Friday, November 2, 2012
Friday, October 5, 2012
Monday, September 17, 2012
'Mortgage Cops' Target Strategic Defaulters
'Mortgage Cops' Target Strategic Defaulters
The Office of the Inspector General at the Federal Housing Finance Agency is trying to find strategic defaulters and collect on what they still owe. Strategic defaulters are often underwater home owners who walk away from their mortgages even though they still have the means to pay.
Experian has estimated that 20 percent of all foreclosures are from startegic defaulters. The OIG estimates that strategic defaulters owe more than $1 billion to Fannie Mae and Freddie Mac, and they’re ready to start collecting.
The OIG is reportedly working with Fannie Mae and Freddie Mac to develop a mechanism for identifying strategic defaulters.
"Debts that haven't been repaid don't just go away," an unnamed Treasury Department official told The Chicago Tribune. "It doesn't matter whether it's on your credit report or not."
The OIG has an even harsher warning for strategic defaulters who have failed to disclose that they walked away from a previous loan on any new loan applications. The OIG says such walkaways have constituted mortgage fraud, and the OIG plans to refer them for criminal prosecution.
"We're not just going to demand repayment," says Heather Wolfe, OIG assistant inspector general for audits. "We're going to lock [people] up."
Source: “Mortgage Cops Taking Tough Stance,” The Chicago Tribune (Sept. 16, 2012)
Experian has estimated that 20 percent of all foreclosures are from startegic defaulters. The OIG estimates that strategic defaulters owe more than $1 billion to Fannie Mae and Freddie Mac, and they’re ready to start collecting.
The OIG is reportedly working with Fannie Mae and Freddie Mac to develop a mechanism for identifying strategic defaulters.
"Debts that haven't been repaid don't just go away," an unnamed Treasury Department official told The Chicago Tribune. "It doesn't matter whether it's on your credit report or not."
The OIG has an even harsher warning for strategic defaulters who have failed to disclose that they walked away from a previous loan on any new loan applications. The OIG says such walkaways have constituted mortgage fraud, and the OIG plans to refer them for criminal prosecution.
"We're not just going to demand repayment," says Heather Wolfe, OIG assistant inspector general for audits. "We're going to lock [people] up."
Source: “Mortgage Cops Taking Tough Stance,” The Chicago Tribune (Sept. 16, 2012)
Saturday, September 8, 2012
Tuesday, August 21, 2012
New listing in Brookhaven!
New listing in Brookhaven! Great bungalow for $170,000 with income suite potential
Thursday, August 16, 2012
Wednesday, August 15, 2012
Renovated $599,000 Riverwood High School
Renovated $599,000 Riverwood High School Check out this great house.
Tuesday, July 24, 2012
Underwater Home Owners Help Lift Home Prices?
Home owners who owe more on their mortgage than their home is currently worth actually may be helping to drive up home prices in certain markets, suggests CoreLogic in its July MarketPulse report.
These underwater home owners, who can’t afford to take a loss on the sales price of their home, are refusing to sell. As such, inventories are shrinking, giving buyers fewer options to choose from and lifting prices, according to the report.
Housing markets that are seeing some of the highest appreciation are also in states that have some of the highest number of underwater homes, according to CoreLogic.
"Negative equity is keeping many potential sellers out of the market, which keeps a lid on inventory and combined with the reduced flow of REO properties has led to much tighter market conditions for lower priced properties, particularly in the hardest hit markets," according to CoreLogic in its report.
Source: “CoreLogic: Negative Equity Pushes Prices up in Certain Markets,” HousingWire (July 16, 2012)
We are finding in Atlanta, well priced homes in excellent condition are pending sales in just a few days. We are also seeing many multiple offer situations. The market is starting to turn to a Sellers market.
If you are considering buying a home, take advantage of the LOW interest rates and the current prices to get in now. Inventory is shrinking!
These underwater home owners, who can’t afford to take a loss on the sales price of their home, are refusing to sell. As such, inventories are shrinking, giving buyers fewer options to choose from and lifting prices, according to the report.
Housing markets that are seeing some of the highest appreciation are also in states that have some of the highest number of underwater homes, according to CoreLogic.
"Negative equity is keeping many potential sellers out of the market, which keeps a lid on inventory and combined with the reduced flow of REO properties has led to much tighter market conditions for lower priced properties, particularly in the hardest hit markets," according to CoreLogic in its report.
Source: “CoreLogic: Negative Equity Pushes Prices up in Certain Markets,” HousingWire (July 16, 2012)
We are finding in Atlanta, well priced homes in excellent condition are pending sales in just a few days. We are also seeing many multiple offer situations. The market is starting to turn to a Sellers market.
If you are considering buying a home, take advantage of the LOW interest rates and the current prices to get in now. Inventory is shrinking!
Monday, July 16, 2012
Did he really say "That"?
President Barack Obama has some news for entrepreneurs: “If you’ve got a business -- you didn’t build that. Somebody else made that happen.”
That’s what the president said Friday during a campaign stop in Roanoke, Va. His point was that if you’re successful, “you didn’t get there on your own ... somebody along the line gave you some help.” And that somebody includes the government: public investments in roads, bridges, schools, the Internet, etc. -- “this unbelievable American system that we have that allowed you to thrive,” Obama said.
But the “you didn’t build that” line raised a few eyebrows in the business community.
Dan Danner, president and CEO of the National Federation of Independent Business , said Obama showed "an utter lack of understanding and appreciation for the people who take a huge personal risk and work endless hours to start a business and create jobs."
“Every small business is not indebted to the government or some other benefactor," Danner said. "If anything, small businesses are historically an economic and job-creating powerhouse in spite of the government.”
Andrea Saul, a spokeswoman for Republican presidential candidate Mitt Romney, said Obama's remarks were "insulting to the hard-working entrepreneurs, small-business owners, and job creators who are the backbone of our economy."
Amy Payne, a blogger for the Heritage Foundation, said this “slap in the face to hard-working Americans conveyed Obama’s belief that it takes a village -- a heavily subsidized village -- to create that venture you’re profiting from.”
That’s what the president said Friday during a campaign stop in Roanoke, Va. His point was that if you’re successful, “you didn’t get there on your own ... somebody along the line gave you some help.” And that somebody includes the government: public investments in roads, bridges, schools, the Internet, etc. -- “this unbelievable American system that we have that allowed you to thrive,” Obama said.
