10 Best Places to Buy a Foreclosure in 2013

Daily Real Estate News | Thursday, January 31, 2013

If you’re looking for big foreclosure deals, Florida may offer the most, according to a a new study by RealtyTrac. Palm Bay, Fla., topped its list of the best places to buy a foreclosure in 2013. Foreclosures accounted for nearly 24 percent of all sales in Palm Bay last year, and buyers tended to pay 28 percent less for a home in foreclosure than other homes.
The following are the markets with the high number of foreclosures available and some of the largest price discounts for foreclosures, according to RealtyTrac.

• Palm Bay, Fla.

Average foreclosure discount: 28 percent

• Rochester, N.Y.

Average foreclosure discount: 26 percent

• Albany, N.Y.

Average foreclosure discount: 35 percent

• New York City

Average foreclosure discount: 40 percent

• Lakeland, Fla.

Average foreclosure discount: 15 percent

• Tampa, Fla.

Average foreclosure discount: 27 percent

• Jacksonville, Fla.

Average foreclosure discount: 32 percent

• Poughkeepsie, N.Y.

Average foreclosure discount: 28 percent

• Orlando, Fla.

Average foreclosure discount: 19 percent

• Chicago

Average foreclosure discount: 46 percent
Source: “Best Places to Buy Foreclosures,” CNNMoney (Jan. 31, 2013)

What Will the New ‘Normal’ for Housing Be?

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Daily Real Estate News | Wednesday, January 30, 2013

Mortgage giant Fannie Mae recently offered some predictions of what the housing market’s “normal” will look like in the next two years.
In its report, “Transition to ‘Normal’?”, Fannie says while the housing market has shown improvement, uncertainty remains over both the economy and the real estate market.
"Our forecast is that 2013 and 2014 will exhibit below-potential economic growth,” according to the white paper. “This is despite the fact that we expect the housing rebound will continue and that the economy will benefit from the gradual increased growth of U.S.-based manufacturing, as well as the expansion of domestic energy production.”
The following are some of the projections Fannie made in its report:

• Mortgage rates to stay low: Fannie Mae expects mortgage rates to remain low over the next few years. The mortgage giant expects rates will increase to no more than 4.2 percent by the end of 2014. 
• FHA loans may get more expensive: More costs may be assigned to Federal Housing Administration loans. 
• Refinancing drops: The boom in refinancing may have peaked last year with slower activity projected this year. "We expect 2012 to be seen as the high watermark for refinances and 2013 as the first of several transition years as the housing finance market transitions back to a more normal balance between purchase and refinance activity."
• Foreclosures continue to fall: Fannie expects foreclosures to continue to decline from their peaks as more alternatives to foreclosure are pursued. 
• Housing starts to rise: Fannie Mae predicts that housing starts will increase 23 percent in 2013 -- which would be 60 percent more than the record low in 2010. Fannie expects housing starts won’t reach sustainable levels until 2016. 
• Mortgage originations grow: "Given our expectations of continued improvement in housing starts, home sales, and home prices in 2013,” Fannie Mae writes, “we project that purchase mortgage originations will rise to $642 billion from a forecast of $518 billion in 2012."

Plenty of Bright Spots in Housing, But Threats Remain

Plenty of Bright Spots in Housing, But Threats Remain

Daily Real Estate News | Monday, January 28, 2013

The housing market is showing plenty of strength, from sales and price increases to a decrease in foreclosures.
“There are almost no housing market indicators showing weakness,” says Mark J. Perry, a professor of economics at the University of Michigan-Flint.
Among the recent bright spots:

• Existing-home sales jumped more than 9 percent in 2012, the highest level in five years. 
• New-home construction reached a 54-month high in December 2012. 
• The delinquency and foreclosure rate is at its lowest level in four years. 
• A home remodeling index reached 55 in the first quarter of the 2012, the highest reading since 2004 (readings above 50 indicate a growth in remodeling activity).

