St. Louis New Homes - St Louis Real Estate News

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 →

Fannie Mae’s New Rule Punishes Borrowers That ‘Walk-Away’

By Dennis Norman, on June 23rd, 2010

Dennis Norman

So, you have the money to pay on your ‘underwater’ mortgage, or to afford the reduced payment amount offered to you under the HAMP program, but think, rather than throw good money after bad you’ll just do like so many borrowers are doing and ‘walk-away‘? Well, if you have any plans to buy a house again in, say the next seven years, particularly with a Fannie Mae loan, think again.

Today Fannie Mae announced policy changes to “encourage borrowers to work with their servicers”. These policy changes include, a seven-year “lock-out” period for borrowers that Continue Reading →

New-Home Sales Crash In May after Sugar-Rush of Tax Credit Sales

By Dennis Norman, on June 23rd, 2010

Dennis Norman

Last month after the new home sales reports came out I had this to say:

“I’m very encouraged by home sales in March and April, both in new homes and existing home sales and, if it wasn’t for the fact the homebuyer tax-credit incentive expired April 30th, no doubt a factor that caused buyers to rush to buy, I would feel the market was turning. However, I have strong concerns that this recent “housing recovery” is the result of an artificial market created by incentives, leading to sort of a “sugar-rush” among homebuyers, and now that Continue Reading →

Mortgage Fraud Sweep Results in Almost 500 Arrests

By Dennis Norman, on June 18th, 2010

Dennis Norman

According to a press release issued by the FBI, nearly 500 people have been arrested in a nationwide mortgage fraud take-down as part of “Operation Stolen Dreams.” This operation was launched on March 1, 2010 and, according to the FBI, has lead to a total of 485 arrests, 330 convictions and the recovery of nearly $11 million. The FBI estimates that losses from a variety of fraud schemes are estimated to exceed $2 billion.

Operation Stolen Dreams is the government’s largest mortgage fraud take-down to date. But FBI Director Robert S. Mueller cautioned that there is Continue Reading →

New Home Permits Drop Almost 10 Percent in May; New Home Starts Drop 17 Percent

By Dennis Norman, on June 16th, 2010

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

The report shows the following:

Building permits issued for single-family residences in May were at an annual rate of 438,000 which is 9.9 percent below the revised April rate of 486,000 and an increase of 3.1 percent from a year ago when the rate was 425,000. Housing starts for single-family residences in May were at an annual rate of 468,000 Continue Reading →

Closing Deadline For Homebuyer Tax Credits May Be Extended

By Dennis Norman, on June 15th, 2010

Dennis Norman

The deadline to purchase a home to qualify for the extended home-buyer tax credit was April 30th with a deadline of June 30, 2010 to close the sale. Since the deadline to purchase I have heard from many buyers with questions and concerns as they realize that, while they made the April 30th deadline to enter enter a contract to purchase a home, they are concerned that they may not make the June 30th deadline for closing, particularly those buying a new home, and want to know if there were any options available to them to Continue Reading →

St Louis Area New-Home Building Permits Drop In April After Spiking in March

By Dennis Norman, on June 1st, 2010

Dennis Norman

After seeing a spike in permits for new homes in St. Louis in March, with the exception of the City of St. Louis, all the St. Louis metro area counties saw a decline in new home permits in April, some rather steep based upon the latest data reported by the Home Builders Association of St. Louis (HBA).

Existing home sales data and mortgage application data have suggested that the April 30th deadline for the home-buyer tax credit caused an artificial surge in the housing market as buyers raced to beat the deadline to buy a home; Continue Reading →

New Home Buyers At Risk of Losing Fixed-Rate Mortgages Again

By Dennis Norman, on May 27th, 2010

Dennis Norman

Earlier this month I did a post about important legislation in Missouri, specifically HB 2058, which would make badly needed changes to the Missouri Mechanic’s Lien Statute, because if it didn’t pass purchasers of new homes would face hurdles obtaining long-term fixed-rate mortgages as title companies have threatened to stop providing mechanic’s lien coverage.

On May 17th I was happy to update the post with the news that the bill had passed the House and Senate and was just awaiting the signature of Governor Nixon to become effective.

