This Week in Real Estate with Jason Waugh: December 12, 2016

image001CoreLogic reported This Week in Real Estate that home equity grew by more than $700 billion dollars when comparing Q3 2016 to the same time period in 2015 and nearly 94% of all properties with a mortgage have positive equity. Below are a few highlights from the first week of December that influence our business:

* Home Equity Increased $726 Billion in the Third Quarter Compared With a Year Ago. U.S. homeowners with mortgages (roughly 63% of all homeowners) saw their equity increase by a total of $227 billion in Q3 2016 compared with the previous quarter, an increase of 3.1%. Additionally, 384,000 borrowers moved out of negative equity, increasing the percentage of homes with positive equity to 93.7 percent of all mortgaged properties, or approximately 47.9 million homes. Year-over-year, home equity grew by $726 billion, representing an increase of 10.8 percent in Q3 2016 compared to Q3 2015. In Q3 2016, the total number of mortgage residential properties with negative equity stood at 3.2 million, or 6.2% of all homes with a mortgage. This is a decrease of 10.7 percent quarter over quarter from 3.6 million homes or 7.1% or mortgage properties, in Q2 2016 and a decrease of 24.1% year-over-year from 4.2 million homes, or 8.4% of mortgaged properties, in Q3 2015. “Home equity rose by $12,500 for the average homeowner over the last four quarters,” said Dr. Frank Nothaft, chief economist at CoreLogic. “There was wide geographic variation with homeowners in California, Oregon and Washington gaining an average of at least $25,000 in home equity wealth.”
Full Story… http://www.corelogic.com/about-us/news/corelogic-reports-home-equity-increased-726-billion-dollars-in-the-third-quarter-2016.aspx

* Suburbs Outstrip Cities in Population Growth, Study Finds. Big cities may be getting all the attention, but the suburbs are holding their own in the battle for population and young earners. That is the thrust of a study of population trends and housing set to be released Monday by the Urban Land Institute’s Terwilliger Center for Housing. Property developers and urban-policy experts have trumpeted the influx of young, affluent professionals into big central cities in recent years. The shift has transformed downtown areas, sparking a historic boom in luxury-apartment construction and retail development. But research shows that suburbs are continuing to outstrip downtowns in overall population growth, diversity and even younger residents. The suburban areas surrounding the 50 largest metropolitan areas make up 79% of the population of those areas but accounted for 91% of population growth over the past 15 years, according to the study. What’s more, three-quarters of people age 25 – 34  in these metro areas live in suburbs.
Full Story…  http://www.realtor.com/news/trends/suburbs-outstrip-cities-in-population-growth-study-finds/

* Home Renovation Projects With The Best ROI. The top five projects to prioritize when it comes to the best return on investments are: replacing the entry door, installing a new fireplace, remodeling the kitchen, converting the attic into a bedroom, and replacing the exterior siding. When it comes to house sales and particular rooms, the kitchen is often the room that will make or break a sale. Kitchen projects that are budgeted between 6 – 10 percent of the total home value will see the highest ROI. Putting your finances into kitchen upgrades is a worthwhile endeavor when it comes to optimizing your home for selling purposes.
Full Story… http://blog.rismedia.com/2016/home-renovation-projects-best-roi/

Have a productive week.
Jason


This Week in Real Estate with Jason Waugh: Dec. 5, 2016

image001Home price appreciation has been a consistent story in real estate the past 3 years, so it was simply a matter of time before the data supported findings similar to the ones reported This Week in Real Estate. Case-Shiller released their National Home Price Index on Tuesday concluding the Index reached an all-time high at the end of the third quarter. Below are a few highlights from the final week of November that influence our business:

* Case-Shiller National Index at New All-Time High. Home prices finally surpassed all-time highs set in July 2006 as the housing boom topped out. According to the latest data released Tuesday by the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. census divisions, recorded a 5.5% annual gain in September, up from 5.1% last month. Seattle, Portland and Denver were again the cities in the 20-City Composite with the highest rate of annual appreciation. Seattle led the way with an 11% year-over-year price increase, followed by Portland with 10.9%, and Denver with an 8.7% increase.
Full Story… https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/443948_cshomeprice-release-1129.pdf?force_download=true