Still, the housing market is about 52 percent as strong as it was prior to the 2008 housing crash, according to one housing index by Trulia, which factored in data from the National Association of REALTORS®, U.S. Census construction, and Lender Processing Services.
The housing market faces challenges, such as the number of home owners still facing negative equity, inventories of for-sale homes remaining constrained, and mortgage credit remaining tight and preventing some buyers from qualifying for a loan.
“At this pace, ‘normal’ is still two or three years away,” says Jed Kolko, Trulia chief economist.
Source: “The Housing Market’s Long-term Silver Lining,” MarketWatch (Jan. 25, 2013)

10 Metros Where Homes Are Selling the Fastest

Daily Real Estate News | Friday, January 25, 2013

California listings are seeing some of the shortest times on the market nationwide, according to new data released by Realtor.com. In a couple of markets in that state, listings are averaging about a month or less before being sold.
Nationally, for-sale listings sold in a median 111 days in December 2012, which is about 10 percent below the median at the same time one year ago, according to Realtor.com data.
The following are the 10 metro areas with the shortest median days on the market in December 2012:

1. Oakland, Calif.: 27 days
2. Stockton-Lodi, Calif.: 32
3. Sacramento, Calif.: 45
4. Denver: 54
5. Fresno, Calif.: 55
6. Bakersfield, Calif.: 61
7. Phoenix-Mesa, Ariz.: 61
8. San Jose, Calif.: 61
9. Riverside-San Bernardino, Calif.: 65
10. San Francisco: 68

Meanwhile, some of the metros with listings that linger the most days on the market are in the coastal areas of the Carolinas and other vacation destinations such as Santa Fe, N.M., (153 days) and Ashville, N.C. (146 days).

What’s Behind Falling Housing Inventories?

Daily Real Estate News | Thursday, January 24, 2013

Home prices are increasing across the country as the number of homes for-sale continues to fall. But at a time when buyer demand is picking up, why is inventory still so low?
Inventories fell to 1.82 million at the end of last year, a 21.6 percent drop from one year earlier, the National Association of REALTORS® reports.
The Wall Street Journal recently highlighted several reasons behind the dropping inventories, including:

• Sellers hesitant to sell: About 22 percent of home owners with a mortgage are still underwater, owing more than their home is currently worth. Home owners don’t tend to sell unless a life-changing event occurs when they’re underwater because they don’t want to take a loss on the sale of their house. CoreLogic data shows that inventories are the most constrained in areas with the highest number of underwater borrowers. 
• Not enough equity to trade up: Often times, home owners rely on the equity from their home to make a down payment on their next home. With fewer home owners seeing equity in their houses, they may not have enough money to move into a pricier home, which is constraining the would-be “trade up” buyer from moving. 
• Investors continue to snatch up properties: Investors are snapping up properties, but they’ve changed their strategy from past years, which is also constraining inventories. Now they’re holding onto properties and turning them into rentals instead of rehabbing properties and flipping them for profit. This is keeping fewer homes on the market. 
• Banks are slowing down foreclosures: Banks have new rules to meet with the foreclosure process, and it’s causing them to move at a slower pace in foreclosing on homes. Banks also are showing a preference for short sales and loan modifications, which are curbing the number of foreclosed homes on the market. 
• Builders are doing less building: Housing starts were at record lows from 2009 through 2011 so there’s less inventory being added to the market. A rebound in the new-home market has only recently started to occur.

Short Sale Process Cut in Half or More, Freddie Mac Says

 It is a Good News for Buyer and short sale owners.!!

Daily Real Estate News | Wednesday, January 23, 2013

Short sales are getting much shorter, Freddie Mac says. The mortgage giant launched a Freddie Mac Standard Short Sale program on Nov. 1 that sought to speed up the short sale process and make it easier and more transparent.
"We estimate that the time to complete a short sale will decrease by approximately 50 percent to 75 percent," as a result of the changes, writes Tracy Mooney, Freddie Mac’s EVP in a recent blog post.
Among the changes that took effect Nov. 1, 2012:

• Mortgage servicers have 30 days to make a decision on a short sale once they receive an application. If they need to negotiate with a third party, they have 30 additional days. A final decision on the short sale must be made within 60 days. 
• Mortgage servicers are required to acknowledge they received the short sale application within three days of submission. Servicers must provide weekly status updates if they end up needing more time to review the application past the initial 30-day period.
• Mortgage servicers have authority now to approve short sales when qualifying financial hardships for home owners who are past due or current on their mortgage payments. 
• Mortgage servicers are also now able to approve short sales without seeking a separate review by the mortgage insurance company.
• Following a short sale, home owners may be able to qualify for up to $3,000 in relocation assistance. 

