Weekly Market Activity Report
For 12 consecutive weeks now, the number of homes for sale in the Twin Cities housing market has been higher than it was a year ago, and the gap between this year's inventory and last year's inventory at the same time has been steadily growing. There are currently 27,784 homes for sale, up 8.1 percent from this time in 2009. Inventory is not growing due to an influx of new sellers putting their homes on the market. Rather, its growing due to a drop in buyers who once were absorbing supply.
For the week ending August 21, there were 601 signed purchase agreements, down 40.6 percent from a year ago. That's the 15th consecutive week of significant declines compared to a year ago.
With supply growing and fewer buyers to purchase it, home sellers can expect a challenging fall and downward pressure on home values. Motivated sellers who want to move quickly may have to pursue aggressive pricing to attract buyers.
Monday, August 30, 2010
Wednesday, August 25, 2010
Foreclosures Surge 9% in July as Banks Crack Down
Foreclosures Surge 9% in July as Banks Crack Down
WashingtonPost.com
Friday, August 13, 2010
By Alex Veiga
LOS ANGELES -- The number of U.S. homes lost to foreclosure rose sharply in July, as lenders took back more properties from homeowners who had been in default for months on end.
Lenders repossessed 92,858 properties last month, up 9 percent from June and an increase of 6 percent from July 2009, the foreclosure-listing firm RealtyTrac said Thursday.
Banks have stepped up repossessions this year to clear out the backlog of bad loans. July marks the eighth consecutive month that the pace of homes lost to foreclosure has increased on an annual basis.
Still, the number of homeowners who have fallen behind on their payments remains high, and these borrowers are being allowed to stay in their homes longer. That's partly because lenders are reluctant to add to the glut of foreclosed homes on the market. They also are swamped with an unprecedented number of defaulting properties and have been overwhelmed by the volume.
The number of properties receiving an initial default notice -- the first step in the foreclosure process -- rose 1 percent last month from June but was down 28 percent compared with July of last year, RealtyTrac said. Initial defaults have fallen on an annual basis for the past six months.
The latest data reflect a foreclosure crisis that continues to drag on as many homeowners struggle to make their monthly payments amid high unemployment, slow job growth and an uneven rebound in home prices.
Among states, Nevada posted the highest foreclosure rate in July, with one out of 82 households receiving a foreclosure notice. Rounding out the top 10 states with the highest foreclosure rates last month were Arizona, Florida, California, Idaho, Michigan, Utah, Illinois, Georgia and Maryland.
Las Vegas continued to be the city with the highest foreclosure rate in the U.S., with one out of 71 homes receiving a foreclosure notice in July -- more than five times the national average.
Lenders are offering a variety of programs to modify their loans, but their success rates vary.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. More than 40 percent of participants, or about 530,000 homeowners, have fallen out of the administration's main effort to assist those facing foreclosure.
That program, known as Making Home Affordable, has provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009. RealtyTrac estimates more than 1 million American households are likely to lose their homes to foreclosure this year.
In all, 325,229 properties received a foreclosure-related warning in July, up 4 percent from June, but down 10 percent from the same month last year. That translates to one in 397 U.S. homes.
-- Associated Press
WashingtonPost.com
Friday, August 13, 2010
By Alex Veiga
LOS ANGELES -- The number of U.S. homes lost to foreclosure rose sharply in July, as lenders took back more properties from homeowners who had been in default for months on end.
Lenders repossessed 92,858 properties last month, up 9 percent from June and an increase of 6 percent from July 2009, the foreclosure-listing firm RealtyTrac said Thursday.
Banks have stepped up repossessions this year to clear out the backlog of bad loans. July marks the eighth consecutive month that the pace of homes lost to foreclosure has increased on an annual basis.
Still, the number of homeowners who have fallen behind on their payments remains high, and these borrowers are being allowed to stay in their homes longer. That's partly because lenders are reluctant to add to the glut of foreclosed homes on the market. They also are swamped with an unprecedented number of defaulting properties and have been overwhelmed by the volume.
The number of properties receiving an initial default notice -- the first step in the foreclosure process -- rose 1 percent last month from June but was down 28 percent compared with July of last year, RealtyTrac said. Initial defaults have fallen on an annual basis for the past six months.
The latest data reflect a foreclosure crisis that continues to drag on as many homeowners struggle to make their monthly payments amid high unemployment, slow job growth and an uneven rebound in home prices.
Among states, Nevada posted the highest foreclosure rate in July, with one out of 82 households receiving a foreclosure notice. Rounding out the top 10 states with the highest foreclosure rates last month were Arizona, Florida, California, Idaho, Michigan, Utah, Illinois, Georgia and Maryland.