* Consumer Confidence Now Back to Pre-Recession Levels. With the ongoing job and economic growth, in November consumer confidence improved. Consumers were optimistic about the current situation and the near term outlook. The Conference Board reported that the Consumer Confidence Index jumped to 107.1 in November, from an upwardly revised 100.8 in October. Both the present situation index and the expectations index rebounded. The present situation index increased to 130.3, from 123.1 and the expectations index hit 91.7, up from 86. This brings the index back to pre-recession levels. The index stood at 111.9 in July 2007. “A more favorable assessment of current conditions coupled with a more optimistic short-term outlook helped boost confidence,” said Lynn Franco, The Conference Board director of economic indicators.
Full Story…  http://www.housingwire.com/articles/38634-consumer-confidence-now-back-to-pre-recession-levels?eid=322520585&bid=1601529

* Pending Home Sales Maintain Pace. The Pending Home Sales Index increased a slight 0.1% in October, but was 1.8% higher than last October. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR), increased 110.0 in October from a downwardly revised 109.9 in September. The PHSI increased 1.6% in the Midwest, 0.7% in the West, and 0.4% in the Northeast, but fell 1.3% in the South. Year-over-year, the PHSI increased in all regions, ranging from 3.9% in the Northeast to 0.8% in the South. Commenting on the continued tight supply of homes for sale, NAR reported that 40% of October sales were at or above list price, compared to 33% last October.
Full Story… http://eyeonhousing.org/2016/11/pending-sales-maintain-pace/

Have a productive week.
Jason


This Week in Real Estate: Nov. 28, 2016

image001Strong October existing home sales reported This Week in Real Estate result in the highest annualized pace of sales since February 2007 and the federal government acknowledges the continued price appreciation by increasing the conforming loan limit in 2017. Below are a few highlights from the fourth week of November that influence our business:

* Existing Sales Revival. Existing home sales, as reported by the National Association of Realtors (NAR), increased 2.0% in October to become the highest annualized pace since February 2007. October 2016 sales were up 5.9% from the same month a year ago. Total existing home sales in October increased to a seasonally adjusted rate of 5.60 million units combined for single-family homes, townhomes, condominium and co-ops, up from an adjusted 5.49 million units in September. October existing sales increased in all four regions, ranging from 2.8% in the South to 0.8% in the West. Year-over-year, October sales also increased in all regions, ranging from 10.4% in the West to 1.4% in the Northeast. Total housing inventory decreased slightly by 0.5% in October, and remains 4.3% lower than its level a year ago. At the current sales rate, the October unsold inventory represents a 4.3-month supply, compared to a 4.4-month supply in September. The first-time home buyer share was 33% in October, down a point from the solid September report, but above the first-time buyer share of 31% in October 2015. The October median sales price of $232,200 was 6.0% above the same month a year ago, and represents the 56th consecutive month of year-over-year increases.
Full Story… http://eyeonhousing.org/2016/11/existing-sales-revival/

* Conforming Mortgage Limits Rise for 2017. For the first time since 2006 the Federal Housing Finance Agency (FHFA) announced Wednesday that the limit for conforming mortgages for single-family homes will increase from $417,000 to $424,100 in most regions of the United States starting January 1, 2017. The FHFA bases the loan cap on its quarterly Housing Price Index, which gauges average single-family home prices. The index rose 1.5 percent during the third quarter of 2016 and is up 6.1 percent over the past year, enough to push it above its previous high point. Conforming loan limits are significant because they apply to home loans that meet the underwriting guidelines of Fannie Mae and Freddie Mac, the government-sponsored entities that acquire mortgages from lenders and ensure a steady flow of money to the mortgage market. “Today’s conforming loan limit increase is a much-needed recognition of rising home prices in high-cost markets, and a help to first-time and lower-income borrowers looking to utilize an FHA mortgage,” said NAR President William Brown.
Full Story…  http://realtormag.realtor.org/daily-news/2016/11/23/conforming-mortgage-limits-rise-for-2017