Herein the problem lies…

Word is Governor Nixon Continue Reading →

Tax Credit Deadline Spurs New Home Sales in April; Prices Drop

By Dennis Norman, on May 26th, 2010

Dennis Norman

The U.S. Department of Commerce released a report showing the sale of New Homes in April were at a seasonally adjusted annual rate of 504,000, a 14.8 percent increase from the revised March rate of 439,000 and is 47.8 percent above a year ago. The inventory of new homes (seasonally adjusted) at the end of April is just 5.0 months a huge decline from just two months ago when it was 9.2 months.

My Mantra

As has been my long-running mantra, I don’t like “seasonally adjusted” numbers and “rate” of sales (nor does Standard & Poors, Continue Reading →

Should You Rent Or Buy A Home?

By Dennis Norman, on May 24th, 2010

New Survey Finds 76 Percent of Consumers now Believe Renting to Be a Better Option Over Homeownership

Advantages Cited Include Flexibility to Move to a Different Location with New Job Opportunities

Dennis Norman

Last month I did a post addressing housing affordability, the cost of renting versus owning a home, and whether the real estate market over the past couple of years was causing the idea of home ownership as the “Great American Dream to “lose some of it’s sizzle?

For this reason I found a survey, conducted by Harris Interactive and commissioned by the National Apartment Association, Continue Reading →

No More Fixed-Rate Loans On New Homes If Missouri Lawmakers Don’t Act Quickly

By Dennis Norman, on May 11th, 2010

Dennis Norman

UPDATE – May 17, 2010 – THANKS TO MISSOURI LAWMAKERS (and the efforts of the Missouri Association of REALTORS and St. Louis Home Builders Association, readers of this post that responded, and others) THE MECHANICS LIEN LAW PASSED! ASSUMING THE GOVERNOR SIGNS IT INTO LAW FINANCING ON NEW HOMES AS WE KNOW IT HAS BEEN PRESERVED!

This week, which is the last week of the legislative session in Jefferson City, the Missouri Senate will probably take up debate on HB 2058, which is a bill that makes needed changes to the Mechanic’s Lien Statute in Missouri Continue Reading →

Mortgage Delinquencies Fall in 1st Quarter; First Decline Since 2006

By Dennis Norman, on May 10th, 2010

Dennis Norman

Consistent with the report on mortgage delinquencies from LPS that I wrote about last week, today TransUnion released it’s report on mortgage delinquencies showing they fell 1.74 percent in the first quarter of this year, which is the first quarterly decline since 2006. This is good news, however, not to rain on the parade, but we do need to remember that the 4th quarter of 2009 had a record-setting mortgage delinquency rate so to have the rate for the following quarter drop simply means, if you want to do the glass half-empty thing, this quarter didn’t Continue Reading →

Home Prices and Interest Rates May Offset Loss of Tax Credits

By Dennis Norman, on May 3rd, 2010

61 Percent of Those Looking for or Considering Buying a Home Had No Plans to Use the Tax Credit

Dennis Norman

According to a survey from Better Homes and Gardens Real Estate, the majority of people looking for, or considering buying, a home had no plans to take advantage of the First-Time or Move-Up/Repeat Home Buyer Tax Credits.

The survey, which was conducted online during the last week of February 2010, was designed to identify factors affecting today’s home buying decisions. Respondents were people from across the country who were searching for a new home, saving up to Continue Reading →

Case-Shiller Report Has Some Good News On Housing Market; Not Out of The Woods Yet Though

By Dennis Norman, on April 27th, 2010

Dennis Norman

This morning the S&P/Case-Shiller Index report for February was released showing that, for the first time since December, 2006, the annual rates of change for their two composite home-price indices were positive. The 10-City Composite is up 1.4 percent from a year before and the 20-City Composite is up 0.6 percent from the same time last year. Unfortunately, 11 of the 20 cities included in the 20-City Composite had declines from the prior year, meaning that this positive bit of news is not “market-wide” but is the result of some metros with stronger markets.

Continue Reading →

New Home Sales Spike in March – Market Showing Signs of Stabilizing

By Dennis Norman, on April 23rd, 2010

Dennis Norman

The U.S. Department of Commerce released a report showing the sale of New Homes in March were at a seasonally adjusted annual rate of 411,000, a 26.9 percent increase from the revised February rate of 324,000 and is 23.8 percent above a year ago. The inventory of new homes (seasonally adjusted) at the end of March is 6.7 months a huge decline from February’s 9.2 month supply.

My Mantra

As has been my long-running mantra, I don’t like “seasonally adjusted” numbers and “rate” of sales (nor does Standard & Poors, publisher of the Case/Shiller Index, now Continue Reading →

I told you so!