Las Vegas continued to be the city with the highest foreclosure rate in the U.S., with one out of 71 homes receiving a foreclosure notice in July -- more than five times the national average.
Lenders are offering a variety of programs to modify their loans, but their success rates vary.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. More than 40 percent of participants, or about 530,000 homeowners, have fallen out of the administration's main effort to assist those facing foreclosure.
That program, known as Making Home Affordable, has provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009. RealtyTrac estimates more than 1 million American households are likely to lose their homes to foreclosure this year.
In all, 325,229 properties received a foreclosure-related warning in July, up 4 percent from June, but down 10 percent from the same month last year. That translates to one in 397 U.S. homes.
-- Associated Press
Tuesday, August 24, 2010
Weekly Market Activity Report
The Twin Cities Housing market has seen some impressive highs and puzzling lows this year. Unfortunately, the lows have persisted through summer, despite low interest rates and a diverse and affordable housing stock.
Although New Listings are about where they were last year (near 1,600), Pending Sales remain as low as they've been all summer. The week ending August 14 bore just 631 signed purchase agreements, down 38.5 percent compared to last year. The three-month total for pendings is 8,018 compared to 13,830 last year, which is an even heftier decline of 42.0 percent.
Active Listings are up to 27,784, 8.1 percent more than last year. Growing inventory is not the result of too many homes coming on the market but rather a product of not enough homes going off the market. With Months Supply of Inventory now at 7.8, it still remains a buyer's market out there.
The Twin Cities Housing market has seen some impressive highs and puzzling lows this year. Unfortunately, the lows have persisted through summer, despite low interest rates and a diverse and affordable housing stock.Although New Listings are about where they were last year (near 1,600), Pending Sales remain as low as they've been all summer. The week ending August 14 bore just 631 signed purchase agreements, down 38.5 percent compared to last year. The three-month total for pendings is 8,018 compared to 13,830 last year, which is an even heftier decline of 42.0 percent.
Active Listings are up to 27,784, 8.1 percent more than last year. Growing inventory is not the result of too many homes coming on the market but rather a product of not enough homes going off the market. With Months Supply of Inventory now at 7.8, it still remains a buyer's market out there.
Wednesday, August 18, 2010
Weekly Market Activity Report
For the week ending August 7, we didn't stray from the post-tax credit trends in the Twin Cities housing market. Pending sales remained entrenched in a holding pattern around 600 per week, continually underperforming last year's activity. The 659 purchase agreements signed were 36.5 percent below 2009 figures.
Weak sales means rising inventory. There are 27,664 homes available for sale, up 7.4 percent from a year ago. In August, there will be 8.64 homes available per buyer, up dramatically from the mark of 5.28 seen a year ago.
For now, Days on Market continues to drop slightly from last year, down 6.8 percent from a year ago to 127, but Percent of Original List Price Received at Sale for July 2010 declined from a year ago for the first time in several years, an indication that home prices will remain soft in the months ahead.
For the week ending August 7, we didn't stray from the post-tax credit trends in the Twin Cities housing market. Pending sales remained entrenched in a holding pattern around 600 per week, continually underperforming last year's activity. The 659 purchase agreements signed were 36.5 percent below 2009 figures.
Weak sales means rising inventory. There are 27,664 homes available for sale, up 7.4 percent from a year ago. In August, there will be 8.64 homes available per buyer, up dramatically from the mark of 5.28 seen a year ago.
For now, Days on Market continues to drop slightly from last year, down 6.8 percent from a year ago to 127, but Percent of Original List Price Received at Sale for July 2010 declined from a year ago for the first time in several years, an indication that home prices will remain soft in the months ahead.
Friday, August 13, 2010
Washington Post Article; FHA to Increase Fees
FHA set to increase fees paid by new borrowers
By Dina ElBoghdady
Washington Post Staff Writer
Friday, August 6, 2010
The Federal Housing Administration plans to raise the annual fees it charges new borrowers starting Sept. 7, which would add about $300 million a month to the agency's eroding cash reserves.
The insurance premiums are capped at 0.55 percent of the value of a loan. Earlier this week, the Senate voted to raise the cap to 1.5 percent. President Obama is expected to sign the measure this month.
But the FHA does not plan to raise the fees to the maximum level allowed, and it estimates that borrowers would pay about $38 more on average each month, agency officials said. The increase would not apply to current FHA loan holders.
Boosting the fees will give the agency a cash infusion and align its fee structure with that of private mortgage insurers, which were crowded out of the market as the popularity of FHA-insured loans grew.