* Homeowners Becoming Homebodies. CoreLogic says it is now able to closely track household mobility through various data sets including property taxes and sales transactions. CoreLogic senior economist Kristine Yao says the median time between the recorded purchase and the subsequent sale of homes nationally was 4.4 years in 1985, but had increased to 6.6 years by 2015. Yao says this trend is similar to that noted in the Census Bureau’s latest Current Population Survey; only 5.1 percent of owner-occupied households moved between 2014 and 2015 compared to 9.2 percent between 1987 and 1988. When people did move last year, Yao says, 61 percent stayed within the same metropolitan area while only 24.6 percent moved to a different state, a 15 year-low. Those who moved within their own metro area tended to trade up, buying a home that was a median of $61,000 more costly than the old one. However, those who moved to another state tended to buy laterally – paying about the same for the new home as they had gotten for the old one.
Full Story… http://www.mortgagenewsdaily.com/11212016_homeowner_mobility.asp

Have a productive week.
Jason


This Week in Real Estate: Nov. 21, 2016

image001Favorable news reported This Week in Real Estate from the construction sector, both in terms of builder confidence and October housing starts, which climbed to the strongest pace since 2007. Below are a few highlights from the third week of November that influence our business:

* Builder Confidence Holds Firm in November. Builder confidence in the market for newly-built single-family homes held steady in November at a level of 63 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Builder sentiment has held well above 60 for the past three months, indicating that single-family housing sector continues to show slow, gradual growth. Ongoing job creation, rising incomes and attractive mortgage rates are supporting demand in the single-family housing sector. These factors will help keep housing on a steady, upward path in the months ahead. Looking at the three-month moving averages for regional HMI scores, the Northeast, Midwest and West each posted respective two-point gains to 45, 58 and 77. The South remained unchanged at 68.
Full Story… http://eyeonhousing.org/2016/11/builder-confidence-holds-firm-in-november/

* Housing Starts See Greatest Leap in Nearly a Decade. A big jump up in single family starts combined with an anticipated rebound in multifamily to push the annual pace of total housing starts above 1.3 million in October. The Census Bureau and HUD reported that the seasonally adjusted annual rate of single family housing starts was 869,000 in October, up 10.7% from the September pace of 785,000. Starts in structures with 5 or more units rebounded from 255,000 to 445,000, a pace more consistent with recent months. Overall, total housing starts quickened from a pace of 1.054 million in September to 1.323 million in October, a 25.5% annualized gain. The surge in October was well ahead of the average pace of 768,000 so far in 2016. The number of building permits also increased in October 0.3% to 1.229 million. This is up from September’s 1.225 million, and up 4.6% from last year’s 1.18 million. We expect single family starts to remain strong, if not at the October pace, through the end of the year and continue to strengthen in 2017.
Full Story… http://eyeonhousing.org/2016/11/october-housing-starts-pop-goes-single-family/

* Equity Rich U.S. Homeowners Increase by 2.6 Million in Q3 2016. ATTOM Data Solutions released Thursday its Q3 2016 U.S. Home Equity and Underwater Report, which shows that 13,125,367 U.S. homeowners were equity rich (loan-to-value ratio of 50 percent or lower) as of the end of Q3 2016, representing 23.4 percent of all U.S. homeowners with a mortgage and an increase of more than 2.6 million from a year ago. The report also shows that 6,063,326 U.S. homeowners were seriously underwater (LTV of 125 or higher) as of the end of Q3 2016, representing 10.8 percent of all U.S. homeowners with a mortgage, and a decrease of more than 854,000 homeowners from a year ago. Since the peak in seriously underwater homeowners at 12.8 million representing 28.6 percent of all homeowners with a mortgage in Q2 2012, the number of seriously underwater homeowners has decreased by more than 6.7 million. “Close to one in every five U.S. homeowners with a mortgage is now equity rich thanks to a combination of rising home prices and lengthening homeownership tenures,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. Median home prices increased on a year-over-year basis for the 18th consecutive quarter in Q3 2016. Among 88 metropolitan statistical areas with a population of at least 500,000 or more, Portland ranks 6th and Seattle ranks 9th, with the highest share of equity rich homeowners at 33.1% and 31.5% respectively.
Full Story… http://www.realtytrac.com/news/mortgage-and-finance/q3-2016-u-s-home-equity-and-underwater-report/

