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Fannie Mae Survey Says Market Improving

The real estate market is continuing to improve

Evidence shows that foreclosures are continuing to decrease all across the nation. In January Fannie Mae did a survey to discover the National attitude regarding housing, the market and specifically buying and selling real estate.

While December numbers showed a slight rise in foreclosures and short sales, employment gained ground.  Confidence is growing in the consumer market. The majority of Americans feel now is the time to buy and to sell …

Toronto_Row_Houses
Row Housing

Sixty-seven percent of American adults responding to Fannie Mae’s January National Housing Survey said now is a good time to buy a home, the company reported Monday, while 44 percent said now is a good time to sell. Both figures are up from December, when positive responses were at 64 percent and 40 percent, respectively.

Doug Duncan, SVP and chief economist at Fannie Mae, said the country’s current economic momentum played a role in January’s more upbeat views of the housing market.

“Consumers are as positive about their personal finances at the start of 2015 as they have been since we launched the National Housing Survey in 2010, and this optimism seems to be spilling over into housing market attitudes,” Duncan said. “These results are in line with lender optimism about future growth in their mortgage origination business, as shown in our Mortgage Lender Sentiment Survey.”

The share of respondents in Fannie Mae’s survey who said their household income is “significantly higher” than it was a year ago climbed 4 percentage points to a survey high of 29 percent, the company reported. Looking ahead, 48 percent said they expect their finances to improve in the next year, also a survey high.Housing Market Improving

Overall, 44 percent of Americans said they believe the economy is on the right track, an increase of 3 percentage points and only a few points less than those saying the economy is headed the wrong way (49 percent).

That optimism spurred 66 percent of those surveyed to say they would buy a home if they had to move, a jump from 61 percent at the end of 2015. The share of those who would rent, meanwhile, slipped after three months of gains, falling to 29 percent.

“Overall, these are good signs to start off 2015 and are consistent with our expectation that strengthening employment and economic activity will boost the speed of the housing recovery,” Duncan said.

One thing that is sure to bolster this new confidence, is the spring market. Locally we are seeing an increase in listings and buyers, a relief after the severe slow down during November, December and January.

Tory Barringer, DS News

Americans’ Economic Optimism Spills Over into Housing

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© 2018 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc ®. Equal Housing Opportunity. Privacy Policy Sherry Fields 1020 South Ave. W., Missoula, MT 59801 | Phone: (406) 207-8448 | Email: Sherry.Fields@bhhsmt.com
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Fannie Mae & Freddie Mac In the News

Latest Real Estate News

Statistics are showing more buyer confidence. A January 2014 Housing Survey revealed:

  • 52% of respondents thought it would be easy for them to get a home mortgage today
  • 70% of respondents said they would buy if they were going to move

In other news today …

English: An example of a real estate owned pro...
English: An example of a real estate owned property in San Diego, California. (Photo credit: Wikipedia)

 

New Report Critical Of Fannie Mae And Freddie Mac Fee Collection

A report released Wednesday by the Federal Housing Finance Agency (FHFA) was critical of Fannie Mae and Freddie Mac’s collection of late fees. The report criticized the two for poor management of late fee collection, noting large sums of money either not being consistently collected or collected at all. »READ MORE

Bank Of America To Cut More Mortgage Jobs

Bank of America, the second-largest U.S. lender, is cutting 450 mortgage jobs from its West Coast Offices. The lending giant is reducing staff after new loans fell short of internal forecasts. In a report by Bloomberg, affected employees were told yesterday that workers involved in processing home loans would be let go. »READ MORE

Housing Inventory Continues Fall In January

January marks another decline in home inventory, according to a report issued by Redfin. With the caveat that “it is too soon to tell,” the brokerage did offer some optimism regarding inventory in coming months, revealing “Redfin agents report that most of their home selling clients are planning to list between March and May.” »READ MORE

Fannie Mae Increases Incentives To Purchase REO Properties

Fannie Mae announced Thursday that homebuyers can now receive up to 3.5 percent in closing cost assistance. The help is available within the FirstLook period of Fannie Mae’s HomePath properties in 27 states. The incentive will offer qualified buyers up to 3.5 percent of the final sales price to pay closing costs. »READ MORE

 

 

 

 

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© 2018 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc ®. Equal Housing Opportunity. Privacy Policy Sherry Fields 1020 South Ave. W., Missoula, MT 59801 | Phone: (406) 207-8448 | Email: Sherry.Fields@bhhsmt.com
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Controversy Continues Over Rising Home Prices

