Distressed properties — those in some stage of foreclosure — edged up to 28% of all U.S. residential sales in the first quarter from 27% the previous quarter, according to RealtyTrac.
The percentage would have been higher, analysts say, but overall housing demand is weak and the banks are not disposing of these assets at nearly the rate they were at the same time last year, when distressed properties made up 29% of all sales.
The numbers tell the story: In the first quarter of this year, 158,434 bank-owned properties (or those in the foreclosure pipeline) were sold, a 36% decline from the first quarter of 2010 and a 16% decrease from the fourth quarter of last year.
Compare that with the nearly 350,000 distressed properties sold in the first quarter of 2009, and you can see why the foreclosure pipeline is so bloated.
"According to our numbers, if you just look at the properties in foreclosure or on the banks' books, it will take us three years to work through that inventory at the current rate of sales," says Rick Sharga, senior vice president of RealtyTrac.
Of course, this slowdown in foreclosure sales is — at least in the short term — a good thing for the housing market, helping to keep home prices more stable, Sharga says.
"The downside is that this approach ensures that we will be in the doldrums in housing for several more years," he says.
Indeed, with such a large supply of distressed properties and foreclosures, the timing of a recovery hinges in part on how quickly banks and servicers dispose of these holdings.
Entire article:
http://realestate.msn.com/foreclosure-sales-slowdown-a-blessing-and-a-curse
Tuesday, June 28, 2011
Tuesday, June 21, 2011
May Pending Home Sales Increase (CA)
California pending home sales rose in May, posting the first year-over-year increase in 18 months, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
Pending home sales:
Pending home sales in California rose in May, according to C.A.R.’s Pending Home Sales Index (PHSI)*. The index was 118.3 in May, up 1.6 percent from April’s revised index of 116.4, based on contracts signed in May. The index also was up 12 percent from May 2010. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
“May marked the first year-over-year increase in pending sales since November 2009 and the largest annual increase since August 2009,” said C.A.R. President Beth L. Peerce. “May’s increase in pending sales is consistent with our expectation that home sales in the second half of 2011 should be higher compared with the second half of 2010, and as a result, annual sales for all of 2011 should match or exceed last year’s annual pace.”
Distressed housing market data:
The total share of all distressed property types sold statewide was unchanged in May from April’s 48 percent, but up from 46 percent in May 2010.
Non-distressed sales made up the remaining share at 52 percent in May, unchanged from April but down from 54 percent in May 2010.
Of the distressed properties sold statewide, the total share of REO (real estate-owned) sales was 28 percent in May, unchanged from April, but up from 26 percent in May 2010.
At 19 percent, the statewide share of short sales also was unchanged in May, but down from 20 percent in May 2010.
from: http://www.car.org/newsstand/newsreleases/2011newsreleases/maypendingsalesindex/
Pending home sales:
Pending home sales in California rose in May, according to C.A.R.’s Pending Home Sales Index (PHSI)*. The index was 118.3 in May, up 1.6 percent from April’s revised index of 116.4, based on contracts signed in May. The index also was up 12 percent from May 2010. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
“May marked the first year-over-year increase in pending sales since November 2009 and the largest annual increase since August 2009,” said C.A.R. President Beth L. Peerce. “May’s increase in pending sales is consistent with our expectation that home sales in the second half of 2011 should be higher compared with the second half of 2010, and as a result, annual sales for all of 2011 should match or exceed last year’s annual pace.”
Distressed housing market data:
The total share of all distressed property types sold statewide was unchanged in May from April’s 48 percent, but up from 46 percent in May 2010.
Non-distressed sales made up the remaining share at 52 percent in May, unchanged from April but down from 54 percent in May 2010.
Of the distressed properties sold statewide, the total share of REO (real estate-owned) sales was 28 percent in May, unchanged from April, but up from 26 percent in May 2010.
At 19 percent, the statewide share of short sales also was unchanged in May, but down from 20 percent in May 2010.
from: http://www.car.org/newsstand/newsreleases/2011newsreleases/maypendingsalesindex/
Thursday, June 16, 2011
Mortgage Rates Leveling Off?
Mortgage rates leveled off this week, according to a Freddie Mac survey that found the 30-year home loan up a single notch and the 15-year mortgage down by the same amount.
The survey said lenders were offering 30-year fixed-rate loans to well-qualified borrowers at an average 4.50% compared with 4.49% last week and rates in the 4.2% range for a couple of months last fall.
The 15-year fixed loan was at 3.67%, down from 3.68%, Freddie Mac said Thursday. The borrowers would have paid an average 0.7% of the loan amount to the lenders in upfront fees and points for the fixed-rate loans.
Read entire article:
http://latimesblogs.latimes.com/money_co/2011/06/freddie-mac-30-year-mortgage-rate-levels-off-at-45.html
The survey said lenders were offering 30-year fixed-rate loans to well-qualified borrowers at an average 4.50% compared with 4.49% last week and rates in the 4.2% range for a couple of months last fall.
The 15-year fixed loan was at 3.67%, down from 3.68%, Freddie Mac said Thursday. The borrowers would have paid an average 0.7% of the loan amount to the lenders in upfront fees and points for the fixed-rate loans.
Read entire article:
http://latimesblogs.latimes.com/money_co/2011/06/freddie-mac-30-year-mortgage-rate-levels-off-at-45.html
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