Have a productive week.
Jason


This Week in Real Estate: November 14, 2016

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The 2017 housing market forecast and affordability were topics that received the most attention This Week in Real Estate coming off the heels of the National Association of Realtors Conference and Expo. Below are a few highlights from the second week of November that influence our business:


* What’s In Store For Housing In 2017? For the majority of this year, the housing market could not get past low inventory levels, which were continuously cited as the main road block to a fully healthy housing market. Next year should be better, according to the newly released forecast from the National Association of Realtors, but its going to take time. “It’s evident that demand and sales slightly weakened over the summer as stubbornly low supply buyers’ choices, accelerated price growth and hindered some consumers’ belief that now is a good time to buy a home,” said Lawrence Yun, chief economist of the National Association of Realtors. Looking to next year, Yun stated that he thinks the tight supply and affordability issues affecting buyers in many markets will very slowly but surely start to abate. Yup predicts that housing starts will jump 5.3% next year to 1.22 million. However, this is still under the 1.5 million new homes needed to make up for the shortfall in recent years and keep up with the growing demand. The report added that new single-family home sales are likely to total 570,000 this year and rise to around 620,000 in 2017. According to Yun’s forecasts for next year, existing-home sales are projected to grow roughly 2% to around 5.46 million, and then experience a more prominent jump of 4% in 2018 (5.68 million). The national median existing-home price is expected to rise around 4% both this year and in 2017, and by the end of 2017, Yun said he expects rates to be around 4.5%. As for the rest of 2016, Yun added that he expects existing-home sales to finish at a pace of about 5.36 million – the best year since 2006 (6.47 million).
Full Story… http://www.housingwire.com/articles/38456-whats-in-store-for-housing-in-2017?eid=322520585&bid=1581068


* Housing Affordability Edges Lower In Third Quarter. Ongoing home price appreciation offset a small decline in mortgage interest rates to move housing affordability slightly lower in the third quarter of 2016, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). In all, 61.4 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $65,700. The national median home price increased from $240,000 in the second quarter to $247,000 in the third quarter. Meanwhile, average mortgage rates edged lower from 3.88 percent to 3.76 percent in the same period.
Full Story… http://eyeonhousing.org/2016/11/housing-affordability-edges-lower-in-third-quarter/

* Balancing Act of Low Rates, Rising Home Prices is Keeping Affordability Stable For Now.
“The latest Black Knight Home Price Index (HPI) report showed that, as of the end of August, U.S. home prices were within just 0.7 percent of hitting a new peak,” said Black Knight Executive Vice President Ben Graboske. “This is important for a number of reasons, not least of which is the impact it could have on home affordability. Right now, however, affordability remains steady as low interest rates continue to offset rising home prices. In fact, even though the value of the average home in the U.S. increased by about $13,500 over the last year, thanks to declining interest rates it actually costs almost exactly the same in principal and interest each month to purchase as it did this time last year.” The most recent HPI data is also important when it comes to the growing discussion surrounding conforming loan limits. The Housing and Economic Recovery Act of 2008 restricted any additional increases in the conforming loan limit until national home values returned to pre-crisis levels. Now that we’ve reached that point by multiple measures, the GSEs can consider raising the national conforming limit above the static $417,000 where it has stayed for the last 10 years. Black Knight also found that while Oregon, Washington and Colorado continue to see the highest levels of HPA, of the three, Colorado’s rate of appreciation is down one percent from last year. Both Washington and Oregon continue to accelerate, with annual rates of HPA over 1.5% higher than one year ago.
Full Story… http://www.bkfs.com/CorporateInformation/NewsRoom/Pages/20161107.aspx

Have a productive week.
Jason


This Week in Real Estate: Nov. 7, 2016

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Good Morning!

