This Week in Real Estate is highlighted by the news that more than a million homeowners regained their equity in 2014 and the foreclosure activity is at its lowest level since the summer of 2006. What does that mean for those renting? Below are a few of the highlights from the third week in March that influence our business:
* U.S. foreclosure activity at lowest level since July 2006. RealtyTrac released its U.S. Foreclosure Market Report for February this week, which shows foreclosure filings down 9 percent from a year ago to the lowest level since July 2006. “Given that August 2006 was the peak of the housing bubble, this eight-and-a-half year low in foreclosure activity is a significant milestone and a sign that nationwide foreclosure activity is on track to return to historic norms this year – and is possibly even headed below historic norms given the skinny-jeans-tight lending standards over the past five years,” said Darren Blomquist, vice president at RealtyTrac. Full Story… http://www.realtytrac.com/news/foreclosure-trends/february-2014-foreclosure-market-report/
* 1.2 million U.S. borrowers regained equity in 2014. This week Corelogic released new analysis showing 1.2 million borrowers regained equity in 2014, bringing the total number of mortgaged residential properties with equity at the end of Q4 2014 to approximately 44.5 million or 89 percent of all mortgaged properties. Full Story… http://www.corelogic.com/about-us/news/corelogic-reports-1.2-million-us-borrowers-regained-equity-in-2014.aspx
* Why renters may be in trouble. The gap between rental costs and household income is widening to unsustainable levels across the country. NAR evaluated income growth, housing costs, and changes in share of renter and owner-occupied households over the past five years in metropolitan statistical areas across the U.S. Over the last five years, a typical rent rose 15 percent, while the income of renters grew by only 11 percent, according to their research. “Current renters seeking relief and looking to buy are facing the same dilemma: Home prices are rising much faster than their incomes,” says Lawrence Yun, NAR’s chief economist. Meanwhile, those who were able to buy a home in recent years have been insulated from the rising housing costs since they were able to lock-in a low 30-year fixed-rate mortgage with a set monthly payment, according to NAR’s study. Full Story… http://www.realtormag.realtor.org/daily-news/2015/03/17/why-renters-may-be-in-trouble
Have a productive week!