Happy Mother’s Day to all you moms. Thank you for the positive impact you make every single day.
Continued acceleration of home price growth leads to foreclosure activity dropping to its lowest level in nearly 12 years as reported by ATTOM Data Solutions This Week in Real Estate. Below are a few highlights from the second week of May that influence our business:
* U.S. Foreclosure Activity Drops to Lowest Level Since November 2005. ATTOM Data Solutions released its April 2017 U.S. Foreclosure Market data on Thursday, which shows foreclosure filings – default notices, scheduled auctions and bank repossessions – were reported on 77,049 U.S. properties in April, down 7 percent from the previous month and down 23 percent from a year ago to the lowest level since November 2005. A total of 34,085 U.S. properties started the foreclosure process in April, down 6 percent from the previous month and down 22 percent from a year ago and continuing well below the pre-recession average of more than 77,000 foreclosure starts per month between April 2005 and November 2007. Lenders completed foreclosure (REO) on 25,990 U.S. properties in April, down 9 percent from the previous month and down 22 percent from a year ago to the lowest level since February 2015 – a 26-month low and running just above the pre-recession average of 25,796 per month between April 2005 and November 2007.
Full Story… http://www.realtytrac.com/news/foreclosure-trends/april-2017-foreclosure-market-report/
* Homeowners Continue to Overestimate Their Home Value. Homeowners and appraisers continue to hold conflicting views on the value of their home, a gap that widened once again in April, according to the Home Price Perception Index from Quicken Loans. Appraised home values came in 1.9% lower than what homeowners expected as many Americans continued to overvalue their home. This marks the fifth consecutive month where the gap between appraiser and homeowner opinions widened. Although the gap continued to widen, appraised value increased in April. And while homeowners are overestimating the value of their homes, home price growth is accelerating. The HVI increased 5.08% annually in April, up from March’s annual increase of 3.3%.
Full Story… http://www.housingwire.com/articles/40081-homeowners-continue-to-overestimate-their-home-value
* 3 Reasons The Housing Market is Not in a Bubble. With housing prices appreciating at levels that far exceed historical norms, some are fearful that the market is heading for another bubble. To alleviate that fear, we just need to look back at the reasons that caused the bubble ten years ago. Last decade, demand for housing was artificially propped up because mortgage lending standards were way too lenient. People that were not qualified to purchase were able to attain a mortgage anyway. Prices began to skyrocket. This increase in demand caused homebuilders in many markets to overbuild. Eventually, the excess in new construction and the flooding of the market with distressed properties, caused by the lack of appropriate lending standards, led to the housing crash. If we look at lending standards based on the Mortgage Credit Availability Index we can see that though standards have become more reasonable over the last few years, they are nowhere near where they were in the early 2000s. If we look at new construction, we can see that builders are not “over building.” Average annual housing starts in the first quarter of this year were not just below numbers recorded in 2002 – 2006, they are below starts going all the way back to 1980. If we look at home prices, most homes haven’t even returned to prices seen a decade ago. Bottom line is mortgage lending standards are appropriate, new construction is below what is necessary and home prices haven’t recovered. It appears fears of a housing bubble are over-exaggerated.
Full Story… http://www.keepingcurrentmatters.com/2017/05/11/3-reasons-the-housing-market-is-not-in-a-bubble/
Have a productive week!