Housing starts surge in November -- sign of housing pickup?

The U.S. Commerce Department reported this week that housing starts in November increased by nearly 23 percent from the previous month. Clearly, the housing market recovery is picking up pace heading into next year. The number of homes that builders started last month was well above October estimates.

Full Story: http://www2.realtoractioncenter.com/site/R?i=P8XtQt4OL0qcfXSGDA8r-w

Good news about mortgage cancellation debt and short sales

As we anticipated, C.A.R. today received a letter from the California Franchise Tax Board (FTB), obtained by the State Board of Equalization, clarifying that California families who have lost their home in a short sale are not subject to state income tax liability on debt forgiveness “phantom income” they never received in a short sale.

Last month, in a letter to California Sen. Barbara Boxer, the Internal Revenue Service (IRS) recognized that the debt written off in a short sale does not constitute recourse debt under California law, and thus does not create so-called “cancellation of debt” income to the underwater home seller for federal income tax purposes. Following the IRS’s clarification, C.A.R. sought a similar ruling by the California FTB. Now with the FTB’s clarification, underwater home sellers also are assured that they are not subject to state income tax liability, rescuing tens of thousands of distressed home sellers from California tax liability for debt written off by lenders in short sales.

We are pleased with the recent clarifications issued by the IRS and the California Franchise Tax Board, which protect distressed homeowners from debt relief income tax associated with a short sale in California. We would like to thank Sen. Boxer and BOE member George Runner for their leadership in obtaining this guidance from the IRS and FTB. Distressed California homeowners can now avoid foreclosure or bankruptcy and can opt for a short sale instead, without incurring federal and state tax liability, even after the Mortgage Forgiveness Debt Relief Act of 2007 expires at the end of this year.

Sincerely,



Kevin Brown
2014 President
CALIFORNIA ASSOCIATION OF REALTORS®

Foreclosure Inventory Plunges Nearly 30%

The industry’s foreclosure inventory rate is down 29.61 percent from last year, according to Lender Processing Services (LPS). Overall, foreclosure inventory has contracted for 18 consecutive months and is now at its lowest point since the end of 2008, totaling 1.28 million loans, or just 2.54 percent of today’s active mortgages.

Full Story: http://www2.realtoractioncenter.com/site/R?i=zPq7x-5vaRKnVZ0p9jKtdA

Mortgage Delinquency Rate Drops Nearly 25% in Last Year

The mortgage delinquency rate (the rate of borrowers 60 days or more delinquent on their mortgage) dropped 23.3 percent in the past year, ending the third quarter at 4.09 percent, down from a year earlier when the rate stood at 5.33 percent, according to data gathered from TransUnion’s proprietary Industry Insights Report. The mortgage delinquency rate also dropped on a quarterly basis, down 5.3 percent from 4.32 percent in the second quarter, the seventh straight quarterly decline.

Full Story:  http://www2.realtoractioncenter.com/site/R?i=f0pMFGfaIyuL9uQl5DPMfw

No Federal Debt Relief Income Tax on Short Sales

C.A.R. has been working with California Sen. Barbara Boxer to protect distressed homeowners from debt relief income tax associated with a short sale in California. As part of this effort, Sen. Boxer requested the Internal Revenue Service (IRS) to provide guidance on whether mortgage debt forgiveness in a lender-approved short sale would be taxable income under federal law, given California’s recent non-recourse laws for short sales, which were hard fought victories by C.A.R.

The IRS has clarified in a letter that California’s troubled homeowners who sell their homes in a short sale are not subject to federal income tax liability on “phantom income” they never received. The IRS recognizes that the debt written off in a short sale does not constitute recourse debt under California law, and thus does not create so-called “cancellation of debt” income to the underwater home seller for federal income tax purposes. This clarification rescues tens of thousands of distressed home sellers from personal liability upon expiration of the Mortgage Forgiveness Debt Relief Act of 2007 on Dec. 31, 2013.

Equity home sales post higher in September

The share of equity home sales in California continued to grow in September, now making up more than eight of every 10 home sales, the highest level in nearly six years. Meanwhile, the share of short sales fell into the single digits and dropped to levels not seen since January 2009, C.A.R. reported this week.