But the “you didn’t build that” line raised a few eyebrows in the business community.
Dan Danner, president and CEO of the National Federation of Independent Business , said Obama showed "an utter lack of understanding and appreciation for the people who take a huge personal risk and work endless hours to start a business and create jobs."
“Every small business is not indebted to the government or some other benefactor," Danner said. "If anything, small businesses are historically an economic and job-creating powerhouse in spite of the government.”
Andrea Saul, a spokeswoman for Republican presidential candidate Mitt Romney, said Obama's remarks were "insulting to the hard-working entrepreneurs, small-business owners, and job creators who are the backbone of our economy."
Amy Payne, a blogger for the Heritage Foundation, said this “slap in the face to hard-working Americans conveyed Obama’s belief that it takes a village -- a heavily subsidized village -- to create that venture you’re profiting from.”
Thursday, July 12, 2012
Is the Housing Crisis Over?
It’s official: The housing market has reached bottom, at least according to 44 forecasters surveyed by The Wall Street Journal. Only three economists surveyed said they didn’t think the market had reached bottom yet.
The recent momentum in housing has plenty of economists and forecasters convinced that the worst is behind. According to many real estate indices, home prices are up, sales of existing and new homes are picking up year-over-year, and inventories of for-sale homes have fallen dramatically.
The decrease in for-sale inventory is the key and will likely help maintain the rise in home prices, Mark Fleming, CoreLogic chief economist, told The Wall Street Journal.
What’s more, the number of vacant homes is at its lowest point since 2006, The Wall Street Journal reports.
Now that the “bottom” has been reached, economists admit there’s still a long way to go for a full recovery. In particular, more than one in every four home owners with mortgages are still underwater, owing more on their loan than their home is currently worth. However, analysts note that rising home prices are chipping away at that number. Also, shadow inventory of unsold homes and foreclosures still threaten the momentum of the recovery as well.
“From here on, housing is unlikely to drag the U.S. economy down further,” JPMorgan Chase economists note. “It will instead reflect the strength or weakness of the overall economy: The more jobs, the more confident Americans are about keeping their jobs, the more they are willing to buy houses.”
Source: “Housing Passes a Milestone,” The Wall Street Journal (July 11, 2012)
The recent momentum in housing has plenty of economists and forecasters convinced that the worst is behind. According to many real estate indices, home prices are up, sales of existing and new homes are picking up year-over-year, and inventories of for-sale homes have fallen dramatically.
The decrease in for-sale inventory is the key and will likely help maintain the rise in home prices, Mark Fleming, CoreLogic chief economist, told The Wall Street Journal.
What’s more, the number of vacant homes is at its lowest point since 2006, The Wall Street Journal reports.
Now that the “bottom” has been reached, economists admit there’s still a long way to go for a full recovery. In particular, more than one in every four home owners with mortgages are still underwater, owing more on their loan than their home is currently worth. However, analysts note that rising home prices are chipping away at that number. Also, shadow inventory of unsold homes and foreclosures still threaten the momentum of the recovery as well.
“From here on, housing is unlikely to drag the U.S. economy down further,” JPMorgan Chase economists note. “It will instead reflect the strength or weakness of the overall economy: The more jobs, the more confident Americans are about keeping their jobs, the more they are willing to buy houses.”
Source: “Housing Passes a Milestone,” The Wall Street Journal (July 11, 2012)
Thursday, June 7, 2012
Wednesday, June 6, 2012
Is the Housing Market Recovery Splitting in Two?
A new article at CNBC.com suggests that the real estate market is splitting in two, with the high-end segment soaring and the rest of the market continuing to struggle as it inches toward recovery mode.
“It’s become a tale of two markets,” Michael Simonsen, CEO of Altos Research, told CNBC.com. “At the high end, well-financed people have taken advantage of cheap money. And demand is up, inventory is down, and prices are responding.”
The article says that wealthy buyers tend to have good credit and are taking advantage of record low mortgage rates.
As such, in housing markets with median home prices of $1 million or more, home prices have jumped more than 10 percent year-over-year, according to Altos Research. Inventory is also down by 10 percent. What’s more, areas with a median home price of $10 million or more, home prices have risen 13 percent or more, according to Altos.
So how about the other “side” of the market? Unemployment and tightened lending conditions that have caused some buyers to struggle to obtain financing continues to slow the housing recovery, housing experts note.
Source: “Tale of Two Markets: No Downturn in Megahome Sales,” CNBC.com (June 5, 2012)
“It’s become a tale of two markets,” Michael Simonsen, CEO of Altos Research, told CNBC.com. “At the high end, well-financed people have taken advantage of cheap money. And demand is up, inventory is down, and prices are responding.”
The article says that wealthy buyers tend to have good credit and are taking advantage of record low mortgage rates.
As such, in housing markets with median home prices of $1 million or more, home prices have jumped more than 10 percent year-over-year, according to Altos Research. Inventory is also down by 10 percent. What’s more, areas with a median home price of $10 million or more, home prices have risen 13 percent or more, according to Altos.
So how about the other “side” of the market? Unemployment and tightened lending conditions that have caused some buyers to struggle to obtain financing continues to slow the housing recovery, housing experts note.
Source: “Tale of Two Markets: No Downturn in Megahome Sales,” CNBC.com (June 5, 2012)
Wednesday, May 23, 2012
Housing Recovery
Housing Recovery to Occur in Two Phases: Demand Institute
05/15/2012 By: Esther Cho
05/15/2012 By: Esther Cho 
The housing recovery will come in two phases. First, home prices will rise by just under 1 percent in the second half of 2012. In 2013, prices will rise by 1.5 percent, then go up another 2.5 percent in 2014. For the second phase, home prices will increase 3 to 3.5 percent between 2015 and 2017. These are the predictions from a report released by the Demand Institute, which is jointly operated by The Conference Board and Nielsen.
The report, titled The Shifting Nature of U.S. Housing Demand, stated investors who buy rental properties will lead phase one of the recovery, as opposed to buyers who purchase properties as their own residence.
However, Bart van Ark, chief economist at The Conference Board and co-author of the report, said the expectation for homeownership rates is not expected to change in the long-term.