Once again lending practices have eased up. The Federal Reserve in a recent survey of Senior loan officers showed: an average of 4.6 percent of lenders surveyed acknowledged easing lending standards for prime residential loans and 16 percent of lenders surveyed reported an increase in demand for loans to subprime borrowers

The 2013 numbers on housing and the economy look eerily similar to 2005, the year before the housing bubble burst brought the economy down with it. While some of the 2013 numbers look better than 2005, other coincidental indicators are reason for concern. The falloff at furniture and appliance stores suggests homeowners may be stretched to make monthly mortgage payments–even in an era, until recently, of low mortgage rates. » Read More

alt="Sherry Fields Real Estate

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© 2018 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc ®. Equal Housing Opportunity. Privacy Policy Sherry Fields 1020 South Ave. W., Missoula, MT 59801 | Phone: (406) 207-8448 | Email: Sherry.Fields@bhhsmt.com
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Finally Some Good News For Those Who Have Had A Foreclosure

Logo of the Federal Housing Administration.
Logo of the Federal Housing Administration. (Photo credit: Wikipedia)

Finally, someone in Washington is recognizing that the vast majority of homeowners hit with this housing foreclosure/short sale crisis were the victims in all of this. Yes they defaulted on their payments, but almost always there were extenuating circumstances.  More often than not they were sold a loan that the lender knew was the wrong product but sold it anyway and when anything when financially wrong – health, job, divorce even death – they were in trouble.

I am glad to see that they will allow those that re-establish their credit scores can re-apply for homeownership after 12 months.

The Federal Housing Administration (FHA) is allowing borrowers who went through a bankruptcy, foreclosure, deed-in-lieu, or short sale to reenter the market in as little as 12 months, according to a mortgage letter released Friday.


 

Borrowers who experienced a foreclosure must wait at least three years before getting a chance to get approved for an FHA loan, but with the new guideline, certain borrowers who lost their home as a result of an economic hardship may be considered even earlier.

For borrowers who went through recession-related financial event, FHA stated it realizes “their credit histories may not fully reflect their true ability or propensity to repay a mortgage.”

In order to be eligible for the more lenient approval process, provided documents must show “certain credit impairments” were from loss of employment or loss of income that was beyond their control. The lender also needs to verify the income loss was at least 20 percent for a period lasting for at least six months.

Additionally, borrowers must demonstrate they have fully recovered from the event that caused the hardship and complete housing counseling.

Transunion Credit Score
Transunion Credit Score (Photo credit: i am real estate photographer)

According to the letter, recovery from an economic event involves reestablishing “satisfactory credit” for at least 12 months. Criteria for satisfactory credit include 12 months of good payment history on payments such as a mortgage, rent, or credit account.

The new guidance is for case numbers assigned on or after August 15, 2013, and is effective through September 30, 2016.

 

 

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© 2018 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc ®. Equal Housing Opportunity. Privacy Policy Sherry Fields 1020 South Ave. W., Missoula, MT 59801 | Phone: (406) 207-8448 | Email: Sherry.Fields@bhhsmt.com
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Housing Trends June 2013

Trends for Non-Distressed and Distressed

Properties Diverge as Investors Pull Back

 Investors have significantly reduced their home purchase activity in recent months, prompting divergent trends among property types.

 The non-distressed market continues to be strong, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey results. The average numbers of offers and sales-to-list price ratios have increased in recent months while average time on market for non-distressed properties has declined.

 Non-distressed properties received 2.3 offers in May, based on the three-month moving average, the third consecutive monthly increase for the metric. “Still really short of inventory to show my buyers and we face multiple offers with people willing to pay over the appraised price of the property,” according to a real estate agent in California.

Average offers on non-distressed properties vary by region, with Arizona, California and Nevada leading the country. Dot ChartNon-distressed properties in California received 4.1 offers in May, based on the three-month moving average. Non-distressed properties in Arizona and Nevada received 3.1 offers in May, based on the three-month moving average.

Properties in Farmbelt states of Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin received 1.4 offers in May, based on the three-month moving average. Properties in the South and Industrial Midwest also averaged fewer than 2.0 offers in May.

Sales-To-List-Price-Ratios

Sales-to-list price ratios on non-distressed properties increased for their fifth consecutive month to 97.6%, based on the three-month moving average.

 Properties in the West again outpaced the national average. In California, the sales-to-list price ratio was 99.8% in May, based on the three-month moving average. “List prices in most cases are now simply the opening bid for an auction,” according to a real estate agent in the San Francisco area.