Full Story: http://www2.realtoractioncenter.com/site/R?i=A3dz6SNrSJelNfBFL-qOTQ

Home Prices Rising at Fastest Pace Since Start of Bubble

During the first seven months of 2013, home prices rose faster than any year since 2004, which is the year that marked the beginning of the home-price bubble. When examining the results of the S&P/Case-Shiller home price index for 20 major metro areas, the index had its largest June-to-July increase in the 14-year history of the 20-city index, as prices rose by 1.8% from June.

Full Story: http://www2.realtoractioncenter.com/site/R?i=4Rgb0nUZlc997IWLYEho9g

U.S. Housing Recovery Seems Still on Track

Source: The New York Times

Analysts are worried that the housing market may slow in the months ahead, but for now it continues to gain strength despite the drag of rising mortgage rates. The New York Times notes that “Higher home prices help the economy not just by strengthening the construction and real estate industries, but by making homeowners feel wealthier and more likely to spend,” thereby a key driver of the economic recovery.

Full Story: http://www2.realtoractioncenter.com/site/R?i=xoA8g1A3J72OUPp3WUvJ_A

Builder Confidence Unchanged in September

Following four consecutive months of improvement, builder confidence in the market for newly built, single-family homes held unchanged in September with a reading of 58 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

Full Story: http://www2.realtoractioncenter.com/site/R?i=_SxdGjiKe6ARr95FlPCyRg

Key Market Indicators Shift from Supply to Demand

A new report by Realtor.com found that as the year’s peak home-buying season comes to a close, key market indicators are pointing to a shift in the dynamics of the housing market, suggesting that future home value appreciations may likely be driven by market demand, rather than inventory shortages.

Home Construction Spending at Highest Level Since 2008

The Commerce Department reported this week that private residential construction spending rose 0.6 percent to a seasonally adjusted annual rate of $334.58 billion, rising to its highest level in nearly five years. The spending levels may be an indication that builders are unconcerned with the impact of higher interest rates.

Full Story: http://www2.realtoractioncenter.com/site/R?i=4MeC_Ek8-gpe7DqHzumQag

FHA Trims Waiting Period for Borrowers Who Experienced Foreclosure

Borrowers who went through a bankruptcy, foreclosure, deed-in-lieu, or short sale can now reenter the market in as little as 12 months under a new guideline established by the Federal Housing Administration. The more lenient approval process does have some eligibility requirements, such as documentation of “certain credit impairments” and economic hardship.

Full Story: http://www2.realtoractioncenter.com/site/R?i=Foy3hUQKrRTnBFjEO2PY-w

Higher home prices drive down housing affordability during second quarter

Significantly higher home prices, particularly in the San Francisco Bay Area and coastal regions, shut out more home buyers in the state during the second quarter of 2013, C.A.R. reported this week.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California dropped to 36 percent in the second quarter of 2013, down from 44 percent in first-quarter 2013 and from 51 percent in second-quarter 2012, according to C.A.R.’s Traditional Housing Affordability Index (HAI). The second quarter 2013 figure fell below 40 percent for the first time since the third quarter of 2008.

Full Story: http://www2.realtoractioncenter.com/site/R?i=4p4ZXmrv0YjK97J-CdgDqw

Millennials Increasingly Positive about Real Estate

Millennials are increasingly optimistic about residential real estate, according to the most-recent Consumer Outlook Survey by Prudential Real Estate. A full 80 percent of respondents ages 25-34 said their perception of the housing market is “favorable” or “somewhat favorable,” representing a 9 percentage point increase from the Q1 study.

Full Story: http://www2.realtoractioncenter.com/site/R?i=M0lN8hMpEJPiE1t01zYa5A

Homeownership: Where Single Women Prevail

Single women are buying at roughly twice the rate as single men, as they accounted for 16 percent of home buyers last year, while single men accounted for only 9 percent. Men haven’t caught up to women, who began to outpace men in home-buying in the late 1990s. As the primary earners in their households, women more than ever before are the breadwinners with the financial resources to plan for their future.

