Selling AZ With Rebecca

Thursday, December 5, 2013

More Ultra-Lux Homes Falling Into Foreclosure

DAILY REAL ESTATE NEWS | THURSDAY, DECEMBER 05, 2013

Though foreclosures have fallen nationwide, one housing sector has seen a big increase: ultra-high-end homes.

Foreclosure activity on homes valued at $5 million or more has soared 61 percent since October 2012, RealtyTrac reports. Meanwhile, the overall national foreclosure rate for all housing types has fallen 23 percent this year.

Still, the number of $5 million-and-up homes facing foreclosure is small — less than 200 — compared to the 1.2 million homes of all housing values that have received foreclosure notices this year.

“But each of these high-value properties represents a much bigger potential loss for the foreclosing lender compared to a median-priced property,” says Daren Blomquist, vice president of RealtyTrac.

There was a delay in high-end foreclosures compared to other housing types, possibly because the home owners had the financial means to hold out longer, RealtyTrac notes.

The top five markets for high-end foreclosure activity are Miami-Fort Lauderdale-Pompano Beach, Fla.; Los Angeles-Long Beach-Santa Ana, Calif.; Atlanta-Sandy Springs-Marietta, Ga.; Orlando-Kissimmee, Fla.; and New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.

An improving housing market will likely mean these ultra-high-end properties won’t sit unoccupied long.

"Any foreclosure properties in this type of ultra-luxury market usually get purchased very quickly, since there is one thing all super-rich buyers want: an outstanding deal on a real estate transaction. And in most cases, foreclosures of this magnitude come with several million more dollars of built-in value,” says Emmett Laffey, CEO of Laffey Fine Home International, which covers the New York area.

Source: “High-end Foreclosures up 61 Percent Year-to-Date in 2013,” RealtyTrac (Dec. 3, 2013)

http://realtormag.realtor.org/daily-news/2013/12/05/more-ultra-lux-homes-falling-foreclosure

http://www.rebeccasellsaz.com

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Wednesday, December 4, 2013

Nearly Half of States Within Reach of Peak Home Prices

DAILY REAL ESTATE NEWS | WEDNESDAY, DECEMBER 04, 2013

Twenty-three states are within 10 percent of their 2006 home price peaks, CoreLogic reports in its latest housing data report reflecting October data.

Home prices have increased 12.5 percent year-over-year. However, prices had a more modest month-over-month gain of 0.2 percent from September to October. CoreLogic’s Home Price Index also reflects distressed sales.

“In terms of home price appreciation, the housing market appears to be catching its breath as we head into the final months of 2013,” says Anand Nallathambi, president and CEO of CoreLogic. “The deceleration in month-on-month trends was anticipated as strong gains in home prices over the spring and summer slow in line with normal seasonal patterns and the impact of higher mortgage interest rates.”

The following five states have seen the highest home price appreciation year-over-year:

Nevada: +25.9%
California: +22.4%
Georgia: +14.2%
Michigan: +14.1%
Arizona: +14%

The only state in the CoreLogic index that has seen prices fall is New Mexico, where home prices fell 0.5 percent year-over-year.

Soaring home prices are allowing more states to catch up to their home price peaks in 2006. Sixteen states are all within 5 percent or less of their peak home prices: Arkansas, Colorado, District of Columbia, Iowa, Louisiana, Nebraska, Montana, New York, North Dakota, Oklahoma, South Dakota, Tennessee, Texas, Vermont, Wyoming, and Alaska.

“The slowdown in appreciation is positive for the housing market as almost half the states are now within 10 percent of their respective historical price peaks,” says Mark Fleming, chief economist for CoreLogic.

Meanwhile, the following five states remain the furthest from their peak values as of October, according to CoreLogic:

Nevada: -40.7%
Florida: -37.4%
Arizona: -31.5%
Rhode Island: -29.3%
West Virginia: -28%

The National Association of REALTORS® recently reported that its existing-home sales index saw home prices tick up 12.8 percent in October year-over-year. A persistent tight inventory of homes for sale is holding back sales but pushing up home prices in most areas of the country, Lawrence Yun, NAR’s chief economist, said in the report.

