Home Prices and Sales - St Louis Real Estate News

Mortgage Delinquencies Fall for Second Consecutive Quarter

By Dennis Norman, on August 19th, 2010

Dennis Norman

For some time now I’ve been saying the precursor to the housing market recovering is for the mortgage delinquency and foreclosure rates to fall from the present, near-record levels, down to closer to historical norms. The current mortgage loan delinquency report from TransUnion shows that, for the second consecutive quarter, things are headed the right direction. Granted the decline in loans that are 60 or more days past due declined only 1.48 percent to 6.67 percent but at least it is going the right diretion. The loan delinquency rate for the 2nd quarter of 6.67 percent Continue Reading →

HVCC, AMC’s and the Appraisal Industry; a view from the inside

By Paul Collins, on August 18th, 2010

Editor’s note – Last month we published an article about HVCC which drew quite a few comments and responses….one such response was from veteran appraiser Paul Collins in which he shares his frustration with the state of the industry and the impact of lenders and legislation on his industry. Our thanks to Paul for allowing us to publish his thoughts..

The good ole days of direct communication and the new day we are “living” both have the same problem. Appraisers are not a valued part of the process because there are no consequences for bad lending decisions. The last Continue Reading →

New Home Permits and Construction Drop in July; Still outpacing new home sales though

By Dennis Norman, on August 17th, 2010

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for July 2010 showing a decrease in single-family home building permits and a decrease in new home starts from June.

Continue Reading →

St Louis Home Prices Increase in June; Rate of increase slows

By Dennis Norman, on August 16th, 2010

Dennis Norman

According to a report issued today by CoreLogic, home prices in St. Louis increased in June by 1.4 percent over June 2009. This ends the four-month streak of increasing year-over-year home prices which for May was 3.49 percent.

Continue Reading →

Private Transfer Fee Covenants Draw Fire From FHFA

By Dennis Norman, on August 12th, 2010

Dennis Norman

Today the Federal Housing Finance Agency announce proposed guidance that would prohibit Fannie Mae, Freddie Mac and the Federal Home Loan Banks from investing in mortgages with private transfer fee covenants. Considering that covers the lenders that originate, invest in or, or insure over 90 percent of the homes in the U.S. that pretty much puts the kibosh on financing a home with such a transfer fee.

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Why do Some Homes Sell for More Than Others?

By Jim Carr, on August 12th, 2010

Ever wonder why one home will sell for more than a similar home in the same neighborhood? You’ll hear all sorts of reasons. One house has this feature or that feature while the other one doesn’t. That’s part of it but certainly not all.

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Report Shows Fraud in Short-Sales Cost Lenders $310 Million Annually

By Dennis Norman, on August 10th, 2010

Dennis Norman

A report just released by CoreLogic estimate the financial impact of short-sale fraud to be $310 million annually. It is estimated there is fraud in one in every 53 short sale transactions resulting in an unnecessary loss to the lender of $41,000 per transaction on average.

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U.S. Home Values Fall In 2nd Quarter; Negative Equity Declines Though

By Dennis Norman, on August 9th, 2010

Dennis Norman

A report just issued by Zillow shows that home values in the United States continued to decline in the second quarter of 2010, with the Zillow Home Value Index falling 3.2 percent year-over-year and 0.6 percent from the first quarter to $182,500. The national rate of decline decelerated from the first quarter, marking the second consecutive quarter of slowing declines.

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The Latest Data on the Home Affordable Modification Program

By Ted Gayer, on August 5th, 2010

Ted Gayer, Co-Director of Economic Studies, Brookings Institute

The U.S. Department of the Treasury and the Department of Housing and Urban Development released June data for the Obama administration’s Home Affordable Modification Program (HAMP). HAMP is the foreclosure prevention program targeted at borrowers who are delinquent in their mortgage payment or facing imminent risk of default on their mortgage.