The report, titled The Shifting Nature of U.S. Housing Demand, stated investors who buy rental properties will lead phase one of the recovery, as opposed to buyers who purchase properties as their own residence.
However, Bart van Ark, chief economist at The Conference Board and co-author of the report, said the expectation for homeownership rates is not expected to change in the long-term.
“Over 80 percent of Americans in recent surveys still agree that buying a home is the best long-term investment they can make. What will be intriguing to watch is how their aspirations around home ownership are affected by this period of extended austerity,” he said.
During the first phase, the demand for rental properties will come from young people hit hard by the recession and immigrants.
As investors buy up the oversupply of homes to take advantage of low prices and rising rents, the report also predicts that this will lead to the absorption of the existing surplus, which will clear by the start of 2015.
Then, phase two will begin with higher home prices and a return to home ownership.
According to the report, currently, 11 percent of homeowners say they would like to sell their home, but about half of these homeowners say they aren’t listing their property because they won’t get the price they want.
The prediction is that once prices rise by 3 percent in 2015, homeowners will start to return to the market, increasing the volume of home sales.
Credit will also become more accessible as standards ease, leading to more renters to become buyers. The report stated a crash in demand for rental properties is unlikely.
According to the report, about $7 trillion in American wealth was lost when home prices dropped 30 percent after the housing bubble burst.
During the first phase, the demand for rental properties will come from young people hit hard by the recession and immigrants.
As investors buy up the oversupply of homes to take advantage of low prices and rising rents, the report also predicts that this will lead to the absorption of the existing surplus, which will clear by the start of 2015.
Then, phase two will begin with higher home prices and a return to home ownership.
According to the report, currently, 11 percent of homeowners say they would like to sell their home, but about half of these homeowners say they aren’t listing their property because they won’t get the price they want.
The prediction is that once prices rise by 3 percent in 2015, homeowners will start to return to the market, increasing the volume of home sales.
Credit will also become more accessible as standards ease, leading to more renters to become buyers. The report stated a crash in demand for rental properties is unlikely.
According to the report, about $7 trillion in American wealth was lost when home prices dropped 30 percent after the housing bubble burst.
Tuesday, May 15, 2012
The Cost of Getting a Loan is on the Rise
The Cost of Getting a Loan is on the Rise
Closing costs for a mortgage averaged $4,143 last year, which is 12.4 percent higher than in 2010, Bankrate.com reports.
Despite record low mortgage rates, borrowers are finding the cost of getting a loan is on the rise.
Origination fees have posted some of the biggest increases, rising 12 percent in 2011 to $1,045, according to Bankrate.com data. Attorney costs and other settlement fees now average $544, a 9.6 percent increase. Appraisal fees have risen 7.8 percent, averaging $406.
Closing costs vary quite a bit among lenders so it can pay for borrowers to shop around, housing experts say. For example, origination fees can range anywhere from $123 to more than $2,000.
Analysts say part of the reason behind the increase in fees is the increased cost to lenders of processing loans with more paperwork required nowadays.
Last week, the Consumer Financial Protection Bureau proposed new rules to limit certain fees lenders require borrowers to pay at closing. One of the fees the agency said it hopes to ban is a fee referred to as “origination points” that buyers sometimes must pay at closing.
“Mortgages today often come with so many different types of fees and points that it can be hard to compare offers,” Richard Cordray, the director of the Consumer Financial Protection Bureau, told The New York Times. “We want to bring greater transparency to the market so consumers can clearly see their options and choose the loan that is right for them.”
Source: "Rising Costs Hit Homeowners Chasing Lower Rates," The Wall Street Journal (May 9, 2012) and “Consumer Bureau Proposes Mortgage Fee Limits,” REALTOR® Magazine Daily News (May 10, 2012)
Despite record low mortgage rates, borrowers are finding the cost of getting a loan is on the rise.
Origination fees have posted some of the biggest increases, rising 12 percent in 2011 to $1,045, according to Bankrate.com data. Attorney costs and other settlement fees now average $544, a 9.6 percent increase. Appraisal fees have risen 7.8 percent, averaging $406.
Closing costs vary quite a bit among lenders so it can pay for borrowers to shop around, housing experts say. For example, origination fees can range anywhere from $123 to more than $2,000.
Analysts say part of the reason behind the increase in fees is the increased cost to lenders of processing loans with more paperwork required nowadays.
Last week, the Consumer Financial Protection Bureau proposed new rules to limit certain fees lenders require borrowers to pay at closing. One of the fees the agency said it hopes to ban is a fee referred to as “origination points” that buyers sometimes must pay at closing.
“Mortgages today often come with so many different types of fees and points that it can be hard to compare offers,” Richard Cordray, the director of the Consumer Financial Protection Bureau, told The New York Times. “We want to bring greater transparency to the market so consumers can clearly see their options and choose the loan that is right for them.”
Source: "Rising Costs Hit Homeowners Chasing Lower Rates," The Wall Street Journal (May 9, 2012) and “Consumer Bureau Proposes Mortgage Fee Limits,” REALTOR® Magazine Daily News (May 10, 2012)
Thursday, May 10, 2012
Flood Insurance: Don’t Give Lenders One More Reason to Say ‘No’
Flood Insurance: Don’t Give Lenders One More Reason to Say ‘No’ Click this link and find out why this is important, especially if you live in a flood plain area.
Wednesday, May 9, 2012
Buying is Cheaper Than Renting in Nearly All Major Cities
Buying is Cheaper Than Renting in Nearly All Major Cities
Home buying is the smarter choice than renting, according to Trulia’s Winter 2012 Rent vs. Buy Index.
Buying a home is more affordable than renting in 98 of the nation’s 100 largest metro areas, according to the index, which tracks asking prices for rental units compared to for-sale homes in major metro areas.
The only two metros out of the 100 tracked where renting was found to be the better deal: Honolulu and San Francisco. Still, the index notes that if you plan to stay in those markets more than five years, you might still be better off owning than renting in those markets too.
Falling home values and low mortgage rates have made home ownership more affordable. Meanwhile, rents have been on the rise.
“As rents rise and prices stagnate, home ownership is becoming even more affordable, but rising rents create a dilemma for people who can’t afford to buy yet,” says Jed Kolko, Trulia’s chief economist. “Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring home owners face.”
