tasting" has slowly increased in listings over the last five years. In the past, buyers hid their wine cellars away from the main focal point of the house, but these days they're requesting tasting rooms that are adjacent to the main socializing rooms of the house, such as the kitchen and living rooms.
  6. Outdoor Kitchens: Along with fire pits, outdoor kitchens and multi-use backyard areas have only gained in popularity, especially for high-end buyers who mention socializing in the home as a priority. According to Redfin, "Backyards are becoming places to lounge during the summer, with full kitchens, fireplaces and televisions."
  7. Freestanding Tubs: The days of the space-saving combined shower and tub are over, at least for luxury buyers. Redfin reports that the term "freestanding tub" has increased dramatically since 2011, as buyers want a bathroom that's more reminiscent of a spa.
And lastly, one trend that is seemingly on its way out? Exposed brick. According to Redfin, mentions of exposed brick in listings peaked back in 2013, and they caution that other than loft homes, buyers' interest in exposed brick is waning.


Thursday, February 19, 2015

After Baby Boomers, What’s Next for Housing?

As baby boomers age, the decline of this mammoth generation will have a “dampening effect on household growth,” according to a new report by Harvard’s Joint Center for Housing Studies. However, this decline in growth will occur over several decades and may be offset by the millennial generation starting households of their own.
But the big question is whether the housing left by baby boomers will be desirable to younger generations?
“Many homes vacated by aging seniors will not be in demand by tomorrow’s young adults, being in the wrong part of the country or otherwise unsuitable,” according to JCHS researchers. “Some will be simply too expensive. Some ‘affordable’ vacated homes in desirable locations will be torn down and replaced by larger and more energy efficient/amenity rich houses targeted to older buyers. Many houses will sit on the market for long periods of time before sellers are willing to recognize that they are overpriced. Some homes in declining communities will become abandoned.”
As such between now and 2030, new construction will be needed to meet the housing demand from the large number of those under the age of 30 that are currently in the pipeline – which will be even further escalated due to future immigration trends, researchers note.
Later this decade, the adult population growth is expect to turn sharply, according to recent Census Bureau population projections. Growth in the population age 20 and older is expected to see a 40 percent decline, gradually falling to about 1.5 million per year by 2050.
“Despite their improving life expectancies, the oldest baby boomers will soon turn 70, and begin to die off in ever-greater numbers,” notes JCHS’ report. “Today, there are about 2.6 million deaths every year, but this number will rise to over 4 million a year by 2050.”
Baby boomers have long had a thirst for real estate. As they aged, the share heading an independent household rose from 53.4 percent in 1990; 56.1 percent in 2000; and 58.5 percent in 2010.
On the other hand, younger age groups have been slower to enter the housing market. “Higher minority shares and delayed marriage have had a negative effect on headship rates, as has the Great Recession’s impact on employment and income,” JCHS researchers note.
So what does this mean for the future of housing?
“Projected declining adult population growth because of increasing deaths will have several effects on housing markets,” JCHS researchers predict. “But it will not have an immediate and proportional impact on household growth for a variety of reasons. First, many initial baby boomer deaths will occur to married couples, leaving the surviving spouse to continue to head a household. Many deaths will also occur to people who do not head a household, but rather live in a household headed by children or other relatives, or in institutional settings (assisted living or nursing facilities).”
The decline in household growth due to the aging baby boomers will occur over many decades. By then, aging millennials could cause “the changing age structure effect to be more positive, similar to what baby boomers exerted as they passed into middle age, offsetting the effects of declining adult population growth.”
Source: “What Will Happen to Housing When Baby Boomers Are Gone?” Harvard Joint Center for Housing Studies’ Housing Perspectives Blog (Feb. 17, 2015)