Properties in the Northeast and Industrial Midwest had the lowest sales-to-list price ratios at 96.0% in May, based on the three-month moving average. “We have not seen the huge jump that some major cities have, however, if the house is priced right it will sell for very close to asking price,” according to a real estate agent in Missouri.

 And time on market for non-distressed properties declined for the third consecutive month to 9.2 weeks, based on the three-month moving average. Time on market for non-distressed properties in California was 4.2 weeks in May, based on the three-month moving average, while non-distressed properties in the Farmbelt, Northeast and South averaged about 12.0 weeks.

Distressed Property Trends

 Bar graphTrends for distressed properties diverged from non-distressed properties in May as some investors have switched business strategies from buying properties to selling them. Investors accounted for 20.2% of home purchases in May, based on the three-month moving average, down significantly from a peak share of 23.1% in February.

 

The number of offers on real-estate owned properties and short sales declined in May compared with the previous month, based on the three-month moving average. Sales-to-list price ratios also declined on short sales and damaged REO properties.

 And time on market increased significantly for short sales while staying relatively steady for REOs in May compared with April.

The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey involves approximately 2,000 real estate agents nationwide each month and provides up-to-date intelligence on home sales and mortgage usage patterns.

 Residential Real Estate Pricing and Commission Metrics

Average Sales to Listing Price Ratio

Past 12 Months

Region

Damaged REO

Move-In Ready REO

Short Sale

Non- Distressed

AZ & NV

95%

102%

100%

97%

California

99%

102%

99%

99%

Farmbelt

93%

94%

95%

96%

Florida

97%

96%

96%

94%

Industrial Midwest

94%

98%

92%

95%

Northeast

90%

96%

91%

96%

Oil Producing

94%

95%

95%

97%

Pacific NW

96%

98%

98%

97%

Rocky Mountain

95%

98%

95%

96%

South

96%

96%

95%

96%

National Average

95%

97%

96%

96%

Average Listing Side Commissions

Past 12 Months

Region

Damaged REO

Move-In Ready REO

Short Sale

Non- Distressed

AZ & NV

2.38%

2.57%

2.99%

2.87%

2.38%

California

2.44%

2.54%

2.93%

2.67%

2.44%

Farmbelt

2.66%

2.68%

3.03%

2.92%

2.66%

Florida

2.67%

2.71%

2.97%

2.92%

2.67%

Industrial Midwest

2.82%

2.72%

2.91%

2.86%

2.82%

Northeast

2.68%

2.80%

2.90%

2.71%

2.68%

Oil Producing

2.61%

2.73%

2.84%

2.77%

2.61%

Pacific NW

2.52%

2.58%

2.92%

2.79%

2.52%

Rocky Mountain

2.62%

2.68%

2.90%

2.78%

2.62%

South

2.78%

2.74%

2.91%

2.81%

2.78%

National Average

2.68%

2.70%

2.93%

2.80%

2.68%

Average Buy Side Commissions

Past 12 Months

Region

Damaged REO

Move-In Ready REO

Short Sale

Non- Distressed

AZ & NV

2.83%

2.83%

2.78%

2.91%

California

2.70%

2.70%

2.69%

2.66%

Farmbelt

2.80%

2.82%

2.75%

2.74%

Florida

2.86%

2.85%

2.89%

2.94%

Industrial Midwest

2.91%

2.86%

2.80%

2.87%

Northeast

2.79%

2.74%

2.70%

2.65%

Oil Producing

2.83%

2.88%

2.87%

2.94%

Pacific NW

2.74%

2.83%

2.76%

2.78%

Rocky Mountain

2.84%

2.87%

2.83%

2.88%

South

2.88%

2.88%

2.86%

2.90%

National Average

2.84%

2.83%

2.79%

2.83%

Average Property Price by Region Past 12 Months

Region

Damaged REO

Move-In Ready REO

Short Sale

Non- Distressed

AZ & NV

$258,382

$168,910

$158,802

$246,354

California

$250,889

$305,833

$286,267

$467,536

Farmbelt

$76,771

$157,864

$138,498

$193,632

Florida

$97,599

$198,536

$146,194

$226,506

Industrial Midwest

$58,161

$145,233

$146,339

$198,803

Northeast

$166,829

$275,559

$210,313

$298,887

Oil Producing

$79,069

$158,917

$153,265

$214,538

Pacific NW

$138,058

$243,621

$184,802

$304,533

Rocky Mountain

$135,942

$210,958

$187,031

$277,753

South

$79,685

$165,500

$161,718

$232,540

National Average

$109,974

$200,195

$191,421

$261,562

Map

reprinted with permission: Campbell Surveys – Housing Trends update is published monthly and is available only to real estate agents who are part of the Campbell Housing Pulse Survey Panel For information on joining the panel contact John Campbell at 202-363-2069 email “ john at houseingpulse.com”