Top 10 Metros to Buy vs. Rent
1. Detroit
2. Oklahoma City, Okla.
3. Dayton, Ohio
4. Warren-Troy-Farmington Hills, Mich.
5. Toledo, Ohio
6. Grand Rapids, Mich.
7. Cleveland, Ohio
8. Atlanta
9. Gary, Ind.
10. Memphis, Tenn.
By Melissa Dittmann Tracey, REALTOR® Magazine Daily News
Buying a home is more affordable than renting in 98 of the nation’s 100 largest metro areas, according to the index, which tracks asking prices for rental units compared to for-sale homes in major metro areas.
The only two metros out of the 100 tracked where renting was found to be the better deal: Honolulu and San Francisco. Still, the index notes that if you plan to stay in those markets more than five years, you might still be better off owning than renting in those markets too.
Falling home values and low mortgage rates have made home ownership more affordable. Meanwhile, rents have been on the rise.
“As rents rise and prices stagnate, home ownership is becoming even more affordable, but rising rents create a dilemma for people who can’t afford to buy yet,” says Jed Kolko, Trulia’s chief economist. “Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring home owners face.”
Top 10 Metros to Buy vs. Rent
1. Detroit
2. Oklahoma City, Okla.
3. Dayton, Ohio
4. Warren-Troy-Farmington Hills, Mich.
5. Toledo, Ohio
6. Grand Rapids, Mich.
7. Cleveland, Ohio
8. Atlanta
9. Gary, Ind.
10. Memphis, Tenn.
By Melissa Dittmann Tracey, REALTOR® Magazine Daily News
Friday, April 27, 2012
National Open House Weekend
The weather will be beautiful, take a drive or a walk and see what these homes have to offer.
Sandy Springs
45 Marchman Drive, $649,900- 4 bedroom 4.5 bath. Complete transformation of a 50's ranch, all the upgrades and features you are looking for. Super location, Pool. Award Wining schools- Riverwood High School
5154 Timber Trail South, $445,000- 4 bedroom 3 bath. Updated ranch in High Point. Great floor plan, bonus rooms, finished terrace level. 2 car garage. Beautiful lot on quiet hidden street. 2 miles from Chastain park, Award winning schools- Riverwood High School.
570 Pine Forest $350,000- 3 bedroom 2 bath. Charming galore in Meadowbrook. On the cul-de-sac, rocking chair porch, Amazing deck overlooking private back yard and meadow. Hardwood floors, updated kitchen, bath, huge laundry room and double carport.
Avondale Estates
3405 Burdett Court- $299,900- 3 bedroom 2.5 bath. Absolutely perfect home in the Village of Avondale. Priced under market value. 10 ft ceilings on main, open floor plan, screen porch and deck. Magnificient master suite. Second floor laundry and garage. Check out the secret garden and pergola.
I hope you will come and see these beautful homes on Sunday.
Thanks
Kim
The weather will be beautiful, take a drive or a walk and see what these homes have to offer.
Sandy Springs
45 Marchman Drive, $649,900- 4 bedroom 4.5 bath. Complete transformation of a 50's ranch, all the upgrades and features you are looking for. Super location, Pool. Award Wining schools- Riverwood High School
5154 Timber Trail South, $445,000- 4 bedroom 3 bath. Updated ranch in High Point. Great floor plan, bonus rooms, finished terrace level. 2 car garage. Beautiful lot on quiet hidden street. 2 miles from Chastain park, Award winning schools- Riverwood High School.
570 Pine Forest $350,000- 3 bedroom 2 bath. Charming galore in Meadowbrook. On the cul-de-sac, rocking chair porch, Amazing deck overlooking private back yard and meadow. Hardwood floors, updated kitchen, bath, huge laundry room and double carport.
Avondale Estates
3405 Burdett Court- $299,900- 3 bedroom 2.5 bath. Absolutely perfect home in the Village of Avondale. Priced under market value. 10 ft ceilings on main, open floor plan, screen porch and deck. Magnificient master suite. Second floor laundry and garage. Check out the secret garden and pergola.
I hope you will come and see these beautful homes on Sunday.
Thanks
Kim
3 Housing Trends Emerging This Spring
3 Housing Trends Emerging This Spring
What can home buyers expect to face this selling season? An improving housing market has made it a different picture in many areas compared to recent years, housing experts say. A recent article at Bankrate.com notes some of the following trends taking shape in the housing market this spring:
1. Fierce competition.
Housing affordability is at record highs, due to falling home values and mortgage rates hovering near record lows. More buyers are taking notice and jumping off the sidelines. And mixed with sinking inventories of homes listed for sale, the competition is getting more fierce.
Investors are snapping up bargain prices, often in all-cash deals, which means greater competition for traditional home buyers too.
"Rents are going up, and as long as there are properties at the level where investors can get the positive cash flow, they will continue to invest," says Jed Smith, managing director of quantitative research for the National Association of REALTORS®. Smith adds that first-time home buyers, in particular, may find increased competition from investors in trying to snag some of the best deals on the market.
2. More renters show desire to become home owners.
Recent surveys have shown that buying a home nowadays is more affordable than renting. As such, more renters are finding home ownership more enticing.
The signs are already starting to show: About 59.5 percent of tenants recently surveyed say they intend to renew their leases this year, which is the lowest rate since early 2009, according to a study by Kingsley Associates.
3. Mortgages may be a little pricier.
Fannie Mae, Freddie Mac, and the Federal Housing Administration recently have raised their loan fees, which means home buyers can expect to pay a little more for their mortgage this spring.
"Those who don't have credit scores in the high 600s to low 700s may be forced to go the FHA route," says Ed Conarchy, a mortgage planner at Cherry Creek Mortgage in Gurnee, Ill. "And they will be stuck with the higher fees."
Buyers with smaller down payments can expect to pay more for FHA mortgage insurance premiums, which have risen to 1.75 percent of the loan total. Bankrate.com cites an example illustrating the higher fees: A borrower who takes out a $200,000 FHA loan will likely have to pay about $3,500 for mortgage insurance upfront. Prior to the increase taking effect, borrowers would pay about $2,000 for that same loan amount.
