Fannie Mae: Confidence in Economy and Home Values Increasing

May 10, 2012 By

Both the expectation for home prices and the percentage of those who think the U.S. economy is on the right path reached record highs in Fannie Mae’s April 2012 National Housing Survey.

 

Americans continue to expect home prices to go up, with the projection averaging 1.3 percent over the next 12 months, the highest value recorded.

At 71 percent, a high percentage of Americans still say it is a good time to buy while the percentage who said it is a good time to sell was 15 percent, a 1 point increase from March.

“Overall, consumer views of housing market conditions have become more supportive of home purchases, and sustained healthy hiring is required to help realize these improved expectations,” said Doug Duncan, Fannie Mae chief economist.

Duncan also mentioned the recent figures on employment in April, which showed a decline in job growth.

“Friday’s report of a second consecutive setback in job creation supports the view that the housing recovery will remain uneven this year,” said Duncan.

The expectation for average rental prices decreased slightly to 3.6 percent; in March, respondents expected rent to go up by 4.1 percent over the next 12 months.

If respondents were to move, 32 percent said say they would rent while 64 percent said they would buy. The percentage of those who said they would rent increased 2 points and reached the highest level since November 2011.

The percentage of Americans who believe the economy is on the right track rose to 37 percent, a 2 point increase from the previous month and the highest level in the survey’s two-year history. Still, an even greater 56 percent believe the economy is moving in the wrong direction.

Also, 23 percent of Americans reported their household income is significantly higher than it was a year ago, while 36 percent said their household expenses are significantly higher since the same time period. Both categories rose 2 percentage points compared to March.

The percentage of those who think their financial situation will decline was unchanged from the previous two months at 12 percent, the lowest value recorded in over a year.

The Fannie Mae survey polled a nationally representative sample of 1,000 respondents aged 18 and older between April 4, 2011 and April 27, 2012.

 

provided by dsnews.com

Filed Under: PLREG Blog

Fixed Mortgage Average New All-Time Record Lows

May 5, 2012 By

Fixed Mortgage Rates Average New All-Time Record Lows

In Freddie Mac’s results of its Primary Mortgage Market Survey®, the average fixed mortgage rates found new all-time record lows, continuing to help keep homebuyer affordability high. The 30-year fixed averaged 3.84 percent, down from its previous all-time record low of 3.87 percent last registered on February 9, 2012. The 15-year fixed averaged 3.07 percent, also dropping below its previous all-time record low of 3.11 percent set April 12 of this year. The 1-year ARM also averaged a new all-time record low in the PMMS at 2.70 percent.

  • 30-year fixed-rate mortgage (FRM) averaged 3.84 percent with an average 0.8 point for the week ending May 3, 2012, down from last week when it averaged 3.88 percent. Last year at this time, the 30-year FRM averaged 4.71 percent.
  • 15-year FRM this week averaged 3.07 percent with an average 0.7 point, down from last week when it averaged 3.12 percent. A year ago at this time, the 15-year FRM averaged 3.89 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 percent this week, with an average 0.7 point, unchanged from last week when it averaged 2.85 percent. A year ago, the 5-year ARM averaged 3.47 percent.
  • 1-year Treasury-indexed ARM averaged 2.70 percent this week with an average 0.6 point, down from last week when it averaged 2.74 percent. At this time last year, the 1-year ARM averaged 3.14 percent.

According to Frank Nothaft, vice president and chief economist, Freddie Mac:

“Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week. Real Gross Domestic Product rose at an annualized rate of 2.2 percent in the first quarter of this year, down from the previous quarter of 3.0 percent and below the market consensus forecast of 2.5 percent. In addition, the 12-month growth in the core price index of personal consumption expenditures was 2.0 percent in March which matches the Federal Reserve’s implied inflation target.”