--REALTOR® Magazine Daily News

Home Prices Edge Closer to Pre-Crash Levels

http://realtormag.realtor.org/daily-news/2013/12/04/nearly-half-states-within-reach-peak-home-prices

http://www.rebeccasellsaz.com

Tuesday, December 3, 2013

How Much Income Home Buyers Need to Purchase

DAILY REAL ESTATE NEWS | TUESDAY, DECEMBER 03, 2013

The necessary income it takes to buy a median-priced home varies quite a bit across the country. In Cleveland, you could earn $22,000 a year and still afford a house, but in San Francisco, you need to earn six times that — $125,072.

HSH Associates, a publisher of mortgage data, evaluated 25 major metros to see how much income home buyers need to earn in order to purchase a median-priced home and cover the principal and interest payment on the mortgage. The survey uses median home price data from the National Association of REALTORS®’ third-quarter report, and subtracts a 20 percent down payment from those numbers. The list does not factor in taxes, mandatory insurance, or home owner fees.

Here are some of the cities where you would need to earn the least amount in order to purchase a median-priced home there:

Cleveland: $22,348
Cincinnati: $25,151
St. Louis: $25,228
Atlanta: $26,863
Tampa: $26,930
Orlando: $29,631

Here are some of the cities that require the highest salaries to afford a median-priced home:

San Francisco: $125,072
San Diego: $85,843
Los Angeles: $79,177
New York City: $71,255
Boston: $68,956
Washington, D.C.: $68,345

Source: “The Salary You Must Earn to Buy a Home in 25 Cities,” HSH.com (November 2013)

Read more:

Housing Affordability Starts to Slip

http://realtormag.realtor.org/daily-news/2013/12/03/how-much-income-home-buyers-need-purchase

http://www.rebeccasellsaz.com

Monday, December 2, 2013

Falling New-Home Sales Spark Worry

DAILY REAL ESTATE NEWS | MONDAY, DECEMBER 02, 2013

Dropping sales volumes in new-home construction has home builders worried about a possibly dismal spring looming in 2014.

“There’s some nervousness about the spring selling season,” says Jody Kahn, a senior vice president at John Burns Real Estate Consulting. “That’s partly because they’re worried [that] the lack of urgency from their prospects will continue.”

A survey of builders by John Burns Real Estate Consulting showed the second consecutive month in year-over-year declines in sales volumes for new home construction, the first decreases reported since early 2011. In October, sales of new homes fell by 8 percent year-over-year and posted a 6 percent drop in September year-over-year.

Earlier this year, the new-home market saw a rapid run-up in prices. But now, the percentage of homebuilders who are raising prices is declining, falling to 28 percent in October compared to 32 percent in September. In July, 64 percent of homebuilders had said they were raising prices.

“October was basically a crummy month for a lot of builders,” Kahn says. “Their frustration is about the government shutdown and how it probably trumped any seasonal [sales] lift that builders were hoping to see. Most did not have very good sales.”

While new-home purchases tend to drop in the fourth quarter, builders are worried that lawmakers’ indecisiveness over the federal budget and debt, as well as the fragile economy, will hamper the spring selling season early next year.

Markets where home-price appreciation is outpacing job growth and income gains are the most worrisome, analysts note. Some builders are already responding. For example, The Olson Co., a builder based in Seal Beach, Calif., has shifted the company to building less expensive housing, such as townhomes.

“I think this [slowdown] is a good wakeup call for the industry,” says Scott Laurie, chief executive of The Olson Co. “You can’t just raise prices 2 percent a month. That doesn’t work. What works is affordability.”

Source: “Weak October Sales Have Home Builders Fretting About Spring,” The Wall Street Journal (Nov. 22, 2013)

http://realtormag.realtor.org/daily-news/2013/12/02/falling-new-home-sales-spark-worry

http://www.rebeccasellsaz.com/

Selling AZ With Rebecca

Thursday, December 5, 2013

More Ultra-Lux Homes Falling Into Foreclosure

Wednesday, December 4, 2013

Nearly Half of States Within Reach of Peak Home Prices

Tuesday, December 3, 2013

How Much Income Home Buyers Need to Purchase

Monday, December 2, 2013

Falling New-Home Sales Spark Worry

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