This Week in Real Estate: Nov. 2, 2015

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Home values received significant attention nationally This Week in Real Estate. Many outlets reporting that home values have now eclipsed the peak values reached during the mid-2000 boom. Below are a few of the highlights from the last week in October that influence our business:

* Home Values Climb Beyond Last Decade’s Best, Then Keep Going. After 8 years, home values hit new record. U.S. home values rose through the summer months and have now eclipsed the nation’s peak home valuations, set in early 2007. The Home Price Index, which is published by the Federal Housing Finance Agency (FHFA), shows U.S. property values up another 0.3 percent in August, adding to consecutive month win-streak which has now reached 21 months nationwide. Home values are up 5.5% from last year and market fundamentals remain strong. In August 2015, the Home Price Index climbed to 224.9, the highest published reading of all-time, eclipsing last decade’s peak of 224.0 set in April 2007. Full Story… http://themortgagereports.com/18387/fhfa-home-values-hpi-mortages

* U.S. Home Values and Rents Defying Global Slowdown. Home values and rental prices are steadily rising, fueled by strong demand and a tight supply of available properties, a pair of reports Tuesday showed. The Standard & Poor’s/Case-Shiller 20-city home price index climbed 5.1 percent in the 12 months that ended in August – a level many economists view as more sustainable than the sharp double-digit gains at the start of 2014. For now, homes in tech hubs with a high concentration of good-paying jobs appear to be the main beneficiaries of rising prices. S&P reported that San Francisco and Denver both enjoyed a 10.7 percent year-over-year jump in home values, the largest of any city. Portland, Oregon’s annual gain of 9.4 percent was the third-largest. “Prices are rising the fastest in markets where job growth and net migration are the strongest and inventories are the tightest,” said Mark Vitner, an economist at Wells Fargo Securities. Full Story… http://abcnews.go.com/Business/wireStory/strong-sales-lift-us-home-prices-51-percent-34759996

* Housing Recovery to Pick Up Steam in 2016, but Challenges Remain. Steady employment and economic growth, pent-up demand, affordable home prices and attractive mortgage rates will keep the housing market on a gradual upward trend in 2016. However, persistent headwinds related to shortages and availability of lots and labor, along with rising material prices are impeding a more robust recovery. “This recovery is all about jobs,” said NAHB Chief Economist David Crowe. The good news, Crowe added, is that total U.S. employment of 142 million is now well above the previous peak of 138 million that occurred in 2008. Meanwhile, home equity has nearly doubled since 2011 and now stands at $12.5 trillion. The NAHB is projecting 719,000 single-family starts in 2015, up 11 percent from 647,000 units produced last year. Single-family production is projected to increase an additional 27 percent in 2016 to 914,000 units. Full Story… http://www.nahb.org/en/news-and-publications/Press-Releases/2015/october/housing-recovery-to-pick-up-steam-in-2016-but-challenges-remain.aspx

* Revised 2015 Origination Totals Equal Good News For Mortgage Lender. The mortgage market is still showing subtle signs of strength, beating original expectations for the year. For starters, the $253 billion in purchase originations in the second quarter of this year represents the strongest single quarter for industry originations since 3Q07. The Mortgage Bankers Association (MBA) recently forecasted a 7% increase in mortgage originations in 2015, growing to $1.19 trillion, with purchase originations rising 15% to $731 billion in 2015, and refinance originations decreasing 3% to $457 billion. As for next year, during a press conference at its annual meeting in San Diego, the MBA said it expects a 10% increase in purchase mortgage originations next year compared to 2015. Full Story… http://www.housingwire.com/articles/35494-revised-2015-origination-totals-equal-good-news-for-lenders

Have a productive week!

