Source: Housingwire
By Kerri Ann Panchuk
The number of Americans in the foreclosure process plummeted by nearly 25% in the past year, according to Lender Processing Services First Look mortgage report for April.
The total delinquency rate for loans 30 days or more past due, but not yet in foreclosure, also fell below 6.5% for the first time since July of 2008.
The total number of homeowners who are either delinquent or in foreclosure maintained its downward trajectory, reaching 4.7 million in April, LPS Applied Analytics noted.
Currently, 6.21% of loans surveyed by LPS are classified as 30-days past due, but not in foreclosure. The delinquency rate is down 5.81% from the prior month and 9.61% from year ago levels.
The total U.S. foreclosure pre-sale inventory rate hit 3.17% in April, down 24.55% from year ago levels.
Overall, 3.1 million properties are more than 30 days delinquent.
States with the highest percentage of non-current mortgages include Florida, New Jersey, Mississippi, Nevada and New York.
Meanwhile, the list of states with the lowest percentage of non-current loans includes Montana, Wyoming, Alaska, South Dakota and North Dakota.
URL to original article: http://www.housingwire.com/news/2013/05/22/number-americans-foreclosure-plummets-lps
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, May 22, 2013
The pace of the housing market has picked up
Source: Housingwire
Real Estate Market Speeds Up According to Redfin Fastest Real Estate Markets Report
by Rachel Musiker
Low Supply and High Demand are Largely Responsible, but Technology is also Creating a “New Normal” for the Expected Pace of Home Buying and Selling Ask a friend who’s trying to buy a home what the the real estate market is like, and she will surely describe it as “fast” or a synonym thereof. And your friend is right! To address this new reality, Redfin has developed a new monthly report focused solely on the speed of home sales. In April, the percentage of homes that went under contract within two weeks increased by 39 percent since the same time last year and by 3 percent from March. Homes going under contract in one week increased 54 percent from last year and by 2 percent since March. Both measures set a new record since at least January 2011, when Redfin began tracking this data. Several factors are contributing to the market’s need for speed these days. Demand is high and supply is low, which forces people to make decisions very quickly. Also, new technology is compressing the timeline from listing to tour and offer. Today, people can find out within minutes when a new listing has hit the market and to schedule an in-person home tour with real estate agent, all from a smartphone. While market conditions like supply and demand will fluctuate over time, changes brought about by technology are most likely creating a “new normal” for the overall pace of home buying and selling. “I’ve been seeing more homebuyers writing pre-emptive offers in an effort to get under contract before a bidding war erupts,” said Mia Simon, a Redfin agent in Silicon Valley. “Typically, these pre-emptive offers are well above asking price, non-contingent, and from homebuyers who have already lost out in several bidding wars.” The Redfin Fastest Real Estate Markets Report ranks 22 markets across the country measured by the percentage of homes that went under contract within two weeks of their debut in April 2013. The metrics include single-family homes, condos, and townhouses. Other key findings: •The fastest-moving market in April was San Jose (Silicon Valley), California, where nearly two-thirds of new listings were under contract within two weeks, and there was less than one month of supply. •The slowest-moving markets were Triangle, NC (Raleigh-Durham) and Philadelphia, each of which saw 10% of homes under contract within two weeks. •Denver is the only market among the five fastest that is not in California. •Atlanta and Philadelphia are the only metro areas considered buyer’s markets, with 6.9 and 8 months of supply respectively. •Miami has shown the most dramatic acceleration over the last year, with a 149% increase in the percentage of homes going under contract in two weeks, followed by Atlanta at 123%. •Miami also led the nation with the largest (45%) month-over-month increase in the rate of homes going under contract in 14 days, followed by Denver at 15%. •The Chicago and Phoenix markets slowed down in the last year, with 22% and 16% drops in their respective rates of homes going under contract within two weeks. •In the last month, four markets decelerated, seeing a month-over-month decline in the percentage of homes that went under contract in 14 days. They were Chicago (-23%), Las Vegas (-3%), Phoenix (-2%), and Dallas (-1%).
