Inventories Hover at Historic Lows

August 28, 2012 – 12:41 pm

Inventories Hover at Historic Lows

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

Daily Real Estate News | Thursday, August 16, 2012

While buyer demand is picking up, many consumers increasingly are finding fewer choices in housing these days. The number of homes for sale continues to remain at record lows with the nationwide inventory of for-sale single-family homes, condos, townhomes, and co-ops is about 19 percent below inventory levels from a year ago, Realtor.com reports in its analysis of July housing data of 146 markets.

“Low inventories, combined with rising list prices and lower times on market, are positive signs that the overall market is in a stabilization mode,” Realtor.com reports.

Median asking prices were 2.63 percent above list prices in July, and the median age of the housing inventory has fallen about 9 percent in that time period, Realtor.com reports.

California cities have seen some of the largest drops in inventory levels in the past year, as well as some of the largest price increases.

13 Metros With Largest Inventory Drops

The following metro areas have seen the largest drops in inventories of for-sale homes in the past year (July 2012 compared to July 2011):

1. Oakland, Calif.: -59.30 percent

2. Fresno, Calif.: -47.81 percent

3. Bakersfield, Calif: -44.71 percent

4. Seattle-Bellevue-Everett, Wash.: -42.23 percent

5. San Jose, Calif.: -41.76 percent

6. San Francisco, Calif.: -40.26 percent

7. Stockton-Lodi, Calif.: -40.24 percent

8. Riverside-San Bernardino, Calif.: -40.03 percent

9. Atlanta, Ga.: -38.27 percent

10. Sacramento, Calif: -36.43 percent

11. Santa Barbara-Santa Maria-Lompoc, Calif.: -34.89 percent

12. San Diego, Calif.: -34.55 percent

13. Phoenix-Mesa, Ariz.: -34.37 percent

Todays News

August 28, 2012 – 12:23 pm

http://ebm.enews.realtor.org/c/tag/hBQJABFB8f3M-B8taCcAABfvtcf/doc.html?t_params=EMAIL%3Drussellstucki%2540remax.net&om_rid=AABfvt&om_mid=_BQJABFB8taCcCV&om_ntype=RMODaily

Closing costs are an easily overlooked,

August 28, 2012 – 12:11 pm

When shopping for a mortgage it’s easy to get tunnel vision, focusing only on the interest rate. Closing costs are an easily overlooked, but potentially very expensive part of buying a home. Shedding light on the subject is Bankrate’s annual look at closing costs and here to talk about that study is Holder Lewis, he’s the Senior Mortgage Analyst here at Bankrate.com.

Holden, the average cost to close on a $200,000 home is over $3,700 dollars, but there are some huge variations on that. What can John Q. Public expect?

Your regular person can expect to see a really wide range in mortgage fees from lender to lender. And by that I mean one lender could cost hundreds of dollars more than another for the same comparable loan; for the same house. And there’s also a lot of variation state by state. For the third year in a row in our survey, the two most expensive states were New York and Texas. And this year Missouri was the lowest cost state. And the difference was more than $2400 dollars. New York, the average closing cost for a $200,000 loan was $5,435 and Missouri is $3,006

And when shopping around, what are the fees that you should pay close attention to?

When you apply for a mortgage, pay attention to everything that the lender charges that goes directly to the lender. Lenders will call their different fees different things. You know, one lender might call it an origination fee and another might call it a documentation fee. Don’t get hung up on what those fees are named. Look at the bottom line cost of all the fees that the lender charges directly and that’s in one column in the good faith estimate that you’ll get when you apply for a loan. Now after that there are also third party fees. And a lot of those you can’t negotiate. And one of the main ones is the appraisal. The bank hires the appraiser, picks the appraiser and pays the appraisers fee. And that’s really between the bank and the appraiser and you can’t negotiate that cost.

Now, Title insurance was included as part of the study with the average cost being more than $2,000. It seems like a homebuyer stands to save money by shopping around there.

You can save tons of money by comparison shopping title insurance, at least in most states. This is an area where there can be tremendous variation in the fees charged, not only for title insurance, but for titles and closing services. So go to 2 or 3 different title agencies or escrow companies and compare the cost of the title insurance and the closing. Your lender might be a little bit reluctant because your lender might have a favorite title agency or escrow agent but if that particular favorite agent is really expensive you might have to insist on getting the cheaper one.

Great tips as always. Thanks for joining us Holden. Of course, you can see all the findings of this year’s closing cost study and shop around for a mortgage while you’re at it right here at Bankrate.com. I’m Lucas Wysocki.