Jason


This Week in Real Estate: Oct. 26, 2015

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Following a modest dip in August activity, a very strong rebound in September sales dominate the headlines This Week in Real Estate. Below are a few of the highlights from the third week in October that influence our business:

* Existing U.S. Home Sales Second Highest Since 2007. U.S. home resales rose more than expected in September to the second highest monthly sales pace since February 2007, suggesting the housing market continues to show strength compared to the rest of the economy. Sales increased in all four regions of the United States, led by an 8.6 percent jump in the Northeast. Sales rose 6.7 percent in the West, 3.8 percent in the South and 2.3 percent in the Midwest while inventory continued to tighten. Unsold inventory was down to a 4.8-month supply at the current sales pace, down from 5.1 months in August and 5.4 months a year ago. “As we enter more softer demand months, we may not really feel the squeeze of tight inventory, but come spring of next year…we could be facing a very tight inventory situation,” said Lawrence Yun, the NAR’s chief economist. Housing has steadily improved relative to the rest of the U.S. economy, which has been buffeted by soft global demand, a strong dollar, and weak capital spending in the energy sector.
Full Story… http://www.bloomberg.com/news/articles/2015-10-22/existing-u-s-home-sales-rise-to-second-highest-level-since-2007

* Builders Build More Homes. Housing starts for the month of September rose 6.5% to an eight year high of 1.206 million units on a seasonally-adjusted annual basis. The increase was all in the multi-family sector, rising 18.3% to 466,000. Single-family starts were virtually unchanged at 740,000. This is the first month total starts passed the 1.2 million mark since October 2007. Single-family starts averaged 746,000 for the third quarter, up 5.7% from the second quarter. Multi-family starts averaged 418,000 for the third quarter, down 7.3% from the second quarter. On a year-to-date basis, both increased: single-family starts up 11% from the same period in 2014 and multi-family starts up 13.8%.
Full Story… http://eyeonhousing.org/2015/10/builders-build-more-homes/

* Cash Sales at Nine-Year Low. Despite a steadily decreasing share of distressed sales and fewer investors in the market all-cash sales have not yet returned to normal levels nor, according to CoreLogic’s new report, will they for nearly two more years. Those sales made up 30.8 percent of all home sales in July, down from 34.2 percent in July 2014. The year-over-year share of all-cash sales has fallen each month since January 2013 and July’s were at the lowest level in nine years. Such sales peaked in January 2011 when they comprised 46.5 percent of the national market. The decline in cash sales has paralleled the drop in sales of lender owned properties (REO) which now constitute only 6.1 percent of home sales. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. If the cash sales share continues to fall at the same rate it did in July 2015, the share should return to that level by mid-2017. Full Story… http://www.mortgagenewsdaily.com/10232015_corelogic_cash_sales.asp

* Prices Now Within 1 Percent of Pre-Crash Peak. Prices as measured by the Federal Housing Finance Agency (FHFA) are now roughly back to the same level as in December 2006. The Home Price Index (HPI) has regained most of the ground lost following the housing downturn and is now within 0.9 percent of its March 2007 peak. The 12 month changes were positive in every region, led by 8.3 percent in the Mountain division, 7.4 percent in the Pacific division, and 7.3 percent in the South Atlantic. The smallest increase was 2.2 percent in the Middle Atlantic division. Full Story… http://www.mortgagenewsdaily.com/10222015_fhfa_hpi.asp

Have a productive week!

Jason


This Week in Real Estate: Oct. 19, 2015

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This Week in Real Estate consumer confidence again is on the rise and according to a majority of people a home is a solid financial decision. Below are a few of the highlights from the second week in October that influence our business:

* Americans Think Homeownership is a Sound Investment. A vast majority of Americans believe that buying a home is a solid financial decision according to a new survey from the National Association of Realtors. The 2015 National Housing Pulse Survey also found that a preponderance of Americans think that now is a good time to buy a home. The survey, which measures consumers’ attitudes and concerns about housing issues in the nation’s 50 largest metropolitan statistical areas, found that more than 8 in 10 Americans believe that purchasing a home is a good financial decision, and 68 percent believe that now is a good time to buy a home. Seventy-one percent believe they could sell their house for what they paid for it, a jump of 16 percentage points from 2013. The number of renters who are now thinking about purchasing a home is 39 percent. Sixty-one percent of renters stated that owning a home is a priority for their future. Full Story… http://www.realtor.org/news-releases/2015/10/americans-think-homeownership-is-a-sound-investment

