CoreLogic: Jan. foreclosures mark 15-month decline

IRVINE, Calif. – Feb. 28, 2013 – According to CoreLogic’s National Foreclosure Report released today, the U.S. had 61,000 completed foreclosures in January 2013, down from 75,000 in January 2012, for a year-over-year decrease of 17.8 percent.

On a month-over-month basis, completed foreclosures rose from 56,000 in December 2012 to January’s 61,000, an increase of 10.5 percent. (Completed foreclosures averaged 21,000 per month before the recession.)

About 1.2 million homes were in some stage of foreclosure in the U.S. – the foreclosure inventory – in January. One year earlier, that number was 1.5 million, for a 21 percent drop, according to CoreLogic. The foreclosure inventory dropped 3.3 percent from December to January. About 3 out of every 100 homes with a mortgage (2.9 percent) were part of the foreclosure inventory in January.

“The backlog of distressed assets continues to fade,” says Mark Fleming, chief economist for CoreLogic. “The foreclosure inventory has fallen to a level not seen since mid-2009 … The improvement is widespread as only six states and 13 of the largest 100 metro areas had an increase in the foreclosure rate year over year.”

January 2013 report highlights

• The five states with the highest number of completed foreclosures for the 12 months ending in January 2013 were: California (96,000), Florida (95,000), Michigan (74,000), Texas (59,000) and Georgia (50,000). These five states account for almost half of all completed foreclosures nationally.

• The five states with the lowest number of completed foreclosures for the 12 months ending in January 2013 were: District of Columbia (96), Hawaii (458), North Dakota (508), Maine (538) and West Virginia (602).

• The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were: Florida (10 percent), New Jersey (7.2 percent), New York (5.1 percent), Nevada (4.7 percent) and Illinois (4.6 percent).

• The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Wyoming (0.4 percent), Alaska (0.6 percent), North Dakota (0.7 percent), Nebraska (0.8 percent) and Colorado (0.9 percent).

© 2013 Florida Realtors®

NAR: January pending home sales up in all regions

WASHINGTON – Feb. 27, 2013 – Pending home sales rose in January, making it 21 consecutive months for pending sales to rise above year-ago levels, according to the National Association of Realtors® (NAR). There were healthy monthly gains in all regions but the West, which is constrained by limited inventory – but it still improved slightly.

The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, increased 4.5 percent to 105.9 in January from a downwardly revised 101.3 in December and is 9.5 percent above January 2012 when it was 96.7. The data reflect contracts but not closings.

The January index is the highest reading since April 2010 when it hit 110.9, just before the deadline for the homebuyer tax credit. Aside from spikes induced by the tax credits, the last time there was a higher reading was in February 2007 when it reached 107.9.

“Favorable affordability conditions and job growth have unleashed a pent-up demand,” says Lawrence Yun, NAR chief economist. “Most areas are drawing down housing inventory, which has shifted the supply/demand balance to sellers in much of the country. It’s also why we’re experiencing the strongest price growth in more than seven years.”

Yun says he expects total housing sales to be higher in 2013 than 2012, but he doesn’t expect the increase to be as dramatic. However, he expects price increases this year to beat 2012.

The PHSI in the Northeast rose 8.2 percent to 84.8 in January and is 10.5 percent higher than January 2012. In the Midwest, the index increased 4.5 percent to 105.0 in January and is 17.7 percent above a year ago. Pending home sales in the South rose 5.9 percent to an index of 119.3 in January and are 11.3 percent higher January 2012. In the West, the index edged up 0.1 percent in January to 102.1 but is 1.5 percent below a year ago.

Yun expects approximately 5.0 million existing-home sales this year. However, price growth could exceed a 7 percent gain projected for 2013 if inventory supplies remain low. Previously, NAR had expected 5.1 million existing-home sales in 2013, while prices were forecast to rise 5.5 to 6.0 percent.

© 2013 Florida Realtors®

U.S. new-home sales jump to highest in 4½ years

WASHINGTON (AP) – Feb. 26, 2013 – U.S. new-home sales jumped in January from the previous month to the highest level since July 2008, a sign that the housing recovery is accelerating.

The Commerce Department said Tuesday that new-home sales rose nearly 16 percent in January to a seasonally adjusted annual rate of 437,000. The percentage increase was the largest in nearly 20 years. And December’s sales were revised higher to 378,000 from 369,000.

Steady job creation and near-record-low mortgage rates are spurring more Americans to buy houses. Sales of previously occupied homes rose to the highest level in five years last year.

