U.S. Foreclosure Activity Decreases 10% in January 2010

U.S. Foreclosure Activity Decreases 10% in January 2010

U.S. Foreclosure Activity Decreases 10% in January 2010
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RISMEDIA, February 11, 2010—RealtyTrac, one of the leading online marketplaces for foreclosure properties, released its January 2010 U.S. Foreclosure Market Report, which shows foreclosure filings—default notices, scheduled auctions and bank repossessions—were reported on 315,716 U.S. properties during the month, a decrease of nearly 10% from the previous month but still 15% above the level reported in January 2009. The report also shows one in every 409 U.S. housing units received a foreclosure filing in January.
REO activity nationwide was down 5% from the previous month but still up 31% from January 2009; default notices were down 12% from the previous month but still up 4% from January 2009; and scheduled foreclosure auctions were down 11% from the previous month but still up 15% from January 2009.

“January foreclosure numbers are exhibiting a pattern very similar to a year ago: a double-digit percentage jump in December foreclosure activity followed by a 10% drop in January,” said James J. Saccacio, chief executive officer of RealtyTrac “If history repeats itself we will see a surge in the numbers over the next few months as lenders foreclose on delinquent loans where neither the existing loan modification programs or the new short sale and deed-in-lieu of foreclosure alternatives works.”

Nevada, Arizona, California, Florida post top state foreclosure rates
Despite a year-over-year decrease in foreclosure activity of nearly 18%, Nevada’s foreclosure rate remained highest among the states for the 37th straight month. One in every 95 Nevada housing units received a foreclosure filing during the month—more than four times the national average.

A 4% month-over-month increase in foreclosure activity boosted Arizona’s foreclosure rate to second highest among the states in January. One in every 129 Arizona housing units received a foreclosure filing during the month.

Foreclosure activity decreased by double-digit percentages from the previous month in both California and Florida, and the two states registered nearly identical foreclosure rates—one in every 187 housing units receiving a foreclosure filing. California’s foreclosure rate was statistically higher by a slim margin and ranked third highest among the states while Florida’s foreclosure rate ranked fourth highest.

With one in every 231 housing units receiving a foreclosure filing, Utah registered the nation’s fifth highest state foreclosure rate despite a nearly 12% month-over-month decrease in foreclosure activity.

Other states with foreclosure rates among the nation’s 10 highest were Idaho, Michigan, Illinois, Oregon and Georgia.

Six states account for nearly 60% of national total
California, Florida and Arizona posted the three highest state totals in terms of properties receiving foreclosure filings in January, and together those states accounted for more than 44% of the national total.
Illinois posted the nation’s fourth highest total in January, with 18,120 properties receiving a foreclosure filing during the month—a nearly 2% increase from the previous month and a 25% increase from January 2009.

Michigan posted the nation’s fifth highest total, with 17,574 properties receiving a foreclosure filing, and Texas posted the sixth highest total, with 12,225 properties receiving a foreclosure filing.

Other states with totals among the 10 highest in the country were Nevada (11,854), Georgia (11,274), Ohio (11,105) and New Jersey (6,146).

Phoenix only top 10 metro area to post monthly foreclosure increase
Phoenix foreclosure activity increased nearly 4% from the previous month, and one in every 102 Phoenix housing units received a foreclosure filing during the month—the second highest foreclosure rate among metropolitan areas with a population of at least 200,000. Phoenix was the only metro area among the top 10 to post a month-over-month increase in foreclosure activity.

Las Vegas documented the highest metro foreclosure rate, with one in every 82 housing units receiving a foreclosure filing, despite a nearly 2% decrease in foreclosure activity from the previous month and a nearly 21% decrease in foreclosure activity from January 2009.

Six California cities registered foreclosure rates among the top 10: Modesto at No. 3 (one in every 107 housing units); Stockton at No. 4 (one in 107); Riverside-San Bernardino-Ontario at No. 5 (one in 109); Merced at No. 6 (one in 109); Vallejo-Fairfield at No. 7 (one in 112); and Bakersfield at No. 8 (one in 118).

Two Florida cities rounded out the top 10: Cape Coral-Fort Myers at No. 9 (one in 121); and Orlando-Kissimmee at No. 10 (one in 143).

For more information, visit http://www.realtytrac.com.