* Consumer Sentiment Beats Expectations in October. Consumer sentiment rose in October after three straight monthly declines. The Thomson Reuters/University of Michigan’s preliminary October reading on the index was 92.1. That was higher than the previous month’s reading of 87.2 and Reuters’ estimates of 89. “The rebound in confidence signifies that consumers have concluded that the fears expressed on Wall Street did not extend to Main Street. Importantly, the renewed confidence did not simply represent a relief rally, but instead reflected renewed optimism,” said Surveys of Consumers Chief Economist Richard Curtin.
Full Story… http://www.marketwatch.com/story/umich-sentiment-rises-to-921-in-october-first-increase-in-four-months-2015-10-16?siteid=rss

* Third Quarter Foreclosure Activity Increases From Year Ago in 32 States. RealtyTrac released its Q3 and September 2015 U.S. Foreclosure Market Report this week, which shows a total of 327,258 U.S. properties with foreclosure filings – default notices, scheduled auctions and bank repossessions – in the third quarter of 2015, down 5 percent from the previous quarter but up 3 percent from the third quarter 2014. The annual increase in the third quarter marked the second consecutive quarter where U.S. foreclosure activity increased on a year-over-year basis following 19 consecutive quarters of year-over-year decreases. A total of 133,811 U.S properties started the foreclosure process in the third quarter, down 12 percent from the previous quarter and down 14 percent from a year ago to the lowest level since the third quarter of 2005. There were a total of 123,040 U.S. properties repossessed by the lender in the third quarter, down less than 1 percent from the previous quarter but up 66 percent from a year ago. “The widespread rise in foreclosure activity in the third quarter compared to a year ago is the result of two starkly different trends taking place,” said Daren Blomquist, vice president at RealtyTrac. “In states such as New Jersey, Massachusetts and New York, a flood of deferred distress from the last housing crisis is finally spilling over the legislative and legal dams that have held back some foreclosure activity for years. On the other hand, in states such as Texas, Michigan and Washington, the third quarter increases are a sign that the foreclosure market has settled into a normalized pattern close to or even below pre-crisis levels, and in those states the overall housing market should easily absorb the additional foreclosure activity with little impact on home values.”
Full Story… http://www.realtytrac.com/news/foreclosure-trends/realtytrac-foreclosure-market-report-for-q3-and-september-2015/

* Homeowners Overvalued Their Homes for the Eighth-Straight Month in September. The trend of homeowners estimating their property’s value higher than the actual appraised value continued in September. Nationally, appraiser opinions were an average of 2 percent below the values supplied by the homeowner. This is an improvement from August, when appraisals were 2.65 percent below what was expected by the homeowner. The findings marked the eighth consecutive month homeowner estimates outpaced appraiser opinions.
Full Story… http://www.quickenloans.com/press-room/2015/10/13/overvalued-eighth-straight-month/

Have a productive week!

Jason


This Week in Real Estate: Oct. 12, 2015

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A rather quiet week on the national front This Week in Real Estate is just fine, because less “noise” is good. With just 12-weeks left in 2015 we all must move forward with laser focus to close the great year we started strong. Lets recommit to our marketing/prospecting activities in the final 80+ days of the year and put forth a perfect effort ensuring a great start to 2016. Below are a few of the highlights from the first full week in October that influence our business:

* Housing Indicator Approaches Peak Level. Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased to 83.8 in September, and The HPSI Good Time to Sell component increased 13 points on net, due likely to a strong home price environment coupled with a slight improvement in consumers’ economic outlook. Additionally, the Good Time to Buy component increased 3 points on net as high rental costs may be encouraging more renters to consider homeownership. The HPSI summarizes consumers attitudes about whether it is a good or bad time to buyer or to sell a house. Consumers’ confidence in their employment and financial situations climbed 2 and 3 points, respectively, further suggesting a possible firmer footing for housing. “The HPSI returned near its record high this month, driven primarily by improvement in attitudes about selling a home and strengthening home prices,” Doug Duncan, senior vice president and chief economist at Fannie Mae said.
Full Story… http://rismedia.com/2015-10-07/housing-indicator-approaches-peak-level/?utm_source=newsletter&utm_medium=email&utm_campaign=eNews