Monday, February 16, 2015

Successful Cities Invest in Technology, Energy

Smart investments in energy and innovation earn San Francisco, CA and Austin, TX the distiction of being named the Best-Performing Cities in America by the Milken Institute.
Dynamic Cities
The Milken Insitute ranked 379 metro areas to help businesses, investors, government officials, and public-policy groups track and evaluate the performance of metros where they do business relative to the rest of the country. In the 2014 index, the they weighed nine factors, including  job, wage, and technology trends, with a heavy emphasis on growth in jobs creation and retention and the overall quality of new jobs.
What made these cities better equipped to weather the recent economic downturn was their ability to "offset high costs, an unfavorable tax structure, and a burdensome regulatory environment thanks to the clustering of talent and technology in an entrepreneurial ecosystem. The two main factors driving the success of these metros is technology and shale energy production.
"Technological advances in horizontal drilling and hydraulic fracturing are altering the energy landscape of the United States," according to the study. "Few experts had anticipated the magnitude of the boom in shale oil and gas exploration and production occurring since 2007. Energy investment has claimed the largest share of GDP since the early 1980s."
Study Highlights
  • San Franciso, CA, earned the top spot among large metros, accounting for 45 percent of all jobs created over the five years ending in 2013.
  • Five Texas metro areas were ranked in the top 10 list of best-performing cites, due to a combination of tech, energy strength, and a favorable business climate.
  • California and Colorado each had four metro areas in the Top 25.
  • Technology centers, made up of creative and scientific-based industries represented 13 of the Top 25.
  • Seven metros made the Top 25 due to large gains in shale oil and gas exploration, associated infrastructure investment, and related activities.
  • Fargo, ND, was No. 1 among small metros, benefitting from the shale oil boom and a diverse makeup of industries.
  • West Palm Beach, FL, increased 93 spots and was the city with the overall biggest increase.
Sources: "America's Best Performing Cities Are Invested In Technology And Energy,"  Fast Company (Jan 15, 2015), and "Best Performing Cities," Milken Institute, (Janaury, 2015)


Friday, February 13, 2015

Mortgage Rates Remain Near 2013 Lows



Average fixed-rate mortgages are holding near historical lows, but did inch higher this week amid a stronger employment report, Freddie Mac reports in its weekly mortgage market survey.
The economy added 257,000 new jobs in January, following additional increases in December (329,000) and November (423,000).
Despite this week’s uptick in rates, fixed-rate mortgages remain near lows from May 23, 2013, Freddie Mac reports.
Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 12:
  • 30-year fixed-rate mortgages: averaged 3.69 percent, with an average 0.6 point up from last week’s 3.59 percent average. A year ago, 30-year rates averaged 4.28 percent.
  • 15-year fixed-rate mortgages: averaged 2.99 percent, with an average 0.6 point, rising from last week’s 2.92 percent average. Last year at this time, 15-year rates averaged 3.33 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.97 percent, with an average 0.5 point, up from last week’s 2.82 percent average. A year ago, 5-year ARMs averaged 3.05 percent.
  • 1-year ARMs: averaged 2.42 percent, with an average 0.4 point, also up from last week’s 2.39 percent average. Last year at this time, 1-year ARMs averaged 2.55 percent.
Source: Freddie Mac