Full Story: http://www2.realtoractioncenter.com/site/R?i=u9flhiEQzTqrjyZvQ1K9ew

Housing market has buyers willing to use 'aggressive tactics'

With inventory tight in hot markets, two-thirds of home buyers increasingly are willing to use “aggressive tactics” to secure the home of their dreams, according to a survey by Trulia. Tactics deemed “aggressive” include paying the seller’s closing costs, bidding above the asking price or borrowing money from relatives to make a down payment.

Full Story: http://www2.realtoractioncenter.com/site/R?i=z3F9A_MEUpgwzGpR1JE4mg

Stanislaus County home prices jump nearly 30 percent in one year

Stanislaus County homes sold for $40,000 more last month than they did a year ago, boosting June's median price to $175,000, just-released statistics show.

That nearly 30 percent year-over-year increase shows the real estate market recovery is solidly under way. But not everything is rosy in the housing industry.

There simply are not enough Stanislaus homes on the market to meet demand, agents insist. That's causing bidding wars and houses being sold for higher than their appraised values.


Full Story: http://www.modbee.com/2013/07/22/2820283/stanislaus-conty-home-prices-jump.html

Mortgage Lending Standards Loosen Slightly in June

Mortgage lending standards loosened slightly in June, indicating that mortgage credit is more available, according to the Mortgage Credit Availability Index, a report from the Mortgage Bankers Association. The Index increased to 109.8 in June, which is almost one percent higher than the index reading from May. Lower Index values indicate lending standards are tightening, while higher index values and increases to the index are indicative of a loosening of credit.

Full Story: http://www2.realtoractioncenter.com/site/R?i=aJWFL6tZs8en9mLrwR7SCw

Consumer Mortgage Rate Expectations Spike

Potential home buyers may enter the purchase market sooner rather than later as more Americans expect mortgage rates and home prices to climb, according to results from Fannie Mae’s June 2013 National Housing Survey.

Full Story: http://www2.realtoractioncenter.com/site/R?i=3AgufiIVW0H6Mfc9xsY48g

How Buyers Use Technology in the Home Buying Process

The internet is now a normal part of our daily routine, so it is no surprise that it was an important tool to buyers in the home buying process. Ninety-six percent of buyers used the internet during the process, a significant rise from 28 percent in 2000, and 62 percent in 2005.

Full Story:  http://www2.realtoractioncenter.com/site/R?i=rX56T9bQhI3Pd7x5ln9bPg

Six questions to ask before refinancing

With low mortgage rates creeping up, many homeowners are asking if refinancing is the right choice. Last year refinancing originations nationwide totaled $1.5 trillion.

Full Story: http://www2.realtoractioncenter.com/site/R?i=HhTWoSOL3RVJqnkueFvo8w

Inventory situation improves in June

The overall number of listings on Zillow was down 12.2 percent year-over-year at the start of June, an improvement from the 17.5 percent shortfall recorded in January.

Full Story http://www2.realtoractioncenter.com/site/R?i=FjrZ5J97HYU-a95oXP4S7Q

Nearly 1 million houses float back into positive equity

Approximately 850,000 more residential properties returned to a state of positive equity during the first quarter of 2013, according to the CoreLogic first quarter home equity report.

Full Story  http://www2.realtoractioncenter.com/site/R?i=DTLeLZi2EiVxESTWeTMsVA

Home Builders Building Homes that Young Buyers Want

More than 80 percent of Generation Y home buyers—people born in 1977 or later—said in the National Association of Home Builder’s 2012 consumer preference survey they prefer a highly energy efficient home that results in lower utility bills during the home’s lifetime over a lower-priced home without energy efficient features. Today’s new homes feature ENERGY STAR-rated appliances; windows, doors and insulation that better control the home’s interior climate; and other modern components such as tankless water heaters and HVAC systems that save costs on utility bills.

Full Story: http://www2.realtoractioncenter.com/site/R?i=Kzm6bW4UWghxxxFfvSWq9g

FHFA: Home prices continue to climb

Home prices inched up 1.9 percent in the first quarter compared with the previous quarter, according to the Federal Housing Finance Agency. This is the seventh consecutive quarterly price rise in the purchase-only, seasonally adjusted index.