* Distressed Sales Down to Just 9% of Homes Sold. Distressed sales, which include real estate-owned properties and short sales, accounted for 9.4% of total home sales nationally in July 2015, down 2.1 percentage points from July 2014 and down 0.4 percentage points from June 2015. REO sales accounted for 6.1% and short sales made up 3.3% of total home sales in July 2015. The REO sales share was the lowest since September 2007 when it was 5.2%. The short sales share fell below 4% in mid-2014 and has remained in the 3-4% range since then. At its peak in January 2009, distressed sales totaled 32.4% of all sales, with REO sales representing 27.9% of that share. There will always be some level of distress in the housing market, and by comparison, the pre-crisis share of distressed sales was traditionally about 2%. If the current year-over-year decrease in the distressed sales share continues, it would reach that “normal” 2% mark in mid-2019. Full Story… http://www.housingwire.com/articles/35304-distressed-sales-down-to-just-9-of-homes-sold

* US Jobless Claims Fall to Near 42-Year Low. The number of Americans filing new applications for jobless benefits fell more than expected to a near 42-year low last week, pointing to ongoing tightening in the labor market despite the recent slowdown in hiring. Initial claims for state unemployment benefits dropped 13,000 to a seasonally adjusted 263,000 for the week ended October 3. That was the lowest since mid-July when the number of claims was at its lowest since 1973. Hitting such a historical low is remarkable considering the U.S. workforce has grown considerably since the 1970s. It was also the 31st straight week that claims remained below the 300,000 threshold, which is usually associated with a strengthening labor market. Full Story… http://www.cnbc.com/2015/10/08/us-weekly-jobless-claims-oct-3-2105.html

* Vacant ‘Zombie’ Foreclosures Down 43% in Third Quarter 2015 Compared to a Year Ago. RealtyTrac this week released its Q3 Zombie Foreclosure and Vacant Property Report, which shows 20,050 residential properties in the foreclosure process – but not yet repossessed – were vacant “zombie” homes as of the end of the third quarter of 2015, down 27 percent from the previous quarter and down 43 percent from a year ago. Vacant residential properties in the foreclosure process accounted for 1.3 percent of all vacant residential properties, with bank-owned homes (REO) accounting for another 1.9 percent of all vacant properties as of the end of the third quarter. The report shows a total of 1.5 million vacant U.S. residential properties, 1.8 percent of all 84.7 million U.S. residential properties.
Full Story… http://www.realtytrac.com/news/foreclosure-trends/realtytrac-q3-2015-u-s-zombie-foreclosure-and-vacant-property-report/

This week Berkshire Hathaway HomeServices introduced a new video tool, Videolicious. With the rise in popularity of video I strongly encourage you to dedicate some time this week, if you have not already, to learn how to use and incorporate this tool in your business.

 

Have a productive week!

Jason


This Week in Real Estate: Oct. 5, 2015

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The most prominent discussion topic This Week in Real Estate centered around the October 3 effective date of TRID or better known as the Know Before You Owe rule. As you move forward please be cognizant of how the rule change impacts your clients and that your settlement service provider partners (mortgage, title and escrow) are prepared to successfully navigate the closing process. Below are a few of the highlights from the final week in September that influence our business:

* After 8 Years Home Values Finally Eclipse 2007 Peak. According to the Home Price Index (HPI), a home-valuation tracker published by the Federal Housing Finance Agency (FHFA), U.S. property values rose in July, marking the 20th straight month of growth nationwide; and forty-first out of 42. In July the HPI climbed to 224.5, a 0.6 percent increase from the month prior which moved the HPI to its highest reading of all-time. The previous peak was 224.0, set in April 2007 at the height of last decade’s housing boom. Full Story… http://themortgagereports.com/18248/fhfa-home-price-index-all-time-high-2007

* Pending Sales Retreat. The Pending Home Sales Index (PHSI) decreased in August, but has increased year-over-year for 12 consecutive months. The PHSI, a forward looking indicator based on signed contracts, decreased 1.4% in August from the prior month, but is up 6.1% from the same month a year ago. While increasing in the West, the PHSI declined in the other three regions month-over-month. Year-over-year, the PHSI was up in all four regions, ranging from 8.9% to 4.1%. Full Story… http://eyeonhousing.org/2015/09/pending-sales-retreat/

* Consumer Confidence Rebounded in September. The Conference Board released its Consumer Confidence Index for September this week. The index is a composite of separate indexes tracking consumers’ assessments of current business, income and employment conditions, as well as their expectations for the future. The Consumer Confidence Index increased to a level of 103.0 in September from 101.3 in August. The Index has rebounded to levels close to the pre-recession peak of 111.9 in July 2007. Full Story… http://eyeonhousing.org/2015/09/consumer-confidence-rebounded-in-september/

Have a productive week!