Multiple third quarter analyses were released This Week in Real Estate by groups like CoreLogic and NAR, highlighted by the continued growth of home equity and home price appreciation. Below are a few highlights from the first week of November that influence our business:

* Home Equity Wealth Doubled in Last 5 Years. Home prices nationwide, including distressed sales, increased year-over-year by 6.3 percent in September compared with September 2015 and increased month-over-month by 1.1 percent in September 2016 compared with August 2016, according to the CoreLogic HPI. “Home equity wealth has doubled during the last five years to $13 trillion, largely because of the recovery in home prices,” CoreLogic Chief Economist Frank Nothaft said. “Nationwide during the past year, the average gain in housing wealth was about $11,000 per homeowner, but with wide geographic variation.” Going into next year, CoreLogic predicts that home prices will only continue to rise, with the company estimating an increase of 5.2% from September 2016 to September 2017. Monthly, home prices are expected to increase 0.3%.
Full Story…  http://www.corelogic.com/about-us/news/corelogic-us-home-price-report-shows-prices-up-6.3-percent-in-september-2016.aspx

* Housing Supply Crunch Accelerates Metro Home Price Growth During Third Quarter. Persistent supply shortages throughout the country led to slightly faster home price appreciation during the third quarter, according to the latest quarterly report by the National Association of Realtors. The report also revealed that seven of the ten most expensive housing markets in the U.S. are in the West, including San Jose, California, which had a median single-family home price of $1 million for the second straight quarter. The national median existing single-family home price in the third quarter was $240,900, which is up 5.2% from the third quarter of 2015 ($228,900) and surpasses this year’s second quarter ($240,700) as the current peak quarterly median sales price. Total existing-home sales, including single-family and condos, slid 2.2 percent to a seasonally adjusted annual rate of 5.38 million in the third quarter from 5.50 million in the second quarter of this year, and are 0.4% lower than the 5.40 million pace during the third quarter of 2015. At the end of the third quarter, there were 2.04 million existing homes available for sale, which was 6.8% below the 2.19 million homes for sale at the end of the third quarter in 2015.
Full Story…  http://www.realtor.org/news-releases/2016/11/housing-supply-crunch-accelerates-metro-home-price-growth-during-third-quarter

* 2.5 Million Consumers Hit By Financial Crisis Ready to Reenter Housing. The time frame for borrowers who were significantly hit after the financial crisis to improve their credit score is about to happen, opening the door for a lot of consumers to reenter the housing market. According to Experian’s latest analysis, foreclosures, short sales and bankruptcies remain on a credit report for seven years, which means these items are due to fall off credit files of 2.5 million consumers between June 2016 and June 2017. And even better for the housing market, the analysis shows that 68% of these consumers are scoring in the near-prime or higher credit segments, meaning the opportunity for this group to qualify for mortgage loans is growing. “In the coming years, boomerang borrowers will be a critical segment of the real-estate market,” said Michele Raneri, vice president of analytics and new business development at Experian. “While many of these borrowers have gone through a very difficult time, it is encouraging to see them taking control of their finances with better credit scores and all-around better credit management.”
Full Story…  http://www.housingwire.com/articles/38405-5-million-consumers-hit-by-financial-crisis-ready-to-reenter-housing?eid=322520585&bid=1572876

Have a productive week.
Jason


This Week in Real Estate: Oct. 31, 2016

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Home prices are now just 0.1% below the all-time highs set in 2006 according to Case-Shiller data released This Week in Real Estate. Below are a few highlights from the final week of October that influence our business:

* Pending Home Sales Edge Up in September. Boosted by increases in the West and South, the Pending Home Sales Index increased 1.5% in September, and climbed 2.4% higher than the same month last year. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR), increased to 110.0 in September from a downwardly revised 108.4 in August. The PHSI increased 4.7% in the West and 1.9% in the South, but decreased 0.2% in the Midwest and 1.6% in the Northeast. Year-over-year, the PHSI was up 7.7% in the Northeast, 4.0% in the West and 1.7% in the South, while falling 1.0% in the Midwest. The PHSI has increased year-over-year for 22 of the past 25 months, so the September increase suggests that the upward trend in existing sales will continue.
Full Story…  http://www.realtor.org/news-releases/2016/10/pending-home-sales-edge-up-in-september

* Case-Shiller: Rising House Prices Just Below Record Highs. Home prices are continuing to rise; now mere basis points below the all-time highs for prices, set in 2006. According to the latest data released Tuesday by S&P Dow Jones Indices and CoreLogic, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. census divisions, reported a 5.3% annual gain in August, up from 5.0% in July. Per the report, the Index is currently at 184.42, which is within 0.1% of its record high of 184.62, set in July 2006. The increase in August represents the 52nd consecutive month of positive gains. The report states the Portland, Seattle and Denver turned in the highest year-over-year gains among the 20 cities for the seventh consecutive month, with year-over-year increases of 11.7%, 11.4% and 8.8%, respectively.
Full Story…  http://www.housingwire.com/articles/38364-case-shiller-rising-house-prices-just-below-record-highs?eid=322520585&bid=1568560

* Homeowners Facing Foreclosure Hit 9-Year Low. According to new data released Tuesday morning by Black Knight, the rate of loans in active foreclosure is lower right now than at any point in the last nine years. Black Knight’s “First Look” at the September mortgage data shows that only 1% of the total number of mortgages in the U.S. are currently in active foreclosure, which is 3.38% lower than the previous month, 31.23% lower than the same time period last year, and represents a nine-year low. Black Knight’s report also showed that there were 61,700 foreclosure starts in the month of September, which represents a 10.32% decrease from the previous month and a 22.78% decrease from the same time period in the previous year. Overall, the total loan delinquency rate, which represents loans that are 30 or more days past due, but not in foreclosure, is at 4.27% of all loans. That represents a slight increase of 0.74% from the previous month, but a 12.24% decrease from 2015’s total. Black Knight’s report also showed that September saw the third highest prepayment rate in three years.
Full Story…  http://www.housingwire.com/articles/38361-loans-in-foreclosure-fall-to-9-year-low?eid=322520585&bid=1567351

Have a productive week,

Jason

 


This Week in Real Estate: October 24, 2016

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The return of the first-time homebuyer was welcomed news This Week in Real Estate, as they accounted for 34% of September sales, the highest portion in more than four years. Below are a few highlights from the third week of October that influence our business:

* Five Notable Nuggets From NAR’s Home Buyer and Sellers Survey’s 35-Year History. When the first Profile of Home Buyers and Sellers was introduced 35 years ago by the National Association of Realtors, mortgage rates were over four times higher than they are today and first-time buyers made up a much larger share of overall sales (44%). Over time, homebuyer tastes and behaviors have changed, yet many have stayed the same. To mark the 35th year of NAR’s highly-anticipated survey capturing the pulse of buyers and sellers, here are five notable trends from the past three-and-a-half decades: (1) participation from first-time buyers is depressed, (2) the internet is not replacing a real estate agent, (3) buyers have bought slightly bigger, but the pace is currently at a standstill, (4) down payments have trended down over time, but not in recent years and (5) the home search is taking longer; tight inventory has slowed the pace in past two years.
Full Story… http://www.realtor.org/news-releases/2016/10/five-notable-nuggets-from-nar-s-home-buyer-and-sellers-survey-s-35-year-history