At the same time, the number of previously occupied homes for sale is at a 13-year low. That shortage creates more demand for new homes. Builders began construction on the most houses and apartments in four years last year.

The supply of new homes for sale was unchanged last month at 150,000. That’s barely above August’s total of 143,000 – the smallest supply of new homes on records dating back to 1963.

At the current sales pace, it would take just 4.1 months to exhaust the number of new homes for sale, the lowest in eight years. Low inventories should encourage more construction.

Though new homes represent less than 20 percent of the housing sales market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the National Association of Homebuilders.

The increase in home building has helped boost construction hiring. The industry has gained 98,000 jobs since September, the best stretch since the spring of 2006.

Still, the increases in new-home sales are coming from depressed levels. Sales plummeted to a record low in 2011. And sales are still well below the 700,000 annual level that economists consider healthy.

The biggest gain in new-home sales was in the West, where they soared 45.3 percent. The supply of previously occupied homes in that region has fallen sharply. Sales jumped 27.6 percent in the Northeast, 11.1 percent in the Midwest but only 3.2 percent in the South.

A separate report Tuesday showed that home prices accelerated in December. The Standard & Poor’s/Case-Shiller 20-city home price index rose 6.8 percent in December compared with the same month a year earlier. That’s up from November’s 5.5 percent gain over the previous November.

Rising home prices can fuel the housing recovery by encouraging people to buy before prices increase further. They can also bring more sellers off the sidelines.

Higher home values also make homeowners feel wealthier, building confidence and encouraging more spending. And banks are more likely to provide mortgage loans if they are confident that home prices are rising.
 Copyright © 2013 The Associated Press, Christopher S. Rugaber, AP economics writer.

More Americans within reach of homeownership

WASHINGTON – Feb. 25, 2013 – In all, 74.9 percent of U.S. homes sold between the beginning of October and end of December were affordable to families earning the U.S. median income of $65,000, up nearly a percentage point from the 74.1 percent of homes sold the previous quarter, according to the latest National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).

“The most recent housing affordability data should be encouraging to many prospective home buyers, because it shows that homeownership remains within reach of median-income consumers even as most local markets appear to be on a recovery path,” says NAHB Chairman Rick Judson. In the latest HOI, 259 out of 361 metros qualify as “improving.”

“The median price of all new and existing homes sold in the fourth quarter of 2012 was $188,000, essentially unchanged from the previous quarter’s $189,000 that marked a nearly three-year high,” says NAHB Chief Economist David Crowe. “Affordability remains historically high thanks to favorable mortgage rates, even as national home price indexes show some rise in values.”

Ogden-Clearfield, Utah held its position as the nation’s most affordable major housing market for a second consecutive quarter at the end of 2012. There, 93.7 percent of families earning the area’s median income of $71,500 could afford a home.

New York-White Plains-Wayne, N.Y.-N.J. switched places with San Francisco-San Mateo-Redwood City, Calif. as the nation’s least affordable market. Just 28.4 percent of homes sold in San Francisco during the fourth quarter were affordable to families earning that area’s median income of $103,000.

Florida

In The Sunshine State, affordability ranged from a high of 93 percent in Lakeland-Winter Haven, where more than nine out of 10 residents could afford a home, to the state’s lowest-ranking metro, Miami-Miami Beach-Kendall, where less than 7 in 10 (66 percent) of resident could afford homeownership. Of the 22 Florida markets, only three had an affordability index below the national average.

HOI ranked the following Florida cities for affordability:

1. Lakeland-Winter Haven – 93%
2. Ocala – 90.6%
3. Deltona-Daytona Beach-Ormond Beach – 88.3%
4. Gainesville – 86.8%
5. Punta Gorda – 86.8%
6. Panama City-Lynn Haven-Panama City Beach – 85.6%
7. Tallahassee – 85.6%
8. Jacksonville – 85.2%
9. Port St. Lucie – 84.9%
10. Pensacola-Ferry Pass-Bren – 84.1%
11. Palm Coast – 82.9%
12. Crestview-Fort Walton Beach-Destin – 80.8%
13. Orlando-Kissimmee-Sanford – 80.7%
14. Tampa-St. Petersburg-Clearwater – 80.6%
15. Sebastian-Vero Beach – 79.7%
16. Palm Bay-Melbourne-Titusville – 79.1%
17. Fort Lauderdale-Pompano Beach-Deerfield Beach – 78.0%
18. Cape Coral-Fort Myers – 79.6%
19. North Port-Bradenton-Sarasota – 75.4%
20. West Palm Beach-Boca Raton-Boynton Beach – 74.7%
21. Naples-Marco Island – 69.7%
22. Miami-Miami Beach-Kendall – 66.0%

The HOI measures the percentage of homes sold in a given area affordable to families earning the area’s median income. Core Logic, a data and analytics company, collects prices of new and existing homes from court records. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Agency.