It has always been an open question whether HAMP would prevent foreclosures or whether it would just delay inevitable foreclosures. While those who qualify for HAMP receive reduced mortgage

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Missouri REALTORS Face Setback but Vow to Keep Fighting Double Taxation

By Dennis Norman, on August 3rd, 2010

Dennis Norman

Previously I have written about an effort supported by the Missouri Association of REALTORS (MAR) to protect Missouri homeowners from facing double taxation through a real estate transfer tax by backing an effort to amend the Missouri Constitution to prohibit such a tax. Unfortunately, after Missouri citizens supported this initiative in overwhelming numbers, the effort was dealt a blow today when effort by the Missouri Secretary of State’s office announced its conclusion that the Vote “YES” To Stop Double Taxation amendment did not receive enough signatures of registered voters to qualify for the ballot.

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Pending Home Sales Hit a new Record-Low in June

By Dennis Norman, on August 3rd, 2010

Dennis Norman

NAR Pending Home Sales Index at Lowest Level Since Index Began in 2001

At dropping 30 percent in May as a result of the rush to buy a home before the April 30th tax credit deadline, the National Association of REALTORS Pending Home Sales Index for June shows a further decline of 2.6 percent in the index in June (seasonally adjusted) which is 18.6 percent below June 2009. While the decrease in home sales was expected, I’m a little surprised we are running so far behind last year (which, might I remind you, wasn’t that great of Continue Reading →

Housing Market Outlook and Forecast

By Dennis Norman, on July 29th, 2010

Dennis Norman

This week I attended an event at the St. Louis Association of REALTORS® in which Lawrence Yun, Chief Economist for the National Association of REALTORS® was the featured speaker and gave his take on the housing market as well as his housing market outlook.

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Fannie Mae Tightens Rules; St. Louis Mortgage Watch

By Robert Fishel, on July 28th, 2010

Fannie Mae Rolls out New Loan Quality Initiative (LQI) Program – Tightens underwriting requirements and aims to reduce borrower fraud.

These rules could derail some closings for buyers who rack up purchases or even take out new store credit cards before their home sales have closed.

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Case-Shiller; Housing market not in any form of sustained recovery

By Dennis Norman, on July 27th, 2010

Dennis Norman

This morning S&P/Case-Shiller Index report for May was released showing that the annual growth rates in 15 of the 20 Metro Area’s their reports cover improved in May compared to April 2010. The 10-city composite is up 5.4 percent from the year before and the 20-city composite is up 4.6 percent from the year before.

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New Home Sales Increase 23 percent to Second-Worst Rate on Record

By Dennis Norman, on July 26th, 2010

Dennis Norman

Yes, the headline is correct….New home sales in June were up 23 percent from May, but unfortunately the revised May annual new home sales rate of 267,000 was the lowest rate of sale on record therefore even after a 23.6 percent increase it only brought June up to 330,000 new homes, a rate that is now the second lowest new home sales rate on record. June’s new home sales rate is 16.7 percent below a year ago.

There is some good news in the report; the inventory of new homes (seasonally adjusted) at the end of Continue Reading →

Best Real Estate Markets in the U.S? Nine of Ten Zips are in California

By Dennis Norman, on July 23rd, 2010

Dennis Norman

Multiple Offers and Homes Selling for prices ABOVE list price? Is this a reprint of a post from 2005?

Nope. Believe it or not, this is exactly what was in a report released this morning by Zip Realty. The report is based upon home sales activity in the second quarter of this year and says that, despite slowdowns in home sales across the country, California is still the nation’s hottest spot for home buying activity.

California was home to 91 out of the country’s 100 “hottest” zip codes in terms of home sales during the quarter. Continue Reading →

Home Prices Are Not Recovering

By Dennis Norman, on July 23rd, 2010

Dennis Norman

Home sales activity was up in May, but the mix of sales shifted toward less-expensive properties in many cities throughout the U.S. according to the May 2010 Radarlogic Housing Market Report. In addition, the report states that while their home price composite index for the 25 metro areas covered did increase in May by 2.1 percent on a year-over-year basis, the “gains were not large enough to be described as a recovery” and “there was more evidence of weakness in the market than strength.”