Friday, January 23, 2015

Existing-Home Sales Rebound: 5 Stats to Know

Home sales picked up at the end of 2014, closing off a year that had a sluggish start but then showed encouraging signs in the second half, according to the National Association of REALTORS®’ latest housing report, released Friday.
Existing-home sales rose 2.4 percent in December month-over-month, bouncing back after a dismal November. Total home sales –reflecting completed transactions of single-family homes, townhomes, condos, and co-ops – reached a seasonally adjusted annual rate of 5.04 million in December.
“Home sales improved over the summer once inventory increased, prices moderated, and economic growth accelerated,” says Lawrence Yun, NAR’s chief economist. “Sales were measurably better in the second half – up 8 percent compared to the first six months of the year.”
Overall for 2014, the median national existing-home price was $208,500, reaching the highest level since 2007, and a 5.8 percent increase from 2013 when it was $197,100. However, total existing-home sales were 3.1 percent lower in 2014 compared to 2013, NAR reports.
Here’s a closer look at five housing stats from NAR’s latest report -- reflecting December 2014 data -- to gauge the market:
1. Home sales: Single-family home sales rose 3.5 percent in December to a seasonally adjusted annual rate of 4.47 million compared to 4.32 million in November. Single-family home sales are 4 percent above the pace a year ago. Existing condo and co-op sales, on the other hand, dropped 5 percent in December.
2. Home prices: The median existing-home price for all housing types in December was $209,500 – 6 percent higher than year ago levels. This marks the 34th consecutive month of year-over-year price gains.
3. Days on the market: Properties typically stayed on the market in December for 66 days, a slightly shorter time frame than a year ago when the average was 72 days. Short sales were on the market the longest amount of time at a median of 98 days in December, while foreclosures sold in 61 days. Non-distressed homes averaged 66 days on the market. About 31 percent of homes that were sold in December were on the market for less than a month, according to NAR.
4. Distressed sales: Foreclosures and short sales edged up slightly in December, reaching 11 percent of sales compared to 9 percent in November. However, distressed sales are down from 14 percent a year ago. Of December existing-home sales, 8 percent were foreclosures and 3 percent were short sales. On average, foreclosures sold for a discount of 15 percent below market value while short sales were discounted 12 percent.
5. Inventory: Total housing inventory at the end of December fell 11.1 percent to 1.85 million existing homes available for sale. That represents a 4.4-month supply at the current sales pace, which is down from 5.1 months in November. Unsold inventory is now 0.5 percent lower than a year ago.
“A drop in housing supply in December raises some affordability concerns in the months ahead as minimal selection and the potential for faster price appreciation could offset the demand from buyers encouraged by a stronger economy and sub-4 percent interest rates,” says Yun. “Housing costs – both rents and home prices – continue to outpace wages and are burdensome for potential buyers trying to save for a downpayment while looking for available homes in their price range.”
By Region
The following is a look at how existing-home sales performed across the country in December:
  • Northeast: existing-home sales fell 2.9 percent to an annual rate of 660,000. Sales are 3.1 percent above year ago levels. Median price: $246,600, up 3.2 percent above a year ago.
  • Midwest: existing-home sales dropped 3.5 percent to an annual level of 1.09 million in December. Sales are 2.7 percent below December 2013. Median price: $159,100, up 5.3 percent from a year ago.
  • South: existing-home sales in the South climbed 3.8 percent to an annual rate of 2.17 million in December. Sales are 7.4 percent above December 2013. Median price: $184,100, up 6.6 percent from a year ago.
  • West: existing-home sales surged 9.8 percent to an annual rate of 1.12 million in December. Sales are 2.8 percent above a year ago. Median price: $299,600, up 5.6 percent year-over-year.


Mortgage Rates Fall Even Lower This Week

Fixed-rate mortgages continue their free fall, with the 30-year fixed rate mortgage averaging 3.63 percent this week and the 15-year fixed-rate mortgage staying below 3 percent, Freddie Mac reports. The 30-year fixed-rate mortgage is at its lowest level since the week ending May 23, 2013, when it averaged 3.59 percent.
"Mortgage rates continued to fall, albeit at a slower pace,” says Frank Nothaft, Freddie Mac’s chief economist. Mortgage rates are falling amid declining bond yields and oil prices, Freddie Mac notes.
Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 22:
  • 30-year fixed-rate mortgages: averaged 3.63 percent, with an average 0.7 point, dropping from last week’s 3.66 percent average. Last year at this time, 30-year rates averaged 4.39 percent.
  • 15-year fixed-rate mortgages: averaged 2.93 percent, with an average 0.6 point, dropping from last week’s 2.98 percent average. A year ago, 15-year rates averaged 3.44 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.83 percent, with an average 0.4 point, dropping from last week’s 2.90 percent average. Last year at this time, 5-year ARMs averaged 3.15 percent.
  • 1-year ARMs: averaged 2.37 percent, with an average 0.4 point, holding the same from last week. A year ago, the 1-year ARM averaged 2.54 percent.
Source: Freddie Mac


