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Real Estate News
May Foreclosures Down 6% 6/11/09
According to RealtyTrac.com, May foreclosures fell 6% nationwide from the April level. However, foreclosures are up 18% from May 2008. May's number of 321,480 foreclosures is the 3rd highest on record. RealtyTrac estimates there will be 4 million foreclosures this year, up from 3.1 million in 2008. A "typical" year would have 800,000. The states with the highest foreclosure rate are - Nevada, California, Florida, Arizona, Michigan, Georgia, Colorado, Idaho, and Ohio. These 9 states make up well over half of all foreclosures in the US.
FHA May Allow Tax Credit As Down Payment 5/14/09
In a speech given to the National Association of Realtors, the secretary of HUD, Shaun Donovan, said the FHA is working on a proposal to allow first time home buyers to use the $8,000 tax credit as a down payment. If this comes to pass, buyers who are currently struggling to save money for a down payment will instantly add $8,000 to what they have accumulated. Right now buyers cannot claim the credit and receive the money until they file their income taxes next spring. Once this proposal becomes law, buyers will receive the $8,000 at closing to help make the down payment. It is expected that this will only apply to FHA or HUD backed loans.
Pending Homes Sales Rise 3.2% in March 5/4/09
The National Association of Relators released data showing that signed contracts for previously occupied homes rose 3.2% in March. This marks the second month in a row that sales have risen. After three years of falling sales this is another indication that the housing market is picking up. However, not all the news is rosy. The NAR estimated that 50% of current sales are foreclosed properties. Since it can take months to go through the foreclosure process, it is expected that foreclosures will make up a large percentage of sales for some time. In the southern US sales rose 8.5%, but they continue to fall in the northeast and midwest.
US Home Prices Fall 18.6% in February 4/28/09
The Standard and Poor's/Case-Shiller Index of home prices fell 18.6% in February. While the steep decline appears alarming this is viewed by some economists as good news because for the first time in 25 months it is not a record. Prices in the 20 city index have fallen 30.7% since their peak in the summer of 2006.
March Exisitng Homes Sales Drop 3% 4/27/09
The National Association of Realtors reported that sales of existing homes fell 3% from February. February values, which had shown an increase, were revised slightly downward. Unlike new home sales, this indicates the existing home market is still looking for a bottom. Half of all sales of existing homes are "distressed properties", meaning those that have undergone or are about to undergo foreclosure.
The median price for existing homes is now $175,200, up 4.2% from February but still down 12.4% from a year ago.
March New Home Sales Dip 0.6% 4/27/09
The Commerce Department reported that new home sales fell 0.6% from February. However, the previously reported February number was revised upward by 6%. Economists are saying this indicates the new home market may have hit bottom. The rate of sales of new homes has fallen 74% since the peak in July 2005.
The median price for new homes now stands at $201,400, down 12% from a year ago.
New Construction Falls 10.8% 4/16/09
Construction of new homes and apartments fell 10.8% in March to an annual rate of 510,000 units, according to the US Commerce Department. This is the second lowest rate in the 50 years the Commerce Department has compiled statistics. Applications for new construction also fell to an annual rate of 513,000 permits. However, construction of new single family homes stabilized at a rate of 385,000 units - the same as February. This may indicate a bottom in the fall of new construction. Also, less new construction means fewer homes will be added to the inventory of homes already for sale. This may lead to a tightening of home inventories in coming months.
Pending Home Sales Rise 2.1% 4/1/09
According to the National Association of Realtors, Pending Exisiting Home Sales rose 2.1% in February. The rise is from the all time low recorded in January. NAR has been tracking Pending Home Sales since 1970.
NAR estimates that 45% of the sales are foreclosed homes and other distressed properties. For this reason they expect prices to continue to fall for the remainder of the year.
Home Prices Drop 19% 3/31/09
Single Family Home prices have fallen 19% across the country between January 2008 and January 2009. The Standard and Poors/Case - Shiller index of home prices recorded its steepest ever 1 year drop during this period. The 2.8% decline between December 2008 and January 2009 is also the steepest 1 month drop ever. Since the peak in the second quarter of 2006, home prices have fallen 29.1%.
Prices in the Charlotte Metro Area have held up better than those nationally. The annual change from January 2008 to January 2009 only fell 8.2%, and 1.2% from December to January. The Charlotte market peaked in August 2007. Since then prices have fallen 11%, only a third as much as the national average. This indicates home prices in Western North Carolina are more stable than most of the rest of the country.
Mortgage Rates at Record Low 3/25/09
Mortage rates on a 30 year fixed have fallen to an alltime low. According to the Mortgage Bankers Association, rates now average 4.63% - the lowest since MBA began tracking them in 1990.
New Home Sales Surge 3/25/09
According to the Department of Commerce, new home sales unexpectedly rose 4.7% in February. The inventory of new homes fell from 12.9 months in January to 12.2 months. The average new home price now stands at $200,900. Prices have fallen 18.1% over the last year.
U.S. Home Prices Rise Unexpectedly 3/24/09
According to the Federal Housing and Finance Administration, home prices rose uenexpectedly in January. The national average rose 1.7% after a 0.2% decline in December. The greatest rise was in the South Atlantic region, which rose 3.6%. But nationally, prices are still down 6.3% from a year ago.
U.S. Existing Home Sales Up 5.1% 3/23/09
Nationally existing home sales rose 5.1% over a year ago. The price of existing homes has fallen 15.5% from this time last year. This is the second biggest decline on record. More information here.
Mortgage Rates at Historic Lows 3/21/09
On Wednesday (March 18, 2009) the Federal Reserve announced it would buy $1.25 trillion worth of US Treasury debt, mortgage backed securities, and debt issued by Fannie Mae and Freddie Mac. The immediate effect of this move was to cut the rate on the 10 Year US Treasury Bond by 0.5%. Most 30 year mortgages are based on the 10 Year Bond, so the US average mortgage rate fell to 4.94%. This is the lowest rate seen since HSH Associates began tracking it in 1979.
Bankrate.com has a graph showing how rates have moved in the last year. Bankrate Graph
New Home Buyer Tax Credit 3/20/09
As part of the government's economic stimulus package a new tax credit was included to help home buyers. The credit is worth up to $8,000 and can be used when you file your 2009 income taxes next spring. The credit is also refundable, meaning you may qualify for a check from the government even if you owed less than $8,000 in federal income taxes.
To qualify you must be a "first time home buyer". This is defined as someone who has NOT owned a home in the past 3 years. You must purchase the home between January 1 and December 1, 2009. There are also restrictions regarding income and home price. The National Association of Homebuilders have created a website to provide further details here: NAHB Tax Credit
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