The FHA does not make loans but insures qualified lenders against losses should loans go bad. By doing so, it enticed lenders that had retrenched to reenter the mortgage market, providing crucial support to the housing market. In the past 18 months, about 30 percent of new single-family home purchases and about 20 percent of refinancing deals were backed by the agency.
But as the agency's loan volume rose, so did its default rate. The cash reserves that the agency had for unexpected losses dropped below the threshold required by law last year. The FHA is under pressure to replenish its capital. If its cash remains depleted, taxpayers could be forced to cover the agency's losses for the first time.
Raising the premiums is a quick way for the agency to boost its cash cushion. It has resisted the move in the past for fear of shutting out qualified borrowers and hampering the housing market's recovery. But as the agency's finances worsened, housing officials relented.
Earlier this year, the FHA raised the upfront fees it charges borrowers. Those fees helped keep the agency cash-positive this fiscal year, with a net cash flow of $446 million as of June 30.
About a year ago, the FHA also asked Congress for authority to raise the annual fees. The increase was included in a broad FHA reform bill that passed the House in June. But when the Senate did not act on it, the FHA pushed for a free-standing bill that would allow for passage of the premium increase before Congress began its August recess.
"The premium is one of the more important measures," FHA Commissioner David H. Stevens said. "The desire to expedite that is simply a practical move."
Once Obama signs the measure, Stevens said the agency plans to raise the fee to 0.85 percent for new borrowers who have 5 percent equity and 0.9 percent for those with less than 5 percent.
The agency will also lower the upfront free from 2.25 percent to 1 percent. That will lighten the burden on consumers, he said. The upfront fees can be paid at closing or rolled into the loan.
The FHA has not given up on the broader reform measure, which the Senate plans to consider after the break. The proposal focuses on granting the FHA tougher lender enforcement capabilities.
By Dina ElBoghdady
Washington Post Staff Writer
Friday, August 6, 2010
The Federal Housing Administration plans to raise the annual fees it charges new borrowers starting Sept. 7, which would add about $300 million a month to the agency's eroding cash reserves.
The insurance premiums are capped at 0.55 percent of the value of a loan. Earlier this week, the Senate voted to raise the cap to 1.5 percent. President Obama is expected to sign the measure this month.
But the FHA does not plan to raise the fees to the maximum level allowed, and it estimates that borrowers would pay about $38 more on average each month, agency officials said. The increase would not apply to current FHA loan holders.
Boosting the fees will give the agency a cash infusion and align its fee structure with that of private mortgage insurers, which were crowded out of the market as the popularity of FHA-insured loans grew.
The FHA does not make loans but insures qualified lenders against losses should loans go bad. By doing so, it enticed lenders that had retrenched to reenter the mortgage market, providing crucial support to the housing market. In the past 18 months, about 30 percent of new single-family home purchases and about 20 percent of refinancing deals were backed by the agency.
But as the agency's loan volume rose, so did its default rate. The cash reserves that the agency had for unexpected losses dropped below the threshold required by law last year. The FHA is under pressure to replenish its capital. If its cash remains depleted, taxpayers could be forced to cover the agency's losses for the first time.
Raising the premiums is a quick way for the agency to boost its cash cushion. It has resisted the move in the past for fear of shutting out qualified borrowers and hampering the housing market's recovery. But as the agency's finances worsened, housing officials relented.
Earlier this year, the FHA raised the upfront fees it charges borrowers. Those fees helped keep the agency cash-positive this fiscal year, with a net cash flow of $446 million as of June 30.
About a year ago, the FHA also asked Congress for authority to raise the annual fees. The increase was included in a broad FHA reform bill that passed the House in June. But when the Senate did not act on it, the FHA pushed for a free-standing bill that would allow for passage of the premium increase before Congress began its August recess.
"The premium is one of the more important measures," FHA Commissioner David H. Stevens said. "The desire to expedite that is simply a practical move."
Once Obama signs the measure, Stevens said the agency plans to raise the fee to 0.85 percent for new borrowers who have 5 percent equity and 0.9 percent for those with less than 5 percent.
The agency will also lower the upfront free from 2.25 percent to 1 percent. That will lighten the burden on consumers, he said. The upfront fees can be paid at closing or rolled into the loan.
The FHA has not given up on the broader reform measure, which the Senate plans to consider after the break. The proposal focuses on granting the FHA tougher lender enforcement capabilities.
Freddie Mac Featured Perspective: “The Housing Market You’ve Been Saving For”
July 21st, 2010
In their "Featured Perspectives" section, Freddie Mac SVP of Single Family Sourcing Paul Mullings presents, “The Housing Market You’ve Been Saving For.”