Thursday, January 22, 2015

Housing Starts Reach Six Year Highs

Housing starts for single-family homes surged to the highest level in more than six-and-a-half years, a promising sign at the end of 2014, the Commerce Department reported Wednesday.
"The last piece of the economic puzzle is starting to come together now as housing construction is coming back. The housing market is continuing to heal," Chris Rupkey, chief financial economist at MUFG Union Bank in New York, told Reuters.
Homebuilding has been significantly low despite recent economic growth. Household formation has been running at about 500,000 a year – way below the 1-million mark that most economists consider healthy for the sector.
But the Commerce Department’s report on Wednesday hints at a turnaround: Single-family housing starts, the largest portion of the homebuilding market, rose 7.2 percent to a seasonally adjusted annual pace of 728,000 units in December. It’s the highest level since March 2008.
Meanwhile, groundbreaking on the volatile multi-family market fell slightly at 0.8 percent in December.
Overall, housing starts – reflecting the single-family and multi-family markets – increased 4.4 percent in December to a 1.09 million-unit rate.
Economists point to several factors as helping to lift the new-home market, notably the 30-year mortgage rate is down more than 80 basis points from early 2014, the government’s move to ease credit conditions, and overall wage and employment growth.
"This should allow for many more individuals to enter the market. We expect much of the improvement to occur in sales at the lower end of the market, which has been lagging the overall housing recovery," says David Nice, an economist at Mesirow Financial in Chicago.
Overall for 2014, groundbreaking on single-family and multifamily homes rose 8.8 percent to 1.01 million units – the highest since 2007.
However, the new-home market still has a ways to go. Building permits – a sign of future homebuilding activity – dropped 1.9 percent in December – mostly attributed to an 11.8 percent drop in the multi-family segment. Yet, single-family permits increased 4.5 percent, marking the highest level since January 2008. Building permits in the South in December reached their highest level since February 2008.
Source: “U.S. Single-Family Housing Starts Highest Since Early 2008,” Reuters (Jan. 21, 2015) and “Housing Starts End Year Solidly, Up 4.4%,” Dow Jones Business News (Jan. 21, 2015)


Improving Economy Helps Buoy Housing

Recent drops in oil prices and mortgage rates, along with positive tailwinds in the economy, are helping to jump-start the housing market in the new year, according to Freddie Mac’s newly released2015 U.S. Economic and Housing Market Outlook for January. Consumers are gaining confidence, which is expected to translate to higher home sales in the coming months. Some economists are skeptical on whether this latest jolt will stick around for the entire year, however.
Freddie Mac economists note that mortgage rates continue to remain well below expectations, and they predict that mortgage rates will remain low at the beginning of 2015, staying around 4 percent for the first two quarters of the year at least. Last week, mortgage rates dipped to a 20-month low with the 30-year fixed-rate mortgage rate plunging to a 3.66 percent national average and the 15-year fixed-rate mortgage dropping to 2.98 percent. 
“We … expect these low mortgage rates to help the growing purchase market continue to expand and reach the highest levels we’ve seen since 2007,” the economists note in the forecast.
But rates likely will move up by the end of the year. Lawrence Yun, chief economist for the National Association of REALTORS®, says that the 30-year fixed-rate mortgage could average around 5 percent – or higher – by the end of this year.
"I would not be surprised if it is above 5 percent because when mortgage rates move or interest rates move, it is generally not in a slow creep," Yun told Bankrate.com.
That said, many potential home buyers remain sidelined due to high monthly rents that have prevented many from being able to save for a down payment on a home. Freddie Mac believes its new announcement, along with Fannie Mae, of offering mortgages with down payments as little as 3 percent, along with the Federal Housing Administration’s recent announcement that it will cut its premiums for new and refinancing borrowers by a half percentage point to help increase mortgage availability to first-time home buyers.
Economists also note in Freddie Mac’s report that home prices will likely rise by 3.5 percent this year. In addition, in the labor market, wages are expected to rise, helping to give consumers greater confidence. The National Federation’s Independent Business Index for December showed that small businesses expect to raise employee compensation to the highest level since 2006.
Still, economists worry that some of the positives in the housing market may be for a “limited time only,” influeneced by unexpected weaknesses in the global economy as well as what the Federal Reserve ultimately does with mortgage rates. While mortgage rates are expected to largely remain low for the next two quarters, many economists are expecting rates to move higher in the second half of the year.
"On balance there are a lot of positive opportunities in the U.S. economy at the start of the year, and the real question is whether or not households and businesses will be able to seize these opportunities and make the most of them,” says Frank Nothaft, Freddie Mac’s chief economist. “The reprieve in interest rates and drop in gas prices should help to spur economic growth. Until rates start to rise later in the year, housing markets should respond positively, and we anticipate increases in home sales and continued improvement in construction activity.”
Source: “January U.S. Economic & Housing Market Outlook,” Freddie Mac (January 2015) and “Housing Market’s ‘Interesting Times,’” Bankrate.com (Jan. 19, 2015)


