NAR calls on Congress to raise the debt ceiling to protect the fragile housing market and home buyers' financing options.
NAR issued a statement today calling on members of Congress to raise the federal debt ceiling with the warning that the continuing debate over the issue is destabilizing housing markets around the country as households, concerned about rising interest rates, remain on the sidelines.
"Until a resolution is reached, Congress will be unable to address the myriad issues facing the nation’s families, communities, and economy," NAR President Ron Phipps says in the statement. “The indecision in Congress is paralyzing progress on other fronts, and it is harming home buyer confidence and negatively affecting home sales.”
NAR does not take a position on the specifics of the legislation but has been in communication with members of Congress and their staffs throughout the debate over the risks of a default by the U.S. government. Although the consequences of default can’t be anticipated with certainty, there is broad consensus among economists that interest rates will rise. Higher interest rates will dampen home sales at a time when markets around the country are struggling to recover.
Friday, July 29, 2011
Friday, July 22, 2011
Foreclosure filings are way down - but why?
Mark Lacter • July 19 2011 11:58 AM
The folks at RealtyTrac insist that the decline has nothing to do with an improving housing market - that it merely reflects a slowdown in transactions due to legal and regulatory holdups. But the folks at DataQuick, while not dismissing those factors, point out that there may be other, more positive explanations for the decline. This is not some academic exercise among number crunchers - foreclosures have been a big hindrance in the housing recovery, and if there are signs that the worst is over, it's a huge positive for the state and local economy. From the Dataquick press release:
"A lot of theories are being floated as to why the numbers are down. Bank policy changes. Legal challenges. Politics. Holding back temporarily so as not to flood the market. The fact of the matter is that no one really knows, outside of lending and servicing industry insiders. One thing is certain: Homeowner distress spreads fastest when home price declines are steepest. And it now appears likely that, barring some new economic shock, the worst of the price declines are behind us," said John Walsh, DataQuick president.
No one really knows - how refreshing to have a so-called expert admit to not having the answers. What he does know is that California mortgage defaults are at their lowest level since 2007, which is a good thing. Second-quarter NODs in L.A. County were down almost 14 percent from a year earlier; in OC they were were also down around 14 percent.
Notices of Default
County/Region 2010Q2 2011Q2 Yr/Yr%
Los Angeles 13,045 11,250 -13.8%
Orange 4,313 3,705 -14.1%
San Diego 5,458 4,158 -23.8%
Riverside 7,266 5,534 -23.8%
San Bernardino 5,945 4,334 -27.1%
Ventura 1,346 1,133 -15.8%
Imperial 375 270 -28.0%
Source: DataQuick
The folks at RealtyTrac insist that the decline has nothing to do with an improving housing market - that it merely reflects a slowdown in transactions due to legal and regulatory holdups. But the folks at DataQuick, while not dismissing those factors, point out that there may be other, more positive explanations for the decline. This is not some academic exercise among number crunchers - foreclosures have been a big hindrance in the housing recovery, and if there are signs that the worst is over, it's a huge positive for the state and local economy. From the Dataquick press release:
"A lot of theories are being floated as to why the numbers are down. Bank policy changes. Legal challenges. Politics. Holding back temporarily so as not to flood the market. The fact of the matter is that no one really knows, outside of lending and servicing industry insiders. One thing is certain: Homeowner distress spreads fastest when home price declines are steepest. And it now appears likely that, barring some new economic shock, the worst of the price declines are behind us," said John Walsh, DataQuick president.
No one really knows - how refreshing to have a so-called expert admit to not having the answers. What he does know is that California mortgage defaults are at their lowest level since 2007, which is a good thing. Second-quarter NODs in L.A. County were down almost 14 percent from a year earlier; in OC they were were also down around 14 percent.
Notices of Default
County/Region 2010Q2 2011Q2 Yr/Yr%
Los Angeles 13,045 11,250 -13.8%
Orange 4,313 3,705 -14.1%
San Diego 5,458 4,158 -23.8%
Riverside 7,266 5,534 -23.8%
San Bernardino 5,945 4,334 -27.1%
Ventura 1,346 1,133 -15.8%
Imperial 375 270 -28.0%
Source: DataQuick
Wednesday, July 13, 2011
June housing numbers are in for San Diego
By Lily Leung
Home prices and sales in San Diego County were up in June from May but down from one year ago, Tuesday's DataQuick figures show.
Here's a breakdown of the major housing categories, based on the real-estate tracker's monthly report:
ALL HOMES: The median price in June was $330,000, up 1.7 percent from May but down 1.6 percent from a year ago. It's the 25th straight month the median price for all home types has been in the $300,000 to $340,000 range. The county peaked at $517,500 in Nov. 2005. June sales increased 11.6 percent from May but were down 11.4 percent from a year ago.