Highlights from the report include:

Home prices have remained stagnant since the Continue Reading →

Closing of Tax Credit Induced Home Purchases Prop-Up Market in June; St Louis Tops In Price Gain Among Metros

By Dennis Norman, on July 22nd, 2010

Dennis Norman

Last month I said that I expected to see some elevated numbers in the existing home sales report for May and June since this report would reflect the actual closing of the home purchases from buyers that raced to buy before the April 30th home-buyer tax credit deadline. Even though Congress has extended the deadline to close on these purchases until August 31st, the majority of the tax-credit induced sales will have closed by June 30th and therefore be reflected in today’s report which I would say has happened.

Today’s existing home sales report from theNational Association Continue Reading →

New Home Building Permits and Starts Down In June

By Dennis Norman, on July 20th, 2010

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for June 2010 showing a decrease in building permits and a decrease in new home starts from May.

The report shows the following:

Building permits issued for single-family residences in June were at an annual rate of 421,000 which is 3.4 percent below the revised May rate of 4216,000 and a decrease of 6.7 percent from a year ago when the rate was 451,000. Housing starts for single-family residences in June were at an annual rate of 454,000 Continue Reading →

St. Louis Area Property To Be Sold At Tax Sales

By Dennis Norman, on July 19th, 2010

Dennis Norman

Next month St. Louis County and St. Charles County will hold their annual collector’s real property tax sale. The City of St. Louis holds their property tax sale on five separate dates beginning in May and running through October.

The general perception among many people is that at these sales property is sold for back-taxes owed, which is not entirely accurate. Under tax sales the property owner may in fact lose ownership of their property to the purchaser at the tax sale but, in St. Charles and St. Louis County, not until after a “redemption” period Continue Reading →

Mortgage Fraud Trend Down; Still $14 Billion in 2009 Losses

By Dennis Norman, on July 16th, 2010

Dennis Norman

Missouri one of 32 States Identified as “Low” risk of mortgage fraud

According to the 2010 Mortgage Fraud Trends Report released by CoreLogic this week, fraud risk in the mortgage industry has declined by 25 percent since it peaked in the third quarter of 2007. Even though the trend is down it is still estimated that there were $14 billion in fraud losses experienced in 2009 alone.

CoreLogics’ fraud index can drill down to show states, cities and even streets that have the highest mortgage fraud risk. Highlights of the report:

Overall mortgage fraud risk has Continue Reading →

One in Four Sellers Have Reduced Their Prices

By Dennis Norman, on July 14th, 2010

Dennis Norman

According to a report released by Trulia.com, 24 percent of the homes for sale as of July 1, 2010 have experienced at least one price cut. This is a 9 percent increase from the prior month. The average discount for price-reduced homes continues to hold at 10 percent off of the original listing price.

Western U.S. Leads with Price Reduction Increases

For the first six months of this year, cities in the Western U.S. saw a reduction in their price declines, however for this month those same cities have experienced some of the largest surges Continue Reading →

St. Louis Home Prices Increase

By Dennis Norman, on July 13th, 2010

Dennis Norman

According to a report issued today by CoreLogic, their home price index shows home prices in the U.S. increased in May, marking the fourth-consecutive month there was a year-over-year increase in home prices. U.S. home prices in May 2010 increased by 2.9 percent over May 2009.

St. Louis home prices did better than the U.S. average, increasing by 3.49 percent in May 2010 compared with May 2009.

No doubt some of the good news was the result of buyers rushing to buy a home before the April 30th deadline to receive tax credits. This will affect Continue Reading →

Foreign Purchases of US Residential Real Estate Nearly Doubles

By Dennis Norman, on July 8th, 2010

Dennis Norman

I may be getting desperate to find something good to write about with regard to the Housing Market, but nonetheless I found some good news today! According to a report titled “Foreign Investment in U.S. Real Estate” that was released recently by the National Association of REALTORS®, investment in residential real estate in the U.S. by foreigners shot up by almost 80% for the 12-month period ending April 2010 from the 12 month period ending April 2009.

