Wednesday, December 7, 2011
Florida Realtors see mini-recovery in the Sunshine State
Heading into 2012, Florida Realtors say the Sunshine State is already in a mini-recovery with sales trending up and inventories starting to fall.
The association of state real estate agents concluded during its 2012 Real Estate Economic Forecast Conference Tuesday in Orlando that Midwesterners wanting homes in Florida will be able to find deals throughout next year.
Florida Realtors Chief Economist Dr. John Tuccillo said real estate agents are starting to see multiple offers on Florida homes.
Mark Vitner, senior economist at Wells Fargo, who spoke at the event, said the European debt crisis remains a concern, but he anticipates the U.S. economic recovery will continue in 2012.
"Florida’s economy is recovering, with tourism and health care leading the way," Vitner said. "On a national level, we expect the U.S. will not fall into recession next year, although Europe faces serious problems."
Lawrence Yun with the National Association of Realtors, who also spoke at the event, said local Florida markets are starting to see their inventory levels drop. "That's a major change from just a year ago," Yun said. "Buyers have stepped back into the Florida market."
Yun is predicting a poignant turnaround in South Florida and expects to see home price gains in Miami and Naples in the coming 18 months.
From: http://www.housingwire.com/tag/2012-real-estate-economic-forecast
Mortgage delinquencies to drop in 2012?
Lets hope that this is the case!
Barring another blow to the U.S. economy, the number of people who are behind on their mortgage or credit card payments is expected to drop over the next year, according to annual forecasts released by credit-reporting agency TransUnion.
Mortgage loan delinquencies will see the sharpest overall decline in 2012, TransUnion projects, with the U.S. mortgage delinquency rate (the ratio of borrowers who are 60 days or more behind on payments) dropping to as low as 5% by the end of the year.
A slight increase -- to about 6% -- is expected through the first quarter of the year, however. The delinquency rate peaked at 6.9% at the end of 2009.
Because mortgage delinquency is generally considered to be a precursor to foreclosure, the TransUnion forecasts mean 2012 should see a decline in foreclosure rates as well.
"Although house prices and unemployment will likely face continued pressure next year, this forecast calls for gradual improvements in the second half of 2012 to other key variables, like improving credit quality of new originations, consumer confidence and GDP, that will positively influence homeowners' ability and willingness to pay their mortgages," said Tim Martin, a group vice president in TransUnion's financial services business unit. "If things go as expected … mortgage delinquencies could fall as much as 16% in 2012 compared to 2011."
The drop, though significant, will keep rates well above their pre-recession norm of 1.5% to 2%, according to The Associated Press.
Homes prices still declining
On Tuesday, CoreLogic released its October Home Price Index, which showed prices had fallen 1.3% since September, and 3.9% since October 2010. The downward trend is fueled by a glut of unsold homes on the market due to foreclosures and overbuilding, according to Total Mortgage Services.
The number of vacant American homes grew by more than 50% in the first decade of this century, to 10.3 million, according to a report released Tuesday by the Government Accountability Office, The Huffington Post reported. And most real-estate and financial analysts predict that number will increase,
Estimates on the number of homes at risk of foreclosure vary widely, but last month analysts estimated that as few as 1.6 million and as many as 10.3 million mortgages might be in trouble, according to The Wall Street Journal's Developments blog. The variation was largely caused by whether researchers counted loans that were 90, 60 or only 30 days delinquent.
With millions of people still underwater on their mortgages, the advocacy group Center for Responsible Lending says the foreclosure crisis is less than halfway over, CBS News reports.
In her 2012 outlook, Bank of America analyst Michelle Meyer also stated that the crisis is far from over, predicting that home prices will decline another 7% and that 2013 will be the worst year for foreclosures, Business Insider reported. "All told, we expect 14 million foreclosures or a quarter of all homeowners with a mortgage," Meyers predicts.
Credit card delinquencies down
Credit card delinquency rates, which reflect the number of cardholders behind on payments by 90 days or more, reached 0.6% -- their lowest level in 17 years -- in the second quarter of 2011. As with mortgage delinquency rates, TransUnion forecasts a small uptick in early 2012, but then another drop to end the year at about 0.7%.
The historically low credit card delinquency rates reflect, in part, tighter lending policies, which prevent those with less-than-stellar credit from obtaining new cards.