Source: “The Shorter Short Sale: Long on Borrower Benefits,” Freddie Mac Executive Perspectives Blog (Jan. 22, 2013)

Existing-Home Sales Dip in December; Prices Rise

Airticle from WWW.DSNEWS.COM

Existing-home sales fell 1 percent in December to an annual rate 4.94 million, and November sales were revised downward, slipping below 5 million, the National Association of Realtors (NAR) reported Tuesday. Economist had expected the sales pace to improve to 5.1 million from November’s originally reported 5.04 million.

The median price of an existing single-family home rose to $180,800 in December, up 11.5 percent from December 2011, the strongest year-over-year gain since November 2005.

10 Predictions for Housing in 2013

Daily Real Estate News | Thursday, January 17, 2013

The new year could be the best year in real estate in years, but the housing recovery still remains fragile and challenges remain, says Dave Liniger, RE/MAX co-founder and chairman.
Liniger recently offered up some of his predictions for the new year:

1. More buyers and sellers return to the housing market. 
2. Home sales increase 6-7 percent while home prices increase 3-4 percent. 
3. Inventory of for-sale homes will hit bottom. 
4. Higher-priced listings begin to sell more. 
5. The number of distressed properties continues to drop. 
6. The shadow inventory continues to fall. 
7. Short sales rise, reaching a peak. 
8. Mortgage rates rise slightly by year's end from record lows. 
9. Lending remains constrained for home buyers. 
10. Home affordability remains at record highs.  

Well 2013 is good for Real Estate year!!

Are Asking Prices Leveling Off?

Daily Real Estate News | Thursday, January 17, 2013

The national median list price in December was $187,900 — basically the same it was one year ago, and a sign that year-over-year asking prices may be leveling off, according to new housing data from Realtor.com. 
In June 2012, median list prices rose to $195,000. 
“While list prices increased significantly during the first half of the year, they have declined in recent months, with the median list price in December now roughly the same as it was one year ago,” according to Realtor.com. “In addition, a growing number of housing markets — primarily in older industrialized areas — are registering year-over-year list price declines. These potentially off-setting trends and suggest that house price appreciation in the upcoming year is likely to be more moderate than it was in 2012.”
Metros posting some of the largest year-over-year declines in median asking prices were: 

1. Peoria-Pekin, Ill.: -14.29 percent
2. Reading, Pa: -7.84 percent
3. Charleston, W.Va.: -7.78 percent
4. Fort Wayne, Ind.: -7 percent
5. Jersey City, N.J.: -6.68 percent
6. Philadelphia, Pa.-N.J.: -6.36 percent

Still, some markets are outperforming year-over-year and continuing to see big rises in asking prices. For example, California markets continue to see some of the largest year-over-year increases in median list prices, according to Realtor.com. Many of the markets seeing the largest rises to the median list prices also are seeing big inventory declines — sometimes by 40 percent or more year-over-year. 
The 10 metros posting the largest increases to list prices year-over-year, according to Realtor.com, are:

1. Sacramento, Calif.: +42.57 percent
2. Santa Barbara-Santa Maria-Lompoc, Calif.: +35.72 percent
3. San Francisco: +25.04 percent
4. San Jose, Calif.: +23.53 percent
5. Phoenix-Mesa, Ariz.: 21.21 percent
6. Atlanta: +19.93 percent
7. Oakland, Calif.: +17.22 percent
8. Seattle-Bellevue-Everett, Calif.: 16.66 percent
9. Fresno, Calif.: +16.28 percent
10. Riverside-San Bernardino, Calif.: +15.65 percent

It is great improvement in Bay Area's housing market!!

Contact me how I can help with all your Real Estate Needs.

