Homes in the foreclosure process sold at an average 28 percent discount last year and continue to drive down U.S. housing prices as the supply of distressed properties grows, according to RealtyTrac Inc.
831,574 homes that sold in 2010 had received notices of default, auction or repossession,
Bank-owned properties sold for an average discount of 36 percent last year, up from 33 percent in 2009.
projecting the next six months of real estate propects have conflicting evidence. Today, Standard & Poor’s/Case-Shiller index fell in December from November in all but one of the 20 cities it tracks. The 20-city index declined 1 percent. But, also today: Consumer Confidence Index climbed to 70.4 this month, up from a revised 64.8 in January, hitting its highest level since February 2008. It was the index’s fifth consecutive monthly increase and topped expectations of a reading of 65.0 among economists.
These indexes can go in opposite directions only for so long. Something is going to give very soon.
The rate on the 30-year conforming mortgage has risen to 5.1% and is expected to rise even more in the coming weeks. What does this mean for the housing market as we come up on the Spring? Hopefully, it won’t have much of an impact. Remember rates are still historically low and properties are still very affordable right now. As we approach Spring, which is typically when real estate sales start to pick up, don’t worry about this small increase in mortgage rates.
was a recipient of TARP money, plus received $20 billion from AIG once they received their TARP money, plus their former CEO initiated and scared the government into all the bank bailouts, it is GOLDMAN SACHS. Now, with most of this behind them and improving credit markets, they continue to raise money from investors. A report yesterday from the Financial Times announces they have $170 billion in excess capital and plan to use the money to buy distressed assests, such as: mortgages, foreclosed properties, etc. Last month: David Viniar, Goldman’s finance chief, told analysts: “Our number one choice will be to find opportunities to use the capital profitably..” In December, Goldman bought more than $8 billion in mortgage-backed securities from State Street Bank.
What does this all mean for the individual homeowner? Basically that the big boys are buying at the bottom of this real estate cycle, are you?
The Institute for Supply Management’s index of non- manufacturing businesses rose to 59.4 from December’s 57.1, the group said today. The median forecast of 74 economists surveyed by Bloomberg News was 57.2, with estimates ranging from 54.5 to 62. Readings greater than 50 signal expansion. The services index averaged 56.1 in the five years to December 2007.
The past weeks indicators of improving US economy, plus world wide pressure on food & material inflation will cause inflation in other areas, such as; real estate. It sure looks like the bottom is in for real estate prices.
The Institute for Supply Management’s factory index increased to 60.8 in January (the fastest pace since May 2004) up from 58.5 in December. Readings greater than 50 signal growth. ISM’s measure of new orders in the U.S. jumped in January to 67.8, the highest since January 2004