Jason


This Week in Real Estate: September 28, 2015

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The Seattle and Portland/SW Washington markets are on pace to realize the highest number of home sales in 8 years as reported This Week in Real Estate by RealtyTrac. Below are a few of the highlights from the fourth week in September that influence our business:

* 54 Percent of U.S. Metros on Pace to Reach Eight-Year High in Home Sales in 2015 Based on Sales Through August. RealtyTrac released its August 2015 U.S. Home Sales Report Thursday, which shows single family home and condo sales through August were on pace for an eight-year high nationwide and in 110 of 204 metropolitan statistical areas. A total of 1,947,028 single family homes and condos sold through August in 2015, up 5.4 percent from the same time period a year ago to the highest total for the first eight months of the year since 2007, when there were 2,069,963 sales. The 110 metro areas on pace for at least an eight-year high in home sales through August included Los Angeles, Phoenix, Dallas, Denver, Riverside-San Bernardino, Detroit, Seattle, Tampa, Minneapolis and Portland. Full Story… http://www.realtytrac.com/news/home-prices-and-sales/realtytrac-u-s-home-sales-report-august-2015/

* New Home Sales Rise 5.7 Percent in August. Sales of newly built, single-family homes rose 5.7 percent to a seasonally adjusted annual rate of 552,000 units in August. The August sales rate was the highest in more than 7 years and 21.6 percent higher than sales in August 2014 of 454,000. Regionally, the Northeast, South and West posted respective monthly gains of 24.1 percent (24.1 percent year-over-year), 7.4 percent (27.6 percent year-over-year) and 5.4 percent (11.4 percent year-over-year). The Midwest registered a 9.1 percent decline for the month, however remained 15.4 percent higher than August 2014. The inventory of new homes for sale was 216,000 units in August. This is a 4.7 month supply at the current sales pace. Full Story… http://www.nahb.org/en/news-and-publications/Press-Releases/2015/september/new-home-sales-rise-5-point-7-percent-in-august.aspx

* Mortgage Delinquencies See Biggest Annual Drop Since 2011. The national delinquency rate in August saw the largest year-over-year decline since May 2011, down 18.2%, according to the latest report from BlackKnight Financial Services. At 696,000 borrowers in active foreclosure is the lowest it’s been since November 2007. The number of delinquent borrowers is down by 766,000 since last year. Full Story… http://www.housingwire.com/articles/35150-black-knight-mortgage-delinquencies-see-biggest-annual-drop-since-2011

* Millennials and the New American Dream. A survey conducted exclusively among millennial as part of the Responsive Home project – a venture between Builder magazine and Pardee Homes to design, build and sell the ideal home for the 21st century buyers – identifies the driving factors behind new age home buying habits and de-bunks millennial home buying myths. Full Story… http://blog.rismedia.com/2015/new-american-dream/?utm_source=newsletter&utm_medium=email&utm_campaign=eNews

Have a productive week!

Jason


This Week in Real Estate: September 21, 2015

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This Week in Real Estate has the answer to the long anticipated question: will the Feds raise interest rates during their two-day September meeting? Below are a few of the highlights from the third week in September that influence our business:

* Fed Leaves Interest Rates Unchanged. Thursday, for the 55th consecutive meeting, the Federal Open Market Committee (FOMC) voted to leave the Fed Funds Rate unchanged near 0.000 percent. The vote was 9-1 in favor of leaving the Fed Funds Rate near zero percent. Richmond Fed President Jeffrey Lacker was the lone dissent, preferring a 25 basis point increase in the Fed Funds Rate target range. Janet Yellen, the Fed’s chairwoman, described the decision as a close call and said the central bank still expected to raise interest rates later this year. The Fed has kept its benchmark interest rate close to zero since late 2008. “The recovery from the Great Recession has advanced sufficiently far and domestic spending has been sufficiently robust that an argument can be made for a rise in interest rates at this time. But, heightened uncertainties abroad, including the Chinese economy’s weakness, had persuaded the bank to wait at least a few more weeks for fresh data that might “bolster confidence” in continued growth. Full Story… http://www.nytimes.com/2015/09/18/business/economy/fed-leaves-interest-rates-unchanged.html?partner=rss&emc=rss&_r=0

