Home prices fell below the 2009 housing bust bottom in the first
quarter, dropping 4.2% from the prior three months, according to
the S&P Case-Shiller national home price index. The 20-city
composite index was at 138.16, falling below the 2009 low of
139.26. It was the third straight quarterly drop for the index,
which was down 5.1% from a year earlier. National prices are now
down 32.7% from their peak set five years ago. The
S&P/Case-Shiller national home price index covers 80% of the
housing market. "This month's report is marked by the
confirmation of a double-dip in home prices across much of the
nation," said David Blitzer, spokesman for Standard and Poor's.
The housing market went through a brief recovery period starting
in mid-2009.
Home prices recovered nearly 5% of their earlier losses. After
homebuyer tax credits, which were in effect during the rebound,
expired last April, the slump resumed. "The rebound in prices
seen in 2009 and 2010 was largely due to the first-time home
buyers tax credit," said Blitzer. "Excluding the results of that
policy, there has been no recovery or even stabilization in home
prices during or after the recent recession." A separate
S&P/Case-Shiller index covering 20 major cities also dropped
during March, its eighth straight monthly decline. This is the
second month of the post-recession double dip for the 20-city
index. Prices peaked in July 2006 and then fell steadily through
April 2009. They then went on a winning streak that ran through
last June and prices, adjusted for seasonal differences, have
plunged every month since.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Tuesday, May 31, 2011
Friday, May 20, 2011
Everybody's Looking for the Deal - Real Trac
A new study conducted by Trulia and RealtyTrac found that 56 percent of U.S. renters and 47 percent of current homeowners are at least “somewhat likely” to purchase a foreclosed home.
Along with having some concerns about hidden costs, a risky buying process, and still-declining home values, many potential buyers expect to save money if they buy a foreclosure. In fact, the companies’ survey found that on average, respondents expect to pay 38 percent less for a foreclosed home than a similar home that was not in foreclosure.
RealtyTrac says their expectations are not too far above the average discount of 36 percent it’s currently seeing on sales of bank-owned REO homes.
Ken Shuman, a spokesperson for Trulia, said, “According to our latest data, it is more affordable to buy a home than to rent in 78 percent of major U.S. cities. With concerns of rising inflation and the potential for rising interest rates, now is a good time for people to buy and we may not be in this environment for much longer.”
The Trulia-RealtyTrac survey also polled respondents on the federal government’s efforts to help struggling homeowners. Forty-five percent of those surveyed said the government is not doing enough to prevent foreclosures. Only 17 percent say too much is being done, while 16 per-
cent say they are doing the right amount and 22 percent were undecided.
The widespread prevalence of distressed homeowners facing foreclosures in today’s market is one reason why negative sentiment toward the government may be so high, according to the companies’ report.
Almost one-third (30 percent) of homeowners said they themselves have, or they know someone who has experienced trouble with their mortgage situation and applied for a loan modification, stopped making their payments, been foreclosed on, simply walked away, or sold their home through a short sale transaction.
As more cities across the nation experience double dips in home prices, more than half (54 percent) of those surveyed believe recovery in the housing market will not happen until 2014 or later.
In a previous survey conducted six months ago, 42 percent of American adults said they thought the market would turn around by 2012 or had already turned around. Now, only 23 percent continue to hold this sentiment.
“Most Americans, as our latest survey revealed, overestimated how quickly the housing market would bounce back, but when it does, it will likely be a long and gradual process,” said Pete Flint, co-founder and CEO of Trulia. “Looking at the recent double dips in home prices, I expect the rest of 2011 to be volatile for real estate….In my eyes, we have another 18 months until we start to see signs of price stability in the housing market.”
Trulia and RealtyTrac have regularly conducted these surveys since 2008 to track consumers’ attitudes toward foreclosed homes and the housing market recovery.
“Our survey reflects a growing perception among potential homebuyers that the housing recovery is still a long way off,” commented Rick Sharga, RealtyTrac SVP. “Demand remains weak, loans are increasingly difficult to qualify for, and the shadow inventory of several million distressed properties is weighing down the market. All of these things need to improve before housing can recover.”