 

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© 2018 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc ®. Equal Housing Opportunity. Privacy Policy Sherry Fields 1020 South Ave. W., Missoula, MT 59801 | Phone: (406) 207-8448 | Email: Sherry.Fields@bhhsmt.com
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Real Estate Decline – Wall Street Journal

 September 10, 2009

The Wall Street Journal carried an article today about a further real estate decline predicted by Meredith Whitney. Much of her analysis is based on the larger American cities hit hardest by the mortgage melt down, which of course led to the foreclosures that brought real estate prices to their knees.

Despite her dire predictions, many analysts feel there is a marginal recovery in the market now and if as she suggests unemployment climbs, the drop will be significantly less than her 25% prediction.

Meredith Whitney a well known banking analyst feels the real estate market is in for another major shock, part of a cycle of tumbling home prices and escalating unemployment which she says could plummet another 25%.

Since here in Montana and other cities in the United States the real estate market is showing some signs of stabilizing, that is a pretty depressing prediction. Sales while slow have been gaining steady growth over the summer but dropping prices in other states will have its impact nationally and that would mean that mortgages can be higher than a home is worth in today’s market. This is untenable especially with declining employment statistics and someone in the household loses their job.

The cycle continues with those unemployed being unable to make payments losing their home to foreclosure, putting more distressed homes in the market, which in turn drives prices down even more. The only bright side is that these lower prices are bringing buyers out looking and finding bargains.

 “I think there is no doubt that home prices will go down dramatically from here, it’s just a question of when,” Ms. Whitney, known for accurately predicting troubles for Citigroup Inc., told CNBC Thursday. “…If you look at the drivers for unemployment, I don’t see that reversing very soon.” (More on Ms. Whitney.)

Housing bubbles grew in Las Vegas, Los Angeles and many other American cities – unchecked for several years and now those cities have experienced a severe down market bringing prices down by as much as 50 per cent according to the S&P/Case-Shiller index. New construction – unrestrained in the boom years has left neighborhoods desolate and abandoned.

Slight improvements are showing up in the statistics in that prices fell less in the second quarter than in the first by 4.2%. This is the first positive comparison in three years. Some cities like Denver Colorado and Dallas Texas have consistent positive comparisons for the past 12 months.

 “Moody’s expects a drop of about 10% from current levels, and the declines will continue late into next year, says analyst Joseph Snider.”

Many analysts feel Meredith Whitney’s doom and gloom forecast is not reasonable given the positive comparisons this quarter.

While S&P/Case-Shiller shies away from predictions, David Blitzer, chairman of the index committee, thinks Ms. Whitney’s is estimate is too negative. While prices may fall further, “a 25% decline from here sounds very steep, he said. “To say that we’re only half way through this sounds pessimistic.”

 

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A Real Estate Market Comeback? Maybe.

Signs are sprouting  in unusual places that perhaps the real estate market is finally on the rebound.  Are there enough details and statistics to back this up? Or is this just more rhetoric hoping to boost confidence in the housing sector? 

Washington this week said that home sales rose last month as buyers took advantage of the depressed market.  Economists were quick to say this is a clear sign the market may finally be bouncing back.  Buyers have been taking advantage of the bargain basement sales with home prices being forced down by the huge foreclosure market.  And first time buyers are jumping on the band wagon to take advantage of the federal tax credit.

From the undersecretary of Commerce "The U.S. Bureau of the Census released new residential sales for June 2009. Sales of new one-family houses rose 11.0 percent in June, well above the rise of 2.3 percent expected by private-sector analysts."

“The evidence is clear that home buyers are taking advantage of Recovery Act tax incentives, declines in home prices and relatively low mortgage rates,” U.S. Under Secretary for Economic Affairs Rebecca Blank said. “Both new and existing homes have become more affordable. While the economic environment remains difficult, as more Recovery Act dollars hit the streets, we anticipate that it will further bolster the economy in the coming months.”

The stats say these purchases have pushed the home sales to a high not seen since last November. Then go on to say that home prices are still falling around the country.  What gives? Another article pipes up to say sales have risen for three months in a row, and new construction is moving ahead into their busiest season since last fall.

June Housing Increase

"The worst of the housing recession,"said David Resler, chief economist at Nomra Securities, "is now behind us." "But the recovery in the overall economy, is likely to be slow and arduous" he said.