* Builder Confidence at a Ten-Year High. The NAHB/Wells Fargo Housing Market Index increased one point in September to 62, the highest level in 10 years. Two of the three components increased: the present sales indicator rose one point to 67, and the traffic indicator increased two points to 47. Regional three-month moving averages were up on point in the Midwest (to 59), the South and West (to 64). FDIC data indicate that the volume of residential AD&C (acquisition, development and construction) loans outstanding expanded 4.7% during the second quarter of 2015, marking the ninth consecutive quarter of growth and up 16.4% on a year-over-year basis. Full Story… http://eyeonhousing.org/2015/09/eye-on-the-economy-builder-confidence-at-a-ten-year-high/

* U.S Foreclosure Activity Decreases 6 Percent in August. RealtyTrac released its August 2015 U.S. Foreclosure Market Report Thursday, which shows foreclosure filings – default notices, scheduled auctions and bank repossessions – in August, down 12 percent from the previous month and down 6 percent from a year ago. “Foreclosure starts in August continued to search for a new floor below even pre-recession levels, indicating the housing recovery of the past three years is built on a solid financing foundation,” said Daren Blomquist, vice president of RealtyTrac. A total of 45,072 U.S. properties started the foreclosure process for the first time in August, down 1 percent from previous month and down 19 percent from a year ago to lowest level since November 2005. A total of 41,308 U.S. properties were scheduled for a future foreclosure auction in August, down 14 percent from the previous month and down 19 percent from a year ago to the lowest level since May 2006.  Full Story… http://www.realtytrac.com/news/foreclosure-trends/realtytrac-u-s-foreclosure-market-report-august-2015/

Have a productive week!

Jason


This Week in Real Estate: Sept. 14, 2015

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In what was a relatively quiet week nationally This Week in Real Estate, Fannie Mae was active introducing their Home Purchase Sentiment Index and announcing that they have lowered the mandatory waiting period for a mortgage following bankruptcy or distressed sale. Below are a few of the highlights from the second week in September that influence our business:

* Gap Between Appraiser and Homeowner Perception of Value Widens. Homeowner estimates of their home’s value exceeded appraiser opinions by a wider margin than in July, making August the seventh consecutive month of an increasingly wider gap between opinions. Quicken Loans reported this week appraiser opinions of home values were 2.65 percent lower than homeowner estimates in August, according to the company’s national Home Price Perception Index (HPPI). Homeowner opinions were 2.33 percent higher than appraiser opinions in July. “While the month-to-month number is interesting to examine, it is not the single most important factor of the HPPI report. Instead, the focus should be on the trend, the direction it’s heading and how fast,” said Quicken Loans Chief Economist Bob Walters. Contrary to the national result, appraiser value vs. homeowner perception of value was +2.26% in Portland and +0.55% in Seattle respectively. A positive value represents appraiser opinions that are higher than homeowner perceptions.
Full Story… http://www.quickenloans.com/press-room/2015/09/08/homeowners-overvalued-properties-7th-consecutive-month/

* Fannie Mae Introduces the Home Purchase Sentiment Index. Fannie Mae has launched the Home Purchase Sentiment Index (HPSI), which distills results from its consumer-focused National Housing Survey into a single, monthly, predictive indicator. The HPSI is designed to provide distinct signals about the direction of the housing market, helping industry participants to make better informed business decisions. The index provides the market a single number to track consumer attitudes focused on the housing market. Highlights of the August HPSI: the percent of respondents who said that it is a good time to buy a house rose to 63%, rising 2 percentage points from last month and those who say it is a good time to sell rose 2 percentage points to 47%. Full Story… http://www.fanniemae.com/portal/about-us/media/corporate-news/2015/6290.html?p=Media&s=News+Releases&from=RSS