The Housing Market You've Been Saving For
July 19, 2010 – Like a rare astronomical event, America is experiencing a conjunction between very affordable home prices and historically low mortgage rates that hasn't been seen for at least 50 years. Since nobody knows how long this will last, today's market is a rare buying opportunity for working families with stable incomes and good credit.
There are even some hints the present combination of historically low rates and more reasonably priced homes are beginning to slip away in some markets. For example, the National Association of Realtors' housing affordability index, while still high, has dropped nearly six percentage points in the past few quarters as existing home prices in many areas have reversed course and begun to rise again. (See chart)
So why aren't more families in the homebuying market? While job worries may have some potential buyers holding back, others are sitting on the sidelines because they are unsure about the new rules of the road for getting a conventional conforming mortgage. They are actually straightforward and not so difficult for families who have:
• A stable income;
• A good credit history
• A common-sense down payment. Generally, about five percent of the purchase price for a conventional, conforming mortgage. (Fortunately, there are down payment assistance programs for qualified borrowers.) Documentation – responsible lenders today will want documentation verifying your income (like W-2 forms, tax returns), employment, credit history, and assets – such as bank statements -- to verify savings.
• Under the new rules of the road, the lender must also obtain an impartial third-party appraisal that complies with tough new rules to verify that the value of the house you want will support the mortgage you need to finance it.
Anyone still unsure about the new rules should ask a reputable lender to pre-qualify them for a mortgage. Think of a pre-qualification letter almost like a driver's permit for the new rules of the homebuying road. A mortgage pre-qualification letter can:
• Confirm you can qualify for a mortgage
• Tell you how much you can expect to borrow;
• Make you a stronger home shopper since sellers won't have to worry about whether you can qualify for a mortgage.
During the pre-qualification process the lender will review your credit, financial, and employment information. There may be an application fee. Athough mortgage pre-qualifications are usually only good for a limited time they are still worth getting. The reason: even though you will need to apply for a mortgage once you find a house to buy, your pre-qualification letter helps clear the way by telling home sellers you're road-tested for the most affordable mortgage market in 50 years.
John C. Skoglund Jr.
Mortgage Banker - PHH Home Loans
Bringing families home…
612-599-8220 Direct
Web Site: http://phhonline.com/johnskoglund/
In their "Featured Perspectives" section, Freddie Mac SVP of Single Family Sourcing Paul Mullings presents, “The Housing Market You’ve Been Saving For.”
The Housing Market You've Been Saving For
July 19, 2010 – Like a rare astronomical event, America is experiencing a conjunction between very affordable home prices and historically low mortgage rates that hasn't been seen for at least 50 years. Since nobody knows how long this will last, today's market is a rare buying opportunity for working families with stable incomes and good credit.
There are even some hints the present combination of historically low rates and more reasonably priced homes are beginning to slip away in some markets. For example, the National Association of Realtors' housing affordability index, while still high, has dropped nearly six percentage points in the past few quarters as existing home prices in many areas have reversed course and begun to rise again. (See chart)
So why aren't more families in the homebuying market? While job worries may have some potential buyers holding back, others are sitting on the sidelines because they are unsure about the new rules of the road for getting a conventional conforming mortgage. They are actually straightforward and not so difficult for families who have:
• A stable income;
• A good credit history
• A common-sense down payment. Generally, about five percent of the purchase price for a conventional, conforming mortgage. (Fortunately, there are down payment assistance programs for qualified borrowers.) Documentation – responsible lenders today will want documentation verifying your income (like W-2 forms, tax returns), employment, credit history, and assets – such as bank statements -- to verify savings.
• Under the new rules of the road, the lender must also obtain an impartial third-party appraisal that complies with tough new rules to verify that the value of the house you want will support the mortgage you need to finance it.
Anyone still unsure about the new rules should ask a reputable lender to pre-qualify them for a mortgage. Think of a pre-qualification letter almost like a driver's permit for the new rules of the homebuying road. A mortgage pre-qualification letter can:
• Confirm you can qualify for a mortgage
• Tell you how much you can expect to borrow;
• Make you a stronger home shopper since sellers won't have to worry about whether you can qualify for a mortgage.
During the pre-qualification process the lender will review your credit, financial, and employment information. There may be an application fee. Athough mortgage pre-qualifications are usually only good for a limited time they are still worth getting. The reason: even though you will need to apply for a mortgage once you find a house to buy, your pre-qualification letter helps clear the way by telling home sellers you're road-tested for the most affordable mortgage market in 50 years.
