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December Results Housing Pulse

 Investor Enthusiasm Is Lacking but Most Housing Markets Showing Signs of Stability

by: Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.

Trends in investor traffic took an uncharacteristic divergence from trends in traffic from current homeowners and first-time homebuyers in December, according to the latest results from the

However, six months after interest rates started to rise, the housing market shows remarkable resilience.

While investor traffic has largely moved in step with traffic from other buyers in recent years, the investor traffic index in December lagged behind owner-occupant indexes. The investor traffic index for December was at 46.5, essentially flat compared with the previous month. The index tracks sentiment of agents. Any average above 50 is rising; any average below 50 is falling.

The owner-occupant indexes weDecChartre both up sharply in December compared with the previous month. The current homeowner traffic index even shifted into rising territory, from 47.1 in November to 50.5 in December.

Investors accounted for 18.5% of home purchases in December, based on a three-month moving average, also flat compared with the previous month. In December 2012, investors accounted for 21.5% of home purchases, based on a three-month moving average.

The decline in investor participation is tied to rising home prices and a lack of inventory. “Prices have gone up significantly since the bottom of the market in 2010,” said an agent in Arizona. “Investors are now pulling back, but other buyers are all looking still for inventory below $150,000, which there is very little of, and not in good condition.”

 

Distressed properties accounted for 24.8% of home sales in December

This was based on a three-month moving average. The share of distressed property sales continues to be closely divided between move-in ready REOs, damaged REOs and short sales.

Florida had the highest share of distressed properties in December. Some 36% of home sales during the month were distressed property transactions, based on a three-month moving average. The industrial Midwest and Farmbelt also had distressed property proportions above the national average. The Northeast had the lowest distressed property share in December, at 18% based on a three-month moving average.

The housing market in December was much stronger than it has been in previous years.

3MonthAvg

Non-distressed properties were on the market for 9.7 weeks in December, based on a three-month moving average. In December 2012, the average time on market for non-distressed properties was 12.4 weeks.

 

Properties in western states continued to sell more quickly than the national average. In California, the average time on market for non-distressed properties in December was 4.8 weeks, based on a three-month moving average. Non-distressed properties take longest to sell in the industrial Midwest, Northeast, South and Farmbelt, where the time on market in December was at least 10.5 weeks, based on a three-month moving average.

 

Sales-to-list price ratios on non-distressed properties in December were well above levels seen in recent years. The national average was 97.1%, based on the three-month moving average, up from 95.5% in December 2012.

 

Western states and oil producing states had sales-to-list price ratios at- or above the national average for non-distressed properties in December. In California, the sales-to-list price ratio during the month was 99.7%, based on the three-month moving average.

for the full report visit  http://www.housingpulse.com

 

 

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HAMP Report Released

Treasury Releases November

Making Home Affordable Report

Nearly 23,000 permanent loan modifications were completed under the Home Affordable Modification Program (HAMP) in November, according to a new report from the U.S. Treasury. That brings the total count of active permanent HAMP mods to just over 922,000.

Since the start of the federal program, 1.3 million HAMP mods have been granted permanent status. Of those, 353,073 have been disqualified from the program and 22,874 loans have been paid off.

According to Treasury’s data, homeowners have reduced their first-lien mortgage payments by a median of approximately $546 each month, or almost 40 percent of their median before-modification payment. Total estimated savings afforded by the government’s modification program is $24.2 billion to date, Treasury reports.

read more …

 

Seal of the United States Department of the Tr...

Seal of the United States Department of the Treasury (Photo credit: Wikipedia)

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**************************************************************************** © 2016 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 *******************************************************************************

Short Sale Rule Change for HUD Properties

 

Relationship has become an important element in the REO and short sale market. Government funding sources such as FHA (Federal Housing Authority) and HUD (Housing and Urban Development) recently announced changes to the rules for purchasing a short sale. All transactions must be arms length, meaning that no family members or relations can purchase the home through the short sale process. But relationship extends even further to close personal or business relationships – see the article below for more details.