"Lenders are willing to lend, but are still pursuing the best customers," said Steven Chaouki, a TransUnion group vice president, according to MarketWatch.
What's fueling the mortgage delinquency drop?
Banks are still working through a backlog of foreclosures, but will likely get those off their books by the end of 2011, Chaouki told Dow Jones Newswires. The backlog caused a temporary increase in the mortgage delinquency rate. The slow improvement of the job market and continued stabilization of the housing market are also expected to contribute to the drop, Chaouki said.
A factor that has impacted both the mortgage and credit card delinquency rates was a shift in consumer priorities. Historically, financially strapped borrowers have paid the mortgage first to protect their primary investment, and because of the "emotional attachment involved in owning a home," Chaouki said. Because the recession left so many borrowers underwater on their mortgages, making credit card payments first has been a more practical choice.
"In today's uncertain economy, consumers have found that credit cards are among their most valued assets due to the flexibility they provide," Chaouki said. "As a result, consumers have made a concerted effort to make on-time payments and maintain relatively low balances."
From:
money.msn.com/saving-money-tips/post.aspx?post=7612bf3c-0046-4aea-a998-f2e36d44faeb
Barring another blow to the U.S. economy, the number of people who are behind on their mortgage or credit card payments is expected to drop over the next year, according to annual forecasts released by credit-reporting agency TransUnion.
Mortgage loan delinquencies will see the sharpest overall decline in 2012, TransUnion projects, with the U.S. mortgage delinquency rate (the ratio of borrowers who are 60 days or more behind on payments) dropping to as low as 5% by the end of the year.
A slight increase -- to about 6% -- is expected through the first quarter of the year, however. The delinquency rate peaked at 6.9% at the end of 2009.
Because mortgage delinquency is generally considered to be a precursor to foreclosure, the TransUnion forecasts mean 2012 should see a decline in foreclosure rates as well.
"Although house prices and unemployment will likely face continued pressure next year, this forecast calls for gradual improvements in the second half of 2012 to other key variables, like improving credit quality of new originations, consumer confidence and GDP, that will positively influence homeowners' ability and willingness to pay their mortgages," said Tim Martin, a group vice president in TransUnion's financial services business unit. "If things go as expected … mortgage delinquencies could fall as much as 16% in 2012 compared to 2011."
The drop, though significant, will keep rates well above their pre-recession norm of 1.5% to 2%, according to The Associated Press.
Homes prices still declining
On Tuesday, CoreLogic released its October Home Price Index, which showed prices had fallen 1.3% since September, and 3.9% since October 2010. The downward trend is fueled by a glut of unsold homes on the market due to foreclosures and overbuilding, according to Total Mortgage Services.
The number of vacant American homes grew by more than 50% in the first decade of this century, to 10.3 million, according to a report released Tuesday by the Government Accountability Office, The Huffington Post reported. And most real-estate and financial analysts predict that number will increase,
Estimates on the number of homes at risk of foreclosure vary widely, but last month analysts estimated that as few as 1.6 million and as many as 10.3 million mortgages might be in trouble, according to The Wall Street Journal's Developments blog. The variation was largely caused by whether researchers counted loans that were 90, 60 or only 30 days delinquent.
With millions of people still underwater on their mortgages, the advocacy group Center for Responsible Lending says the foreclosure crisis is less than halfway over, CBS News reports.
In her 2012 outlook, Bank of America analyst Michelle Meyer also stated that the crisis is far from over, predicting that home prices will decline another 7% and that 2013 will be the worst year for foreclosures, Business Insider reported. "All told, we expect 14 million foreclosures or a quarter of all homeowners with a mortgage," Meyers predicts.
Credit card delinquencies down
Credit card delinquency rates, which reflect the number of cardholders behind on payments by 90 days or more, reached 0.6% -- their lowest level in 17 years -- in the second quarter of 2011. As with mortgage delinquency rates, TransUnion forecasts a small uptick in early 2012, but then another drop to end the year at about 0.7%.
The historically low credit card delinquency rates reflect, in part, tighter lending policies, which prevent those with less-than-stellar credit from obtaining new cards.
"Lenders are willing to lend, but are still pursuing the best customers," said Steven Chaouki, a TransUnion group vice president, according to MarketWatch.
What's fueling the mortgage delinquency drop?