By Beach Real Estate Market By RE/MAX REALTOR®, Russell Stucki | Posted in Delaware Real Estate | Tagged Closing costs | Comments Off

Find closing-cost data from five to 10 lenders in all states and the District of Columbia.

August 28, 2012 – 11:45 am

Bankrate.com researchers gathered closing-cost data from five to 10 lenders in all states and the District of Columbia. Click a state for a fee-by-fee breakdown of the average closing costs for a mortgage.

For the last seven years, New York and Texas have had the highest mortgage fees, with closing costs hundreds of dollars more than the national average of $3,754. Missouri had the lowest mortgage fees in this year’s survey, averaging $3,006.

By Beach Real Estate Market By RE/MAX REALTOR®, Russell Stucki | Posted in Delaware Real Estate | Comments Off

The Niche Report says, A housing recovery is underway

April 11, 2012 – 3:46 pm

I found this from The Niche Report saying, “A housing recovery is underway!”

(TheNicheReport.com) — 4/5/2012 — A housing recovery is underway, but it may not be taking place in your neighborhood. Regional real estate markets in the United States are behaving in very distinct fashions, and analysts are not finding enough uniformity to call it a full American housing recovery.

Looking at the S&P/Case Shiller home price index, there aren’t enough signs to guarantee that prices have stopped their descent from 2006. The only positive sign in median housing prices is that they are at least not coming down as fast compared to the last few years. Still, the index is down by more than 30 percent.

There may be room for further declines in median housing prices, however, as evidenced by the number of mortgage borrowers in the United States who still face foreclosure proceedings or who are delinquent on their monthly payments. The unemployment rate has improved, but only slightly, and mortgage interest rates have increased slightly in the last two weeks.

Regional Positive Signs

The overall picture may still be grim, but residential developers, realtors, investors, and mortgage lenders are busy in some areas of the country.

The combination of record low home prices and mortgage interest rates are stirring the hopes of major home builders like Lennar, a company that recently reported strong earnings thanks to a flurry of new home orders. Such is the case in Phoenix, where builders are breaking ground in new residential housing complexes.

California is a state where home sales in February picked up the pace by 5 percent, although the bulk of those real estate transfers involved short sales and opportunistic purchases of foreclosed properties. In South Florida, the Miami high-rise condo market is active thanks to wealthy foreigners looking for investment opportunities.

Major Investors Weigh In

Banks have been building up their portfolios of foreclosed and repossessed homes over the last few years, and it seems that they are now ready to sell. According to the National Association of Realtors, investment banking firms are jumping into the real estate-owned (REO) market, with the year-long period from 2010 to 2011 recording a 65 percent increase in REO acquisitions by major investors.

There’s still the issue of the national foreclosure settlement between the major mortgage lenders, the state attorney generals, and the federal government. It is uncertain how the market will behave once the five banks involved begin to write-down principal mortgage amounts of underwater properties. Some analysts believe that this will stem the pace of foreclosures, while others think that the REO portfolios of these lenders will grow larger.

One thing is certain: 2012 will be a year in which the housing recovery will be seen on a regional, rather than national, level.

By Beach Real Estate Market By RE/MAX REALTOR®, Russell Stucki | Posted in Delaware Real Estate | Tagged full American housing recovery, Housing Recovery, Regional real estate markets | Comments Off

Fed Sets Guidelines for Banks and REO Rentals

April 11, 2012 – 3:43 pm

I found this article on Friday, April 6th, 2012 | Posted by TheNicheReport magazine

(Federal Reserve Board ) — 4/6/2012 — The Federal Reserve Board on Thursday released a policy statement reiterating that statutes and Federal Reserve regulations permit rental of residential properties acquired in foreclosure as part of an orderly disposition strategy. The statement also outlines supervisory expectations for residential rental activities.

The general policy of the Federal Reserve is that banking organizations should make good faith efforts to dispose of foreclosed properties (also known as “other real estate owned” or “OREO”), including single-family homes, at the earliest practicable date. In this context, and in light of the extraordinary market conditions that currently prevail, the policy statement explains that banking organizations may rent residential OREO properties within legal holding-period limits without demonstrating continuous active marketing of the property for sale, provided that suitable policies and procedures are followed.

Moreover, to the extent that OREO rental properties meet the definition of community development under the Community Reinvestment Act (CRA) regulations, the banking organizations would receive favorable CRA consideration. In all respects, banking organizations that rent OREO properties are expected to comply with all applicable federal, state, and local statutes and regulations, some of which the policy statement highlights. The policy statement, in providing guidance to banking organizations and examiners, also describes specific supervisory expectations for banking organizations with a larger number of rental OREO properties, generally more than 50 properties available for rent or rented.