© 2013 Florida Realtors®

Qualified Mortgage (QM) process outlined

WASHINGTON – Feb. 22, 2013 – The federal government’s Consumer Financial Protection Bureau (CFPB) issued a rule for the qualified mortgage (QM) that becomes effective in January 2014. The QM creates consumer protection rules for mortgage lending that could make it harder for some buyers to get a mortgage.

The QM information recently released gives loan servicers, industry watchers and consumers a look at the rulemaking process. The rule, which implements a part of Wall Street reform enacted three years ago, forces lenders to make sure loan applicants demonstrate a reasonable ability to repay. If they show that ability, it’s considered a “qualified mortgage.” The rule sets out standards for what’s measured.

The agency says it took into account the needs of both consumers and the mortgage industry in making the rule.

“Our rule should not unduly restrict lenders’ ability to make responsible loans,’” says Peter Carroll, assistant director of mortgage markets at CFPB. “Over time, we expect to see responsible lending practices flourish for all residential mortgage loans.”

Earlier this month, the CFPB issued a guide to aid the implementation of the new mortgage rules. Among the propositions, the agency plans to release plain-language written summaries and video guides for the new rules this summer. The CFPB added that the transition should not be overly jarring, as “the vast majority of loans originated today will meet the standards for a qualified mortgage.”

The agency has not yet released a related rule under Wall Street reform, called the qualified residential mortgage (QRM) rule. While the QRM attempts to qualify loans as acceptable for sale to Fannie Mae and Freddie Mac, some of the standards applied to consumers could overlap. That rule should be released shortly.

For more info on QM

• Implementation strategy
• Ability to pay explained
• Overview of regulations

Source: Meg White, Realtor® Magazine

© 2013 Florida Realtors®

MiamiPropertiesByEnrique

Fla.’s housing market continues upswing in Jan. 2013

NAR: Jan. existing-home sales hold with steady price gains

ORLANDO, Fla. – Feb. 21, 2013 – Florida’s housing market reported increased sales, higher median prices, more pending sales and the continued shrinking of inventory levels in January, according to the latest housing data released by Florida Realtors®.

“This year started out strong for Florida’s housing market,” said 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. “Homes sales continue to rise, mortgage rates remain near historic lows and the inventory of for-sale homes is lower than it’s been in years. Plus, the time it takes for a home to sell is dropping; the median days a home is on the market declined about 15 percent for both single-family homes and for townhome-condo properties. However, overly restrictive credit requirements remain an obstacle for many potential buyers, who find it difficult to access affordable financing options.”

Statewide closed sales of existing single-family homes totaled 13,679 in January, up 11.7 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes last month rose 31 percent over the previous January. The statewide median sales price for single-family existing homes last month was $145,000, up 12.4 percent from the previous year.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in December 2012 was $180,300, up 10.9 percent from the previous year. In California, the statewide median sales price for single-family existing homes in December was $366,930; in Massachusetts, it was $303,500; in Maryland, it was $243,741; and in New York, it was $229,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhouse-condos, a total of 6,670 units sold statewide last month, up 2 percent compared to January 2012. Meanwhile, pending sales for townhouse-condos in January increased 17 percent compared to the year-ago figure. The statewide median for townhouse-condo properties was $112,000, up 18 percent over the previous year. NAR reported that the national median existing condo price in December 2012 was $184,100.

This is the 13th month in a row that statewide median sales prices for both single-family homes and for townhouse-condo units have increased year-over-year, according to Florida Realtors’ data.

The inventory for single-family homes stood at a 5.6-months’ supply in January; inventory for townhouse-condos was at a 6.2-months’ supply, according to Florida Realtors.

“I’m particularly impressed with the rise in percentage of list price received by sellers,” said Florida Realtors Chief Economist Dr. John Tuccillo, referring to the January data. Sellers of single-family existing homes in January received an average of 92.2 percent of their original list price; sellers of townhome-condo units received an average of 93 percent.