Wednesday, January 21, 2015

4 Things You Don’t Know About Outdoor Kitchens

Now that the 2015 International Builders’ Show has partnered with the Kitchen & Bath Industry Show, there are plenty of examples of beautiful cooking spaces, indoors and out. But what about the numbers? The results of a new survey released at the show attempt to define what consumers want when it comes to outdoor kitchens.
The Great Outdoors
Dave Brown, a partner with Chicago-based ad firm HY Connect, surveyed consumers who have or would like to have outdoor kitchens in their homes. The study, which surveyed households making $150,000 or more in household income across the United States, was conducted in December 2014. He discussed the results of the survey at the first day of IBS/KBIS in Las Vegas on Tuesday.
A Growing Market
While only 4 percent of affluent households have outdoor kitchens today, 13.6 percent say they are planning on adding one in 2014. Brown says that the largest age group who don’t have these amenities but are hoping to incorporate them in their living space is between the ages of 45 and 54. He also adds that those who are interested in this particular amenity are more likely to have children in the home, noting, “These are active households. They’re doing stuff.”
The Difference Between Indoor and Outdoor
The needs and wants associated with an indoor kitchen don’t necessarily translate to that of an outdoor cooking space. “Outdoors is all about socializing… it is all about having fun and a great experience,” Brown says, noting that adequate seating space is one place where home owners tend to underestimate. Also, he adds that “storage in the indoor kitchen is huge [but] in terms of the outdoors, food prep becomes more important.”
Unexpected Features Top Favorites Lists
It may not seem that surprising that survey respondents consistently rated the outdoor kitchen their favorite room in the whole house. However, their favorite features weren’t the traditional items seen in most outdoor entertainment areas. The No. 1 item that current owners of outdoor kitchen regretted leaving out was a pizza oven. “What’s loved the most is what’s unique. Fountains, fireplaces, pools,” Brown says. He adds that his backyard pizza oven serves as a gathering place for guests to participate in the food prep process. “It’s what I call ‘kitchen karaoke.’”
Integration Is Key
Brown says that many home owners start small with the intention of adding on features later. But he notes that the most successful, best-loved outdoor kitchens tend to occur when the design process is holistic: “It feels like an entire outdoor room where I can have an event and not just a bunch of stuff stuck outside.”
—Meg White, REALTOR® Magazine