Full Story: http://www2.realtoractioncenter.com/site/R?i=97RD_p7ZEIUbyFw_2tWmsQ

Housing Recovery Accelerating, As List Price And Inventory Increase

Realtor.com released its April data showing that the U.S. housing market is on its way to a broad-based recovery, an accelerated trend since March.

Full Story: http://news.move.com/index.php?s=11609&item=137188

Building Permits Rise in April

Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,017,000. This is 14.3 percent (±1.0%) above the revised March rate of 890,000 and is 35.8 percent (±1.3%) above the April 2012 estimate of 749,000.
Full Report: http://www.census.gov/construction/nrc/pdf/newresconst.pdf

FHA Mortgage Premium Changes for April 2013

The short version of the announced changes includes a higher MIP, plus a policy change that will require mortgage insurance to be paid for the life of certain FHA home loans. (Some types of refinancing are excluded from the MIP increase.)

According to the FHA official site. “FHA will increase its annual mortgage insurance premium (MIP) for most new mortgages by 10 basis points or by 0.10 percent"

Full Story: http://www.fha.com/fha_article.cfm?id=414

Home prices gain again in February

The Standard & Poor’s/Case-Shiller home price index of 20 American cities rose 0.3 percent in February and was up 9.3 percent compared with February 2012. All of the cities covered by the index have risen year-over-year for two consecutive months.

Full Story: http://www2.realtoractioncenter.com/site/R?i=KP7xsvX9HHSEQKYhZYAQxg

Why rising interest rates could eventually curb price gains

Rising home prices are raising concerns among some housing analysts that prices could again become unaffordable if price gains outpace income growth.

Full Story: http://www2.realtoractioncenter.com/site/R?i=6leFT3VwiNFj_Lul7XF1mw

Selling your home? The cards are in your favor

Selling your home? In most parts of the country, you have finally regained the upper hand.

Full Story: http://www2.realtoractioncenter.com/site/R?i=OUE2MkMJBEbrebADzVNGOg

“Underwater” homes decline nationwide

Roughly 20,000 borrowers escaped their “negative equity” positions during the final three months of last year, CoreLogic reported.

Full Story: http://www2.realtoractioncenter.com/site/R?i=MZGNEN7CGms1hjFJcADCxw

Residential construction spending rises in February

The U.S. Census Bureau of the Dept. of Commerce announced this week that construction spending during February 2013 was estimated at a seasonally adjusted annual rate of $885.1 billion, 1.2 percent above the revised January estimate of $874.8 billion. The February figure is 7.9 percent above the February 2012 estimate of $820.7 billion.

Full Story: http://www2.realtoractioncenter.com/site/R?i=34ftQ9xnF20l_aFxJo-w9Q

CoreLogic reports home prices rose in February

CoreLogic’s February CoreLogic HPI® report shows that home prices increased 10.2 percent year over years in February, representing the biggest year-to-year increase since March 2006. On a month-over-month basis, including distressed sales, home prices increased by 0.5 percent in February 2013 compared with January 2013.

Full Story: http://www2.realtoractioncenter.com/site/R?i=ZBxExMtW0-r8HLHYykGiuA

When prices of homes with pools take a dip

In the winter, the water doesn’t look so appealing, so potential buyers are less likely to shell out extra bucks for a swimming pool.

Their findings, "Projection Bias in the Car and Housing Markets," were published in June by the National Bureau of Economic Research. Their research falls into the broader category of behavioral economics, giving insights into the psychology of spending, such as why some people spend more money at the grocery store when they're hungry.

Full Story: http://www2.realtoractioncenter.com/site/R?i=BOVJO8jroIdaQ5sFslOIsA

California home prices up

California’s median home price marked a full year of annual price gains, propelled by strong sales of higher-priced homes in February, while a lack of inventory constrained total home sales for the month, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported this week.

Full Story: http://www2.realtoractioncenter.com/site/R?i=VzIy0IonyClFa5HT30WIdA

Home buyers face dilemma with shortage

The sharp drop in homes for sale poses a tough choice for buyers: Jump in now and compete with hordes of others or wait until inventory improves.