* Distressed Sales Share Cracks Into Single Digits. While sales of REO and short sales continue to account for around one-fifth of all home sales in at least five states the share of distressed home sales is steadily returning to normal levels on a national basis. CoreLogic said on Thursday that REO sales accounted for 6 percent of all residential sales in June, the lowest share since September 2007 when it was 5.2 percent. Short sales made up 3.4 percent of the total. The combined distressed sales share, 9.4 percent, is down 2.4 percentage points from June 2014. At the peak in January 2009, 32.3 percent of all home sales nationally were distressed properties. The pre-crisis share of distressed sales was traditionally about 2 percent. Full Story… http://www.mortgagenewsdaily.com/09102015_corelogic_distressed_sales.asp

* Fannie Mae Lowers Mandatory Waiting Period After Bankruptcy, Short Sale and Pre-Foreclosure. It’s getting easier to get approved for a mortgage. Fannie Mae has reduced the mandatory waiting period for a mortgage after bankruptcy, short sale, or pre-foreclosure. Borrowers no longer need to wait 4 years before re-applying to get a mortgage. Borrowers can now re-apply for a loan just 2 years after a bankruptcy, short sale or pre-foreclosure. Full story… http://themortgagereports.com/16750/fannie-mae-waiting-period-bankruptcy-short-sale-foreclosur

Have a productive week!

Jason


This Week in Real Estate: Sept. 8, 2015

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This Week in Real Estate ended with increased speculation as to what the Feds will do with rates when they meet in two weeks. Following Friday’s August jobs report, that was hyped as an influencing factor to raise or not raise rates, resulted in just the opposite effect. The data was tame and did little to influence either side of the argument. Below are a few of the highlights from the first week in September that influence our business:

* CoreLogic Reports National Home Prices Rose by 6.9% Year Over Year in July 2015. On Tuesday CoreLogic released its July 2015 Home Price Index (HPI) which shows that home prices nationwide, including distressed sales, increased by 6.9 percent in July 2015 compared with July 2014. Ten states have experienced increased growth in the last year that matched or surpassed the nation as a whole; those states are: Colorado, Florida, Hawaii, Nevada, New York, Oregon, South Carolina, South Dakota, Texas and Washington. Including distressed sales, the five states with the highest home price appreciation were: Colorado (+10.4%), Washington (+9.9%), Nevada (+9.1%), Hawaii (+8.9%) and Oregon (+8.8%). Excluding distressed sales, the five states with the highest home price appreciation were: Colorado (+10.1%), Washington (+9.5%), Nevada (+9.1%), Oregon (+9.1%) and New York (+9.0%). Full Story… http://www.corelogic.com/about-us/news/corelogic-reports-national-home-prices-rose-by-6.9-percent-year-over-year-in-july-2015.aspx

* Mortgage Credit Availability Increases in August. Mortgage credit availability increased in August according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA). The MCAI increased 0.5 percent to 126.1 in August. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. Of the four component indices, the Jumbo MCAI saw the greatest loosening (up to 0.7 percent over the month) followed by Conventional MCAI (up 0.5 percent), the Government MCAI (up 0.4 percent), and the Conforming MCAI (up 0.3 percent). “Mortgage credit availability increased in August and has increased in eight of the last nine months,” said Mike Fratantoni, MBA’s Chief Economist. Full Story… https://www.mba.org/2015-press-releases/sept/mortgage-credit-availability-increases-in-august

* U.S. Construction Spending Hits a New Postrecession High. U.S. construction spending rose to the highest level in more than seven years in July. Total construction spending climbed 0.7% from the prior month to a seasonally adjusted annual rate of $1.083 trillion, the Commerce Department said Tuesday, the highest level since May 2008. Private building led the way, with both residential and nonresidential construction hitting new post recession highs. “The overall impression from the past few months is that the construction sector overall is the strongest part of the economy, with spending up at a remarkable 26% annualized rate in the three months to July,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics. Full Story… http://blogs.wsj.com/economics/2015/09/01/u-s-construction-spending-hits-new-postrecession-high-2/

* Mortgage Rates at Recent Lows After Jobs Data. Mortgage rates fell to their lowest levels in more than a week on Friday, following the release of August’s official employment figures. While the headline job creation was weaker than expected, several components of the report offset the weakness. Previous months were revised to show better job creation, the unemployment rate fell to 5.1, and wages grew slightly faster than expected. Full story… http://www.mortgagenewsdaily.com/consumer_rates/509440.aspx

Have a productive week!

