S&P/Case-Shiller Home Price Index Shows Slight Increase In May 2011 With 4.51% Lower Values In Past 12 Months

26 07 2011
The current Radar Logic 25 MSA Composite data reported on residential real estate transactions (condos, multi and single family homes) that settled as late as May 23 and averaged for the month. The data indicates that with increasing transactions in the spring has come increasing prices (the typical trend). The national index increased 1.14% since April but still remains 5.89% below the level seen in May 2010.
  • S&P/CaseShiller home price index for the month of May comes in at 139.87, vs. the economist estimate of 139.80 and compared to a revised reading of 138.46 for the month of April.
  • The index fell 0.05% on a month-over-month basis and 4.51% from the same month last year.

For more:  http://www.streetinsider.com/Economic+Data/May+S%26PCaseShiller+Home+Price+Index%3A+139.87%2C+Down+4.51%25+YoY/6659312.html


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Categories : Economic Statistics, Home Sales, Home Values, Homes, Housing Market, Purchases, Statistics, Surveys

Residential Home Remodels Continue To Increase In 2011 With A 22% Increase Over 2010

25 07 2011

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  • The Residential BuildFax Remodeling Index rose 22% year-over-year–and for the nineteenth straight month–in May to 124.3, the highest number in the index to date
  • Residential remodels in May were up month-over-month 14.6 points (13%) from the April value of 109.7, and up year-over-year 22.1 points from the May 2010 value of 102.2
  • All regions were up month-over-month, with the Northeast up 9.8 points (12%), the South up 7.3 points (7%), the Midwest up 16.3 points (18%), and the West up 8.7 points (7%)
  • “Through the first five months of 2011 we have seen impressive gains within the remodeling index and May has continued that trend with a record setting month,” said Joe Emison, Vice President of Research and Development at BuildFax
  • “Even with the continued struggles in the economy, the remodeling industry has been a bright spot, as consumers look to make upgrades to their current homes, rather than purchasing a new residence
  • Based on the trends from the first months of this year, we expect to continue seeing strong gains from coast to coast.”
  • The BuildFax Remodeling Index is based on construction permits filed with local building departments across the country
  • The index tracks the number of properties permitted
  • The national and regional indexes all have an initial value of 100 set in April of 2004, are based on a three-month moving average, and are not seasonally adjusted

For more: http://www.buildfax.com/public/remodeling/index.html


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Categories : Home Values, Homes, Housing Market, Refinance, Rehabs, Remodeling, Statistics

Global Housing Bubbles: While American Home Values Have Lost Over 30% Since 2006, International Housing Markets Such As Britain Remain At “Lofty Levels”

14 07 2011

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  • America’s housing bust—the crash that began the global financial crisis—might be nearing an end
  • In a few countries, like China, Britain and France, values look dangerously frothy
  • Since 1987, home prices in Britain are up 400%, twice that of homes in America (post bubble)
  • Because buying a house usually involves taking on lots of debt, the bursting of this kind of bubble hits banks disproportionately hard
  • Research into financial crises in developed and emerging markets shows a consistent link between house-price cycles and banking busts.

CLICK ON "HOUSE-PRICE INDEX" TO VIEW INTERACTIVE CHART

For more:  http://www.economist.com/blogs/freeexchange/2011/03/global_house_prices&fsrc=nwl

 


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U.S. Housing Prices: S&P/Case-Shiller Home Price Index For Major Metropolitan Areas (April 2011)

12 07 2011

CLICK ON "RED DOTS" TO VIEW HOME PRICES SINCE 2000


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Categories : Economic Statistics, Home Sales, Homes, Housing Market, Purchases

U.S. Housing Market: Home Price Decline Is Bringing “Price-To-Rent” Ratio Back To Historical Norms Favoring Homebuyers In Long-Term

5 07 2011

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Starting in 2000, rent growth did not keep pace with the steep home price appreciation, pushing the price-to-rent ratio well above the historic average. Many market observers have identified the dislocation between prices and rents as both an indicator of the housing bubble and as a tool for helping to understand the relative affordability of these two housing options.

Home prices have been declining since 2006, forcing the price-to-rent ratio to revert to its long-term average. As of the first quarter of 2011, the price-to-rent ratio is slightly below 1.0, suggesting that on the national level renting is essentially the same as buying economically, although the trend seems to be tilting toward buying going forward.

For more:  http://nreionline.com/finance/news/rent_versus_buy_home_0705/

 


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Categories : FHA, Financing, Homes, Housing Market, Mortgage Industry, Purchases, Reports

Homebuyers Must Use Experienced And Reputable “Home Inspection Companies” To Assess The Home’s Condition And Necessary Repairs (Video)

20 06 2011

The importance of a thorough home inspection is explained in this informative video, which explains the process for both buyer and seller.