Filed Under: PLREG Blog, Real Estate News

Peter Lupus teams with IDX Broker to sync thousands of Arizona real estate listings with easy-to-use search page

May 2, 2012 By

 FOR IMMEDIATE RELEASE
May 1, 2012

EUGENE, ORE. – IDX, Inc. is pleased to announce the growing network of real estate agents and brokers utilizing the incredible IDX Broker software on their professional websites has grown once again, with the addition of a customizable IDX solution to the website of Peter Lupus. As a Gilbert, Arizona real estate broker with Peter Lupus Real Estate Groupe. Lupus has the unique ability to give his clients a comprehensive online property search directly on his website. Arizona Regional MLS (ARMLS) instantly displays thousands of detailed home listings on the results page of his website, giving home seekers on the website of Lupus a complete and thorough online search experience. Never before has such a dynamic tool been so easily accessible to Arizona potential buyers.

Lupus has not only brought thousands of homes to the fingertips of his clients, thanks to his IDX enabled website, he has also dramatically simplified the online property search. The five unique searches home seekers can experience, including the powerful advanced search, work to simultaneously narrow and focus the ARMLS listings. By creating custom search parameters, potential buyers can quickly be matched with the perfect home, on the website Lupus hosts. Style, school district, water features, and even acreage options can all be specified to guide home seekers through the tools and properties Lupus features online.

An administrative login page further simplifies the online real estate world, this time for Lupus. He can maintain his website with the tools his IDX solution has made available to him, such as the lead generation system and the ability to edit CSS and global wrapper to create a unique design for his website, in addition to the tools he can utilize in an effort to virtually circulate property listings throughout the online real estate market. Lupus, and his real estate website, has forever changed, thanks to IDX Broker software.

 

About Peter Lupus

 

Peter Lupus is the owner and principal broker of Peter Lupus Real Estate Group of Scottsdale, Arizona.
About IDX, Inc.

Based in Eugene, Oregon, IDX Inc. is nationally known as a leading provider of real estate search applications. IDX, Inc. actively manages over $1 trillion worth of active listings data from over 500 individual Multiple Listings Services (MLS). IDX, Inc. provides integrated IDX software, customizable listing search utilities and lead management tools for real estate based websites (IDX Broker). In addition to the primary web-based software, IDX also provides an integrated WordPress widget for use in WordPress based blogs and websites (IDX Broker WordPress Plugin ) as well as a dedicated mobile application available for the iPhone and iPad (myAgent IDX ). The entire suite of real estate software available from IDX is easy to manage and maintain and helps real estate professionals display real estate data from their multiple listing service (MLS) regardless of their technical ability. For more information on all the services provided by IDX, Inc., please visit www.idxbroker.com .

Filed Under: PLREG Blog

AZ Housing Market Data – April 2012

May 1, 2012 By

Filed Under: Home Buyers, Home Sellers, PLREG Blog

HOUSING TRICKLE-UP RECOVERY

May 1, 2012 By

AZ Housing on the Rise Valley wide

 

The crash of the housing market was notoriously fast and furious in Metro Phoenix. The ‘first-in / first out’ surge of activity we see today marks a lower-end market on fire—the result of the price clock dialed back a decade; the inventory of homes being depleted faster than new listings can replace them; and investors and first-time buyers fiercely competing for what inventory remains.

However, this 30 thousand foot level view misses a landscape of diverse market dynamics that follow from community and price range factors.

For example, while Metro Phoenix first quarter year-over-year sales are down, sales are up in the NE Valley’s resort corridor of Arcadia, Paradise Valley, Scottsdale, Carefree and Fountain Hills.

More specifically, year-over-year sales are down 8% Valley-wide, though not for lack of demand, but lack of inventory–down 40% from a year ago! 58% of current sales are in the distressed category–down 20% from a year ago. There’s only a 2.6-month supply of homes for sale and home prices average $183,000–up 15.5% from last year.

In the chart below we see both 2012 appreciation compared with 2011 and an overlay of the current ratio of distress to normal sales.

By contrast, when you narrow the focus to Scottsdale, year-over-year sales are up 25%. Home prices average $480,500, and there is a 4.4-month supply. That’s almost a 40% decrease in the month supply, with fewer than 30% distressed sales. And as you can see below, prices are up 6.4%.

Looking more broadly to the NE luxury resort corridor, the trend is clear:

We are seeing a trickle-up recovery moving to the mid/upper-range homes in the NE Valley, extending up to 2.5 million.