Posted by Mark Gipple on 02/11/2010 in — Add a Comment

New Decade Presents New Opportunities in Foreclosure Market

New Decade Presents New Opportunities in Foreclosure Market

New Decade Presents New Opportunities in Foreclosure Market
Foreclosure Fundamentals by Rick Sharga Print Article
RISMEDIA, February 10, 2010—In this month’s column, I’ll try to answer some of the most frequently asked questions about the foreclosure market.

Q: What’s the outlook for foreclosure activity in 2010?

A: It’s likely that we’ll set a new record in terms of overall foreclosure activity for the fourth consecutive year. Over 1.3 million U.S. households received a foreclosure notice in 2007; over 2.3 million received notices in 2008; and although the 2009 numbers haven’t been completely counted as this issue goes to press, there will be somewhere in the vicinity of 2.8 to 3 million households in foreclosure. We’re likely to see more than this in 2010, with the number of homeowners in foreclosure probably exceeding 3.5 million, before the trend begins to reverse itself sometime in 2011.

Q: Will we see a flood of REOs?

A: Investors, home buyers and real estate professionals have all been anxiously awaiting a tidal wave of REOs for the past two years. Instead, inventory levels have remained frustratingly low, even in some of the hardest-hit foreclosure markets. Expect more of the same in 2010.

What this means for buyers and sellers is that there will be limited availability of REOs, albeit at higher-than-normal levels. No flood, but a good chance that the trickle on the market today will grow to a more steady stream. While this makes it less likely that we’ll see a “double dip” in home prices, we also won’t see much price appreciation until these distressed assets are finally gobbled up. The most likely scenario is a long, relatively flat period of recovery in the housing market.

Q: Will there be a surge in short sales?

A: A big frustration for potential foreclosure buyers has been the difficulty in buying a property via short sale. Agents have questioned why banks reject a short sale offer 20% below the mortgage amount only to spend tens of thousands of dollars to foreclose on the home and then sell it as an REO at a 50% discount.

We’ll see an increase in the number of short sales if the Treasury Department has anything to say about it. Lenders participating in the Obama Administration’s loan modification program will be strongly encouraged to offer any homeowner who doesn’t meet the requirements for HAMP (Home Affordable Modification Program) a short sale opportunity as an alternative to foreclosure.

But short sales won’t be a panacea, either. In many cases, the presence of a second loan will make negotiating a short sale much more difficult; in other cases, the owner of the primary loan might foreclose on the home, wipe out the second loan, and sell the home, using the amount of the second loan as a “market discount” to move the property.

Q: What are the implications for real estate professionals?

A: Working with foreclosure properties will require diligence, persistence and patience. But there has never been a market with as much inventory to choose from, and the combination of deeply discounted pricing and historically low interest rates make many deals once-in-a-lifetime opportunities.

Whether you’re a buyer’s agent looking for investment properties or a listing agent looking for REO homes, 2010 marks the beginning of a decade of unprecedented opportunity. Let us know how we can help you succeed.

Rick Sharga is senior vice president at RealtyTrac. For more information, visit http://www.realtytrac.com.

Posted by Mark Gipple on 02/09/2010 in — Add a Comment

Missouri Kicks Off Program to Jump Start Housing Market, Create Construction Jobs

Under the HOPE program, the Missouri Housing Development Commission will provide incentives of up to $1,750

Thursday, January 14, 2010 :: Staff infoZine

St Louis, MO - infoZine - Under the HOPE program, the Missouri Housing Development Commission will provide incentives of up to $1,750 to encourage Missourians to purchase homes. The incentive will equal the cost of the homebuyer’s first year’s property taxes, up to $1,250.

In addition, Missourians also would be eligible for an enhanced incentive if they purchase an energy-efficient home, purchase and remodel an existing home, or purchase an item, such as an Energy Star appliance, to make the home more energy efficient. If the homebuyer’s estimated property tax would be $1,250, the energy efficiency enhancement would be $500. If the homebuyer’s property tax would be less than $1,250, the individual would be eligible for a larger energy-efficiency incentive, up to a total incentive of $1,750.

Application forms for the program were finalized today and now are available online by visiting http://www.mo.gov  and clicking on the Homebuyer Incentive tab.