Home Owners Reluctant to Sell; Inventories Fall

Daily Real Estate News | Wednesday, January 16, 2013

Inventory levels of for-sale homes at the end of 2012 were down 17.3 percent from year-ago levels, reaching the lowest level in more than five years, Realtor.com reports. In some areas, inventories have dropped 68 percent over the year.
“It’s been a buyers’ market for a while. Sellers have been reluctant to put their homes on the market,” says Steve Berkowitz, chief executive of Move Inc., which operates Realtor.com. As housing numbers roll out for January and February in the coming weeks, these will be notable to watch because they’ll provide early clues about buyer traffic and sellers’ expectations, Berkowitz says.
For-sale inventories dropped the most year-over-year in December 2012 in the following metros:

• Sacramento, Calif.: -68%
• Stockton-Lodi, Calif.: -65%
• Oakland, Calif.: -64%
• San Jose, Calif.: -52%
• Seattle-Bellevue-Everett, Wash.: -45%
• San Francisco: -43%
• Ventura, Calif.: -43%
• Riverside-San Bernardino, Calif.: -41%
• Los Angeles-Long Beach, Calif.: -40%
• Orange County, Calif.: -39%

Source: Realtor.com and “Housing Inventory Ends Year Down 17%,” The Wall Street Journal (Jan. 16, 2013)

On the other hand, it is good change for seller to sell the house fast and desirable price. Less competition for sellers
 

4 Ways Buyers Can Mess Up a Loan Approval

Daily Real Estate News | Tuesday, January 15, 2013

Your home buyers have gotten approved for a mortgage and now they’re just waiting to make it to the closing table. Make sure they don’t throw their loan approval into jeopardy by making one of these common mistakes:

1. Making a big purchase: Tell your buyers to avoid making major purchases, like buying a new car or furniture, until after they close on the home. Big purchases could change the buyer’s debt-to-income ratio that the lender used to approve the buyer’s home loan and could throw the approval into jeopardy. 
2. Opening new credit: Inform your buyers that now isn’t the time to open up any new credit cards. 
3. Missing any payments: Home buyers need to be extra vigilant about paying all their bills on time, even if they’re disputing one. 
4. Cashing out: Avoid any transfers of large sums of money between your bank accounts or making any undocumented deposits — both of which could send up “red flags” to your buyer's lender.

Source: “How to Keep Your Mortgage Approval Approved,” Realty Times (Jan. 14, 2013)

My suggestion is, do not be relax until recording is confirmed.  

Please contact me for your real estate needs.

 

Obama: Housing

Obama: Housing "Clearly Turning a Corner"

Daily Real Estate News | Monday, January 14, 2013

The housing market has shown signs of “bottoming out nationally and clearly turning a corner,” according to the Obama Administration’s December Housing Scorecard.
Home values are inching up while home sales remain strong. Some home price indexes are showing values up 5.6 percent and 4.3 percent from year ago levels, according to the Scorecard.
“As the December housing scorecard indicates, our housing market is continuing to show important signs of recovery,” says Michael Berman, a HUD senior adviser.
Home inventories are falling, reaching a 4.8-month supply in December compared to November’s 5.3-month supply.
Americans are continuing to see the amount of equity in their homes increase. American home equity grew to $8 trillion in December but is still below the nearly $14 trillion in equity reached prior to the recession.
More than 6 million mortgage modifications and other kinds of housing assistance have taken place between April 2009 and November 2012, helping more home owners stay in their homes, according to the administration.
The housing scorecard is a comprehensive report on the national housing market, released every month by the U.S. Department of Housing and Urban Development and the U.S. Department of Treasury.
To view the complete Housing Scorecard, visit www.hud.gov/scorecard.