Jason


This Week in Real Estate: August 31, 2015

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The good news This Week in Real Estate was the U.S. economy was in even better shape that we thought. The U.S. economy grew 3.7% in the second quarter, much higher than the first official estimate on growth of 2.3% and even higher than what economists were projecting, according to the Commerce Department’s measure of gross domestic product, the broadest measure of economic activity. Like the prior week’s closing and start of this week the stock market experienced continued volatility, but unlike the first few days the week ended in historical fashion. The Dow finished Thursday up 369 points and combined with Wednesday’s 619-point rally, it was the best two-day point gain for the Dow in its history, surpassing the previous record set in 2008. Below are a few of the highlights from the third week in August that influence our business:

* Pending Sales Maintain the Ride Up. The Pending Home Sales Index increased in July for the sixth time in seven months. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR), increased 0.5% in July from an upwardly revised June report, and is up 7.4% from the same month a year ago. The positive pending sales report follows a strong 5.4% increase in July new home sales reported two days ago, and the 2.0% increase in July existing sales reported last week. Following a week of wrenching equity market volatility, improved home sales, coupled with a strong GDP report today, suggests continued good news for the existing sales market and for builders in 2015. Year-over-year, the PHSI was up 12.1% in the Northeast, 7.5% in the West, 6.5% in the South and 5.7% in the Midwest.
Full Story… http://eyeonhousing.org/2015/08/pending-sales-maintain-the-ride-up/

* RealtyTrac’s July 2015 U.S. Home Sales Report. A total of 1,344,129 single family homes and condos sold in the first six months of 2015, according to public record sales deeds collected by RealtyTrac, the highest number of sales in the first half of any year since 2007. The U.S. median home sales price in July was $189,500, up 2 percent from the previous month and up 2 percent from a year ago to the highest level since September 2008. “While the stock market may be on a roller coaster as of late, the housing market is still on solid ground, with eight-year low in cash sales combined with the eight-year high in overall sales volume in the first half of the year evidence that housing is successfully transitioning from an investor-driven recovery to one that is drawing in traditional buyers as a good foundation for sustainable growth going forward,” said Daren Blomquist, vice president at RealtyTrac. Full story… http://www.realtytrac.com/news/home-prices-and-sales/july-2015-u-s-home-sales-report/

* MBA Forecasts Housing Demand Over Next 10 Years. The Mortgage Bankers Association (MBA) has just released a paper, Demographics and the Numbers Behind the Coming Multi-Million increase in Households, forecasting housing demand over the next ten years. Their study used date from 1975 – 2014 a period encompassing several market and housing cycles and the short version of its conclusion was the “By 2024, demographic and economic changes will bring what could be one of the largest expansions in the history of the U.S. housing market – 15.9 million additional households.” Even if household formation remains at 2014 low rates, demographic changes alone should account for 13.9 million new households by 2024. Full Story… http://www.mortgagenewsdaily.com/08282015_housing_demand.asp

* International Buyers Flow Into U.S. Housing Market, China Tops List. This year, for the first time since the National Association of Realtors has tracked foreign buyers of U.S. real estate, buyers from China have surpassed for the first time Canadiens, Europeans, Mexicans and Middle Eastern home buyers as the top overseas purchasers of homes in the United States. Chinese investment in U.S. residential real estate has grown from a measly $50 million in 2000 to an eye-popping $28.6 billion in the year ending in March 2015, up 72 percent from a year earlier, double the amount spent a year earlier, surpassing all other foreign buyers. All told, overseas home buyers spent a record $104 billion buying U.S. homes in the 12 months ending in March 2015, with Chinese buyers leading the pack. In the 2014 survey, foreigners spent $92 billion on U.S. homes over a 12-month period, up 35 percent from a year earlier. Chinese buyers are now the biggest international buyers of U.S. real estate in terms of dollar volume, total units, and average price paid. Moreover, 76 percent of Chinese buyers pay cash. Full Story… http://www.realtytrac.com/news/company-news/international-buyers-flow-into-u-s-housing-market-china-tops-list/

Have a productive week!

Jason


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