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Along with having some concerns about hidden costs, a risky buying process, and still-declining home values, many potential buyers expect to save money if they buy a foreclosure. In fact, the companies’ survey found that on average, respondents expect to pay 38 percent less for a foreclosed home than a similar home that was not in foreclosure.
RealtyTrac says their expectations are not too far above the average discount of 36 percent it’s currently seeing on sales of bank-owned REO homes.
Ken Shuman, a spokesperson for Trulia, said, “According to our latest data, it is more affordable to buy a home than to rent in 78 percent of major U.S. cities. With concerns of rising inflation and the potential for rising interest rates, now is a good time for people to buy and we may not be in this environment for much longer.”
The Trulia-RealtyTrac survey also polled respondents on the federal government’s efforts to help struggling homeowners. Forty-five percent of those surveyed said the government is not doing enough to prevent foreclosures. Only 17 percent say too much is being done, while 16 per-
cent say they are doing the right amount and 22 percent were undecided.
The widespread prevalence of distressed homeowners facing foreclosures in today’s market is one reason why negative sentiment toward the government may be so high, according to the companies’ report.
Almost one-third (30 percent) of homeowners said they themselves have, or they know someone who has experienced trouble with their mortgage situation and applied for a loan modification, stopped making their payments, been foreclosed on, simply walked away, or sold their home through a short sale transaction.
As more cities across the nation experience double dips in home prices, more than half (54 percent) of those surveyed believe recovery in the housing market will not happen until 2014 or later.
In a previous survey conducted six months ago, 42 percent of American adults said they thought the market would turn around by 2012 or had already turned around. Now, only 23 percent continue to hold this sentiment.
“Most Americans, as our latest survey revealed, overestimated how quickly the housing market would bounce back, but when it does, it will likely be a long and gradual process,” said Pete Flint, co-founder and CEO of Trulia. “Looking at the recent double dips in home prices, I expect the rest of 2011 to be volatile for real estate….In my eyes, we have another 18 months until we start to see signs of price stability in the housing market.”
Trulia and RealtyTrac have regularly conducted these surveys since 2008 to track consumers’ attitudes toward foreclosed homes and the housing market recovery.
“Our survey reflects a growing perception among potential homebuyers that the housing recovery is still a long way off,” commented Rick Sharga, RealtyTrac SVP. “Demand remains weak, loans are increasingly difficult to qualify for, and the shadow inventory of several million distressed properties is weighing down the market. All of these things need to improve before housing can recover.”
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Wednesday, May 18, 2011
More Underwater as Home Values Post Sharpest Drop Since 2008: Zillow
Home values in the United States fell faster in the first
quarter of 2011 than they have in any quarter since 2008,
when the housing market experienced its worst performance,
according to a new report from Zillow.
The Seattle-based company’s index of residential property
values fell 3 percent nationally during the first three
months of this year when compared to the fourth quarter of
2010.
As a result, negative equity hit a new high-water mark by
the end of the first quarter, with 28.4 percent of
homeowners with mortgages owing more on the loan than their
home is worth, Zillow said. The company’s underwater ratio
is up from 27 percent in the fourth quarter of 2010.
Zillow’s first-quarter index reading of home values came in
at $169,600, 8.2 percent below where it was a year earlier.
The company says home values have fallen 29.5 percent since
they peaked in June 2006.
Meanwhile, foreclosures rose throughout the first quarter as
banks unfroze moratoriums and allowed foreclosures to
resume. Foreclosures had fallen in late 2010 due to the slew
of temporary suspensions brought about by the “robo-signing”
controversy.
But by March, Zillow says activity had picked up once again,
with one out of every 1,000 homes in the country lost to
foreclosure during the month.
With the substantial home value declines, as well as
increasing negative equity and foreclosures, Zillow says it
is unlikely that home values will reach a bottom in 2011.
First-quarter data has prompted Zillow to revise its
forecast, now predicting a bottom in 2012 “at the earliest.”