By Dennis Norman, on April 20th, 2010

Dennis Norman

Bear with me, I’m really not an ego-maniac, it’s just so infrequently that anyone of any real authority, or with “PhD” behind their name, agrees with me, so when it does happen I have to sound the horns and bask in the glory while it lasts!

If you have read any of my articles on any blogs about home sales and new home starts you are well aware of my usual rant about, and distrust of, “seasonally-adjusted” numbers. Up until today I really just thought this was my simple-minded way of looking at things and, even Continue Reading →

Housing Recovery Dependant on Inventory Reduction

By Dennis Norman, on April 19th, 2010

Dennis Norman

Housing is stabilizing but excess inventory and shadow supply are hindering recovery according to the April 2010 Economic Outlook released today by Fannie Mae’s Economics & Mortgage Market Analysis Group.

The report projects that new home sales (which are at record lows) will be slow to recover until inventory of existing homes and the foreclosure overhang are worked off. The comments about existing home sales were more optimistic saying key indicators for existing home sales, including pending home sales and purchase applications, are showing good signs of a pickup.

Jobs, a driving force for housing, are Continue Reading →

Building Permits Jump in March; New Home Construction Still Outpacing Sales

By Dennis Norman, on April 16th, 2010

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

The report shows the following:

Building permits issued for single-family residences in March were at an annual rate of 543,000 which is 5.6 percent above the revised February rate of 514,000 and an increase of 50.8 percent from a year ago when the rate was 360,000. Housing starts for single-family residences in March were at an annual rate of 531,000 Continue Reading →

Homes are affordable; Should you buy? Rent? Do home prices need to fall further?

By Dennis Norman, on April 9th, 2010

Dennis Norman

I thought I would end the week by giving everyone something to dwell on and contemplate over the weekend. Actually, I set out this morning to do a post about the National Association of REALTORS(R) (NAR) Housing Affordability Index for February which was recently published. As I was reviewing the data in the report I started giving “affordability” a lot of thought, went down a few rabbit trails, did a few hours of research and ended up with an analysis of home affordability.

The NAR Report:

Since this was the initial topic I thought I should Continue Reading →

Fed Reserve: Housing Sales and Starts Have Flattened Out at Depressed Levels; Foreclosures Likely To Remain High

By Dennis Norman, on April 6th, 2010

Dennis Norman

At the Federal Open Market Committee meeting on March 16th it was suggested that “economic activity expanded at a moderate pace in early 2010″. Unfortunately, when it came to the housing market, the news was not as good and it was noted that “housing activity remained flat and the nonresidential construction section weakened further.” The staff went on to say that activity in the housing sector appears to “have flattened out in recent months” and that “sales of both new and existing homes have turned down, while starts of single-family homes were about unchanged despite the substantial Continue Reading →

Help for homeowners facing foreclosure or are underwater

By Dennis Norman, on March 26th, 2010

Dennis Norman

Back in early December I did a post about a new program that was announced in November, the Home Affordable Foreclosures Alternative (HAFA) Program which is scheduled to go into effect April 5, 2010. There was recently supplemental documentation published as well as FAQ’s about the program and I have to admit, it seems to me the government is getting it right with this program.

THE HAFA PROGRAM:

The Home Affordable Foreclosure Alternatives Program provides financial incentives to loan servicers as well as borrowers who do a short-sale or a deed-in-lieu to avoid foreclosure on Continue Reading →

New Home Sales Drop in February

By Dennis Norman, on March 25th, 2010

Dennis Norman

The U.S. Department of Commerce released a report showing the sale of New Homes in February were at a seasonally adjusted annual rate of 308,000, a 2.2 percent decrease from the revised January rate of 315,000 and is 13.0 percent below a year ago. The inventory of new homes (seasonally adjsuted) at the end of February is 9.2 months a slight increase from January’s inventory of 9.1 months.

My Mantra

As has been my long-running mantra, I don’t like “seasonally adjusted” numbers and “rate” of sales. Why, for one I can’t figure out how in the Continue Reading →

Housing Recovery ‘Setback’ According to Fannie Mae Report

By Dennis Norman, on March 18th, 2010

Dennis Norman

According to the Economics and Mortgage Market Analysis report just published by Fannie Mae, the weather was the culprit for the slow-down in home sales at the beginning of this year however, we did not get the boost they were anticipating from the extension of the tax credits. “Unfortunately, despite the high hopes associated with the extended and expanded homebuyer tax credit, housing activity appears to have faced a setback that went beyond the impact of adverse weather conditions. ” On a somewhat positive note, the analysts state they view the housing setback “to be a Continue Reading →

New Home Construction In February Continuing to Outpace New Home Sales

By Dennis Norman, on March 16th, 2010

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for February 2010 showing a decrease in new home construction activity from February, but siginificant increases from a year ago..