Borrowers with higher mortgages can expect higher fees too. The FHA announced that in June it’ll increase its annual insurance for mortgages more than $625,500. "A borrower who lives in a high-cost area and takes out the maximum $729,750 (which is the FHA limit for high-cost areas) will pay $912 each month in mortgage insurance alone," Bankrate.com reports.
Read about more trends expected for the spring selling-season.
Source: “5 Mortgage and Housing Trends in Spring 2012,” Bankrate.com (April 21, 2012
1. Fierce competition.
Housing affordability is at record highs, due to falling home values and mortgage rates hovering near record lows. More buyers are taking notice and jumping off the sidelines. And mixed with sinking inventories of homes listed for sale, the competition is getting more fierce.
Investors are snapping up bargain prices, often in all-cash deals, which means greater competition for traditional home buyers too.
"Rents are going up, and as long as there are properties at the level where investors can get the positive cash flow, they will continue to invest," says Jed Smith, managing director of quantitative research for the National Association of REALTORS®. Smith adds that first-time home buyers, in particular, may find increased competition from investors in trying to snag some of the best deals on the market.
2. More renters show desire to become home owners.
Recent surveys have shown that buying a home nowadays is more affordable than renting. As such, more renters are finding home ownership more enticing.
The signs are already starting to show: About 59.5 percent of tenants recently surveyed say they intend to renew their leases this year, which is the lowest rate since early 2009, according to a study by Kingsley Associates.
3. Mortgages may be a little pricier.
Fannie Mae, Freddie Mac, and the Federal Housing Administration recently have raised their loan fees, which means home buyers can expect to pay a little more for their mortgage this spring.
"Those who don't have credit scores in the high 600s to low 700s may be forced to go the FHA route," says Ed Conarchy, a mortgage planner at Cherry Creek Mortgage in Gurnee, Ill. "And they will be stuck with the higher fees."
Buyers with smaller down payments can expect to pay more for FHA mortgage insurance premiums, which have risen to 1.75 percent of the loan total. Bankrate.com cites an example illustrating the higher fees: A borrower who takes out a $200,000 FHA loan will likely have to pay about $3,500 for mortgage insurance upfront. Prior to the increase taking effect, borrowers would pay about $2,000 for that same loan amount.
Borrowers with higher mortgages can expect higher fees too. The FHA announced that in June it’ll increase its annual insurance for mortgages more than $625,500. "A borrower who lives in a high-cost area and takes out the maximum $729,750 (which is the FHA limit for high-cost areas) will pay $912 each month in mortgage insurance alone," Bankrate.com reports.
Read about more trends expected for the spring selling-season.
Source: “5 Mortgage and Housing Trends in Spring 2012,” Bankrate.com (April 21, 2012
Tuesday, April 24, 2012
Low-ball Offers a Thing of the Past?
Low-ball Offers a Thing of the Past?
Last year, 10 percent of REALTORS® complained about receiving low-ball offers on listed homes — offers usually submitted by the buyer for 25 percent or more below the list price, according to a National Association of REALTORS® survey of its members. But that number has dropped drastically.
According to a survey this March of 4,500 agents and brokers, no REALTORS® complained about low-ball offers. The main problem nowadays: The sudden drop in inventory of for-sale homes has led to fewer homes available to sell.
For home buyers who still think they have a chance of hitting it lucky with a low-ball offer, they’re finding in many markets that their offers are more often being rejected or countered closer to the original asking price, the Los Angeles Times reports.
West Neal with Prudential Olympia in Olympia, Wash., recalls a buyer who came in recently with an offer of $150,000 for a home listed at $250,000. Eventually, they negotiated a final sales price of $230,000, but it took a lot of negotiating on the agents’ parts to get the buyer higher.
"Low-ball offers are down a lot because we're seeing more homes come on the market that are more realistically priced," Neal told the Los Angeles Times.
Source: “Low-ball Offers Decline in Some Housing Markets,” Los Angeles Times (April 22, 2012)
According to a survey this March of 4,500 agents and brokers, no REALTORS® complained about low-ball offers. The main problem nowadays: The sudden drop in inventory of for-sale homes has led to fewer homes available to sell.
For home buyers who still think they have a chance of hitting it lucky with a low-ball offer, they’re finding in many markets that their offers are more often being rejected or countered closer to the original asking price, the Los Angeles Times reports.
West Neal with Prudential Olympia in Olympia, Wash., recalls a buyer who came in recently with an offer of $150,000 for a home listed at $250,000. Eventually, they negotiated a final sales price of $230,000, but it took a lot of negotiating on the agents’ parts to get the buyer higher.
"Low-ball offers are down a lot because we're seeing more homes come on the market that are more realistically priced," Neal told the Los Angeles Times.
Source: “Low-ball Offers Decline in Some Housing Markets,” Los Angeles Times (April 22, 2012)
Friday, April 13, 2012
Thursday, April 12, 2012
Buyer Urgency Improves, More See Now Good Time to Buy
Buyer Urgency Improves, More See Now Good Time to Buy
More home buyers may jump off the sidelines this spring as they get more urgent about purchasing a home, fearing that home price and mortgage rate increases are on the horizon.
Housing surveys in recent weeks have shown that more Americans are seeing now a great time to purchase a home. In the most recent survey, 73 percent of Americans say now is a good time to buy, according to the latest Fannie Mae Housing Survey conducted in March. That’s up from 70 percent in February who said it was a great time to buy.
"Conditions are coming together to encourage people to want to buy homes," says Doug Duncan, Fannie Mae’s chief economist. "With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that home ownership is a more compelling housing choice."
Indeed, more buyer urgency is evident in the market. Thirty-three percent of those surveyed by Fannie say they expect home prices soon to increase, which is the highest percentage in a year. What’s more, nearly 40 percent say they expect mortgage rates to rise in the next year too, which is also up from previous surveys.
Coupled with that, 48 percent of Americans say they expect rents to continue to climb, and 44 percent say they expect their financial situation to improve in the next year.
Source: “More Americans Think It’s Time to Buy a Home,” MSN Real Estate (April 9, 2012
Housing surveys in recent weeks have shown that more Americans are seeing now a great time to purchase a home. In the most recent survey, 73 percent of Americans say now is a good time to buy, according to the latest Fannie Mae Housing Survey conducted in March. That’s up from 70 percent in February who said it was a great time to buy.