“Home value declines are currently equal to those we
experienced during the darkest days of the housing
recession,” said Dr. Stan Humphries, chief economist for
Zillow. “With accelerating declines during the first
quarter, it is unreasonable to expect home values to return
to stability by the end of 2011.”
Humphries says he did expect a “substantial payback” from
the federal government’s homebuyer tax credit initiative,
which buoyed the housing market last year. But he warns that
diminished demand post-tax credit, as well as rising
foreclosures and high negative equity rates “make it almost
certain that we won’t see a bottom in home values until 2012
or later.”
Zillow says very few markets were exempt from home value
declines in the first quarter. Ninety-seven percent of the
132 markets covered by Zillow logged home value declines.
Only the Fort Myers, Florida; Champaign-Urbana, Illinois;
and Honolulu, Hawaii metro areas experienced quarterly
increases, with home values rising 2.4 percent, 0.8 percent,
and 0.3 percent, respectively. Home values in the Sarasota,
Florida metro remained flat.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
quarter of 2011 than they have in any quarter since 2008,
when the housing market experienced its worst performance,
according to a new report from Zillow.
The Seattle-based company’s index of residential property
values fell 3 percent nationally during the first three
months of this year when compared to the fourth quarter of
2010.
As a result, negative equity hit a new high-water mark by
the end of the first quarter, with 28.4 percent of
homeowners with mortgages owing more on the loan than their
home is worth, Zillow said. The company’s underwater ratio
is up from 27 percent in the fourth quarter of 2010.
Zillow’s first-quarter index reading of home values came in
at $169,600, 8.2 percent below where it was a year earlier.
The company says home values have fallen 29.5 percent since
they peaked in June 2006.
Meanwhile, foreclosures rose throughout the first quarter as
banks unfroze moratoriums and allowed foreclosures to
resume. Foreclosures had fallen in late 2010 due to the slew
of temporary suspensions brought about by the “robo-signing”
controversy.
But by March, Zillow says activity had picked up once again,
with one out of every 1,000 homes in the country lost to
foreclosure during the month.
With the substantial home value declines, as well as
increasing negative equity and foreclosures, Zillow says it
is unlikely that home values will reach a bottom in 2011.
First-quarter data has prompted Zillow to revise its
forecast, now predicting a bottom in 2012 “at the earliest.”
“Home value declines are currently equal to those we
experienced during the darkest days of the housing
recession,” said Dr. Stan Humphries, chief economist for
Zillow. “With accelerating declines during the first
quarter, it is unreasonable to expect home values to return
to stability by the end of 2011.”
Humphries says he did expect a “substantial payback” from
the federal government’s homebuyer tax credit initiative,
which buoyed the housing market last year. But he warns that
diminished demand post-tax credit, as well as rising
foreclosures and high negative equity rates “make it almost
certain that we won’t see a bottom in home values until 2012
or later.”
Zillow says very few markets were exempt from home value
declines in the first quarter. Ninety-seven percent of the
132 markets covered by Zillow logged home value declines.
Only the Fort Myers, Florida; Champaign-Urbana, Illinois;
and Honolulu, Hawaii metro areas experienced quarterly
increases, with home values rising 2.4 percent, 0.8 percent,
and 0.3 percent, respectively. Home values in the Sarasota,
Florida metro remained flat.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Tuesday, May 17, 2011
Commercial Real Estate Hurting Small Banks
The delinquency rate on commercial mortgage-backed securities hit
a record 9.62% in April, according to a report by Trepp, a firm
that tracks commercial real estate and banking data. Analysts
expect that to rise above 10% by year end. On the bright side,
that forecast marks a slight improvement over prior estimates
that cmaxalled for defaults to top 12%. The bulk of the rising
delinquencies are falling squarely on the shoulders of small and
regional banks, forcing dozens to close. Thirteen banks failed
in April, with nearly all them heavily exposed to commercial real
estate. It's a familiar pattern that U.S. regulators say they've
been observing for several months.