Naturally, as you climb the price-range ladder, the month supply goes up as well. However, even in Paradise Valley, where the average price is 1.4 million, the month supply is 10 months—down 40% from a year ago.

Sellers: Best opportunity in 5 years.

Buyers: Better hurry!

Filed Under: Home Buyers, PLREG Blog

Arizona Housing on the Rise

May 1, 2012 By

“For people who have been waiting to time their home purchases close to the market bottom, it’s time to start shopping,” said Dr. Stan Humphries, Chief Economist at Zillow on April 25. As far as Greater Phoenix is concerned, it would almost certainly have been a better idea to buy a home sometime between February 2009 and December 2011, because by April 25, 2012 the average $/SF for monthly sales had risen to $94.56, the highest point since January 11, 2009. Shopping now will probably be much harder work than at any time in the past 3 years. However waiting is likely to prove even more problematic as prices are currently rising by about 3% per month and supply is still falling. The lowest monthly $/SF of all was recorded on September 15, 2011, so market timers who chose August 15 to September 14 to close escrow did the best of all during what will probably come to be seen as the longest buying opportunity of a lifetime”.

It goes without saying that the 3% per month appreciation is a Valley wide projection. However, the dynamics of low supply and sustained demand runs across most all markets and price points, suggesting the ‘trickle up’ I’ve blogged about. All of this continues to be a flashing green light to buyers (if you can find them a house)!

Filed Under: Home Buyers, PLREG Blog, Real Estate News

Short Sales Start to Outpace Foreclosures

April 19, 2012 By

Short Sales Start to Outpace Foreclosures

Daily Real Estate News | Thursday, April 19, 2012

Banks are agreeing to more short sales, and for the first time,  short sale transactions are exceeding foreclosure deals, according to the most recent housing data from Lender Processing Services (LPS) Inc.

In January, short sales made up 23.9 percent of home purchases, according to LPS. Meanwhile, foreclosures made up 19.7 percent of sales.

Just one year prior, foreclosures made up the bulk at 24.9 percent of transactions while short sales made up 16.3 percent.

“It’s a fairly recent phenomenon that short sales have been increasing,” Jonathon Weiner, a vice president with LPS, told Bloomberg News.

So why are banks getting more agreeable to short sales? Banks are realizing that short sale transactions usually sell for higher prices than foreclosures. In fact, foreclosed homes tend to sell for 29 percent less, on average, than comparable non-distressed properties. Short sales tend to sell at a 23 percent discount, according to Lending Processing Services data from January.

Banks and government agencies in recent weeks have taken steps to speed up the short sale process, setting new timelines for how long mortgage servicers have to respond to short sales offers. Also, some banks, such as Wells Fargo and JPMorgan Chase, are even offering some home owners cash incentives — up to $35,000 — if they agree to do a short sale instead of let the home fall into foreclosure.

Source: “Short Sales Surpass Foreclosures as Banks Agree to Deals,” Bloomberg News (April 17, 2012)

Read More

Speed Up Short Sales, FHFA Directs Servicers

BofA Announces Shortened Short Sale Process

Filed Under: PLREG Blog

Fannie and Freddie Set Timeline Requirements for Short Sales

April 18, 2012 By

Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer within 30-60 days.

The GSEs issued new guidelines Tuesday that fall under the Servicing Alignment Initiative rolled out last fall and aim to bring greater transparency to the short sale process and expedite decisions related to these pre-foreclosure sales.

Not only is a short sale an effective foreclosure alternative when home retention is no longer an option, but it keeps homes occupied and helps to maintain stable communities, according to the Federal Housing Finance Agency (FHFA).

Addressing real estate practitioners’ No. 1 complaint about short sales, FHFA directed Fannie Mae and Freddie Mac to establish a new uniform set of minimum response times that servicers must follow in order to facilitate more efficient short sale transactions.

The GSEs’ new short sale timelines require servicers to make a decision within 30 days of receiving either an offer on a property under the companies’ traditional short sale programs or a completed Borrower Response Package (BRP) requesting short sale consideration, whether it’s through the federal government’s Home Affordable Foreclosure Alternative (HAFA) program or a GSE program.