"Conditions are coming together to encourage people to want to buy homes," says Doug Duncan, Fannie Mae’s chief economist. "With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that home ownership is a more compelling housing choice."
Indeed, more buyer urgency is evident in the market. Thirty-three percent of those surveyed by Fannie say they expect home prices soon to increase, which is the highest percentage in a year. What’s more, nearly 40 percent say they expect mortgage rates to rise in the next year too, which is also up from previous surveys.
Coupled with that, 48 percent of Americans say they expect rents to continue to climb, and 44 percent say they expect their financial situation to improve in the next year.
Source: “More Americans Think It’s Time to Buy a Home,” MSN Real Estate (April 9, 2012
Thursday, March 22, 2012
Buying is Cheaper Than Renting in Nearly All Major Cities
Buying is Cheaper Than Renting in Nearly All Major Cities
Home buying is the smarter choice than renting, according to Trulia’s Winter 2012 Rent vs. Buy Index.
Buying a home is more affordable than renting in 98 of the nation’s 100 largest metro areas, according to the index, which tracks asking prices for rental units compared to for-sale homes in major metro areas.
The only two metros out of the 100 tracked where renting was found to be the better deal: Honolulu and San Francisco. Still, the index notes that if you plan to stay in those markets more than five years, you might still be better off owning than renting in those markets too.
Falling home values and low mortgage rates have made home ownership more affordable. Meanwhile, rents have been on the rise.
“As rents rise and prices stagnate, home ownership is becoming even more affordable, but rising rents create a dilemma for people who can’t afford to buy yet,” says Jed Kolko, Trulia’s chief economist. “Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring home owners face.”
Top 10 Metros to Buy vs. Rent
1. Detroit
2. Oklahoma City, Okla.
3. Dayton, Ohio
4. Warren-Troy-Farmington Hills, Mich.
5. Toledo, Ohio
6. Grand Rapids, Mich.
7. Cleveland, Ohio
8. Atlanta
9. Gary, Ind.
10. Memphis, Tenn.
By Melissa Dittmann Tracey, REALTOR® Magazine Daily News
Buying a home is more affordable than renting in 98 of the nation’s 100 largest metro areas, according to the index, which tracks asking prices for rental units compared to for-sale homes in major metro areas.
The only two metros out of the 100 tracked where renting was found to be the better deal: Honolulu and San Francisco. Still, the index notes that if you plan to stay in those markets more than five years, you might still be better off owning than renting in those markets too.
Falling home values and low mortgage rates have made home ownership more affordable. Meanwhile, rents have been on the rise.
“As rents rise and prices stagnate, home ownership is becoming even more affordable, but rising rents create a dilemma for people who can’t afford to buy yet,” says Jed Kolko, Trulia’s chief economist. “Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring home owners face.”
Top 10 Metros to Buy vs. Rent
1. Detroit
2. Oklahoma City, Okla.
3. Dayton, Ohio
4. Warren-Troy-Farmington Hills, Mich.
5. Toledo, Ohio
6. Grand Rapids, Mich.
7. Cleveland, Ohio
8. Atlanta
9. Gary, Ind.
10. Memphis, Tenn.
By Melissa Dittmann Tracey, REALTOR® Magazine Daily News
Wednesday, March 14, 2012
Seniors, Young Adults Will Influence Housing
Seniors, Young Adults Will Influence Housing
Aging Baby Boomers and their “Echo Boomer” children will significantly impact trends in the nation’s housing market over the next 20 years. In a new report released by the Bipartisan Policy Center, “Demographic Challenges and Opportunities for U.S. Housing Markets,” researchers at the National Association of REALTORS®, The Urban Institute, and the University of Southern California analyze key demographic trends and their likely influence on housing and homeownership in the United States.
Over the next two decades, the aging baby boomer generation will swell the nation’s senior population by 30 million. That demographic shift will likely help increase the supply of housing, since people over age 65 typically release much more housing than they absorb.
“The Northeast and Midwest are most likely to see a large number of older home owners selling their homes to younger home owners as the baby boomers age,” says NAR Chief Economist Lawrence Yun. “This increased supply could mean additional buying opportunities for Echo Boomers. That generation will absorb 75-80 percent of the available inventory of owner-occupied housing by 2020.”
The Echo Boom generation includes nearly 65 million people born between 1981 and 1995. NAR’s analysis illustrates the potential impact of economic and housing policy on this generation’s demand for homes as they come of age.
“Housing, jobs, and the economy are inextricably connected,” Yun says. “A strong recovery with favorable housing market conditions would encourage substantial growth in Echo Boomer households, which would help absorb the current vacant inventory and stabilize conditions for residential construction. Under a reasonable ‘middle’ recovery scenario, approximately 12 million new households will be formed over the next decade, requiring construction of up to 15 million new housing units.”
NAR President Moe Veissi notes that current market trends favor would-be home owners of all ages. “As the supply of rental housing continues to fall, rents are increasing,” he says. “At the same time, affordability for home owners is at a record high. For buyers who qualify and are ready to assume the responsibilities of owning a home, opportunity is knocking.”
Source: NAR
Over the next two decades, the aging baby boomer generation will swell the nation’s senior population by 30 million. That demographic shift will likely help increase the supply of housing, since people over age 65 typically release much more housing than they absorb.
“The Northeast and Midwest are most likely to see a large number of older home owners selling their homes to younger home owners as the baby boomers age,” says NAR Chief Economist Lawrence Yun. “This increased supply could mean additional buying opportunities for Echo Boomers. That generation will absorb 75-80 percent of the available inventory of owner-occupied housing by 2020.”
The Echo Boom generation includes nearly 65 million people born between 1981 and 1995. NAR’s analysis illustrates the potential impact of economic and housing policy on this generation’s demand for homes as they come of age.
“Housing, jobs, and the economy are inextricably connected,” Yun says. “A strong recovery with favorable housing market conditions would encourage substantial growth in Echo Boomer households, which would help absorb the current vacant inventory and stabilize conditions for residential construction. Under a reasonable ‘middle’ recovery scenario, approximately 12 million new households will be formed over the next decade, requiring construction of up to 15 million new housing units.”