Banks are still working through a backlog of foreclosures, but will likely get those off their books by the end of 2011, Chaouki told Dow Jones Newswires. The backlog caused a temporary increase in the mortgage delinquency rate. The slow improvement of the job market and continued stabilization of the housing market are also expected to contribute to the drop, Chaouki said.
A factor that has impacted both the mortgage and credit card delinquency rates was a shift in consumer priorities. Historically, financially strapped borrowers have paid the mortgage first to protect their primary investment, and because of the "emotional attachment involved in owning a home," Chaouki said. Because the recession left so many borrowers underwater on their mortgages, making credit card payments first has been a more practical choice.
"In today's uncertain economy, consumers have found that credit cards are among their most valued assets due to the flexibility they provide," Chaouki said. "As a result, consumers have made a concerted effort to make on-time payments and maintain relatively low balances."
From:
money.msn.com/saving-money-tips/post.aspx?post=7612bf3c-0046-4aea-a998-f2e36d44faeb
Thursday, November 17, 2011
Pinells County Real Estate Stats for Oct 2011 are out!
Pinellas County Real Estate Statistics for October 2011
As the holiday season approaches, we are seeing the usual end of year slowdown in sales. The same trends we have seen for the last few months are continuing in October. Overall, listings are continuing to drop. In the single family market there was a small month to month increase in median price. The median sales price for condos fell to its lowest point so far this year, something that happened at this time last year also. More than 37% of condo sales were at $50,000 or less and of that number nearly 11% were sold for less than $30,000.
Overall residential unit sales increased from 890 to 1079, or 21% from October 2010 to October 2011. The median sales price dropped 18% from $131,000 to $107,000 compared to 2010, but is up $18,000 year to date. Active listings continued to slide by 32% from October 2010 to October 2011, for 10 straight months of reduction in inventory.
Condo sales from October 2010 to October 2011 are up nearly 16%. The median sales price for condos had a significant drop from $104,000 to $75,000 and condo listings decreased from 5,484 to 4,127, or down 25% year over year.
Single family listings are down from 6,666 to 4,129, or 38%. The median sales price is down from $156,000 to $127,000 year over year. Single family sales increased from 528 to 659, or a 25% increase from October 2010 to October 2011.
The biggest news for the month is the drop off in year over year unit sales for single family properties under $100,000. In October 2010 these homes accounted for 40% of the single family market. In October 2011 they accounted for 31% of single family sales. Compare that to an 11% decrease in overall residential unit sales from 47.1% to 36.6%. The decreases are most likely due to a steeper decline in inventory of properties less than $100,000 when compared to $100,000 and above.
Also in the single family market, you will notice a steep decline in median price from October 2010 to October 2011. Median sales price went from $156,000 to $127,000. You shouldn’t lose much sleep over this non-trend October 2010 was a single month aberration. Prices tend to build up the first three quarters of the year and then give back some of their gains during the late fall.
Foreclosure actions in Pinellas did see modest increases in October, but they are still well below what they were a year ago. Compared to the rest of the state Pinellas County has 1 in 442 homes with foreclosure actions versus the state with 1 in 268.
WWW.PINELLASREALTOR.ORG
As the holiday season approaches, we are seeing the usual end of year slowdown in sales. The same trends we have seen for the last few months are continuing in October. Overall, listings are continuing to drop. In the single family market there was a small month to month increase in median price. The median sales price for condos fell to its lowest point so far this year, something that happened at this time last year also. More than 37% of condo sales were at $50,000 or less and of that number nearly 11% were sold for less than $30,000.
Overall residential unit sales increased from 890 to 1079, or 21% from October 2010 to October 2011. The median sales price dropped 18% from $131,000 to $107,000 compared to 2010, but is up $18,000 year to date. Active listings continued to slide by 32% from October 2010 to October 2011, for 10 straight months of reduction in inventory.
Condo sales from October 2010 to October 2011 are up nearly 16%. The median sales price for condos had a significant drop from $104,000 to $75,000 and condo listings decreased from 5,484 to 4,127, or down 25% year over year.
Single family listings are down from 6,666 to 4,129, or 38%. The median sales price is down from $156,000 to $127,000 year over year. Single family sales increased from 528 to 659, or a 25% increase from October 2010 to October 2011.
