Ending the Year Positively
December 30, 2010 by admin
Filed under Positive Real Estate, Real Estate Articles
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Housing starts will probably reach a three-year high of 739,000 in 2010, creating about 500,000 jobs and helping trim the unemployment rate to 9.1 percent, said David Crowe, chief economist for the National Association of Home Builders, in an interview with Bloomberg.
“This is an ugly economic cycle,” he said. “We need job creation to get people comfortable with buying a home. If they do that, we’ll create jobs that will reinforce that home buying and fuel additional job growth.”
The CEO of luxury home builder Toll Brothers is optimistic. “The recovery is here to stay,” said Douglas Yearley. “I think 2011 will be an improving year, but I think 2012 will be a big year for us.”
At Fortune.com Billionaire Warren Buffet is among those who believe this is a sign the slump is about to end. Buffet writes: “Prices will remain far below ‘bubble’ levels, of course, but for every seller (or lender) hurt by this there will be a buyer who benefits.”
Pending home sales rose again in November, with the broad trend over the past five months indicating a gradual recovery into 2011, according to the NATIONAL ASSOCIATION OF REALTORS ® .
The Pending Home Sales Index, a forward-looking indicator, rose 3.5 percent to 92.2 based on contracts signed in November from a downwardly revised 89.1 in October. The index is 5.0 percent below a reading of 97.0 in November 2009. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, said historically high housing affordability is boosting sales activity. “In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market,” he said. “But further gains are needed to reach normal levels of sales activity.”
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Biggest Bears Turn Bullish on Real Estate
December 28, 2010 by admin
Filed under New York, Positive Real Estate, Positive Real Estate Brokerages
- Image by Getty Images via @daylife
Nouriel Roubini who is famously donned Dr. Doom for his dire predictions of the housing market has seemingly changed his outlook. Plunking down $5.5 million for a East Village Penthouse.
John Paulson is a multibillionaire hedge fund operator who made millions betting on a crash from sub prime mortgages. He just paid $3.85 million for his new luxury condo on Fifth Ave.
From http://kcmblog.com/2010/12/27/dr-doom-mr-bear-and-real-estate/
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Fannie Mae Bullish Forecast
December 28, 2010 by admin
Filed under Positive Real Estate, Real Estate Articles
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“Despite rising mortgage rates, our forecast for home sales is stronger than the previous forecast, given our brighter economic growth and labor market outlook,” said Fannie Mae Chief Economist Doug Duncan. “We expect modest increases in home sales, despite recent interest rate rises, due in part to modest additional declines in home prices, and we expect people to take advantage of affordability as their employment and income outlook brightens.”
December 2010 Economic Outlook
Duncan says more positives than negatives for first time in a long time. Consumer spending is up. Improved demand for goods and services.
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HAMP & Better Home Affordability
December 27, 2010 by admin
Filed under Positive Real Estate, Real Estate Articles
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Two news stories that point to an improving housing market.
Refinancings through the Home Affordable Refinance Program (HARP) increased 26% in the third quarter of 2010.
Loan Modifications Fannie Mae and Freddie Mac loan modifications through the Home Affordable Modification Program (HAMP) increased 16% in the quarter. Loans modified in the last 3 quarters are performing substantially better 3 months after modification, compared to loans modified in earlier periods. 35,400 HAMP trial loan mods mods transitioned to permanent loans during the 3rd quarter.
Lower Defaults-60 plus-days delinquent declined for the 3rd consecutive quarter. The 60-plus-days delinquent loans decreased.
Home Sales are up- HUD-U.S. Department of Housing and Urban Development & the U.S. Department of the Treasury released the December Housing Scorecard. Home affordability in the housing market is better with interest rates near record lows.
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10 Reasons Why Real Estate Is Back in 2011
December 24, 2010 by admin
Filed under Real Estate Articles
- Image by TheTruthAbout via Flickr
1. Mortgage rates will stay low.
2. Lenders may loosen standards.
3. Tax cut extension could lead to faster recovery.
4. Americans still want to be homeowners.
5. Homebuyers are looking for long-term ownership, not a fast profit.
6. Home prices are expected to dip again.
7. Builders will start building again.
8. Inventory of all types will increase.
9. Homes will keep shrinking.
10. There will be more opportunities available for cash buyers and investors.
http://financialedge.investopedia.com/financial-edge/1210/10-Reasons-Real-Estate-Could-Rebound-In-2011.aspx
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Veros Real Estate Solutions: 5 Strongest Markets
December 22, 2010 by admin
Filed under Positive Real Estate
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Santa Ana, Calif.-based Veros Real Estate Solutions, a technology firm serving the financial services industry looked at at the median price tier in metros of 500,000 or more.