NAR President Moe Veissi notes that current market trends favor would-be home owners of all ages. “As the supply of rental housing continues to fall, rents are increasing,” he says. “At the same time, affordability for home owners is at a record high. For buyers who qualify and are ready to assume the responsibilities of owning a home, opportunity is knocking.”
Source: NAR
Monday, March 12, 2012
Wednesday, March 7, 2012
Housing Affordability Soars to Record High
Housing Affordability Soars to Record High Daily Real Estate News Wednesday, March 07, 2012 -->Low mortgage rates and falling home values have brought housing within reach to more families than ever before, according to the latest National Association of REALTORS® housing affordability index. Housing affordability in January reached its highest level since NAR began tracking it in 1970. The index -- which tracks median home price, median family income, and the average mortgage rate -- reached 206.1 in January. "This is the first time the housing affordability index has broken the 200 mark, meaning the typical family has roughly double the income needed to purchase a median-priced home," says Moe Veissi, 2012 NAR president. "For buyers who can qualify for a mortgage, now is a very good time to become a home owner."An index of 100 means that median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, also accounting for a 20 percent down payment and 25 percent of gross income devoted to the mortgage principle and interest payments. NAR projects that affordability will remain high for the remainder of the year. "Housing inventory levels have declined to a point where conditions are becoming much more balanced in much of the country," Veissi said. "If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth."Source: National Association of REALTORS®
To avoid losing homes to foreclosure due to long response times for short sale transactions, three senators introduced legislation to speed up the short sale process.
Senators Lisa Murkowski (R-Alaska), Scott Brown (R-Massachusetts), and Sherrod Brown (D-Ohio) proposed the bill addressing the issue of short sales timelines on February 17. A short sale is a real estate transaction where the homeowner sells the property for less than the unpaid balance with the lender’s approval.
“There are neighborhoods across the country full of empty homes and underwater owners that have legitimate offers, but unresponsive banks,” said Murkowski. “What we have here is a failure to communicate. Why don’t we make it easier for Americans trying to participate in the housing market, regardless of whether the answer is ‘yes,’ ‘no’ or ‘maybe?’”
The legislation, also known as the Prompt Notification of Short Sale Act, will require a written response from a lender no later than 75 days after receipt of the written request from the buyer.
The lender’s response to the buyer must specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached. The servicer
Senators Lisa Murkowski (R-Alaska), Scott Brown (R-Massachusetts), and Sherrod Brown (D-Ohio) proposed the bill addressing the issue of short sales timelines on February 17. A short sale is a real estate transaction where the homeowner sells the property for less than the unpaid balance with the lender’s approval.
“There are neighborhoods across the country full of empty homes and underwater owners that have legitimate offers, but unresponsive banks,” said Murkowski. “What we have here is a failure to communicate. Why don’t we make it easier for Americans trying to participate in the housing market, regardless of whether the answer is ‘yes,’ ‘no’ or ‘maybe?’”
The legislation, also known as the Prompt Notification of Short Sale Act, will require a written response from a lender no later than 75 days after receipt of the written request from the buyer.
The lender’s response to the buyer must specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached. The servicer
will be limited to one extension of no more than 21 days.
The bill will also allow the buyer to be awarded $1000, plus “reasonable” attorney fees if the Act is violated.
According to a release from Short Sale New England, short sale homes do not bring down neighboring home values like foreclosed homes do, and 83 percent of short sale buyers are satisfied with their purchase, according to a 2012 Home Ownership Satisfaction Survey conducted by HomeGain.
“The current short sale process can be time consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a homeowner from foreclosure,” said Moe Veissi, president of the National Association of Realtors. “As the leading advocate for homeownership, realtors are supportive of any effort to improve the process for approving short sales.”
Equi-Trax released a survey last year on the issues real estate agents face when completing short sales. Guy Taylor, CEO at Equi-Trax, said 71.9 percent of respondents reported that a short sale can take four to nine months to complete, and they think that is simply too long.”
The survey also found that 18.2 percent of deals require less than three months to complete, with 10 percent requiring more than 10 months.
When agents in the survey were asked to how the short sale process can be improved, 57.6 percent said lenders should take less time to close transactions, 14 percent said borrowers should be better educated about short sales, and 40.4 percent said both of these changes are necessary to improve the process.
In April 2011, a similar bill was introduced by Reps. Tom Rooney (R-Florida) and Robert Andrews (D-New Jersey), but this version requested a response deadline of 45 days instead of 75 from lenders. The legislation never came up for debate before a House committee.
The bill will also allow the buyer to be awarded $1000, plus “reasonable” attorney fees if the Act is violated.
According to a release from Short Sale New England, short sale homes do not bring down neighboring home values like foreclosed homes do, and 83 percent of short sale buyers are satisfied with their purchase, according to a 2012 Home Ownership Satisfaction Survey conducted by HomeGain.
“The current short sale process can be time consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a homeowner from foreclosure,” said Moe Veissi, president of the National Association of Realtors. “As the leading advocate for homeownership, realtors are supportive of any effort to improve the process for approving short sales.”
Equi-Trax released a survey last year on the issues real estate agents face when completing short sales. Guy Taylor, CEO at Equi-Trax, said 71.9 percent of respondents reported that a short sale can take four to nine months to complete, and they think that is simply too long.”
The survey also found that 18.2 percent of deals require less than three months to complete, with 10 percent requiring more than 10 months.
When agents in the survey were asked to how the short sale process can be improved, 57.6 percent said lenders should take less time to close transactions, 14 percent said borrowers should be better educated about short sales, and 40.4 percent said both of these changes are necessary to improve the process.
In April 2011, a similar bill was introduced by Reps. Tom Rooney (R-Florida) and Robert Andrews (D-New Jersey), but this version requested a response deadline of 45 days instead of 75 from lenders. The legislation never came up for debate before a House committee.
Tuesday, March 6, 2012
'Rehab' Loans Surge in Popularity to Fix Up Properties
'Rehab' Loans Surge in Popularity to Fix Up Properties
'Rehab' Loans Surge in Popularity to Fix Up Properties
More borrowers are exploring financing options to cover the costs of rehabbing properties they buy. “Rehab” loans are surging in popularity, according to a New York Times article.
“We’re seeing an explosive growth in these loans,” says Ed Brehm with Prospect Mortgage, one of the country’s largest processors of 203(k) loans. The spike in demand is from the higher number of bank-owned properties as well as borrowers who can no longer get home equity loans, he says.