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Categories : Contractors, First-Time Homebuyer, Homes, Housing Market, Inspections, Rehabs, Remodeling, The 203k Guy

Homebuyer’s Should Use FHA 203k Renovation Loans To Purchase 2-4 Unit Homes Near California Coastal Areas To Benefit From Changes In Housing Trends According To UCLA’s Anderson School of Business Report

15 06 2011

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“…California is one of the youngest states in the nation, according to census data, with a median age of 35.2, compared with 38.0 in New York. Although there are many Gen Xers of home-buying age in the state, many “bore the brunt of sub-prime mortgage and housing bubble crash,” Nickelsburg said, and now do not think a home is a safe investment…”

  • UCLA forecasters have seen the future of California’s housing market, and it points towards more apartments near the coast, fewer McMansions in the desert
  • Expectations of rising fuel prices will encourage people to live closer to jobs along the Southland coast and in the San Francisco Bay Area
  • The state’s population is also skewing younger, meaning there will be more demand for urban rental units and less demand for suburban cul-de-sacs
  •  ”The incremental demand for housing is moving more into multifamily housing,” said Jerry Nickelsburg, senior economist with the forecast
  • “Many of the younger generation have been buffeted by the boom and bust in the housing market, and see value in living closer to work.”
  • Homebuyers could benefit from buying 2-4 unit properties with FHA 203k Renovation financing and benefit from increasing rents

 For more:  http://www.latimes.com/business/realestate/la-fi-econ-forecast-20110615,0,3144669.story


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Categories : 2-4 Units, 203k, Economic Statistics, FHA, Financing, Homes, Housing Market, Mortgage Industry, Rehabs, Statistics, The 203k Guy

Home Remodeling Projects: Homeowners Can Avoid Being “Scammed” By Contractors By Checking Licensing, Getting A Minimum Of Three Estimates, And Calling References

14 06 2011

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  • A homeowner’s biggest nightmare regarding remodels is “paying a contractor who walks off with the money”
  • You pay someone thousands of dollars — maybe tens of thousands — to fix your home, and the work isn’t done right.
  • But steps can be take to make sure the work gets done correctly and completely:
  1. Go online and look up the contractor’s “state” contractor license status
  2. State laws requires contractors to have a current license status, carry a minimum amount of insurance, and provide their license number on advertisements and contracts
  3. Check at least three contractors and get estimates from each of them
  4. The lowest bid might not be the best one if the  contractor uses substandard materials or doesn’t actually do the work
  5. Do not use a contractor who charges for an estimate, or stating in fine print that they will charge you if you choose a different builder
  6. Once you have the estimates, ask each contractor for references
  7. Then call those references
  8. Ask if there were problems with their project. If you’re doing a bigger project, ask for older references to see how the addition or deck has withstood the test of time

For more:  http://www.goerie.com/apps/pbcs.dll/article?AID=/20110614/NEWS02/306139933/-1/NEWSSITEMAP


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30-Year Fixed Mortgage Rates Fall To 4.49% As Weak Employment Reports Signal That Housing Market Will Remain Fragile According To Freddie Mac

9 06 2011

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  • 30-Year Fixed Rate mortgages averaged 4.49 percent with an average 0.7 point for the week ending June 9, 2011, down from last week when it averaged 4.55 percent. Last year at this time, the 30-year FRM averaged 4.72 percent.  
  • 15-Year Fixed Rate mortgages averaged 3.68 percent with an average 0.7 point, down from last week when it averaged 3.74 percent. A year ago at this time, the 15-year FRM averaged 4.17 percent.  
  • 5-Year Treasury Adjustable-Rate mortgages averaged 3.28 percent this week, with an average 0.5 point, down from last week when it averaged 3.41 percent. A year ago, the 5-year ARM averaged 3.92 percent.
  • 1-year Treasury Adjustable-Rate mortgages averaged 2.95 percent this week with an average 0.5 point, down from last week when it averaged 3.13 percent. At this time last year, the 1-year ARM averaged 3.91 percent.  

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

  • “Long-term Treasury yields moved lower following a weak jobs report and mortgage rates followed suit. The economy added 54,000 jobs in May, the fewest in eight months, and factories cut payrolls for the first time in seven months. As a result, the unemployment rate rose to 9.1 percent, representing the highest rate since December.
  • “The housing market continues to be fragile across the nation as well. In its latest regional economic review released June 8th, the Federal Reserve Board indicated that residential sales and home prices showed continued weakness in most Districts.”

For more:  http://freddiemac.mediaroom.com/index.php?s=12329&item=40882


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Categories : Economic Statistics, Freddie Mac, Homes, Housing Market, Mortgage Industry, Rates, Refinance

Home Prices Make New “Post Bubble” Lows As “Four-Year” Supply Of “Foreclosure Inventory” May Further Erode Home Values; Poor Condition Of REO’s Make Renovation Financing Critical

1 06 2011

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  • S&P Case-Schiller reported that house prices have hit a new post-bubble low, down almost a third from their 2006 peak
  • Pending home sales, according to the National Association of Realtors, fell by 27% in April 2011 from previous year
  • This represented an 11.6 percent fall for the month
  • Many buyers are swamped by negative equity in their current house and those who are not are reluctant to commit their own capital to a falling market
  • Tighter underwriting standards would force current homeowners to pay existing lender to cover the equity shortfall and then pay a larger down-payment for the new house
  • Continued sales of foreclosed homes is one of the prime forces driving prices lower
  • Banks are more willing to cut prices to get a sale done than homeowners
  • Many foreclosures are in poor condition, requiring further discounts to entice buyers
  • The foreclosure system is overwhelmed, even despite a drop in new foreclosure starts and delinquencies
  • Lawsuits over improper foreclosure procedures has slowed the process with banks deliberately holding properties back so as not to further erode prices
  • At the current rate of sales it will take more than four years for banks to sell off their existing inventory of foreclosed or seriously delinquent houses
  • More than 40 percent of delinquent mortgages have been delinquent for more than a year, according to Lender Processing Services

For more:  http://blogs.reuters.com/jamessaft/2011/05/31/u-s-housings-sinking-feeling/


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Categories : Bank-Owned, Defaults, Delinquencies, Foreclosures, Homes, Housing Market, Mortgage Industry, Purchases, Realtors, Statistics

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