means drop in signed contracts for April and May. Those that did sell, sold for more according to the S&P/Case Shiller composite index which reported home prices rose for the second month in a row in March.
Archive for May, 2012
One of most negative experts on real estate, with his S&P/Case Shiller report, Robert Shiller, told CNBC Tuesday: “We have encouraging signs in the market, we are seeing some signs of hope.” His equally negative co-author Karl Case explained: “We lag, and the indicators for the last three, four months on the quantity side have been real positive, so we look like a bottom. You have to pick to find real negatives.” Guys, it is about time.
Thomson Reuters/University of Michigan index of consumer sentiment jumped to 79.3 in May, up from 76.4 in the previous month. That’s the best reading since October 2007. Consumers say they are hearing about job gains rather than losses and appear to be more focused on the U.S. economy than on Europe’s financial crisis
New-home sales increased 3.3 percent in April from March to a seasonally adjusted annual rate of 343,000, says the Commerce Department. Builder pricing is much higher than distressed properties, and improving new home sales means buyers are ready to pay more. Higher values are starting to be seen across the country.
the tenth straight month of year-on-year gains was reported today. Distressed sales represented 28% of all transactions, compared to April 2011 distressed sales of 37% of all activity. These trends, along with low inventories, are all good news and should lead to rising values.
Housing starts rose in April, up 2.6% to 717,000
People falling behind on their mortgages fell to 2008 lows according to The Mortgage Bankers Association. Loans 30 days over due still make up 11.8% of all mortgages, but that number has fallen from 12.8% in 2011 and 14.7% in 2010.
Foreclosures hit a five-year low in April to 188,780, down 5% from March and 14% from a year ago, according to RealtyTrac’s latest U.S. Foreclosure Market Report.
37% of Americans today have a FICO credit score lower than 700. The Federal Housing Administration (FHA), the government’s mortgage insurer, is supposed to be serving borrowers with lower credit scores, however, the average FICO for an FHA loan in March was 701. See a mortgage person right away to check your credit and interest rate available.
The Thomson Reuters/University of Michigan’s preliminary May reading on the overall index on consumer sentiment improved to 77.8 from 76.4 in April. It was the highest level since January 2008.
2.37 million existing homes were for sale at the end of March. Down 22% from a year ago and 41% from the peak in mid-2007 in today’s report.
Interested in buying foreclosed properties from govt agencies, well, it’s limited who can buy the first few weeks properties are available. An example, at HUDhomestore.com many properties are only available to employees of govt agencies or non-profits. Instead of opening up the bidding to all parties, those privileged few can buy without true competition. I see prices 20-25% below current market value, but the average person can not buy. These low sale prices hurt property values, holds down appraisal values, and keeps the pressure on those of the fence thinking of walking away from their mortgage.