For the 12 month period ending April 2010 foreign purchases of residential real estate in the U.S. totaled $64 Continue Reading →

More On The Housing Boom and Bust; Cause and Effect

By Dennis Norman, on July 5th, 2010

Dennis Norman

While there has been much discussion about the causes and effects of the Housing Boom as well as the Bust (including by yours truly in prior posts) I don’t think we need to refrain from continuing to examine this part of history that is affecting millions of people across the country. Perhaps we can learn some lessons from this that will help us avoid another such collapse of the housing market in the future.

My topic today actually has a silver lining of sorts. The topic is debt and how so many homeowners across the country Continue Reading →

Pending Home Sales Index For May Drops to Lowest Level In History of Index

By Dennis Norman, on July 1st, 2010

Dennis Norman

There was no question in my mind that home sales would plummet after the April 30th deadline to buy a home and qualify for the home-buyer tax credit passed, the only question was how bad? Today the National Association of REALTORS released it’s Pending Home Sales Index for May showing a decrease of 30.0 percent in the index from April (seasonally adjusted) and a 15.9 percent increase from May 2009. In my past articles I have spoke of a “sugar-rush” created in the market by the tax credits and the sudden slow-down after that wears off…we are Continue Reading →

Deadline Looms for Missouri’s HOPE Tax Credit; St. Louis Interest Rates Drop

By Robert Fishel, on June 30th, 2010

The state of Missouri funded a $15 million tax credit incentive program in January of this year to help spur home sales, but few have taken advantage of the program.

Now, Missouri home buyers must complete the purchase of their home by August 31, 2010 to take advantage of the program. The Missouri Housing Development Commission (MHDC) must receive their HOPE application by September 30, 2010.

HOPE stands for Home Ownership Purchase Enhancement. Homes purchased after August 31, 2010 will not be eligible for the HOPE program.

The HOPE program was expected to pay the property taxes for 9,000 Continue Reading →

Nearly 233,000 Foreclosure and Bank-Owned Homes Sold in First Quarter

By Dennis Norman, on June 30th, 2010

Dennis Norman

Average discount on Foreclosure and Bank-Owned Homes is 27 Percent

This morning RealtyTrac released a report stating that 31 percent of all residential sales in the first quarter of 2010 were foreclosure homes or bank-owned homes. They are reporting 233,000 foreclosure and bank-owned homes sold during first quarter 2010 at an average price discount of 27 percent (based upon average sale price of non-foreclosure properties).

This data is fairly consistent with date from the National Association of REALTORS which reported there were right at 1 million existing homes sold in the first quarter of 2010 and Continue Reading →

Home Prices In Most Metro Areas Improved in April But Do Not Show Signs of a Sustained Recovery

By Dennis Norman, on June 29th, 2010

Dennis Norman

This morning S&P/Case-Shiller Index report for April was released showing that theannual growth rates of all 20 Metro Area’s their reports cover improved in April compared to March 2010. The 10-city composite is up 4.6 percent from the year before and the 20-city composite is up 3.8 percent from the year before.

However, in spite of this little bit of encouragement, David Blitzer, Chairman of the Standard & Poor’s Index Committee casts a negative light on the market by pointing out the, while this report does show some price gains, “many of the gains are modest Continue Reading →

Population Growth Equals Housing Demand; Which States are Growing?

By Dennis Norman, on June 28th, 2010

Dennis Norman

While there are many factors that go into what makes for a good or bad housing market and ultimately how well an investment in real estate will do in a market, two things in my book are key; population growth and job growth. Actually job growth brings population growth so perhaps it is the most important factor, but I think one could argue that population growth also brings jobs. Those states that, for one reason or another, attract people to live there (ie; no, or low state income tax, good public education, Continue Reading →