HUD Announces New Short Sale Requirements

Effective October 1, 2013, HUD has announced the following changes to their Federal Housing Administration (FHA) short sale requirements: To be eligible, one must successfully complete a short sale under the FHA short sale program. The borrowers must meet the following requirements: They cannot list the property with or sell it to anyone with whom they are related or have a close personal or business relationship. » Read More

US-DeptOfHUD-Seal

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**************************************************************************** © 2016 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 *******************************************************************************

Gov’t Shutdown – The Effect On Real Estate

What Does the Government Shutdown

English: Sign in front on of the Minnesota His...

English: Sign in front on of the Minnesota Historical Society Building stating that the building and office are closed due to the 2011 Minnesota State Government Shutdown. (Photo credit: Wikipedia)

Mean for the Housing Market?

While government leaders try to sort out the implications of the government shut down, various agencies within the government must by law “shut down”. Locally in the housing market it will be felt most by the USDA’s RD (Rural Development) Loan department. Yesterday the offices were closed and will remain so until a settlement is reached.

As the federal government ground to a halt Tuesday, the question
of how the shutdown will affect the housing market remains at the front
of everyone’s mind. So how will the housing market react? The answer: it
depends.

Most economists agree that the short-term effects of the shutdown should
be minimal, assuming that the shutdown is short-lived. » Read More

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**************************************************************************** © 2016 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 *******************************************************************************

30197 Beavertail

Sold1Mostly level lot, with slope at northern edge. Walking distance to the beautiful Beavertail Pond with boat and fishing access. Seller did apply for septic approval and received it but decided not to build. Currently fenced on the east and north sides of the lot, seller had future plans to fence remaining two sides. Access has been across adjacent lot at the gate.

 

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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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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How Does Housing Inventory Affect Value?

From –The KCM Blog – House Pricing is Still about Supply and Demand

 


Depending on where you live, housing markets today, can be very different. Reading the news headlines can be very confusing.  Some say inventory is down and home values rising rapidly while others are talking about the influx of REO (Real Estate Owned properties by Banks), and still others indicate that the market is beginning to balance.

One thing is clear, markets are very regional and can be very different. Florida continues to be plagued by Foreclosures while many other states have leveled out. The eastern sections are seeing more REOs because they are judicial states that had/have more red tape involved with the foreclosure process.

But through it all, as the KCM Blog states – the market is still about supply and demand.

 

 

iStock_000009109354XSmallKnowing how much inventory is for sale is crucial to determining where home values are headed. Pricing of any item is determined by supply and demand: how many items are available in relationship to how many want to buy that item. The reasons for the strong year-over-year home appreciation numbers we have been seeing is simple to explain: demand for housing is up and the supply of homes for sale has been at historic lows. But that is beginning to change.

 

The months’ supply of available housing inventory, as reported by the National Association of Realtors, has increased from 4.3 months this past January to the current number of 5.2 months. And it seems inventory will continue to increase as we move forward.

 

Last week, Realtor.com released their National Housing Trend Report which looked at the movement in inventory levels of homes for sale across the country. Here are two major findings of the report:

 

1.) Dramatic year-over-year inventory declines have evaporated.

 

Nationally inventories in July are only 5.24 percent below the level of a year ago compared to being down 16.47 percent year-over-year in January.

 

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2.) Inventory declines decrease in local markets.

 

The number of markets with decreases in year-over-year inventory declined from 125 in June to 118 in July. This suggests that fall inventories in some markets may return to levels of a year ago.

 

In the report, Steve Berkowitz, CEO of Move, Inc. explains the impact of these findings on home values:

 

The recovery is entering a new phase where inventory shortfalls are no longer the driving force behind changes in housing prices in many markets. Larger inventories, especially in the hotter markets that experienced rapid price increases in the spring, are expanding buyers’ choices and helping to moderate price increases.

 

Don’t get carried away with recent news headlines when pricing your home. Let a real estate professional explain what the above information means to the current value of your house.

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New Listing 360 Sharrott Hill Rd.

360 Sharrott Hill Rd Stevensville MT 59870Sold1

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”