Housing Market: California Home Sales And Prices Expected To Rise In 2013 At Slower Rate Due To Effects Of “Underwater Borrowers”

5 10 2012

When will the housing market be “corrected?”The housing recovery in California is expected to continue through to 2013, but the market won’t be “corrected” until as far off as 2017, according to the California Housing Market Forecast released by the CALIFORNIA ASSOCIATION OF REALTORS.

  • Homes sales and prices are expected to keep rising, but lower-than-normal inventory levels and underwater mortgages are key hindrances to a faster recovery, according to Leslie Appleton-Young, chief economist with the CALIFORNIA ASSOCIATION OF REALTORS®.
  • Home sales are forecasted to rise 1.3 percent to 530,000 units next year, based on the projected tally of 523,300 units this year. That’s a slower growth than that of 2011 to 2012, which is roughly 5 percent.
  • The momentum in prices also is expected to carry through to 2013, a result of pent-up demand for a limited housing supply. The median price could rise 5.7 percent to $335,000 in 2013. That’s lower than the projected price growth from 2011 to 2012, an estimated 11 percent. The state has a 3.2 months’ worth of housing inventory, significantly lower than the 16 months’-plus supply of saw roughly four years ago.
  • “Pent-up demand from first-time buyers will compete with investors and all-cash offers on lower-priced properties, while multiple offers and aggressive bidding will continue to be the norm in mid- to upper-price range homes,” said Appleton-Young in the report.
  • Appleton-Young says what underwater borrowers throughout the state will do — be it selling or holding — will have a big effect on next year’s housing recovery.
  • Other things to watch next year that will have a bearing on the housing market include: policies related to the state,local and federal governments; and housing and monetary policies, Appleton-Young said.

California Foreclosure Filings, Notice Of Sale And Inventories Decrease In Aug 2012

12 09 2012


Housing Market: Home Prices Increase 3.8% For Latest Year In July 2012, Biggest Increase Since 2006

5 09 2012

Housing Market: S&P Case-Shiller Home Price Index Increases 0.5% In June 2012; Prices Return To Summer 2003 Levels

28 08 2012

Housing Market: Latest Data Shows Home Prices Increasing Annually Year-Over-Year For First Time Since 2007

27 08 2012

According to the FHFA data, the first and second quarter of this year delivered the first year-over-year increase in the seasonally adjusted purchase-only house price index ()HPI)( since the first and second quarters of 2007. The second quarter registered a 1.3% inflation-adjusted price increase. Forty-three states experienced price increases. The two FHFA charts below show a distinct stabilization in prices. The chart of price changes shows an encouraging pattern of higher highs and higher lows that signifies a sustained trend upward from the bottom. The price index indicates downward momentum came to a screeching halt last yearת with 2012 building off that base.

For more:  http://seekingalpha.com/article/828731-latest-housing-price-data-confirm-housing-bottom-is-underway

“PBS News Hour” Features Analysis Of Latest Foreclosure Statistics (Video)

10 08 2012

Though new reports show that banks are repossessing fewer homes from a year ago, mortgage defaults are on the rise. Jeffrey Brown talks to Guy Cecala of Inside Mortgage Finance Publications about why foreclosure rates remain high, even when the house market shows signs of improvement.

Housing Market: “RealtyTrac” Reports Overall Foreclosure Activity In July 2012 Declines For 22nd Month; “Foreclosure Starts” Increase 6% In Latest Year

9 08 2012

  • Overall foreclosure activity decreased on a year-over-year basis for the 22nd consecutive month in July, dropping to its lowest level since April.
  • The decline in overall foreclosure activity was driven primarily by a 21 percent year-over-year decrease in bank repossessions, or REOs.
  • Thirty-eight states and the District of Columbia posted annual decreases in REO activity, but there were some notable exceptions where REO activity increased annually, including Florida (38 percent), Ohio (25 percent), Illinois (22 percent), and New Jersey (21 percent) — all judicial foreclosure states where foreclosures are processed through the court system.
  • U.S. foreclosure starts in July increased 6 percent on a year-over-year basis, the third straight month with an annual increase in foreclosure starts following 27 consecutive months of decreasing foreclosure starts on an annual basis.
  • Foreclosure starts increased on a year-over-year basis in 27 states, led by Connecticut (201 percent), New Jersey (164 percent), Pennsylvania (139 percent), Indiana (83 percent), and Massachusetts (65 percent) — all judicial foreclosure states.

For more: http://www.realtytrac.com/content/foreclosure-market-report/foreclosure-starts-increase-for-third-straight-month-in-july-bank-repossessions-continue-decline-7332?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+foreclosure-market-report-rss-feed+%28RealtyTrac+Foreclosure+Market+Report%29