Home prices in 45 of the largest housing markets are expected to fall another 4.2 percent before they hit bottom in March, according to First American CoreLogic’s LoanPerformance Home Price Index. By October 2010, prices are expected to be heading upward again by about 1 percent compared to 2009. The report warned that this progress could be jeopardized by an increasingly large “shadow inventory” of homes owned by banks but not yet on the market. The problem is particularly acute in Michigan and Ohio cities, the report said. It projected a 12.7 percent further decline in values in Detroit, an 11.4 percent decline in most of the rest of southeast Michigan, and a 6.3 percent fall in Cleveland.
The report expects the strongest recoveries next year in California cities. These include:
San Francisco, up 5.7 percent
Los Angeles, 5 percent
San Diego, 4.7 percent
Sacramento, 4.6 percent
Source: Inman News (12/21/2009)
Thursday, December 24, 2009
Friday, December 18, 2009
More Foreclosures to Come
More than 1.7 million homeowners were verging on foreclosure this fall, making it likely that these houses will soon end up on the market one way or the other, driving down overall housing values.
"We're going to be dealing with high levels of distressed (sales) in the marketplace for at least a couple of years," says Mark Fleming, chief economist of researcher First American CoreLogic, which has been studying the problem.
Some real estate practitioners say they fear that this onslaught is coming. "We've been in recovery mode for most of the year. How many foreclosures do they have to dump on the market to affect that? I don't know," says Deborah Farmer, owner of StarLight Realty in Tampa, Fla. "Any house priced under $225,000 will be affected by a large increase in foreclosures in this market."
Source: Associated Press, Alan Zibel (12/17/2009)
"We're going to be dealing with high levels of distressed (sales) in the marketplace for at least a couple of years," says Mark Fleming, chief economist of researcher First American CoreLogic, which has been studying the problem.
Some real estate practitioners say they fear that this onslaught is coming. "We've been in recovery mode for most of the year. How many foreclosures do they have to dump on the market to affect that? I don't know," says Deborah Farmer, owner of StarLight Realty in Tampa, Fla. "Any house priced under $225,000 will be affected by a large increase in foreclosures in this market."
Source: Associated Press, Alan Zibel (12/17/2009)
Friday, December 11, 2009
Do it yourself Solar Panels
Lowe’s, the home-improvement chain, will begin selling do-it-yourself, 40-pound solar panels nationwide for $895 each. The panels are designed by Akeena Solar, Inc., based in Los Gatos, Calif. Akeena says installation is doable for a novice, but applying for government and utility permits might take some expertise. “You put solar panels on your roof without a permit, bad things (will) happen to you," said Jeff Wolfe, CEO of solar installer groSolar. "The utility could shut off the power." Akeena panels produce 175 watts of electricity, enough to power a flat-screen TV. Most purchasers will want more than one. Lowe’s also is offering software that allows homeowners to use their home computers to monitor the performance of each panel.
Source: Associated Press, Chris Kahn (12/10/2009)
Source: Associated Press, Chris Kahn (12/10/2009)
The time to Buy is now!
Mortgage Rates Creep Back Up
After last week's decrease to a record 4.71 percent, interest on 30-year fixed mortgages rose to 4.81 percent this week, Freddie Mac reported. While the Federal Reserve's effort to purchase $1.25 trillion in mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae has helped keep rates attractive, Freddie Mac chief economist Frank Nothaft says they rose because a favorable unemployment report pushed long-term bond yields up slightly. With the Fed program projected to end in March, the Mortgage Bankers Association forecast in October that 30-year fixed mortgages will rise to 5.4 percent next year, increase to 6 percent in 2011, and hit 6.3 percent in 2012. Source: Inman News (12/11/2009)
With rates on the rise and anxious sellers ready to unload this Winter may well prove to be the bottom of the Galveston Real Estate Market.