First-time Home Buyers Face Greater Competition

 First-time Home Buyers Face Greater Competition

Daily Real Estate News | Friday, January 11, 2013

First-time home buyers are playing a larger role in the housing market, but they’re finding big changes.
Thirty-nine percent of home sales nationwide were from first-time home buyers during the 12-month period ending June 2012, according to the National Association of REALTORS®. That's up from 37 percent a year earlier.
But while first-time home buyers once had a huge inventory of homes to choose from, now they’re finding tightened supplies and steeper competition for what’s left.
Housing inventories are hovering at record lows in many markets, limiting supply. First-time home buyers face increased competition from investors, who are often trying to snatch up the same bargain-priced housing deals. Investors often make all-cash offers, too, which makes it difficult for buyers requiring financing to compete against them. Also, banks have tightened up their underwriting standards, creating more hoops in just qualifying for financing.
It’s not easy to be a first-time home buyer, some say. But first-time home buyers are critical to a healthy housing market. They allow existing home owners to sell and trade up into larger homes.
To respond to the changing housing market, first-time home buyers may need to broaden their search and be more “flexible and compromise,” says Chip Rowand, a Broward County, Fla., real estate professional.
Also, first-timers shouldn’t automatically settle for a Federal Housing Administration mortgage due to the low down payment requirements (usually 3.5 percent of the purchase price). The FHA can have several restrictions that makes some sellers prefer buyers who offer cash or who are using conventional loans, says Stephen B. McWilliam, president of Greater Fort Lauderdale (Fla.) REALTORS®. Some conventional loans require just 5 percent down and so may serve as an option for first-timers.
First-timers also need to be able to act fast and be able to have their financing processed quickly if they are going to stay competitive. Some banks won’t sign off on mortgages for eight to 12 weeks. But some sellers won’t wait that long. Some housing experts suggest first-timers look into working with a community bank or local mortgage banker, which often don’t have as long a wait.
Source: “First-time Home Buyers May Have to Compromise,” Sun Sentinel (Jan. 10, 2013)

Consumers Have High Expectations for Housing Market

Daily Real Estate News | Wednesday, January 09, 2013

Consumers are increasingly optimistic about the direction of home prices, which could offer up enough incentive for those who have been waiting out the market to put their homes up for sale this year, according to Fannie Mae’s December National Housing Survey results.
Consumers expect home prices to rise 2.6 percent in the next year — the highest level since Fannie started conducting the survey in 2010.
“The highest share of consumers in the survey’s two-and-a-half year history expect home prices to increase in the next 12 months,” says Doug Duncan, Fannie Mae’s chief economist. “The view is consistent with Fannie Mae’s expectation that home prices will rise going forward on a national basis. Combined with consumers’ growing mortgage rate and rental price increase expectations, the positive home price outlook could incentivize those waiting on the sidelines of the housing market to buy a home sooner rather than later and thus support continued house acceleration.”
Also, among the survey’s highlights:

• 21 percent of Americans say it’s a good time to sell, which is a 10 percentage point increase over last year. 
• 43 percent of respondents say they think mortgage rates will rise. 
• 49 percent say they believe home rental prices will rise in the next 12 months.

Update on "Fiscal Cliff" legislation

I received e-mail update news letter by C.A.R. President, and said(partially copied)


Here are other housing-related provisions included in the federal law:

• The “Pease Limitations” that reduced the value of itemized deductions, including the mortgage interest deduction, are permanently repealed for most taxpayers but will be reinstituted for high income filers.  This provision reduces a taxpayer's itemized deductions by 3 percent of the amount of his or her adjusted gross income (AGI) that exceeds the threshold amount.  Under the new law, the Pease thresholds are $300,000 for married taxpayers filing jointly and $250,000 for single taxpayers (i.e., a married couple with an AGI of $400,000 would be $100,000 over the threshold; the couple’s deductions would be reduced by $3,000 which is 3% of $100,000).  No matter how high a taxpayer's AGI, the Pease reduction cannot exceed 20 percent of the amount of itemized deductions otherwise allowable for the year.  
• The restoration of a tax deduction for mortgage-insurance premiums, including premiums paid to the Federal Housing Administration and private mortgage insurers.  This provision expired at the end of 2011 but has now been retroactively extended for all of 2012 as well as 2013.
• 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012.
• Capital gains rates will remain at 15 percent for those earning less than $400,000 (individual) and $450,000 (joint).   Gains above those income levels will be taxed at 20 percent.  Gains on the sale of principal residences will remain unchanged and continues to exclude the first $250,000 for single taxpayers and $500,000 taxpayers filing jointly.

It is good news!!