RESALE HOMES: This makes up the bulk of monthly sales. Prices slid 1.1 percent from May to $365,000 and fell 3.9 percent from the same time last year. Month-over-month, sales increased 12.2 percent to 2,196 but fell 4.6 percent year-over-year.
RESALE CONDOS: June's median price was $220,000, up 4.8 percent from May and up 0.3 percent from one year ago. Sales increased to 971, or 5.3 percent from May, but were down 16.5 percent year-over-year.
NEW HOMES: This category, the smallest slice of sales, showed the highest month-over-month increases in sales and prices among the categories. The median price in June was $502,000, up 24.2 percent from May and up 16.5 percent from one year ago. There were 277 new-home sales, increasing 33.8 percent from May but down 34.2 percent from June of last year.
SOUTHERN CALIFORNIA: More than 20,532 home were sold in San Diego, Los Angeles, Riverside, Ventura, San Bernardino and Orange counties in June, up 11.6 percent from May but down 14 percent June 2010. The month-over-month increase is more than usual for May-to-June. DataQuick officials said on average, sales between those months is have gone up 6.2 percent since 1988, when the company began to track housing data.
June's median price for all six counties was $285,000, up 1.8 percent from May but down 5 percent from one year ago. "Today’s median is also suppressed somewhat by abnormally low sales of newly built homes, which typically sell for more than resale homes," this month's DataQuick report said.
FROM DATAQUICK:
The housing market remains dysfunctional and lopsided, just somewhat less so than it was a few months or a year ago. The market mix indicates that a lot of potential buyers are either stuck, for lack of equity, or spooked and are waiting things out. Another large, lingering problem is the fussy mortgage market. Qualifying for a mortgage remains difficult for many, and the use of adjustable-rate and “jumbo” home purchase loans remains far below the historical norm.
--John Walsh, DataQuick president.
Reporter Lily Leung at lily.leung@uniontrib.com or 619-293-1719.
Home prices and sales in San Diego County were up in June from May but down from one year ago, Tuesday's DataQuick figures show.
Here's a breakdown of the major housing categories, based on the real-estate tracker's monthly report:
ALL HOMES: The median price in June was $330,000, up 1.7 percent from May but down 1.6 percent from a year ago. It's the 25th straight month the median price for all home types has been in the $300,000 to $340,000 range. The county peaked at $517,500 in Nov. 2005. June sales increased 11.6 percent from May but were down 11.4 percent from a year ago.
RESALE HOMES: This makes up the bulk of monthly sales. Prices slid 1.1 percent from May to $365,000 and fell 3.9 percent from the same time last year. Month-over-month, sales increased 12.2 percent to 2,196 but fell 4.6 percent year-over-year.
RESALE CONDOS: June's median price was $220,000, up 4.8 percent from May and up 0.3 percent from one year ago. Sales increased to 971, or 5.3 percent from May, but were down 16.5 percent year-over-year.
NEW HOMES: This category, the smallest slice of sales, showed the highest month-over-month increases in sales and prices among the categories. The median price in June was $502,000, up 24.2 percent from May and up 16.5 percent from one year ago. There were 277 new-home sales, increasing 33.8 percent from May but down 34.2 percent from June of last year.
SOUTHERN CALIFORNIA: More than 20,532 home were sold in San Diego, Los Angeles, Riverside, Ventura, San Bernardino and Orange counties in June, up 11.6 percent from May but down 14 percent June 2010. The month-over-month increase is more than usual for May-to-June. DataQuick officials said on average, sales between those months is have gone up 6.2 percent since 1988, when the company began to track housing data.
June's median price for all six counties was $285,000, up 1.8 percent from May but down 5 percent from one year ago. "Today’s median is also suppressed somewhat by abnormally low sales of newly built homes, which typically sell for more than resale homes," this month's DataQuick report said.
FROM DATAQUICK:
The housing market remains dysfunctional and lopsided, just somewhat less so than it was a few months or a year ago. The market mix indicates that a lot of potential buyers are either stuck, for lack of equity, or spooked and are waiting things out. Another large, lingering problem is the fussy mortgage market. Qualifying for a mortgage remains difficult for many, and the use of adjustable-rate and “jumbo” home purchase loans remains far below the historical norm.
--John Walsh, DataQuick president.
Reporter Lily Leung at lily.leung@uniontrib.com or 619-293-1719.
Wednesday, July 6, 2011
Top 5 Real Estate Headlines in the 1st Half of 2011
by THE KCM CREW on JULY 5, 2011
We have reached the midway point of the year. Today, we want to look back over the first six months and give you what we believe were the five items that have had the biggest impact on the real estate industry so far this year.