"There’s definitely more first-time homebuyers in the market than what we’ve seen in the last several years." says Corey Barton, president CBH Homes in Meridian, Idaho

How can all of these conflicting comments make sense?  In a jumbled way they do.  The real estate market as we all know has been hit tremendously hard by the foreclosures.  This has driven the average price for a home down.  Unfortunately, those who must sell their homes are forced to sell at these rock bottom prices established by the foreclosures.  These factors then creates an environment where home buyers are motivated to buy. So the cycle continues with more sales that are driving the prices down, certainly not contributing to any increase in value for home owners.

Locally, last week in the newspaper, it was noted that developers for the first time this year are starting to pour concrete for new housing. This is a good sign that they have some confidence in the market recovering.  But even though the real estate market appears to be starting a recovery, it does not mean it is going to turn around and become a powerful economic engine anytime soon.

Sherry Fields

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© 2018 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc ®. Equal Housing Opportunity. Privacy Policy Sherry Fields 1020 South Ave. W., Missoula, MT 59801 | Phone: (406) 207-8448 | Email: Sherry.Fields@bhhsmt.com
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Real Estate Investing

The term real estate investing in all probability makes you think of  a number of things like hard money, real estate portfolios and real estate retirement plans, and then you may expand to thinking of short sales, bulk reo investing or virtual real estate investing. You may also consider what roles these things play in your life as a real estate investor in different economies.

You can learn a lot about real estate investing. You will get the most out of anything to do with short sales, bulk reo sales, virtual real estate and just improving real estate investor abilities by knowing some real estate investing basics. Check out these three real estate investing tenets that many experts do not fully know:

1. You will always end up with a positive yield when you take on real estate investing education. You can create thousands of dollars in potential wealth with each real estate deal. Knowing about getting that wealth is the key in the end to your success. Learning as much as possible about real estate will increase your odds of success whenever you do a real estate deal. A small investment in your education can yield big results when you use that learning. There are many online courses, your local MLS can point you to training and NAR the National Association of Realtors can also advise you about real estate education.

2. You can succeed in real estate investing regardless of the state of the economy. Many people think (wrongly) that you can only succeed in real estate when the economy booms. In reality, poor economies are great for real estate investors. You will likely find properties that you can buy at deep discounts. Additionally, you may find deals that would not exist in a booming economy. In fact, real estate investing can turn the tide for a poor economy. When the economy is not thriving, short sales, bulk reo sales and virtual real estate can all thrive. You can save yourself and others from major financial woes if you know how to do these deals.

3. You do not need to have a great deal of money if you want to be a successful real estate investor. You can succeed in the real estate investing arena no matter how much money you are working with. There are lots of transactions that you can perform with other people’s money. Private lenders will lend you their money if they think you are a good investment. A good investor will know as much as they can about real estate in the current market. This will help you represent yourself as a solid prospect to private lenders who do not know how to make money in real estate.

Real estate can generate a great return on your investment, knowing when to buy, when to hold and when to sell are critical to your profits. You can create income regardless of the economy. Using your knowledge of real estate investing, short sales, bulk reo sales and virtual real estate you will be able to create wealth for yourself.

Short Sales: Not Enough to Avoid Foreclosed Homes

Industry experts said that failed short sale deals are contributing to the increasing number of foreclosed homes in the country. Distressed homeowners who want to sell their properties at less than the amount of their mortgages watched …

A Winning Strategy – 5 Keys to Short Sale Success | RISMedia

RISMEDIA, August 6, 2009-Given the current foreclosure situation throughout our country, now, more than ever, is an opportunity for real estate professionals.

Transactional Loans: A Solution for Short Sales Financing at Real …

The transactional loan gives the investor flipping short sale properties access to money in order to close the home purchase transaction (the first transaction) when the original homeowner is ready to sell and the resale transaction …

Home Sellers Frustrated as Short-Sales Collapse | The Jacksonville …

The sales of homes for less than the amount owed the bank, known as “short sales,” have been widely viewed as an alternative that could help slow the foreclosure epidemic. In theory, delinquent homeowners escape a mortgage they cannot repay.

Short Sales in Coconut Grove

So far this year there have been 8 single family home SHORT SALES sold this year in Coconut Grove. The average length of time between the day these homes came on the market and the day they closed was 9 months.   

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© 2018 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc ®. Equal Housing Opportunity. Privacy Policy Sherry Fields 1020 South Ave. W., Missoula, MT 59801 | Phone: (406) 207-8448 | Email: Sherry.Fields@bhhsmt.com
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