* Single Family Rental Returns Drop to Nine-Year Low in 2016 as Institutional Investor Purchases Rise in 68% of Local Markets. ATTOM Data Solutions released its Q3 2016 Single Family Rental Market Report on Thursday, which found that average single family rental returns dropped to a nine-year low for homes purchased so far in 2016 among 473 U.S. counties analyzed for the report. The average annual gross rental yield among the 473 counties was 8.7 percent for properties purchased in the first seven months of 2016, down from an average of 8.8 percent for the same time period in 2015 to the lowest level since 2007, when the average gross rental yield across the 473 counties was 7.3 percent. Nationwide, 2.7 percent of all single family homes that sold in the first seven months of 2016 were purchased by institutional investors (entities purchasing at least 10 properties in a calendar year).
Full Story… http://www.realtytrac.com/news/home-prices-and-sales/q3-2016-single-family-rental-market-report/

* Sales Surge Thanks to First-Time Buyers at 4-Year High. There is a lot of upbeat news in the September existing home sales report released by NAR on Thursday. Sales rebounded sharply and the improvement was seen in all four regions. More good news, NAR attributed part of that to increased participation from first-time homebuyers, a group that has worried the housing industry by its relative absence. Total existing home sales during the month, including single-family homes, townhomes, condos, and co-ops, rose 3.2 percent to a seasonally adjusted annual rate of 5.47 million. First-time buyers accounted for 34 percent of sales, the highest portion in more than four years. Existing-home sales in the West jumped 5.0 percent to an annual rate of 1.25 million, up 1.6 percent year-over-year. The median price in the West was $345,400, an 8.1 percent annual gain.
Full Story… http://www.mortgagenewsdaily.com/10202016_existing_homes.asp

Have a productive week.

Jason

This Week in Real Estate: Oct. 17, 2016

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Reports released This Week in Real Estate by ATTOM Data Solutions and CoreLogic about the pre-recession levels of foreclosure activity and inventory the country is experiencing dominate headlines. Below are a few highlights from the second week of October that influence our business:

* September Foreclosure Activity Decreases 24% From a Year Ago to Lowest Level Since December 2005. ATTOM Data Solutions released its September and Q3 2016 U.S. Foreclosure Market Report on Thursday, which shows a total of 82,972 properties with foreclosure filings – default notices, scheduled auctions or bank repossessions – in September, down 13 percent from the previous month and down 24 percent from a year ago to the lowest level since December 2005. There were a total of 293,190 U.S. properties with foreclosure filings in Q3 2016, up 4 percent from the previous quarter but down 10 percent from a year ago. It was the fourth consecutive quarter where foreclosure activity has decreased on a year-over-year basis. “While we’ve known that the national foreclosure problem has been dying a long, slow death for quite some time, the final nail in the coffin of the foreclosure crisis is the year-over-year decrease in the average foreclosure timeline nationwide that we saw in Q3 2016 – the first time that’s happened since we began tracking foreclosure timelines in Q1 2007,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.
Full Story…  http://www.realtytrac.com/news/foreclosure-trends/september-and-q3-2016-foreclosure-market-report/

* CoreLogic: Foreclosure Inventory Drops to Less Than 1% Nationally. CoreLogic released its August 2016 National Foreclosure Report on Tuesday which shows the foreclosure inventory declined by 29.6 percent and completed foreclosures declined by 42.2 percent compared with August 2015. The number of completed foreclosures nationwide decreased year over year from 64,000 in August 2015 to 37,000 in August 2016, representing a decrease of 69 percent from the peak of 118,221 in September 2010. As of August 2016, the national foreclosure inventory included approximately 351,000 or 0.9 percent, of all homes with a mortgage compared with 499,000 homes, or 1.3 percent, in August 2015. The August 2016 foreclosure inventory rate is the lowest it’s been since July 2007. The number of mortgages in serious delinquency (defined as 90 days or more past due including loans in foreclosure or REO) declined by 20.6 percent from August 2015 to August 2016, with 1.1 million mortgages, or 2.8 percent, the lowest level since September 2007.
Full Story…  http://www.corelogic.com/about-us/news/corelogic-reports-37,000-completed-foreclosures-in-august-2016.aspx