The policy statement applies to banking organizations for which the Federal Reserve is the primary federal supervisor, including state member banks, bank holding companies, non-bank subsidiaries of bank holding companies, savings and loan holding companies, non-thrift subsidiaries of savings and loan holding companies, and U.S. branches and agencies of foreign banking organizations.

By Beach Real Estate Market By RE/MAX REALTOR®, Russell Stucki | Posted in Delaware Real Estate | Tagged Federal Reserve, policy, regulations, residential rental activities | Comments Off

Hispanics Projected to be Mega-Consumer in Housing Market

April 4, 2012 – 3:20 pm

Hispanics Projected to be Mega-Consumer in Housing Market

Esther Cho for DSnews.com reported this interesting article…

With Hispanics as the largest minority group in the U.S., mortgage industry professionals should also expect Latinos to be key players when it comes to America’s home buying future, according to the 2011 State of Hispanic Homeownership report released by the National Association of Hispanic Real Estate Professionals.

Whether examining data on population, labor, and education, numbers are pointing to Hispanics as a growing consumer in the housing industry.

According to the report, 34 percent of Hispanics said they are likely to buy a home in the next three years, compared to 24 percent of all Americans.

With low interest rates and decreasing home prices, home buying affordability is at an all-time high, as reported by the National Association of Realtors. While these factors might attract investors, Gary Acosta, co-founder of NAHREP, explained that Hispanics tend to want homes for different reasons.

Hispanics don’t view home ownership as an investment, but want a home for a stable environment for their families, said Acosta.

According to the report, 74 percent of Hispanics said that owning a home is a good way to build up wealth that can be passed along to their families, compared to 59 percent of all Americans.

Latinos filled 1.4 million or 60 percent of the 2.3 million jobs added to the economy in 2011 and are expected to account for 40 percent of the estimated 12 million new households over the next 10 years, the report stated.

In terms of education, the report stated that from 2009 to 2010, the number of young adult Hispanics who enrolled into college grew by 24 percent.

“The need to recognize the most critical variables in housing type, price range, affordability, and mortgage product terms will be critical for all housing stakeholders – from lenders and realtors to policy makers – in order to ensure that the homeownership needs of Hispanics and other Americans are met,” said David Stevens, president of the Mortgage Banker’s Association.

Echo Boomers, which are those born between 1986 and 2005, are led by Hispanic households and in the next 15 years, this group will create substantial demand for condominiums, smaller starter homes, and first trade-up homes, according to the report.

Acosta said the increase in FHA fees for premiums and higher down payments are factors that might create a barrier for potential Hispanic homeowners, at least until the private sector enters the mortgage market again.

Effective April 1, FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and increase the annual MIP by 0.35 percent in June for loans above that amount. Beginning April 1, upfront premiums will also increase by 0.75 percent.

Currently, the Hispanic population is experiencing adverse effects of subprime loans.

Studies found that risky subprime loans were about twice as likely to be issued to Hispanic borrowers versus non-Hispanic white borrowers.

Presently, California, Florida, Arizona, Nevada, and New Jersey, which is home to 47 percent of all Hispanics, have experienced high foreclosure rates, the report stated. Between 2007 and 2009, Latino borrowers also experienced a 7.7 percent foreclosure rate, and the report stated that more than 700,000 Latinos are at imminent risk of foreclosure.

By Beach Real Estate Market By RE/MAX REALTOR®, Russell Stucki | Posted in Delaware Real Estate | Tagged Hispanics, Housing Market, Mega-Consumer | Comments Off

According to AP, 8 Banks to Be Fined for Wrongful Foreclosures

April 4, 2012 – 3:15 pm

Interesting??? According to AP, 8 Banks to Be Fined for Wrongful Foreclosures

The Federal Reserve announced it will fine eight more banks for allegedly improperly foreclosing on home owners. The financial institutions were not included in the recent $25 billion mortgage settlement involving the nation’s five largest banks.

The eight companies are: EverBank, Goldman Sachs Group, HSBC Holdings PLC, PNC Financial Services Group, MetLife, OneWest Bank, SunTrust Banks, and U.S. Bancorp. The Fed did not disclose the amount of the fines on the banks.

