By Dennis Norman, on April 29th, 2010 RealtyTrac® released its U.S. Foreclosure Market Report™ for the first quarter of 2010, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 932,234 U.S. properties during the first quarter of 2010, an increase of 16 percent from the first quarter of 2009 (which, I should remind you, was up 24 percent from the first quarter of 2008).
According to the report, the 20 metro areas with the highest rates of foreclosures were still contained to four states:
California – 10 of the top 20 metro foreclosure rates Florida – 7 of the top Continue Reading →
By Dennis Norman, on April 29th, 2010 Dennis Norman
According to a report issued by the U.S. Census Bureau earlier this week, the percentage of Americans that own a home in the U.S. in the first quarter of 2010 dropped to 67.1 percent, the lowest rate of homeownership since the same quarter of 2000. The homeownership rate for 4th quarter 2009 was 67.2 percent, the low for 2009.
REGIONAL HOMEOWNERSHIP:
The Midwest Region has the highest rate of homeownership, as of the 1st quarter of 2010, at 70.9 percent with the South region not far behind at 69.2 percent. The Northeast homeownership rate was 64.4 Continue Reading →
By Robert Fishel, on April 28th, 2010
Realtors, home buyers and sellers are rushing to complete sales agreements before the tax credit for home purchases expires this week; home buyers must have a deal by April 30 and close by June 30 to qualify for a tax break up to $8,000 for first-time home buyers and $6,500 for those moving to a different residence. The Treasury Department and the real estate industry have termed the program a success, helping people buy homes. However, many tax experts say it has been singularly cost-ineffective: most of the $12.6 billion in credits through end of February was collected by Continue Reading →
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 →
By Dennis Norman, on April 26th, 2010 Dennis Norman
Report Cautions That Shadow Inventory and End of Tax Credit Program May Result in Further Declines – Predicts a 3.01 Percent Home Price Decline in St. Louis In Next 12 Months. A report released today by First American CoreLogic shows that national home prices increased 0.3 percent in February 2010 compared to February 2009 and the home price index for St. Louis increased 1.50 percent in February 2010 compared to February 2009
On a month-over-month basis, the national average home price index fell by 2.0 percent in February 2010 compared to January 2010, which was Continue Reading →
By Dennis Norman, on April 26th, 2010 Dennis Norman
In a report just issued by Radarlogic there is some good news for the housing industry as in the report Michael Feder, President and CEO of Radar Logic, states “the evidence continues to support the view that housing has stabilized and is in the early stages of recovery.” However, the report also reminds us that RealtyTrac reported that foreclosure filings set a record in March, with filings reported on 367,056 properties, the “highest monthly total since RealtyTrac began issuing its report in January 2005. The report indicates an increasing concern about the threat that foreclosures pose Continue Reading →
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 →
By Dennis Norman, on April 22nd, 2010 Dennis Norman
According to the latest report from the National Association of REALTORS(R), existing home sales in the US in March increased 6.8 percent to a seasonally adjusted-annual rate of 5.35 million units in March from a revised level of 5.01 million units in February, and increased 16.1 percent from a year ago when the rate was 4.61 million units (seasonally adjusted).
St. Louis Shows Strong Against Other Metros –
NAR publishes existing home sales for 20 major metropolitan areas of the U.S. which showed the St. Louis Real Estate Market in a pretty positive light. St. Louis Continue Reading →
By Robert Fishel, on April 21st, 2010
First-time homebuyers made up a record high share of sales in March, according to the latest Campbell Surveys poll of more than 1,500 real estate agents nationwide; First-time homebuyers accounted for 48.2% of all home purchases. The March uptick comes ahead of the extended tax credit deadline.
Who Qualifies-
First Time Home Buyer $8,000 Tax Credit The primary home buyer and/or spouse may not have owned a home in the previous three (3) years to qualify. Buyers cannot be claimed as a dependent by another taxpayer or be under the age of 18. Repeat Home Buyer $6,500 Tax Credit Continue Reading →
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 →
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 →
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 →
By Robert Fishel, on April 14th, 2010
First-time home buyers comprised an unprecedented 47 percent of the market last year according to a recently published report by the National Association of Realtors (NAR). NAR’s report, 2009 Profile of Home Buyers and Sellers, points to the federal tax credit and the historic affordability of housing as the most likely reasons first-time buyers scored so high in sales. According to NAR, housing economists predict that “2010 will be an even bigger year for first-timers.” Who are these people, and what do they want? Most are married – Forty-nine percent are a married couple. Single females comprise a quarter Continue Reading →
By Dennis Norman, on April 13th, 2010 Dennis Norman
The month of March brought us some pretty great weather and also helped bring some home buyers out into the market. The homebuyer tax credits that are set to expire at the end of April probably played a role as well.