Full Story: http://www2.realtoractioncenter.com/site/R?i=--0j5Qfzm0E0wFBXTeTQwA

More can afford a home, but lenders remain tight-fisted

Nearly half of all California households can now afford the median-priced home in the state – but that’s no help if they can’t get mortgages.

Full Story: http://www2.realtoractioncenter.com/site/R?i=HCarMwL9IInrAmid6edaKA

All Cash Buyers Commonplace

According to results based on C.A.R.’s 2012 Annual Housing Market Survey, “All Cash” buyers has been on the rise since the mid of 2000’s, increasing from 11 percent in 2005 to 30 percent in 2012. Almost one-third of all home buyers paid with all cash in 2012, which is more than 3 times what it was in 2001 when “All Cash” buyers were merely 8.8 percent. The share of all cash buyers in 2012 was also nearly double the long-run average of 15.1 percent since 1998.

Full Story: http://www.car.org/marketdata/realestate411/re411Feb012013/

Boomerang buyers making a comeback

Buyers who went through short sales or foreclosures are becoming homeowners again, thanks in part to loans from the Federal Housing Administration.

Full Story:  http://www2.realtoractioncenter.com/site/R?i=1UpZCPNw0585jJhIkDf64Q

California foreclosure starts plummet 60 percent in January

The real estate website ForeclosureRadar.com reported a 60.5 percent decline in California default notices in January from December.

Full Story: http://www2.realtoractioncenter.com/site/R?i=azR7foU3t4NSnkKgeb6whw

Foreclosure filings fall to lowest level since 2007

Notices of default, scheduled auctions, bank repossessions and other filings fell to 150,864 last
month, a 7 percent decline from the previous month and a 28 percent drop from January 2012,
according to RealtyTrac.

Read the full story: http://money.cnn.com/2013/02/14/real_estate/foreclosures/index.html?iid=HP_River

A sign the housing recovery just might stick

Mortgage applications were higher again in January. If individual buyers dominate home sales
as opposed to investors (who obviously don't add to the numbers of mortgage applications as reported increased), we might see a more sustainable housing recovery.

Read the full story: http://finance.fortune.cnn.com/2013/02/08/mortgage-applications-2/?iid=HP_LN

Consistent boost to California's median home price

California home sales and prices both posted gains in December, with the median price posting strong double-digit gains for six straight months, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported.

Full Story: http://www2.realtoractioncenter.com/site/R?i=cvL6ZLl1eul4At7Pd--olw

New home sales rise year over year in December

Sales of new single-family houses rose 8.8 percent in December compared with the previous year to a seasonally adjusted annual rate of 369,000, according to estimates released jointly by the U.S. Census Bureau and the Dept. of Housing and Urban Development. Compared with the previous month, new home sales declined 7.3 percent.

Housing a sweet spot for economy as rebound extends to 2013

U.S. home sales and prices are poised to rise in 2013, solidifying a recovery that began last year after a half-decade slump, according to analysts and economists surveyed by Bloomberg.

Full Story: http://www2.realtoractioncenter.com/site/R?i=TcT5c4qdcRpufs9-n1_5pw

Home prices poised for growth in 2013

Home-listing prices were up 5.1 percent nationally in December on a year-over-year basis, according to Trulia.

Full Story: http://www2.realtoractioncenter.com/site/R?i=ukrzf6Fwhrt7tq8ceYvlbw

CA Tax Exemption to Match Federal Extension

In an effort to conform state law to a federal law passed last week that extended mortgage debt forgiveness, C.A.R. is sponsoring Senate Bill 30, so that California homeowners on the brink of foreclosure can get much-needed debt relief.

SB 30 (Calderon, D-Montebello) will for one more year exempt the taxation of mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale or loan modification (including any principal reduction).

Full Story: http://www2.realtoractioncenter.com/site/R?i=3z_DQPrRLZvKfqMwrbopKA

Mortgage Forgiveness Debt Relief Extended

Late Tuesday night, Congress reached a settlement in the “fiscal cliff” negotiations. As a result, the Mortgage Forgiveness Debt Relief Act has been extended for another year. The measure will continue to exempt from taxation mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale, loan modification (including any principal reduction), or foreclosure.