After last week's decrease to a record 4.71 percent, interest on 30-year fixed mortgages rose to 4.81 percent this week, Freddie Mac reported. While the Federal Reserve's effort to purchase $1.25 trillion in mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae has helped keep rates attractive, Freddie Mac chief economist Frank Nothaft says they rose because a favorable unemployment report pushed long-term bond yields up slightly. With the Fed program projected to end in March, the Mortgage Bankers Association forecast in October that 30-year fixed mortgages will rise to 5.4 percent next year, increase to 6 percent in 2011, and hit 6.3 percent in 2012. Source: Inman News (12/11/2009)
With rates on the rise and anxious sellers ready to unload this Winter may well prove to be the bottom of the Galveston Real Estate Market.
Wednesday, December 9, 2009
Home Values Have Been Stabilizing
U.S. homes lost $489 billion in value during the first 11 months of 2009. That’s significantly less than the $3.6 trillion lost during 2008 and evidence that home values are stabilizing, says Zillow.com, online real estate research firm.
Properties in 48 of the 154 markets tracked by Zillow rose in value this year, but Zillow’s Chief Economist Stan Humphries believes prices could decline again in 2010. “We believe that demand will come under downward pressure as mortgage rates creep back up after the first quarter and that housing supply will experience upward pressure as the volume of foreclosures continues to remain high. Both these factors will challenge the recent stabilization of home prices,"
Humphries said in a statement.Areas where home prices rose the most in 2009 were:
Boston
Providence
Denver, Colo.
Atlanta, Ga.
Rochester, N.Y.
Areas where homes continued to lose the most value:
Los Angeles
Chicago
New York
Miami-Fort Lauderdale
PhoenixSource: Zillow.com (12/0920/09)
Properties in 48 of the 154 markets tracked by Zillow rose in value this year, but Zillow’s Chief Economist Stan Humphries believes prices could decline again in 2010. “We believe that demand will come under downward pressure as mortgage rates creep back up after the first quarter and that housing supply will experience upward pressure as the volume of foreclosures continues to remain high. Both these factors will challenge the recent stabilization of home prices,"
Humphries said in a statement.Areas where home prices rose the most in 2009 were:
Boston
Providence
Denver, Colo.
Atlanta, Ga.
Rochester, N.Y.
Areas where homes continued to lose the most value:
Los Angeles
Chicago
New York
Miami-Fort Lauderdale
PhoenixSource: Zillow.com (12/0920/09)
IRS SETS NEW RULES FOR TAX CREDIT
The IRS has spelled out guidelines for eligibility for the home buyer credit when co-borrowers purchase a property.
When a home-owning parent of an adult child co-signs for a mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the whole amount. The IRS says the parent doesn’t qualify for any portion of the credit, but if the child hasn’t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.
When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.
Source: Washington Post Writers Group, Kenneth R. Harney (12/04/2009)
When a home-owning parent of an adult child co-signs for a mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the whole amount. The IRS says the parent doesn’t qualify for any portion of the credit, but if the child hasn’t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.
When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.
Source: Washington Post Writers Group, Kenneth R. Harney (12/04/2009)
Saturday, December 5, 2009
30 Year Rates Hit Record Low
The average interest rate for 30-year mortgages has fallen to the lowest level since Freddie Mac began compiling its weekly survey in 1971, declining to 4.71 percent this week from 4.78 percent a week ago.
Rates also were more attractive for 15-year fixed loans, which fell from 4.29 percent to 4.27 percent, but many consumers may not have qualified for them because they now face higher credit standards from lenders.
Still, the Mortgage Bankers Association's index of application demand, which rose 2.1 percent on a seasonally adjusted basis during Thanksgiving week from the previous week, shows that consumers were looking to take advantage of mortgage rates at a historic low.
Source: USA Today, Stephanie Armour (12/04/09)
Rates also were more attractive for 15-year fixed loans, which fell from 4.29 percent to 4.27 percent, but many consumers may not have qualified for them because they now face higher credit standards from lenders.
Still, the Mortgage Bankers Association's index of application demand, which rose 2.1 percent on a seasonally adjusted basis during Thanksgiving week from the previous week, shows that consumers were looking to take advantage of mortgage rates at a historic low.
Source: USA Today, Stephanie Armour (12/04/09)
Subscribe to:
Posts (Atom)