* Home Appraisals Continue to Fall Below Owner Perceptions Nationally. According to Quicken Loans’ national Home Price Perception Index (HPPI) appraisals across the country were an average of 1.56 percent lower than what refinancing homeowners expected in August. The trend of owners overestimating their home’s value when refinancing continued in August, with appraisals falling 1.56 percent lower than owners’ expectations in the national HPPI. However, the gap between valuation opinions of appraisers and owners edged closer to equilibrium since last month when appraisals were 1.69 percent lower than expected. Despite the nationwide trend, appraised values were higher than owners’ estimates in nearly half of the metro areas examined by the study. The report varied nationally with some areas showing nearly identical estimates and values; while many western cities reported higher appraisals, like Denver where home values were as much as 3 percent higher than expected.
Full Story…  http://www.quickenloans.com/press-room/2016/09/13/home-appraisals-fall-owner-perceptions-nationally-home-value-growth-leaps-forward/

Have a productive week!

Jason

This Week in Real Estate: Oct. 10, 2016

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The summer housing market saw high demand next to rising home prices, but don’t expect Fall to bring any relief according to new data This Week in Real Estate from Realtor.com. In fact, analysts believe it could bring the hottest Fall in a decade. Below are a few highlights from the first week of October that influence our business:

* NAR Forecasts Heated Housing Market in 2017. Predictions from the National Association of Realtors, the Mortgage Bankers Association, Fannie Mae and Freddie Mac show that home sales are going to heat up in 2017, according to a blog by NAR. NAR predicted existing home sales will reach 6 million in 2017, an increase from this year’s forecast of 5.8 million, according to the blog. MBA predicted home sales will reach 5.75 million and Fannie and Freddie Forecast home sales will come in at 6.2 million.
Full Story…  http://www.housingwire.com/articles/38205-nar-forecasts-heated-housing-market-in-2017?eid=322520585&bid=1549805

* FBR: Mortgage Lending Set For Best Quarter Since 2007. Less than one month ago, the analysts of FBR & Co. predicted that 2016 could prove to be the best year for mortgage lending since 2013, but a new report from those same analysts suggests that 2016 could be even stronger than they predicted. Driving FBR’s increased projection is a strong 3rd quarter, which could prove to be the best for mortgage lending since the 4th quarter of 2007. In the new report, FBR analysts state that they currently estimate that mortgage originations will top $600 billion in the third quarter, topping their previous estimate of $565 billion. If mortgage originations do indeed exceed $600 billion, that would mean that the 3rd quarter of 2016 is the best quarter for mortgage lending in nearly nine years. And with a stronger than expected 3rd quarter boosting 2016’s originations, FBR’s analysts are now projecting 2016’s total origination volume to top $2 trillion, an increase from the $1.9 trillion they projected last month. The analysts noted that the trailing four-quarter purchase average jumped to $241 billion, the highest level since the 3rd quarter of 2007.
Full Story…  http://www.housingwire.com/articles/38222-fbr-mortgage-lending-set-for-best-quarter-since-2007?eid=322520585&bid=1549805

* CoreLogic Expects Home Prices to Peak in 2017. “Home prices are now just 6% below the nominal peak reached in April 2006,” said CoreLogic Chief Economist Frank Nothaft. “With prices forecasted to increase 5% over the next year, prices will be back to their peak level in 2017.” The HPI Forecast shows that home prices will increase by 5.3% annually by August 2017, and increased 0.4% from August to September. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state. “Housing values continue to rise briskly on stronger fundamental and investor-fueled demand, as well as lack of adequate supply,” said CoreLogic President and CEO Anand Nallathambi.
Full Story…  http://www.corelogic.com/about-us/news/corelogic-us-home-price-report-shows-prices-up-6.2-percent-year-over-year-in-august-2016.aspx

Have a productive week!

Jason
 

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