Tuesday, August 25, 2009

Nationwide Foreclosures Leveling Out

  • The good news is that the number of subprime mortgage loan foreclosures are declining, the bad news is that 30 year fixed loans rate of default is rising. MBA Cheif Economist Jay Brinkman doesn't think this will change until employment goes up.

    tags: foreclosures, defaults, foreclosure

    • A record 13.16 percent of mortgage loans on one- to four-unit homes were delinquent or in the foreclosure process at the end of June

    • In Florida, 22.8 percent of mortgages were at least one payment behind
    • The rate of new foreclosure starts was essentially unchanged from March
    • drop in foreclosures on subprime adjustable-rate mortgage (ARM) loans
    • increases on other types of loans, including prime fixed-rate loans
    • MBA Chief Economist Jay Brinkmann said loan modification programs are holding foreclosure rates below where they would otherwise be
    • "It is unlikely we will see meaningful reductions in the foreclosure and delinquency rates until the employment situation improves,"

Posted from Diigo. The rest of my favorite links are here.

Friday, August 21, 2009

NAR: Sales rise for 4th straight month - Prices down 15%

  • National Home Sales were up for the fourth straight month, but compared with a year ago, prices of homes sold were down 15%. Signs that the housing market is recovering.

    tags: home sales, median, prices

    • Sales of previously owned homes rose for the fourth straight month in July -- a streak that hasn't occurred since June 2004

    • The median resale home price dropped 15.1 percent in July compared to the same month last year
    • distressed homes "continue to weigh down the median price. Another reason this price continues to drop is because a larger percentage of buyers are first time home buyers, and they purchase the more affordable homes.
    • price-to-income ratios have fallen below historical trends, there are more all-cash offers.
    • some recovering markets like San Diego, Las Vegas, Phoenix, and Orlando, the demand for foreclosed and lower-priced homes has spiked, and a lack of inventory is becoming a common complaint
    • First-time Home Buyer Tax Credit is also helping to boost sales

Posted from Diigo. The rest of my favorite links are here.

Friday, August 14, 2009

Underwater Mortgages to Skyrocket by 2011

  • Nearly half of all US households with mortgages could owe more than their homes are worth by 2011 according to the Deutsche Bank.

    tags: Foreclosures, Underwater

    • Underwater Mortgages to Skyrocket by 2011
      A new report by Deutsche Bank estimates that by 2011 nearly 50 percent of U.S. home owners with mortgages will owe more than their homes are worth.

      This estimate of 25 million borrowers is significantly higher than similar calculations by other economic and real estate analysts. For instance, Moody’s Economy.com projected that 17.5 million will be underwater by early 2010.

      Currently, about 26 percent of home owners choose to walk away from their mortgages because their equity falls short of what they owe, according to a report by Paola Sapienza, a finance professor with Northwestern University
    • Not everybody agrees with Deutsche Bank’s analysis.

      Tom Lawler, a well-respected independent housing economist, wrote that given the recent increase in home sales in many areas, “there is absolutely no doubt that the DB ‘model’ forecast will show a huge miss to the down side on home prices.”
  • This seems a little too excessive to me. Personally, I highly doubt that home prices will continue to decline. In many areas they are already rising.

Posted from Diigo. The rest of my favorite links are here.

Tuesday, August 11, 2009

23% of US Homes Underwater

  • 23% of US Single Family Homes are Under Water According to Zillow. Median home values is down 22% since its peak. Home value declines have slowed down though.

    tags: home values, declines, foreclosures, underwater

    • 29 percent of homes that changed hands in June sold for less than their owner originally paid
    • At $186,500, the median home value was down 22.3 percent from its peak

Posted from Diigo. The rest of my favorite links are here.