For December 2010 through December 2011, and selected markets in the U.S. are expected to grow 2.5% to 3.5% appreciation on home values.
Projected five strongest markets:
- San Diego: Carlsbad / San Marcos, Calif. (+3.5%)
- Kennewick / Richland / Pasco, Wash. (+3.4%)
- Pittsburgh, Pa. (+2.7%)
- Fargo, N.D. (+2.6%)
- Washington, D.C. metro area (+2.5%)
Projected five weakest markets:
- Reno/Sparks, Nev. (-7.2%)
- Orlando/Kissimmee, Fla. (-6.5%)
- Boise City/Nampa, Idaho (-6.4%)
- Deltona/Daytona Beach/Ormond Beach, Fla. (-6.3%)
- Port St. Lucie/Fort Pierce, Fla. (-6.3%)
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OBAMA ADMINISTRATION RELEASES DECEMBER HOUSING SCORECARD
December 22, 2010 by admin
Filed under Positive Real Estate
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the December edition of the Obama Administration’s Housing Scorecard. The latest housing figures show continued home affordability in the housing market, with interest rates near record lows, but the market remains fragile, as prices are unsettled. Foreclosure starts and completions dropped significantly in November, as lenders review internal servicing procedures. The housing scorecard is a comprehensive report on the nation’s housing market.
“The Obama Administration’s broad set of programs have helped promote stability for the housing market, neighborhoods, and the nation’s homeowners, but there is much more work to be done,” said HUD Assistant Secretary Raphael Bostic. “Since taking office in 2009, the Administration’s efforts have helped millions families stay in their homes and helped millions more refinance, but the data clearly show that the market remains extremely fragile. That’s why we’re continuing to focus on successfully implementing the programs we’ve put in place – such as additional refinancing assistance and emergency loans to help unemployed homeowners – and ensuring that help is available to homeowners as early as possible.”
“While much work remains to be done to help families that have been hurt by this crisis, the Administration’s programs have benefitted many homeowners directly while setting standards for the entire industry,” said acting Assistant Secretary for Financial Stability Tim Massad. “This is a major reason why there have been more than twice as many modifications and other foreclosure alternatives as foreclosure completions since April 2009.”
The December Housing Scorecard features key data on the health of the housing market including:
• Foreclosure starts and completions dropped significantly in November. As lenders review internal procedures related to foreclosure processing, many foreclosure actions have been delayed leading to a 21 percent drop in foreclosure activity in November. While this is the biggest month over month decrease since 2005, the decline is likely to be temporary as lenders eventually revise and resubmit foreclosure paperwork in the coming months.
• As expected with the expiration of the Homebuyer Tax Credit, new and existing home sales have remained below levels seen in the first half of 2010. However, this month’s report also shows that home prices and home equity declined moderately, as prices remain unsettled at this fragile stage of the recovery.
• More than 3.9 million mortgage aid offers were initiated between April 2009 and the end of October 2010 —more than double the number of foreclosure completions during that time. These actions included over 1.4 million Home Affordable Modification Program (HAMP) trial modification starts, more than 600,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and nearly 1.8 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the number of agreements offered were more than double the number of foreclosure completions for the same period (1.7 million). To view the November HAMP Servicer Performance Report, visit: http://www.financialstability.gov/docs/Nov%202010%20MHA%20Report.pdf.
Data in the scorecard also show that the recovery in the housing market continues to remain fragile. While the recovery will take place over time, the Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market.
Each month, the Housing Scorecard incorporates key housing market indicators and highlights the impact of the Administration’s unprecedented housing recovery efforts, including assistance to homeowners through the FHA and HAMP. The Obama Administration’s complete Housing Scorecard is available HERE.
REPORTING NOTE: Beginning in 2011, the HAMP Monthly Servicer Performance Report will be released at the beginning of each month to align all program reporting. The next Housing Scorecard and HAMP Report will be issued jointly on or about February 1, 2011.
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National Association of Realtors Pending Sales Upin October MOM
December 3, 2010 by admin
Filed under Pending Home Sales, Real Estate Articles
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NAR is reporting more homebuyers signed purchase contracts in October compared to September. This is their report .
Pending sales of existing homes rose 10.4 percent month-to-month in October, to 89.3. An index score of 100 is the average level of contract activity in 2001, the first year that index data was collected and a record year for existing-home sales.