The report shows the following:

Building permits issued for single-family residences in February were at an annual rate of 503,000 which is 0.2 percent below the revised January rate of 504,000 and an increase of 32.0 percent from a year ago when the rate was 381,000. Dragging down the overall permit numbers for housing are multi-family dwellings with Continue Reading →

St Louis Real Estate – St Louis Foreclosure Rates Still on the Rise

By Dennis Norman, on March 5th, 2010

Dennis Norman

St. Louis Mortgage Delinquencies and St. Louis Foreclosure Rate hit Record Highs

A report released by First American CoreLogic showed the St. Louis metro area to have a foreclosure rate in January of 1.42 percent up slightly from December’s rate of 1.36 percent and an increase of 46.39 percent from the year prior when the rate was 0.97 percent.

The national foreclosure rate for January remains over twice the rate of St. Louis at 3.19 percent and was an increase of 60.3 percent from a year ago when the national Continue Reading →

Appeals Court Rules Builder Incentive did not violate RESPA

By Dennis Norman, on March 1st, 2010

Dennis Norman

The United States Court of Appeals for the Eleventh Circuit recently consdered an appeal by the plaintiffs of a class action lawsuit again D.R. Horton, Inc. and DHI Mortgage, Co brought by John R. Yeatman and Eleanor E. Yeatman on behalf of themselves and all similarly situated individuals.

The lawsuit stems from the Yeatman’s purchase of a home from DR Horton in 2006 in which the purchase agreement gave the Yeatmans the option of receiving a discount on their closing costs on the house, provided they used DHI Mortgage as their mortgage lender. This was not Continue Reading →

Fannie Mae offering buyers incentives on HomePath Properties

By Dennis Norman, on February 8th, 2010

Dennis Norman

Fannie Mae is offering 3.5 percent in closing cost assistance or an equivalaent amount in appliances for people purchasing a Fannie Mae-owned HomePath® property.

Fannie Mae is trying to entice buyers to buy one of their HomePath® homes by offering to pay up to 3.5 percent in closing cost assistance or an equal amount toward new appliances for owner-occupants who close on the purchase of a property listed on HomePath.com before May 1, 2010. First-time homebuyers, and some long-term homeowners, will also be eligible for the Homebuyer Tax Credit.

Properties eligible for this incentive are listed Continue Reading →

St Louis Real Estate – New Home Sales Fall again in December

By Dennis Norman, on February 1st, 2010

Dennis Norman

The U.S. Department of Commerce released a report showing the sale of New Homes in December were at a seasonally adjusted annual rate of 342,000, a 7.6 percent decrease from the revised November rate of 370,000 and is 8.6 percent below a year ago.

My Mantra

As has been my long-running mantra, I don’t like “seasonally adjusted” numbers and “rate” of sales. Why, for one I can’t figure out how in the world they compute the numbers. Second, I just don’t think discussing the “rate” of new home sales paints a realistic picture of the market. I Continue Reading →

IRS Releases Instructions on how to Claim Homebuyer Tax Credit

By Dennis Norman, on January 15th, 2010

Dennis Norman

If you are one of the million-plus homebuyers that was fortunate enough to qualify for the Home Buyer tax credit, read on for information on how to claim your credit.

Today the Internal Revenue Service released a new form that eligible homebuyers must need to use to claim the first-time homebuyer credit this tax season, along with instructions and guidelines for other documentation that must accompany your tax return.

The new form and instructions follow major changes in November to the homebuyer credit by the Worker, Homeownership, and Business Assistance Act of 2009. The new law Continue Reading →

Let’s play ‘spin the data’

By Dennis Norman, on January 6th, 2010

Dennis Norman

Or should I say “It’s all in the headline”?

So what am I talking about? The pending home sales data that was released by the National Association of REALTORS today, of course. Actually I could be referring to any data on the housing market whether new home sales, foreclosure rates, interest rates, existing home sales or inventories of homes for sale.

There only major housing report that was released today was the Pending Home Sales Index for November by NAR. Being a report based upon data you would think the numbers speak for Continue Reading →