The biggest news for the month is the drop off in year over year unit sales for single family properties under $100,000. In October 2010 these homes accounted for 40% of the single family market. In October 2011 they accounted for 31% of single family sales. Compare that to an 11% decrease in overall residential unit sales from 47.1% to 36.6%. The decreases are most likely due to a steeper decline in inventory of properties less than $100,000 when compared to $100,000 and above.
Also in the single family market, you will notice a steep decline in median price from October 2010 to October 2011. Median sales price went from $156,000 to $127,000. You shouldn’t lose much sleep over this non-trend October 2010 was a single month aberration. Prices tend to build up the first three quarters of the year and then give back some of their gains during the late fall.
Foreclosure actions in Pinellas did see modest increases in October, but they are still well below what they were a year ago. Compared to the rest of the state Pinellas County has 1 in 442 homes with foreclosure actions versus the state with 1 in 268.
WWW.PINELLASREALTOR.ORG
Tuesday, November 8, 2011
September Pinellas County Statistics are out
Pinellas County Real Estate Statistics for September 2011
Published by PROView No Comments
Posted on: October 12, 2011 The real estate market for Pinellas County was rather measured. Listings continue to drop, however the year over year sales figures are still up. From month to month sales are down slightly, but that is to be expected as the summer buying seasons winds down. The threat of increased foreclosures from banks also continues to hang over the market, though there were no significant increases in lis pendens filings. Contact me for a copy of the statistics.
Pete McGahan
pete@yourhomeinstpete.com
727-215-7394
pete@yourhomeinstpete.com
So what does this mean? Its a good time to list your home. With limited choices for buyers, your home could stand out and get you a good price.
Published by PROView No Comments
Posted on: October 12, 2011 The real estate market for Pinellas County was rather measured. Listings continue to drop, however the year over year sales figures are still up. From month to month sales are down slightly, but that is to be expected as the summer buying seasons winds down. The threat of increased foreclosures from banks also continues to hang over the market, though there were no significant increases in lis pendens filings. Contact me for a copy of the statistics.
Pete McGahan
pete@yourhomeinstpete.com
727-215-7394
pete@yourhomeinstpete.com
So what does this mean? Its a good time to list your home. With limited choices for buyers, your home could stand out and get you a good price.
Monday, October 10, 2011
Bank of America giving incentive to suffering homeowners
Bank of America, the nation’s largest mortgage servicer, is offering Florida homeowners up to $20,000 to short sale their homes rather than letting them linger in foreclosure.
http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=265774
http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=265774
Wednesday, August 24, 2011
Foreclosure Process
The basic steps of foreclosure
WASHINGTON – Aug. 24, 2011 – In recent news, Fannie Mae has publicly assured homeowners going through foreclosure that they will be protected from losing their homes while applying for a federally funded loan modification. Homeowners can apply for a modification at any point before or during the foreclosure process.
If a modification is approved, homeowners can keep their homes if they make their adjusted payments. Absent that, here are the stages of a typical foreclosure:
1) In default: A loan is in default when a mortgage payment is 30 days late.
2) Warning: When a loan is 60 days past due, the bank, credit union or mortgage company warns that foreclosure is the next step.
3) Proceedings begin: After 90 days, the lender refers the loan to its foreclosure department, and hires a local lawyer to begin foreclosure proceedings.
4) Sale advertised: The lender's lawyer advertises the property for sale for four consecutive weeks in a local newspaper. The sheriff's sale date is listed in the advertisement.
5) Sale held: The sale is held on the published date. A sheriff's employee conducts a courthouse auction and the highest bidder wins, usually the bank that owned or serviced the mortgage.
6) Sheriff's deed: The winning bidder gets a sheriff's deed that lists the last date the homeowner can redeem, or take back, the property, usually six months from the date of the sheriff's sale. During this redemption period, the homeowner can live in the property or try to sell it.
7) Redemption period: To redeem a property, the homeowner must pay off the mortgage and all interest and late fees, court and attorney fees, title and appraisal fees, taxes and insurance. Otherwise, they will be evicted from the home.
Copyright © 2011, Detroit Free Press. Distributed by McClatchy-Tribune Information Services.
WASHINGTON – Aug. 24, 2011 – In recent news, Fannie Mae has publicly assured homeowners going through foreclosure that they will be protected from losing their homes while applying for a federally funded loan modification. Homeowners can apply for a modification at any point before or during the foreclosure process.
If a modification is approved, homeowners can keep their homes if they make their adjusted payments. Absent that, here are the stages of a typical foreclosure:
1) In default: A loan is in default when a mortgage payment is 30 days late.