A survey in January from the National Association of REALTORS® found that 35 percent of the homes on the market are either short sales or foreclosures, and of those properties, 37 percent were considered “below” or “well below” average condition. The poor condition may have been from homes left abandoned or damaged from disgruntled home owners who were forced to leave.
The Federal Housing Administration’s 203(k) is particularly seeing an increase in interest among home purchasers. The loan covers the cost of buying the home but also for renovating it, and is paid back like a regular mortgage. The loan can be used for rehabbing the structure of the home to adding new floors and appliances.
Fannie Mae also offers rehab financial assistance as part of its HomePath lending program.
Source: “‘Rehab’ Loans to the Rescue,” The New York Times (March 1, 2012)
“We’re seeing an explosive growth in these loans,” says Ed Brehm with Prospect Mortgage, one of the country’s largest processors of 203(k) loans. The spike in demand is from the higher number of bank-owned properties as well as borrowers who can no longer get home equity loans, he says.
A survey in January from the National Association of REALTORS® found that 35 percent of the homes on the market are either short sales or foreclosures, and of those properties, 37 percent were considered “below” or “well below” average condition. The poor condition may have been from homes left abandoned or damaged from disgruntled home owners who were forced to leave.
The Federal Housing Administration’s 203(k) is particularly seeing an increase in interest among home purchasers. The loan covers the cost of buying the home but also for renovating it, and is paid back like a regular mortgage. The loan can be used for rehabbing the structure of the home to adding new floors and appliances.
Fannie Mae also offers rehab financial assistance as part of its HomePath lending program.
Source: “‘Rehab’ Loans to the Rescue,” The New York Times (March 1, 2012)
Wednesday, February 29, 2012
Top Dog in Atlanta
American Kennel Club: Lab still top dog in Atlanta
The Labrador Retriever is once again Atlanta’s favorite dog, but the German Shepherd and Cavalier King Charles Spaniel are rising in popularity, according to the American Kennel Club ’s 2011 ranking of the most popular breeds.
The most popular dogs in the area last year:
Atlanta Business Chronicle
Date: Tuesday, February 28, 2012, 1:47pm EST
The most popular dogs in the area last year:
- Labrador Retriever
- German Shepherd
- Golden Retriever
- Cavalier King Charles Spaniel
- Yorkshire Terrier
- Rottweiler
- Boxer
- French Bulldog
- Bulldog/Miniature Schnauzer/English Springer Spaniel (tied)
Monday, February 27, 2012
Saturday, February 25, 2012
Could Rising Rents Bump Up Home Sales?
Home sales may get a boost from the rising prices occurring in the rental market, which is making it cheaper to own rather than rent in a growing number of cities.
“We might see a spring season better than the numbers are predicting," Jay Brinkmann, the Mortgage Bankers Association's chief economist, said during the an MBA conference in Florida this week.
The number of renters in the country increased during the housing crisis, while home ownership dropped to a 14-year low. But with rental costs rising nationwide, more renters may be lured to buying a home, particularly with home prices falling and mortgage rates hovering at record lows.
Mike Fratantoni, MBA’s vice president of economics and research, is forecasting home sales to increase 10 percent in 2013. An improving employment picture also is expected to have a positive impact on housing, MBA economists noted.
Still, "everything is going to be based overall where the economy goes," Brinkmann said. "This is going to be a slow year. There are a number of headwinds we're facing in terms of economic growth."
Source: “MBA: Rising Rental Costs May Drive Home Sales Up,” HousingWire (Feb. 23, 2012)
“We might see a spring season better than the numbers are predicting," Jay Brinkmann, the Mortgage Bankers Association's chief economist, said during the an MBA conference in Florida this week.
The number of renters in the country increased during the housing crisis, while home ownership dropped to a 14-year low. But with rental costs rising nationwide, more renters may be lured to buying a home, particularly with home prices falling and mortgage rates hovering at record lows.
Mike Fratantoni, MBA’s vice president of economics and research, is forecasting home sales to increase 10 percent in 2013. An improving employment picture also is expected to have a positive impact on housing, MBA economists noted.
Still, "everything is going to be based overall where the economy goes," Brinkmann said. "This is going to be a slow year. There are a number of headwinds we're facing in terms of economic growth."
Source: “MBA: Rising Rental Costs May Drive Home Sales Up,” HousingWire (Feb. 23, 2012)
Wednesday, February 22, 2012
Fewer delinquent mortgage payments
Fewer Home Owners Behind on Payments
The number of home owners behind on their mortgage payments dropped to the lowest level in three years, according to a report of data from the fourth quarter of 2011 released by the Mortgage Bankers Association.
"Mortgage performance is also improving faster than the overall economy," says Jay Brinkmann, MBA's chief economist.
According to MBA, 7.6 percent of residential mortgages were at least 30 days past due on their payments in the fourth quarter of 2011. Last year, the percentage was 8.3, and the peak of 10 percent was reached in early 2010. Mortgage delinquencies usually hover around 5 percent in more stable markets.
Still, while the lower delinquencies serve as an important sign needed for a healing housing market, MBA still caution that the number of loans in foreclosure remains high. About 4.4 percent of all loans were in foreclosure in the fourth quarter. The peak reached one year earlier was 4.6 percent.
Source: “Mortgage Delinquencies Hit Three-Year Low,” The Wall Street Journal (Feb. 16, 2012)
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Distressed Sales Special Report: A Clean Slate
"Mortgage performance is also improving faster than the overall economy," says Jay Brinkmann, MBA's chief economist.
According to MBA, 7.6 percent of residential mortgages were at least 30 days past due on their payments in the fourth quarter of 2011. Last year, the percentage was 8.3, and the peak of 10 percent was reached in early 2010. Mortgage delinquencies usually hover around 5 percent in more stable markets.
Still, while the lower delinquencies serve as an important sign needed for a healing housing market, MBA still caution that the number of loans in foreclosure remains high. About 4.4 percent of all loans were in foreclosure in the fourth quarter. The peak reached one year earlier was 4.6 percent.
Source: “Mortgage Delinquencies Hit Three-Year Low,” The Wall Street Journal (Feb. 16, 2012)
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Distressed Sales Special Report: A Clean Slate
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