John C. Skoglund Jr.
Mortgage Banker - PHH Home Loans
Bringing families home…
612-599-8220 Direct
Web Site: http://phhonline.com/johnskoglund/
Wednesday, August 11, 2010
Weekly Market Activity Report
For the week ending July 31, New Listings in the Twin Cities region were down 4.3 percent from last year, with 1,566 new properties coming onto the market. Pending Sales were down 34.3 percent from a year ago, as 651 purchase agreements were signed.
Over the last three months, there have been 13.4 fewer new listings than there were during the same period a year ago and 38.7 percent fewer pendings. This means increasing inventory. There were 27,627 Active Listings for Sale as of August 9, up 6.6 percent from the same point in 2009.
The growth in inventory, combined with slowed sales demand, means that the number of homes available per buyer in August has jumped to 8.64, up dramatically from the mark of 5.28 seen a year ago.
For the week ending July 31, New Listings in the Twin Cities region were down 4.3 percent from last year, with 1,566 new properties coming onto the market. Pending Sales were down 34.3 percent from a year ago, as 651 purchase agreements were signed.
Over the last three months, there have been 13.4 fewer new listings than there were during the same period a year ago and 38.7 percent fewer pendings. This means increasing inventory. There were 27,627 Active Listings for Sale as of August 9, up 6.6 percent from the same point in 2009.
The growth in inventory, combined with slowed sales demand, means that the number of homes available per buyer in August has jumped to 8.64, up dramatically from the mark of 5.28 seen a year ago.
Wednesday, August 4, 2010
Weekly Market Activity Report
Whether May or June or July, we're finding it difficult to report anything new to you for the warm weather months of 2010. Week-in and week-out, we're showing a recurring pattern of behavior in the Twin Cities housing market, and the week ending July 24 isn't much different. Pending Sales are at 628 for the week, down 37.8 percent compared to last year, and Active Listings for Sale are at 27,661, up 5.4 percent.
These percentage changes represent a bit of a holding pattern. In fact, we've been here since the expiration of the tax credit. There was a minor bump in Active Listings but it wasn't sufficient to convince us that we're heading toward another oversupply situation.
Days on Market and Months Supply of Inventory continue to indicate a favorable market for home buyers. But with interest rates remaining at historic lows, there appears to be no sense of urgency. We may see a minor kerfuffle in the market before the school year begins, but 1,000-plus pendings per week in August doesn't seem likely, let alone 800.
Whether May or June or July, we're finding it difficult to report anything new to you for the warm weather months of 2010. Week-in and week-out, we're showing a recurring pattern of behavior in the Twin Cities housing market, and the week ending July 24 isn't much different. Pending Sales are at 628 for the week, down 37.8 percent compared to last year, and Active Listings for Sale are at 27,661, up 5.4 percent.
These percentage changes represent a bit of a holding pattern. In fact, we've been here since the expiration of the tax credit. There was a minor bump in Active Listings but it wasn't sufficient to convince us that we're heading toward another oversupply situation.
Days on Market and Months Supply of Inventory continue to indicate a favorable market for home buyers. But with interest rates remaining at historic lows, there appears to be no sense of urgency. We may see a minor kerfuffle in the market before the school year begins, but 1,000-plus pendings per week in August doesn't seem likely, let alone 800.
Monday, August 2, 2010
Pantone Color of the Year
Move over, mimosa yellow, there's a new hue in town! Pantone LLC has just crowned Pantone 15-5519 Turquoise as the Color of the Year for 2010. Turquoise, an inviting, luminous hue, as the Color of the Year for 2010. Combining the serene qualities of blue and the invigorating aspects of green, Turquoise inspires thoughts of soothing, tropical waters and a comforting escape from the everyday troubles of the world, while at the same time restoring our sense of wellbeing.
In many cultures, Turquoise is believed to be a protective talisman, a color of deep compassion and healing, and a color of faith and truth, inspired by water and sky. Through years of color word-association studies, we also find that to many people, Turquoise represents an escape, taking them to a tropical paradise that is pleasant and inviting – even if it is only a fantasy.
Whether envisioned as a tranquil ocean surrounding a tropical island or a protective stone warding off evil spirits, Turquoise is a color that most people respond to positively. It is universally flattering, has appeal for men and women, and translates easily to fashion and interiors. With both warm and cool undertones, Turquoise pairs nicely with any other color in the spectrum. Turquoise adds a splash of excitement to neutrals and browns, complements reds and pinks, creates a classic maritime look with deep blues, livens up all other greens, and is especially trend-setting with yellow-greens.
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