Banks continue to face fines and new mandates from federal and state officials due to the way they handled foreclosures over the last few years. Last April, government regulators had ordered 14 lenders and servicers to reimburse home owners who in 2009 and 2010 were improperly foreclosed upon. Eligible home owners have until July 31 to apply for reimbursement.

Source: “U.S. Fines Eight Banks for Alleged Foreclosure Abuse,” Associated Press

By Beach Real Estate Market By RE/MAX REALTOR®, Russell Stucki | Posted in Delaware Real Estate | Tagged 8 Banks Fined for Wrongful Foreclosures | Comments Off

8 Metros Where List Prices Are on the Rise

April 4, 2012 – 3:13 pm

8 Metros Where List Prices Are on the Rise

I found this in the Daily Real Estate News on Tuesday, March 20, 2012-worth reading. -Russell

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

A number of housing markets nationwide have been seeing modest increases in median list prices. In the last year alone, median national list prices ticked up 6.82 percent year over year in February, according to Realtor.com data of 146 metro markets. And a number of markets have seen increases in just one month by 3 or 4 percent.

The following are the eight metro areas that saw the highest median list price increases from January to February:

1. San Jose, Calif.

Month-over-month increase: 4.20 percent

Median list price: $468,888

2. Washington, D.C.-Md.-Va.-W.Va.

Month-over-month increase: 4.17 percent

Median list price: $384,950

3. Detroit

Month-over-month increase: 3.92 percent

Median list price: $84,900

4. Corpus Christi, Texas

Month-over-month increase: 3.89 percent

Median list price: $165,700

5. San Francisco

Month-over-month increase: 3.77 percent

Median list price: $611,700

6. Punta Gorda, Fla.

Month-over-month increase: 3.35 percent

Median list price: $185,000

7. Atlanta

Month-over-month increase: 3.27 percent

Median list price: $154,900

8. Oakland, Calif.

Month-over-month increase: 3.23 percent

Median list price: $320,000

And where have median list prices fallen the most in the last month? Iowa City, Iowa, where median list prices have declined 4.95 percent, and Toledo, Ohio, where list prices dropped 4.31 percent from January to February, according to Realtor.com data.

By Beach Real Estate Market By RE/MAX REALTOR®, Russell Stucki | Posted in Delaware Real Estate | Tagged 8 Metros List Prices on the Rise | Comments Off

Wall Street betting on a Housing Recovery

April 4, 2012 – 3:09 pm

On Tuesday, March 20th, 2012, I found this article of interest posted by TheNicheReport magazine

Wall Street betting on a Housing Recovery

In the past six months, nearly every aspect of the economy has shown surprising strength, including auto sales, consumer confidence, weekly jobless claims, manufacturing, exports and retail sales.

Now, some of the smartest of the so-called smart money on Wall Street is betting on a recovery in the ultimate lagging sector: Housing.

Tuesday’s housing starts data came in slightly weaker than expected, at 698,000 units. But January’s tally was revised up and building permits jumped 5.1% to the highest level since October 2008. Much of the gain was in permitting for multi-family units. Single-family units rose 22,000 last month, its highest level since April 2010.

“The thinking is we’ve bottomed out and we’re going slowly start rebounding in terms of pricing,” says Greg Zuckerman of The Wall Street Journal. “Over the last couple of months some of the best investors on the street…have been making big bets on homebuilders.”

Zuckerman cited SAC Capital, Blackstone and Caxton Associates as among the funds making big bets on homebuilders, like Beazer Homes (BZH) and Pulte (PHM). Generally speaking, homebuilder stocks have been on a tear, with the S&P Homebuilders Index (XHB) up nearly 70% since its October low while the iShares Dow Jones US Home Construction ETF (ITB) is up more than 75%.

The bullish cash for housing rests largely on record levels of affordability, thanks to a combination of low rates and a steep decline in prices since the highs of 2006. In addition, bulls are betting on pent-up demand for housing from new families and young adults.

This week also brings data on existing home sales (Wed.) and new home sales (Fri.) which will put the optimists’ thesis to the test, as will next Tuesday’s Case-Shiller Index.

Of course, homebuilding stocks are not the same as housing and calling a “bottom” in housing is a parlor game on Wall Street that no one has won in the past five years, though many have tried. More fundamentally, there’s a strong case to be made for why any recovery in housing will prove fleeting. (See: Barry Ritholtz: A Housing Bottom Is Nowhere In Sight)

By Beach Real Estate Market By RE/MAX REALTOR®, Russell Stucki | Posted in Delaware Real Estate | Tagged Housing Recovery, Wall Street | Comments Off