“This can encourage other potential sellers to come forward, thus easing the market’s inventory crunch,” Tuccillo noted. “But, despite the progress of Florida’s housing market, it’s still being held back by the difficulty consumers have in accessing credit.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.41 percent in January 2013, down from the 3.92 percent average during the same month a year earlier.

To see the full statewide housing activity report, go to Florida Realtors website and click on the Research page; then look under Latest Housing Data, Statewide Residential Activity and get the January reports. Or go to Florida Realtors Media Center and download the January 2013 data report PDFs under Market Data. (http://media.floridarealtors.org/market-data)

© 2013 Florida Realtors®

MiamiPropertiesByEnrique

Is a smart home in your future?

SAN JOSE, Calif. – Feb. 20, 2013 – Wouldn’t it be great if you could push a button at night, and all of your doors would lock, your lights would turn off, and your alarm would set automatically?

That kind of “smart home” feature may sound futuristic or simply beyond reach for those without a lot of money or technical expertise. But the technology is already available and new products and services are making it and similar home automation features increasingly accessible to the average homeowner.

“It appears that we may be at a turning point,” said Chet Geschickter, an analyst with Gartner, a market research group. “We may have all the raw materials for this interoperable home automation world.”

In recent months, some major corporations have announced new products and services that could help turn the smart home into a mass market activity. Among the developments:

AT&T announced it will be rolling out its home automation initiative in March and plans to offer the service in 58 markets nationwide by the end of the year. The service will offer connected door locks, thermostats and video cameras as well as basic security protection. Unlike a similar service offered by Comcast, AT&T’s will be sold separately from the company’s broadband offerings.

Lowe’s introduced a collection of add-on services for its Iris home automation kits, which it unveiled last summer. Among the new features are sensors designed to help consumers monitor their elderly parents, an automated pet door that users can lock or unlock remotely, and a lawn moisture sensor that notifies customers when their yards are getting dry and allows them to turn on their sprinkler system remotely.

ADT, the home security giant, added the ability to remotely lock and unlock doors to its Pulse home automation offering. The company already allowed users to adjust their lighting and thermostat and view security video of their home remotely.

Home appliance maker LG showed off a new washer and dryer set that users can start remotely with their smartphones.

The promise of widely available home automation has been around since “The Jetsons” aired 50 years ago. But until recently, smart home systems have been pricey and complex, typically requiring professional installation. And few consumers have been aware of the availability of such services or haven’t been convinced that they needed them.

But in recent years, major consumer service providers – including ADT, Comcast and Vivint – have entered the market, helping promote the concept of home automation and make it more accessible to average consumers. Companies such as Comcast and Vivint now offer basic home automation systems for less than $500 installed. And Lowe’s Iris, which is available for about $300 for a full system, is designed for self-installation.

“We definitely see that (home automation) is moving increasingly into the mainstream,” said Jonathan Collins, an analyst with ABI Research.

Helping drive the decline in price and ease of use are standardized wireless technologies such as ZigBee and Z-Wave that allow users to install light controllers and automated door locks without needing to rewire their house. Such technologies have allowed electronics manufacturers to design more modular and expandable systems, letting users and service providers customize systems for individual needs and budgets.

The spread of broadband, cloud computing and smartphones have also provided new and compelling ways for consumers to interact with home automation systems, say analysts. For example, smart home services can take the smartphone’s location information and use it as a trigger for doing things like turning on lights or sending alerts.

“Without a smartphone, (the smart home) wasn’t really an exciting value proposition,” said Lisa Arrowsmith, a research manager at IHS Electronics and Media.

And new features are making such systems more attractive to consumers, analysts and industry insiders say. Video monitoring, for example, has proved particularly popular among ADT’s customers. And the growing awareness around energy conservation is driving the adoption of smart thermostats that can adjust temperatures when consumers are away or in response to signals from utility companies seeking to reduce peak demand.

To be sure, home automation still isn’t for everyone. While less expensive and easier to install than before, they still aren’t cheap, and many consumers may still need help configuring them.

The smart home services offered by ADT, Comcast and other providers typically are sold only with other services, such as security protection or broadband access. And they generally require users to sign long-term contracts that can include pricey monthly subscription fees.

Also, many smart home technologies and devices are incompatible with one another. So consumers who want to add on to their systems or change their service providers may find they have limited options -- unless they want to start from scratch.

“There still are some questions that need be to be answered around this market,” Arrowsmith said. “I don’t think we’re going to wake up tomorrow and everyone’s got one, but we are seeing decent growth rates.”

© 2013 San Jose Mercury News (San Jose, Calif.) Distributed by MCT Information Services.