“Putting Missouri highly skilled tradesmen and women back to work is a vital step toward jumpstarting our economy,” Gov. Nixon said. “Missouri is home to highly skilled, highly professional workers from all types of trades, but too many of these men and women are currently out of work. By sparking growth in our housing industry, we’ll get these men and women back on the job and help more Missouri families realize the American dream.”

“This property tax relief program gets MHDC off the sidelines by committing to put hardworking Missourians to work right now,” said Treasurer Zweifel, chair of MHDC. “We are making sure MHDC makes strategic long-term investments that move the economy forward and create and retain Missouri jobs.”

Missouri Governor Jay Nixon and State Treasurer Clint Zweifel (L), Photo courtesy of Missouri Governor\‘s officeIn August, Gov. Nixon formed the Home Building and Residential Energy Efficiency Advisory Panel by executive order to study how Missouri can both help increase home ownership and home building to improve the economy and increase homeowner access to energy-saving measures. The 19-member panel included representatives of the home building industry, banking institutions, real estate businesses, trade unions and community action agencies, along with experts in energy efficiency and “green” building.

The advisory panel analyzed the strengths and weaknesses of the current new housing situation in Missouri, as well as the opportunities and threats being faced. The panel also examined the current home building market and the reasons to encourage energy efficiency home building in Missouri. Among the recommendations were proposals to use the MHDC to promote home ownership and incentivize energy efficiency. The panel’s full report can be found online at http://www.mo.gov  or click here to download the report.

Who is eligible?
Income eligibility is based on previously adopted MHDC guidelines. Depending on the county of the home sale, household income limit guidelines for low to moderate income persons or families approved by MHDC last spring range from $58,300 to $98,560. These grants are for owner-occupied purchases only.

When would it start?
Missourians are eligible for the HOPE incentive for purchase contracts made on or after Jan. 1, 2010. Funds are available on a first-come, first-served basis until the total pool of $15 million is exhausted.

Where is the funding for this program coming from?
The funding comes from a reserve fund held by MHDC earned through successful management of mortgage loans made to low- and medium-income individuals and families. These reserve funds are not from general revenue, nor subject to the legislature’s appropriation process.

How much of the property tax bill could be paid?
Eligible homeowners could have up to $1,750 of their property tax bills paid. According to the State Tax Commission, the average residential real estate tax bill for a Missouri homeowner is $1,160. An income-qualified individual or family is eligible to receive $1,250 or the amount of their first year’s real estate tax bill, whichever is highest, when they purchase a new or existing residential home. An income-qualified individual or family can enhance this base amount, up to $1,750, if they purchase an energy-efficient new home or make energy efficient improvements to an existing home that is purchased. These improvements must be made prior to closing or within 60 days of closing.

How do Missourians apply for these funds?
Forms and affidavits will be part of documents executed at the home sale closing. Additional receipts and documentation will be required for proof of energy efficient improvements. The MHDC forms have been finalized and are now available online by visiting the state’s Web site, http://www.mo.gov,  and clicking on the homebuyer incentive tab.

What energy-efficiency upgrades are eligible for the additional incentive
Eligible improvements include installing high-performance windows, house wraps, programmable thermostat controls, water-efficient toilets and faucets, and energy-efficient water heaters, lighting and appliances; sealing heating and air conditioning ductwork; caulking; insulating water heater pipes; increasing the R-value of insulation in crawl spaces and attics; and conducting on-site energy efficiency inspections and tests, including a blower door test, which tests the overall energy efficiency of the house, and a duct blaster test, which tests how much the air ductwork leaks.

Related link
HOPE program
http://www.mhdc.com/homes/HOPE/

Posted by Mark Gipple on 01/14/2010 in — Add a Comment

Housing starts to regain ground in November 2009

Nationwide housing production rose 8.9% to a seasonally adjusted annual rate of 574,000 units in November 2009

RISMEDIA, December 18, 2009—Nationwide housing production rose 8.9% to a seasonally adjusted annual rate of 574,000 units in November 2009, according to figures released by the U.S. Commerce Department. The gain represented a partial bounce-back from an exceptionally slow month for housing activity in October, and was largely attributed to a big increase on the multifamily side.

“The fact that both starts and permits for new housing production rose last month is a good sign that we’re headed in the right direction, albeit slowly, on the road to a housing recovery,” said Joe Robson, chairman of the National Association of Home Builders (NAHB) and a home builder from Tulsa, Okla. “That said, the November improvement was primarily on the multifamily side, and poor job markets and other economic factors are still keeping many potential buyers on the fence for the time being.”