If more than 30 days are needed, servicers must provide the borrower with weekly status updates and come to a decision no later than 60 days from the date the BRP or offer was received.

According to the GSEs, this 30-day add-on will provide some leeway for servicers who may need more time to obtain a broker price opinion (BPO) or a private mortgage insurer’s approval for a short sale. All decisions must be made within 60 days.

In the event a servicer makes a counteroffer, the borrower is expected to respond within five business days. The servicer must then respond within 10 business days of receiving the borrower’s response.

The GSEs plan to use the new short sale timelines to evaluate servicer compliance with the Servicing Alignment Initiative.

Edward DeMarco, acting director of the FHFA, says the GSEs new borrower communication and timeline requirements for short sales “set minimum standards and provide clear expectations regarding these important foreclosure alternatives.”

GSE servicers must comply with the new minimum communication time frames for all short sale evaluations conducted on or after June 15, 2012, although servicers are encouraged to begin implementing the new requirements sooner.

“I applaud Fannie and Freddie for finally coming out with real guidance with real world timelines for their servicers,” commented Anthony Lamacchia, broker/owner of McGeough Lamacchia Realty Inc., which specializes in short sales. “There is no question that this will help short sales and the market as a whole.”

Last year Freddie Mac completed 45,623 short sales, a 140 percent increase since 2009. Fannie Mae’s short sale completions shot up by 101 percent over the same period, totaling around 79,800 in 2011.

Filed Under: PLREG Blog, Real Estate News

Greater Phoenix Arizona Single Family Home Inventory April 2 – 2012

April 3, 2012 By

April 2 – Another way to look at the change in days of supply is by price range. So comparing April 1, 2011 with April 1, 2012 for Greater Phoenix single family homes:

Under $25,000    - 21 days – was 58
$25,000 to $50,000 – 28 days – was 112
$50,000 to $75,000 – 34 days – was 148
$75,000 to $100,000 – 44 days – was 132
$100,000 to $125,000 – 52 days – was 111
$125,000 to $150,000 – 60 days – was 108
$150,000 to $175,000 – 69 days versus 112
$175,000 to $200,000 – 79 days versus 133
$200,000 to $225,000 – 84 days versus 124
$225,000 to $250,000 – 93 days versus 134
$250,000 to $275,000 – 106 days versus 143
$275,000 to $300,000 – 107 days versus 159
$300,000 to $350,000 – 130 days versus 159
$350,000 to $400,000 – 143 days versus 173
$400,000 to $500,000 – 170 days versus 192
$500,000 to $600,000 – 190 days versus 228
$600,000 to $800,000 – 245 days versus 328
$800,000 to $1,000,000 – 340 days versus 406
$1,000,000 to $1,500,000 – 379 days versus 446
$1,500,000 to $2,000,000 – 496 days versus 705
$2,000,000 to $3,000,000 – 824 days versus 837
$3,000,000 and above – 1,291 days versus 978
Note that these numbers for inventory INCLUDE AWC status listings. Tomorrow we will look at the inventory EXCLUDING AWC.

April 1 – I have heard some people saying that we have less supply now than in 2005, when you allow for AWC listings. This is not true if we are talking about the extreme lows in supply that occurred at the end of March and beginning of April 2005, exactly seven years ago. On April 1, 2005 we had (across all areas & types) 8,342 active listings including 1,470 in AWC status, leaving us with 6,872 active listings without a contract.. On April 1, 2012 we have 21,841 active listings of which 7,666 are AWC and 14,175 are active without a contract. So 2005 was far lower and the shortage was across the board at almost all price ranges. However in 2005, supply rose rapidly from April 1 onward. Currently we are at the same level in active listings without contract as in the second week of September 2005. However our supply shortage is heavily skewed towards the lower price ranges.

Filed Under: PLREG Blog

Mortgage Servicers on a timeline for Short Sales

March 21, 2012 By

The link below will direct you to an article about the settlement that will keep Mortgage Servicers on a timeline for Short Sales.

 

http://housingwire.com/article/ag-settlement-starts-clock-short-sales

Filed Under: PLREG Blog Tagged With: , , ,
« Older Posts