Wednesday, November 12, 2014

Survey: More Americans Ready to Sell



More Americans are growing optimistic about home-price appreciation and selling, according to Fannie Mae's October 2014 National Housing Survey of 1,000 American adults.
Home-price expectations rose significantly in the latest survey, largely reversing a dip over the past four months, says Doug Duncan, Fannie Mae's chief economist. Also, the share of consumers who say now is a good time to sell a home reached another survey high this month.
"The narrowing gap between home buying and home selling sentiment may foreshadow increased housing inventory levels and a better balance of housing supply and demand," Duncan says. "These results may help drive a healthier housing market in 2015."
Duncan says that the latest survey showed that consumers are growing more optimistic about the housing market "in the face of broader improvement in economic sentiment. The share of consumers who expect their personal finances to get better is near its highest level since the survey's inception, while those expecting their finances to get worse reached a survey low."
The following are some additional highlights from the Fannie Mae survey:
  • Home buying and selling: The percentage of Americans who say now is a good time to buy a house dropped to 65 percent in October, but sellers were more optimistic. Those who say it's a good time to sell rose to 44 percent, marking a new all-time survey high.
  • Home prices: The average home-price expectation for the next 12 months increased to 2.8 percent. Forty-four percent of respondents now say they expect home prices to rise within the next 12 months.
  • Personal finances: Forty-five percent of respondents say they expect their personal financial situation to improve during the next 12 months, seven points higher than a year ago. The share expecting their financial situation to worsen, meanwhile, decreased to 10 percent last month.
  • Rent expectations: The percentage of respondents who expect home rental prices to rise fell by six percentage points to 49 percent in October.
Source: Fannie Mae


Thursday, November 6, 2014

Purchase Applications Post First Rise in Weeks

Applications for home purchases, a leading indicator of home sales, increased 2.6 percent last week, even with a rise in interest rates, according to the Mortgage Bankers Association’s seasonally adjust index of mortgage activity, reflecting the week ending Oct. 31. The rise follows a 5 percent decrease the previous week
Refinance activity is diminishing. Refinancing posted a big surge last month due to interest rates hitting the lowest point of the year. But for the last two weeks, refinance activity has fallen, dropping 5.5 percent the prior week.
Due to the big drop in refinancing applications last week, overall mortgage application activity, which reflects both refinancing and home purchases, posted a 2.6 percent decrease in the week.
Meanwhile, the 30-year fixed-rate mortgage was on the rise last week, up four basis points, averaging 4.17 percent.
Source: “U.S. Mortgage Applications Fall in Latest Week: MBA,” Reuters (Nov. 5, 2014)


Thursday, October 30, 2014

Housing’s Zombies Still Lurk, But Bite Lessens


The number of homes in the foreclosure process that are vacant – known as zombie foreclosures – are lessening their trail of destruction on housing markets. Zombie foreclosures made up about 18 percent of all active foreclosures (or 117,298) in the third quarter, down from 23 percent (or 152,033) a year ago, according to RealtyTrac’s Third Quarter 2014 Zombie Foreclosure Report.
The homes are vacated by home owner before the foreclosures are completed.
“The most effective preventative vaccine for the blight caused by vacant, abandoned foreclosures has proven to be a short and efficient foreclosure process,” said Daren Blomquist, vice president at RealtyTrac. “Absent that, the best antidote for a zombie foreclosure infestation is a pro-active land bank program like that in Cleveland and more recently Chicago designed to aggressively take possession of vacant foreclosures and rehab or demolish them.”
The state that saw the largest declines in zombie foreclosures in the third quarter compared to a year ago was Missouri, where such foreclosures have fallen by 73 percent. Zombie foreclosures have also fallen in Virginia, by 59 percent; California (down 56 percent); Massachusetts (down 46 percent); New Hampshire (down 45 percent); and Illinois (down 44 percent).
At a metro-level among cities with populations over 200,000, 138 metros saw declines in zombie foreclosures in the third quarter, led by Portland, Ore. (down 53 percent); Cleveland (down 52 percent); Phoenix (down 52 percent); and Boston (down 52 percent).
But the zombies are still lurking in many housing markets.
“Markets with lengthy and lengthening foreclosure timelines have unintentionally created a zombie foreclosure breeding ground,” Blomquist says. "As we see a backlog of delayed distress finally hit the foreclosure pipeline in some of those markets, the problem is coming more to light.”
In the third quarter, 16 states saw increases in owner-vacated foreclosures compared to a year ago, with some housing markets seeing zombies swell by up to 75 percent in the past year. The states that saw the largest increases were New Jersey (up 75 percent); North Carolina (up 65 percent); Oklahoma (up 37 percent); and New York (up 30 percent).
The following are the top 10 markets for zombie foreclosures (including the total owner vacated):
  1. New York-Northern Jersey-Long Island, N.Y.-N.J.-Pa.: 13,366
  2. Miami-Fort Lauderdale-Pompano Beach, Fla.: 9,869
  3. Tampa-St. Petersburg-Clearwater, Fla.: 7,509
  4. Chicago-Naperville-Joliet, Ill.-Ind.-Wis.: 7,326
  5. Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.: 5,405
  6. Orlando-Kissimmee, Fla.: 3,732
  7. Jacksonville, Fla.: 2,462
  8. Las Vegas-Paradise, Nev.: 1,694
  9. Atlatna-Sandy Springs-Marietta, Ga.: 1,684
  10. Palm Bay-Melbourne-Titusville, Fla.: 1,384
Source: RealtyTrac