Number of Improving Housing Markets Keeps Growing

Daily Real Estate News | Tuesday, January 08, 2013

More metros were added to this month’s Improving Housing Market list, allowing the index to grow in January to 242 metros out of 361 nationwide.
The National Association of Home Builders/First American Improving Market Index identifies areas that have shown growth in housing permits, employment, and home prices for at least six consecutive months. The index was created in September 2011.
Forty-seven new metros were added to January’s list, including areas like Los Angeles; Auburn, Ala.; Des Moines; Nashville; Richmond, Va.; and Cleveland.
"The IMI has almost doubled in the past two months as stronger demand during prime home buying season boosted prices across a broader number of metropolitan areas," says NAHB Chief Economist David Crowe. "Similar home price gains, and hence the IMI, may be tempered in the future as we see data from typically slower months for home sales."  
To view  all 242 metros on the list, visit www.nahb.org/imi.

7 Markets Showing Big Home Price Growth

Daily Real Estate News | Monday, January 07, 2013

Home prices are inching up across the country, as a housing recovery ripples through once hard-hit areas. AOL Real Estate, drawing from Trulia housing data, recently highlighted the top “turnaround housing markets” that have seen the biggest jumps in median home prices in the past year.

1. Las Vegas
   • Median home price for fourth quarter of 2012: $147,000
   • Difference in prices between 2011-2012: +27.5%
2. Seattle
   • Median home price: $299,950
   • Difference in prices between 2011-2012: +24%
3. Phoenix
   • Median home price: $189,000
   • Difference in prices between 2011-2012: +21.8%
4. Oakland, Calif.
   • Median home price: $384,750
   • Difference in prices between 2011-2012: +21%
5. San Jose, Calif.
   • Median home price: $589,950
   • Difference in prices between 2011-2012: +20.8%
6. Salt Lake City
   • Median home price: $159,000
   • Difference in prices between 2011-2012: +18.9%
7. Atlanta
   • Median home price: $159,000
   • Difference in prices between 2011-2012: +18.9%
   
   I think it is about time to buying or selling home now before home price become too high.
   

Mortgage Debt Tax Relief Extended

Daily Real Estate News | Friday, January 04, 2013
A tax break for forgiven mortgage debt that was set to expire Dec. 31 was extended by lawmakers when they dodged the “fiscal cliff” this week.
The tax break, which has been extended to the end of 2013, allows home owners facing short sales, reduced loan principals, or foreclosures to avoid paying taxes on any debt still owed to the bank. Otherwise, the debt would have been taxed by the IRS as income.
The tax break first took effect in 2007.
Home owners had rushed to complete short sales before the end of the year out of fear that the tax break would not be extended.
In Florida, short sales have sold on average for about $103,000 less than what the home owner owed. As such, a typical home seller in that state in, say, the 25 percent tax bracket who completed a short sale in 2013 would have been faced with a $25,725 tax bill if the extension had expired.
Visit REALTOR.org for a complete list of real estate provisions included in the “fiscal cliff” bill.
Source: “Tax Break for Forgiven Mortgage Debt Extended,” Tampa Bay Times (Jan. 3, 2012)

5 Tips for Buyers Who Use Downpayment Gifts

Daily Real Estate News | Thursday, January 03, 2013

About a quarter of first-time home buyers use gifts from relatives to fund a down payment for a home purchase, according to data from the National Association of REALTORS®. But lenders are carefully scrutinizing such gifts.
“Basically, the banks want to make sure that you’re not getting a second loan,” Ray Mignone of Ray Mignone & Associates, a financial planning firm, told The New York Times. “If all of a sudden $50,000 pops into your account, they want to make sure it’s not a loan against the property that they’re going to put a mortgage on.”
In a recent article, The New York Times provided some of the following tips in making make these lenders’ checks and balances go smoother for home buyers:

• Have the money come in a check or wire transfer so that it’s traceable. Lenders often become cautious over cash gifts. 
• Have the giver provide the lender with a gift letter, which verifies the money is a gift, the specific amount being given, the relationship to the borrower, and that repayment is not required. 
• Deposit any gift money into the borrower’s account a few months before applying for a mortgage so the lenders have fewer questions about it, Mignone says. 
• Consider federal gift-tax regulations: Individual gifts of more than $13,000 must be reported to the IRS and are subject to tax. 
• Be aware that certain types of mortgages may limit how much of a down payment you can receive as a gift. For example, with conventional loans, lenders may require at least 5 percent in the borrower’s own money that is not a gift. However, Federal Housing Administration loans — which are popular among first-time home buyers — do not have any limits on gifts and borrowers can use gifts to cover the entire down payment.