As you can see from the chart below, March brought sales to the metro area, but as the average prices of homes sold show, it is definitely the lower end, or first-time homebuyer, market that is seeing the bulk of the activity. In most of the counties the average price of the homes sold in March Continue Reading →
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 →
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 →
By Dennis Norman, on April 5th, 2010 Dennis Norman
Today the National Association of REALTORS released it’s February Pending Home Sales Index showing a increase of 8.2 percent (seasonally adjusted) in the index for the U.S. from January and a 17.3 percent increase from last year. The Midwsest region had the best results with February home sales increasing 21.8 percent from January.
Here in St. Louis, home sales in February increased at an even greater rate. The City of St. Louis had the largest 1-month increase at 62.6 percent, followed by Jefferson County with an increase in pending sales of 34.1 percent, St. Charles County Continue Reading →
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 →
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 →
By Dennis Norman, on March 24th, 2010 Dennis Norman
According to the latest report from the National Association of REALTORS(R), existing home sales in the US in February decreased 0.6 percent to a seasonally adjusted-annual rate of 5.02 million units in February from a revised level of 5.50 million units in January, however this does represent an increase of 7.0 percent from a year ago when the rate was 4.69 million units (seasonally adjusted).
February’s Numbers Show Real Estate is “Local”
Reinforcing the fact that “all real estate is local” the February Existing Home Sales report paints quite a different picture of the housing market depending Continue Reading →
By Dennis Norman, on March 19th, 2010
Dennis Norman
Increased prices on distressed home sales in St Louis are the reason for St Louis’s home price gains.
A report released by First American CoreLogic shows St. Louis metro area home prices, including distressed sales, increased 0.60 percent in January 2010 compared to January, 2009. December 2009’s home price index for St. Louis was up 1.54 percent from the year before. Excluding distressed sales, the January 2010 home price index was actually down 0.55 percent from a year ago, compared with December 2009’s home price index which was up 0.59 percent from the Continue Reading →
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 →
By Robert Fishel, on March 17th, 2010 LAST CALL FOR HOMEBUYER’S TAX CREDITS!
Prospects are scurrying to sell and/or buy homes before next month’s tax credit deadline.” “It’s been absolutely nuts, I have showings galore and contracts are coming in left and right,” commented one real estate agent. To qualify for the credit, buyers must have fully executed sales contracts in place by April 30 and the deal must close by June 30. First-time home buyers are eligible for up to $8,000. Buyers who have owned a home for five consecutive years within the past eight years can get a credit of up to $6,500. Other Continue Reading →
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 →
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 →
By Dennis Norman, on March 4th, 2010 Dennis Norman
Today the National Association of REALTORS released it’s January Pending Home Sales Index showing a decrease of 7.6 percent in the index from December, 2009 to January 2010 (seasonally adjusted) and a 12.3 percent increase from last year.
Here are highlights from the report:
January”s pending home sales index (seasonally adjusted) was 90.4 (the index is based upon 100.0 being equal to the average level of sales activity in 2001 which we could call the last “normal” year) which was a decrease of 7.6 percent in the index from December’s revised index of 97.8 and an Continue Reading →
By Dennis Norman, on March 3rd, 2010 Dennis Norman
You may want to consider possible legal issues before deciding to “walk away”
Homeowners who are considering “walking away” from their home to avoid making their mortgage payment need to know that their mortgage company may try to file a lawsuit to recover the amount owed on the home.
In addition, homeowners who sell their home for less than the amount they owe – a process called a “short sale” — may be sued for the unpaid balance, even after the sale of the home. Finally, homeowners with unpaid home equity loans or second mortgages may also Continue Reading →
By Dennis Norman, on February 25th, 2010 Dennis Norman
According to a report issued this morning by the the Federal Housing Finance Agency (FHFA) St. Louis area home prices increased by 1.32 percent in 2009. Granted that’s not much but, hey, after what we’ve seen the last couple of years in the housing market I think this is very good news.
This information comes for the FHFA’s purchase-only price index which is based upon repeat sales of the same single-family properties therefore making it a much more accurate barometer of the market than just looking at median prices of homes sold as many reports do. Continue Reading →
By Dennis Norman, on February 18th, 2010 Dennis Norman
Radarlogic Housing Market Report Shows First November-December Increase in Home Prices Since 2004 For the US – However It shows a Decrease For December for St. Louis –
When I received the Housing Market Report from Radarlogic, I was happy to see some good news; home prices increased in December from November and a 44 percent increase in the number of homes sold in December versus a year before. Unfortunately those numbers were based upon Radarlogic‘s RPX Composite Price, which tracks home prices in 25 major metropolitan areas (including St. Louis) and when I drilled down to Continue Reading →
By Dennis Norman, on February 15th, 2010 Dennis Norman
Last week a friend emailed me a link to a video titled “The Indymac Slap in Our Face” that was created by Think Big Work Small. I watched the video which gave a recap of the failure of Indymac bank back resulting in it’s seizure by the FDIC in July, 2008, and the ultimate sale by the FDIC of Indymac Bank to One West Bank in March, 2009.
According to the video, One West Bank received a cushy, “sweetheart deal” and implied it was related to the fact that the owners of One West Bank include Continue Reading →
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