Tuesday, October 28, 2014

Pending Home Sales Up, But Credit an Issue

Pending home sales inched up slightly in September, and for the first time in 11 months, they were above year-ago levels, according to the National Association of REALTORS®' Pending Home Sales Index. However, tight credit conditions continue to be a barrier for many borrowers, NAR notes.
The Pending Home Sales Index rose 0.3 percent in September to 105. That's 1 percent above the September 2013 reading and the second-highest level since that time.
Opening the Credit Box
But sales are being held back because of potential buyers who are still unable to qualify for a mortgage. About 15 percent of REALTORS® in September indicated that the main reason for not closing on a deal was because their clients could not obtain financing.
Lawrence Yun, NAR's chief economist, says the final qualified residential mortgage rule will likely improve access to credit next year.
"The rule provides clarity for lenders and is a win for creditworthy consumers by ensuring they continue to have access to safe and affordable loan products without overly burdensome down payment requirements," Yun says.
Also, low mortgage rates, moderating price growth, and sustained inventory levels should help more buyers enter the market, Yun says.
"Housing supply for existing homes was up in September by 6 percent from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year," Yun notes.
In September, the Pending Home Sales Index rose in the South and Northeast but decreased in the Midwest and West.
Pending home sales were up by the highest percentage in the South — 1.4 percent month-over-month to a reading of 118.5. That was 1.7 percent above September 2013. Pending home sales also rose in the Northeast by 1.2 percent to 87.5 and are 2.9 percent above year-ago levels.
Meanwhile, pending home sales fell 1.2 percent in the Midwest to 101.2 in September and are now 4 percent below year-over-year levels for that region. Pending sales also fell in the West, dropping 0.8 percent last month to 101.3 but are still 3.6 percent above a year ago.


Friday, October 24, 2014

Rates Haven’t Been This Low Since 2013

The 30-year fixed-rate mortgage took another dip this week, staying below the 4 percent threshold and keeping borrowing costs at the lowest rate in more than a year. It marks the fifth consecutive week that mortgage rates decreased.
Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 23:
  • 30-year fixed-rate mortgages: averaged 3.92 percent, with an average 0.5 point, reaching a new low for the year and dropping from last week’s 3.97 percent. Last year at this time, 30-year rates averaged 4.13 percent.
  • 15-year fixed-rate mortgages: averaged 3.08 percent, with an average 0.5 point, dropping from last week’s 3.18 percent average. A year ago, 15-year rates averaged 3.24 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.91 percent, with an average 0.5 point, dropping from last week’s 2.92 percent average. Last year at this time, 5-year ARMs averaged 3 percent.
  • 1-year ARMs: averaged 2.41 percent, with an average 0.4 point, rising from last week’s 2.38 percent average. A year ago, 1-year ARMs averaged 2.60 percent.
Source: Freddie Mac