2) Warning: When a loan is 60 days past due, the bank, credit union or mortgage company warns that foreclosure is the next step.
3) Proceedings begin: After 90 days, the lender refers the loan to its foreclosure department, and hires a local lawyer to begin foreclosure proceedings.
4) Sale advertised: The lender's lawyer advertises the property for sale for four consecutive weeks in a local newspaper. The sheriff's sale date is listed in the advertisement.
5) Sale held: The sale is held on the published date. A sheriff's employee conducts a courthouse auction and the highest bidder wins, usually the bank that owned or serviced the mortgage.
6) Sheriff's deed: The winning bidder gets a sheriff's deed that lists the last date the homeowner can redeem, or take back, the property, usually six months from the date of the sheriff's sale. During this redemption period, the homeowner can live in the property or try to sell it.
7) Redemption period: To redeem a property, the homeowner must pay off the mortgage and all interest and late fees, court and attorney fees, title and appraisal fees, taxes and insurance. Otherwise, they will be evicted from the home.
Copyright © 2011, Detroit Free Press. Distributed by McClatchy-Tribune Information Services.
Wednesday, August 3, 2011
June 2011 Pinellas County Real Estate Statistics
June was a great month for writing new sales contracts. A whopping 46% more properties went under contract than occurred in June a year ago. True, a lot of the contracts were on foreclosed homes—but it’s a good thing as these properties tend to close more quickly. In the second quarter 2011 the average single family price was $173,100 and average price for condos was $119,900. The average quarterly price for the Tampa Bay area (Hillsborough, Pasco, and Pinellas Counties) was $190,800 for single family and $148,300 for Condos.
With the inventory currently at its lowest point since December, 2005, you would expect prices to begin rising, and it seems they did. The median price in June was $132,100 for single family homes and $95,000 for condos, the highest so far this year in both categories. Granted, one month doesn’t make a trend, but there has been a steady upward trend for the first six months this year even though year over year the median price is still down.
Overall residential market sales increased from 1,226 to 1,320 or 7.7% from June 2010 to June 2011. The median sales price for the same time period dipped 11% from $135,000 to $120,000, but is up $20,000 month over month. Active listings fell by 22% from June 2010 to June 2011.
Single family listings are down from 6,479 to 4,655 or 28%. The median sales price is down from $144,000 to $132,000, an 8.8% decline from June 2011. Single family sales showed a 2% decrease for the same time period.
Condo sales from June 2010 to June 2011 are up nearly 26%. The median sales price for condos has been fluctuating between $75,000 and $95,000, for June it is $95,000, a decrease of 17% from June 2010. Condo listings decreased from 5,344 to 4,584 or 14% for the same time period.
The number of properties available is nearing 2005 levels when we had a boom market. Over half the properties sold in June sold within the first 90 days. The average days on market for foreclosures was 77 days. Non-distressed properties took an average of 113 days to sell and short sales as always are taking the longest amount of time to sale at 179 days.
With the inventory currently at its lowest point since December, 2005, you would expect prices to begin rising, and it seems they did. The median price in June was $132,100 for single family homes and $95,000 for condos, the highest so far this year in both categories. Granted, one month doesn’t make a trend, but there has been a steady upward trend for the first six months this year even though year over year the median price is still down.
Overall residential market sales increased from 1,226 to 1,320 or 7.7% from June 2010 to June 2011. The median sales price for the same time period dipped 11% from $135,000 to $120,000, but is up $20,000 month over month. Active listings fell by 22% from June 2010 to June 2011.
Single family listings are down from 6,479 to 4,655 or 28%. The median sales price is down from $144,000 to $132,000, an 8.8% decline from June 2011. Single family sales showed a 2% decrease for the same time period.
Condo sales from June 2010 to June 2011 are up nearly 26%. The median sales price for condos has been fluctuating between $75,000 and $95,000, for June it is $95,000, a decrease of 17% from June 2010. Condo listings decreased from 5,344 to 4,584 or 14% for the same time period.
The number of properties available is nearing 2005 levels when we had a boom market. Over half the properties sold in June sold within the first 90 days. The average days on market for foreclosures was 77 days. Non-distressed properties took an average of 113 days to sell and short sales as always are taking the longest amount of time to sale at 179 days.
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