“Home builders remain very cautious about starting new homes, and overall housing production is still down on a three-month average basis,” noted NAHB Chief Economist David Crowe. “Understandably, it will take some time for the newly extended and expanded home buyer tax credit to start boosting sales in individual markets–just as it did the last time such an incentive was enacted. However, the fact that permits increased in November is a hopeful indication that the desired impact of the tax credit on housing demand may be forthcoming early in 2010. In the meantime, credit for new housing production remains extremely difficult to come by, posing significant obstacles to builders with viable projects.”

Single-family housing starts made up some of the ground they lost in October, posting a modest 2.1% gain to a seasonally adjusted annual rate of 482,000 units in November. Meanwhile, multifamily starts rebounded from an all-time record low in the previous month with a 67.3% gain to a seasonally adjusted annual rate of 92,000 units in November.

Gains in housing production were registered across all regions of the country in November, with a 16.4% increase in the Northeast, a 3% gain in the Midwest, a 12.3% increase in the South and a nearly 2% gain in the West.

Permit issuance, which can be an indicator of future building activity, rose 6% in November to a seasonally adjusted annual rate of 584,000 units, its highest level in a year. Single-family permits rose 5.3% to 473,000 units, while multifamily permits rose 8.8% to 111,000 units.

Three out of four regions posted gains in housing permits for November, with a 4.7% increase reported in the Northeast, a 10.7% increase posted in the South, and a 2.7% gain registered in the West. The Midwest posted a 1.9% decline.

For more information, visit http://www.nahb.org.

Read more: http://rismedia.com/2009-12-17/housing-starts-regain-ground-in-november-2009/#ixzz0a46aXBRe

Posted by Mark Gipple on 12/18/2009 in Kansas City Market, — Add a Comment

Has the Housing Industry hit bottom?  As demand disappears, builders say 2009 marks housing bottom

Despite significantly lower traffic and sales this month, Southern California retained pricing strength

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RISMEDIA, December 18, 2009—Despite significantly lower traffic and sales this month, Southern California retained pricing strength and the majority of surveyed builders expect revenues to increase in 2010, according to John Burns Real Estate Consulting’s December survey of home builders.

“At this point, it’s clear that the extension and expansion of the tax credit weren’t enough to drive demand through the seasonally slow time of the year,” said Jody Kahn, a vice president with the firm. “This month’s survey results, backed by numerous channel checks and our Consulting team’s work in the market, confirm that buyers feel little urgency to buy homes today, and probably won’t until the tax credit expiration nears next Spring.”

This month’s survey consists of 264 home building industry executives from public and private companies. In total, their insight is reflective of on-the-ground conditions in 93 MSAs and 2,000+ communities.

Also of interest, 57% of respondents reported that they are planning for more revenue in 2010 than 2009, driven by increased community count, better orders and slightly higher prices. The most optimism came from the Northeast, Southwest, Texas and Southern California. “If they are correct, and we believe they are, the trough for this cycle was 2009 for single-family starts, new home sales and new home prices,” said CEO John Burns. “That being said, the continued shift to smaller, simpler homes may drive the headline new home price down a bit, and the recovery will be slowed by rising distressed sales.

Conditions are likely to vary dramatically by submarket and price point, which we have addressed in our Land Acquisition and New Home Strategy report for 23 MSAs.”

Additional survey highlights include:
-Average net sales per community declined to 1.4 nationally from 1.6 last month, and from a recent high of 2.0 in September. Only the Southern Florida and Southeast regions reported increased net sales per community, while the Southern California, Midwest and Northern Florida regions reported flat net sales rates.
-The average unsold, finished inventory per community increased to 3.3 units, rising from a recent low of 2.8 units. We believe the rise is explained by aggressive speculative starts by a few builders who are betting on strong sales in the Spring. In addition, higher cancellations during November from sales that did not close within the original tax credit deadline were reported.

Read more: http://rismedia.com/2009-12-17/has-the-housing-industry-hit-bottom-as-demand-disappears-builders-say-2009-marks-housings-bottom/#ixzz0Zz25vjUf

Posted by Mark Gipple on 12/17/2009 in — Add a Comment