Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Tuesday, July 8, 2014

Recovery Broadens as More Markets See Price Increases

DAILY REAL ESTATE NEWS | MONDAY, JULY 07, 2014
Home prices were on the rise again last month, but in a stark contrast to last year, price increases were more generalized and less concentrated to just a few metro pockets, according to realtor.com’s May 2014 National Housing Trend Report.
In May, the median list price of homes was $214,900 nationwide, an 8 percent increase year-over-year. All but eight of the 146 markets that realtor.com tracks reported year-over-year price increases in May. “This broad increase in price suggests a more evenly distributed recovery and a healthier national housing market,” reads a realtor.com statement on the findings.
Home inventories in May were down 5.8 percent compared to year ago levels. A limited number of homes for-sale across the country is credited with lifting home prices.
“Home prices are as high as they are because of low inventory spread across the nation,” says Steve Berkowitz, CEO of Move Inc., which operates realtor.com. “But we are not seeing the runaway pricing of last year. Nor is the situation exclusive to the hotbed markets of recent years.”
The following 10 metro areas saw the greatest increases in median list prices year-over-year, according to realtor.com’s May report:
  1. Stockton-Lodi, Calif.
    • Median list price: $285,000
    • Year-over-year increase: 42.7%
  2. Las Vegas
    • Median list price: $186,085
    • Year-over-year increase: 24.1%
  3. Houston
    • Median list price: $245,000
    • Year-over-year increase: 23.1%
  4. Reno, Nev.
    • Median list price: $289,900
    • Year-over-year increase: 22.9%
  5. Denver, Colo.
    • Median list price: $349,900
    • Year-over-year increase: 20.7%
  6. Riverside-San Bernardino, Calif.
    • Median list price: $309,900
    • Year-over-year increase: 19.7%
  7. West-AZ-RSA
    • Median list price: $328,950
    • Year-over-year increase: 19.6%
  8. Sacramento, Calif.
    • Median list price: $340,000
    • Year-over-year increase: 19.3%
  9. Boulder-Longmont, Colo.
    • Median list price: $465,000
    • Year-over-year increase: 19.3%
  10. San Diego
    • Median list price: $500,250
    • Year-over-year increase: 17.7%
Source: realtor.com



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Monday, June 30, 2014

'Zombies' Make Up 21% of Foreclosures

DAILY REAL ESTATE NEWS | MONDAY, JUNE 30, 2014
Zombie foreclosures are still haunting the housing market, representing one in every five foreclosures nationally, according to RealtyTrac, a housing data firm. “Zombie foreclosure” is a term coined to describe properties where the foreclosure process has been started and the home owner vacates, but the foreclosure has never been completed. As such, the distressed home owners who vacate eventually find they still own the home, and are often unaware they are still responsible for it.
The vacated properties can become eyesores in neighborhoods and drive down nearby property values. They also take a big chunk out of local government revenue in the form of unpaid property taxes. RealtyTrac estimates that more than $400 million in property tax revenue is likely delinquent due to zombie foreclosures. Still, the zombie foreclosure rate has shown some improvement, falling 7 percent compared to the first quarter of this year and dropping 16 percent from year-ago levels.
Florida has the highest number of zombie foreclosures, accounting for more than one-third of all zombie foreclosures nationwide. New York, New Jersey, Illinois, and Ohio also have some of the highest numbers of zombie foreclosures across the country.
“Most of these states have seen an increase in new foreclosure activity over the past year, creating a more fertile breeding ground for zombie foreclosures,” says Daren Blomquist, vice president at RealtyTrac.
Some states, such as Florida and Illinois, are looking to combat zombie foreclosures by weighing legislation that could help “fast track” foreclosures and move the abandoned properties through the system more quickly, RealtyTrac reports. New York is also considering legislation that would make lenders responsible for the upkeep of zombie foreclosures. Some local governments—such as in Cleveland and Detroit—also are creating land banks that would include zombie foreclosures, allowing city officials to rehab properties or demolish them.

Where Zombie Foreclosures Are Highest

On a metro level, the seven markets with the highest number of zombie foreclosures, according to RealtyTrac’s second quarter report, are:
  1. New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.
  2. Miami-Fort Lauderdale-Pompano Beach, Fla.
  3. Chicago-Naperville-Joliet, Ill.-Ind.-Wis.
  4. Tampa-St. Petersburg-Clearwater, Fla.
  5. Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.
  6. Orlando-Kissimmee, Fla.
  7. Jacksonville, Fla.
Meanwhile, California posted the largest drop in zombie foreclosures, down 57 percent in the past year. Other states posting large decreases are Arizona, Nevada, and Washington.
Source: RealtyTrac




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Tuesday, June 24, 2014

First-Timers: Take a Class, Save on Your Loan

DAILY REAL ESTATE NEWS | MONDAY, JUNE 23, 2014
The Federal Housing Administration will be ending its public comment period  in mid-August on a proposed program that would allow first-time home buyers to get a discounted mortgage if they enroll in housing counseling classes.
The program, called Homeowners Armed with Knowledge (HAWK), was announced last month by the FHA as way to curtail home buyers' mortgage insurance premium costs. FHA is operating under the assumption that the more borrowers understand about home ownership, the less likely they are to default on their loans, thereby decreasing their lending risk.
To be eligible for the discount, borrowers must take several courses before and after closing. FHA says consumers could save an average of $325 a year or nearly $10,000 over the life of the loan.
“It may not seem like it, but $10,000 is a lot of savings for a $30,000-a-year household,” says Kimber White, state government affairs chairman for the Florida Association of Mortgage Professionals. “It can make the difference between qualifying or not qualifying to buy a home.”
The courses will be taught by agencies approved by the U.S. Department of Housing and Urban Development. FHA hopes that borrowers will be able to apply for the program by the end of the year.



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10 States Ready for the New Economy

DAILY REAL ESTATE NEWS | MONDAY, JUNE 23, 2014
Which states are poised to fare the best in the “new economy?” According to the Information Technology and Innovation Foundation (ITIF), the “new economy” is marked by “globalization, technological innovation, and entrepreneurial development.” And often, booming economies lead to booming housing markets.
Find out how Fannie Mae seesthe "new normal" for the housing industry.
To determine a state's potential success in the new economy, ITIF used 25 indicators among five categories (knowledge jobs, globalization, economic dynamism, the digital economy, and innovation capacity). The following 10 states were at the top of ITIF’s list:
  1. Massachusetts
  2. Delaware
  3. California
  4. Washington
  5. Maryland
  6. Colorado
  7. Virginia
  8. Connecticut
  9. Utah
  10. New Jersey
Source: “The Best and Worst States for the New Economy,” Forbes.com (June 17, 2014)



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