The Government Wants Out of the Mortgage Business
From the original outline of the Dodd-Frank regulations to the talk of closing Fannie Mae and Freddie Mac to the proposed Quality Residential Mortgage (QRM) guidelines, the government has made it very clear that they want to dramatically limit their involvement in the mortgage industry. What will come of this? Will private industry step up and fill the void created? What will be the increased cost to the consumer? Only time will tell.
Despite Early Headlines, Sales are Increasing
Headlines earlier in the year announced the total collapse of the housing market. To those in the know, it was obvious that comparing sales numbers in the first four months of this year to the same period last year made absolutely no sense. The largest tax credit ever given to home buyers expired on April 30, 2010. Large numbers of transactions were dragged forward last year so buyers could take advantage of the credit. Pending home sales (transactions going into contract) on the other hand have done quite nicely and many institutions (ex. Fannie Mae, Freddie Mac, NAR and Moody’s Analytics) are projecting good sales numbers throughout the rest of the year.
Amid Warnings of a ‘Double-Dip’, Prices Began to Stabilize
Prices continued to retreat for the first few months of the year and brought the bears out. Some called for another major fall in prices (15-20%) and almost all recalculated their projections to show continued depreciation. Just as these new projections were made available, some pricing indices announced that values actually increased (though by a rather minimal percentage). Again, those with the best understanding of the market were quick to explain…
Foreclosures Were Delayed Longer Than Originally Projected
Distressed properties (foreclosures and short sales) have a major impact on the values of all properties in an area. Because of paperwork challenges, the flow of these properties to the market was virtually shut off. At the beginning of the year, most experts believed the banks would correct these challenges by the end of the first quarter. That didn’t happen and therefore many of these properties were delayed coming to the market. This is a major reason why prices seemed to recover: there were fewer discounted properties available for sale. Most now believe that the banks are within 60-90 days of releasing this inventory and that prices will again begin to soften.
Main Stream Media Begins to Announce “Now Is the Time to Buy!”
With prices and interest rates at historic lows and the chance that mortgages will become more costly as the private sector steps in, many in the main stream media are announcing that buying a home now makes sense. In the last 45 days, the Wall Street Journal, Forbes Magazine, National Public Radio (NPR) and CBS Money Watch have all ran articles calling for the readership to consider buying now!
We have reached the midway point of the year. Today, we want to look back over the first six months and give you what we believe were the five items that have had the biggest impact on the real estate industry so far this year.
The Government Wants Out of the Mortgage Business
From the original outline of the Dodd-Frank regulations to the talk of closing Fannie Mae and Freddie Mac to the proposed Quality Residential Mortgage (QRM) guidelines, the government has made it very clear that they want to dramatically limit their involvement in the mortgage industry. What will come of this? Will private industry step up and fill the void created? What will be the increased cost to the consumer? Only time will tell.
Despite Early Headlines, Sales are Increasing
Headlines earlier in the year announced the total collapse of the housing market. To those in the know, it was obvious that comparing sales numbers in the first four months of this year to the same period last year made absolutely no sense. The largest tax credit ever given to home buyers expired on April 30, 2010. Large numbers of transactions were dragged forward last year so buyers could take advantage of the credit. Pending home sales (transactions going into contract) on the other hand have done quite nicely and many institutions (ex. Fannie Mae, Freddie Mac, NAR and Moody’s Analytics) are projecting good sales numbers throughout the rest of the year.
Amid Warnings of a ‘Double-Dip’, Prices Began to Stabilize
Prices continued to retreat for the first few months of the year and brought the bears out. Some called for another major fall in prices (15-20%) and almost all recalculated their projections to show continued depreciation. Just as these new projections were made available, some pricing indices announced that values actually increased (though by a rather minimal percentage). Again, those with the best understanding of the market were quick to explain…
Foreclosures Were Delayed Longer Than Originally Projected
Distressed properties (foreclosures and short sales) have a major impact on the values of all properties in an area. Because of paperwork challenges, the flow of these properties to the market was virtually shut off. At the beginning of the year, most experts believed the banks would correct these challenges by the end of the first quarter. That didn’t happen and therefore many of these properties were delayed coming to the market. This is a major reason why prices seemed to recover: there were fewer discounted properties available for sale. Most now believe that the banks are within 60-90 days of releasing this inventory and that prices will again begin to soften.
Main Stream Media Begins to Announce “Now Is the Time to Buy!”
With prices and interest rates at historic lows and the chance that mortgages will become more costly as the private sector steps in, many in the main stream media are announcing that buying a home now makes sense. In the last 45 days, the Wall Street Journal, Forbes Magazine, National Public Radio (NPR) and CBS Money Watch have all ran articles calling for the readership to consider buying now!
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