Aug 18, 2011 | Uncategorized
There are around 1.6 million homes in the U.S. in foreclosure or close to foreclosure, and the inventory of bank owned homes continues to grow. Market economists fear that a steady stream of home sales from banks may depress prices for years to come.
However, there is a chance that many of these bank owned homes may never hit the market. Banks are increasingly turning to demolition teams instead of real estate agents to dispose of many of the nearly worthless properties. Bank of America recently announced plans to demolish over 90 foreclosed homes in the Cleveland area. They will then donate the land to the local government authorities. Bank of America says that their donations in Cleveland are part of a larger plan to dispose of un saleable properties. According to a company spokesperson, these homes are worth less than $10,000. Bank of America has already donated homes in Detroit and in Chicago, and plans to do the same in other cities by the end of the year.
Many other banks are also increasing their efforts to dispose of their unwanted homes. Fannie Mae has a program to sell houses to local municipalities for around a few hundred dollars. Wells Fargo has donated 800 homes to be demolished since 2009. JPMorgan Chase is one of the first banks to begin donating houses it couldn’t sell, or identified as un repairable. Since 2008, the JPMorgan has donated or sold at a discount 1,900 houses to cities and county authorities. (more…)
Jun 30, 2011 | Uncategorized
Home Prices Down 7.4 Percent
Home prices in the U.S. increased by 0.8 percent in May 2011 compared to April 2011, the second consecutive month-over-month increase. On a year-over-year basis, home prices declined by 7.4 percent in May 2011 compared to May 2010 after declining by 6.7 percent* in April 2011 compared to April 2010. Excluding distressed sales, year-over-year prices declined by 0.4 percent in May 2011 compared to May 2010 and by 0.8* percent in April 2011 compared to April 2010. Distressed sales include short sales and real estate owned (REO) transactions.
Highlights as of May 2011
- Including distressed sales, the five states with the highest appreciation were: New York (+4.4 percent), Vermont (+3.9 percent), North Dakota (+3.8 percent), Hawaii (+2.5 percent) and the District of Columbia (+0.5 percent).
- Including distressed sales, the five states with the greatest depreciation were: Idaho (-16.4 percent), Michigan (-12.9 percent), Arizona (-12.1 percent), Illinois (-11.8 percent) and Nevada (-11.6 percent).
- Excluding distressed sales, the five states with the highest appreciation were: West Virginia (+10.1 percent), Hawaii (+9.0 percent), North Dakota (+8.6 percent), Vermont (+6.3 percent) and New York (+6.1 percent).
- Excluding distressed sales, the five states with the greatest depreciation were: Nevada (-9.8 percent), Idaho (-7.9 percent), Arizona (-7.0 percent), South Dakota (-6.1 percent) and Minnesota (-5.0 percent).
- Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to May 2011) was -32.7 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -21.2 percent.
- Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 91* are showing year-over-year declines in May, unchanged from April.
“Two consecutive months of month-over-month growth and continued relative strength in the non-distressed market segment are positive seasonal signs in the housing market. Slowly declining shadow inventory and stabilized negative equity levels are also positive signs.” said Mark Fleming, chief economist with CoreLogic. “Nonetheless, the fragile economic recovery is still critical to the long-term recovery in the housing market.” © 2011 CoreLogic. All rights reserved. http://www.corelogic.com/
Jun 29, 2011 | Uncategorized
The average price of a single-family home rose for the first time in eight months in April and is now back at levels last seen in the summer of 2003, according to the Standard & Poor’s/Case-Shiller index.
Jun 23, 2011 | Uncategorized
Housing may soon rise from the dead, argue some economists. And, the severity of the slump may in fact accelerate the arrival of a recovery.
Jun 17, 2011 | Uncategorized
http://reut.rs/jLI448
Applications for both purchase and refinance transactions are up again this week, fueled by falling rates according to Mortgage Bankers Association.
Jun 13, 2011 | Uncategorized
Negative economic reports of late have pushed the rate on the popular 30 year fixed to below 4.5 percent, the lowest this year and just about a quarter percent off the 50-year lows we saw last summer; adjustable-rate products are even lower. When investors see bad economic news, they pull money out of the stock market and park it in bonds. The price of bonds goes up, the yield goes down, and mortgage rates follow down.