Small to regional banks -- defined as banks holding less than
$100 billion in assets -- have $784 billion in commercial real
estate loans on their books, according to the Independent
Community Bankers Association of America. That's about 71% of the
total market. At the height of the bubble, small-to-midsized
banks underwrote more than $200 billion in risky land and
construction loans, where the collateral on the loan wasn't
office space but vacant land or incomplete construction sites.
Among the 13 banks shut down last month, commercial real estate
loans made up 79% of their non-performing loans, defined as loans
in default or close to default. Non-performing residential real
estate loans made up only 15% of those loan portfolios. For
example, Cortez Community Bank in Florida, which was shuttered by
the FDIC on April 29, had 76% of its loans in commercial real
estate. Another failed bank, Nexity Bank of Alabama, had a loan
portfolio that was 87% commercial real estate loans.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
a record 9.62% in April, according to a report by Trepp, a firm
that tracks commercial real estate and banking data. Analysts
expect that to rise above 10% by year end. On the bright side,
that forecast marks a slight improvement over prior estimates
that cmaxalled for defaults to top 12%. The bulk of the rising
delinquencies are falling squarely on the shoulders of small and
regional banks, forcing dozens to close. Thirteen banks failed
in April, with nearly all them heavily exposed to commercial real
estate. It's a familiar pattern that U.S. regulators say they've
been observing for several months.
Small to regional banks -- defined as banks holding less than
$100 billion in assets -- have $784 billion in commercial real
estate loans on their books, according to the Independent
Community Bankers Association of America. That's about 71% of the
total market. At the height of the bubble, small-to-midsized
banks underwrote more than $200 billion in risky land and
construction loans, where the collateral on the loan wasn't
office space but vacant land or incomplete construction sites.
Among the 13 banks shut down last month, commercial real estate
loans made up 79% of their non-performing loans, defined as loans
in default or close to default. Non-performing residential real
estate loans made up only 15% of those loan portfolios. For
example, Cortez Community Bank in Florida, which was shuttered by
the FDIC on April 29, had 76% of its loans in commercial real
estate. Another failed bank, Nexity Bank of Alabama, had a loan
portfolio that was 87% commercial real estate loans.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Thursday, May 5, 2011
Home Prices Have Double Dipped
Home prices nationwide have double dipped, with prices plunging below their March 2009 bottom, the Clear Capital research firm reports.
The company's monthly Home Data Index shows home prices double dipping 0.7 percent below the previous record low set in March 2009.
Sales of bank-owned (REO) properties hit 34.5 percent of the market, helping to send quarterly home prices down 4.9 percent and 5.0 percent when compared with March 2010.
National home prices have fallen 11.5 percent in the past nine months, a rate not seen since 2008.
"With more than one-third of national home sales being REO (bank owned), market prices are being weighed down, as many markets have not regained enough footing to withstand the strain of the high proportion of REO sales," says Clear Capital's Alex Villacorta, according to CNBC.
Looking forward, market watchers will play close attention to the index in spring — a more-active buying season — to see if organic demand for housing can push the index back into growth territory.
"In light of the compounding effects of winter’s seasonal slowdown and increased distressed sale activity, the market now faces the true test of whether prices can rebound in the historically active spring season," Villacorta says, this time according to Housing Wire, a financial news service for the mortgage industry.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
The company's monthly Home Data Index shows home prices double dipping 0.7 percent below the previous record low set in March 2009.
Sales of bank-owned (REO) properties hit 34.5 percent of the market, helping to send quarterly home prices down 4.9 percent and 5.0 percent when compared with March 2010.
National home prices have fallen 11.5 percent in the past nine months, a rate not seen since 2008.
"With more than one-third of national home sales being REO (bank owned), market prices are being weighed down, as many markets have not regained enough footing to withstand the strain of the high proportion of REO sales," says Clear Capital's Alex Villacorta, according to CNBC.
Looking forward, market watchers will play close attention to the index in spring — a more-active buying season — to see if organic demand for housing can push the index back into growth territory.
"In light of the compounding effects of winter’s seasonal slowdown and increased distressed sale activity, the market now faces the true test of whether prices can rebound in the historically active spring season," Villacorta says, this time according to Housing Wire, a financial news service for the mortgage industry.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
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