URL to original article: http://www.housingwire.com/fastnews/2013/05/22/pace-housing-market-has-picked
For further information on Fresno Real Estate check: http://www.londonproperties.com
Real Estate Market Speeds Up According to Redfin Fastest Real Estate Markets Report
by Rachel Musiker
Low Supply and High Demand are Largely Responsible, but Technology is also Creating a “New Normal” for the Expected Pace of Home Buying and Selling Ask a friend who’s trying to buy a home what the the real estate market is like, and she will surely describe it as “fast” or a synonym thereof. And your friend is right! To address this new reality, Redfin has developed a new monthly report focused solely on the speed of home sales. In April, the percentage of homes that went under contract within two weeks increased by 39 percent since the same time last year and by 3 percent from March. Homes going under contract in one week increased 54 percent from last year and by 2 percent since March. Both measures set a new record since at least January 2011, when Redfin began tracking this data. Several factors are contributing to the market’s need for speed these days. Demand is high and supply is low, which forces people to make decisions very quickly. Also, new technology is compressing the timeline from listing to tour and offer. Today, people can find out within minutes when a new listing has hit the market and to schedule an in-person home tour with real estate agent, all from a smartphone. While market conditions like supply and demand will fluctuate over time, changes brought about by technology are most likely creating a “new normal” for the overall pace of home buying and selling. “I’ve been seeing more homebuyers writing pre-emptive offers in an effort to get under contract before a bidding war erupts,” said Mia Simon, a Redfin agent in Silicon Valley. “Typically, these pre-emptive offers are well above asking price, non-contingent, and from homebuyers who have already lost out in several bidding wars.” The Redfin Fastest Real Estate Markets Report ranks 22 markets across the country measured by the percentage of homes that went under contract within two weeks of their debut in April 2013. The metrics include single-family homes, condos, and townhouses. Other key findings: •The fastest-moving market in April was San Jose (Silicon Valley), California, where nearly two-thirds of new listings were under contract within two weeks, and there was less than one month of supply. •The slowest-moving markets were Triangle, NC (Raleigh-Durham) and Philadelphia, each of which saw 10% of homes under contract within two weeks. •Denver is the only market among the five fastest that is not in California. •Atlanta and Philadelphia are the only metro areas considered buyer’s markets, with 6.9 and 8 months of supply respectively. •Miami has shown the most dramatic acceleration over the last year, with a 149% increase in the percentage of homes going under contract in two weeks, followed by Atlanta at 123%. •Miami also led the nation with the largest (45%) month-over-month increase in the rate of homes going under contract in 14 days, followed by Denver at 15%. •The Chicago and Phoenix markets slowed down in the last year, with 22% and 16% drops in their respective rates of homes going under contract within two weeks. •In the last month, four markets decelerated, seeing a month-over-month decline in the percentage of homes that went under contract in 14 days. They were Chicago (-23%), Las Vegas (-3%), Phoenix (-2%), and Dallas (-1%).
URL to original article: http://www.housingwire.com/fastnews/2013/05/22/pace-housing-market-has-picked
For further information on Fresno Real Estate check: http://www.londonproperties.com
Monday, May 13, 2013
Monday Morning Cup of Coffee: California housing market tightens, FDIC closes 2 banks
Source: Housingwire
By Brena Swanson
Monday Morning Cup of Coffee is a quick look at the news coming across the HousingWire weekend desk, with more coverage to come on bigger issues. Rep. Maxine Waters' disconnected feelings toward the financial industry have eased up, The New York Times reports. Not long ago, Waters became the ranking Democrat on the House Financial Services Committee, replacing Barney Frank, D-Mass. Waters developed the nickname "kerosene Maxine," for her tendency to hurl flammable remarks. But after a meeting in March with community bankers, participants said they were taken aback by Waters' concern and interest in what they had to say. "We’ve heard [regulators] chase down silly stuff," Waters said in the article. "I’m willing to take a hit to help lower the capital requirements." Waters is open to modifying, revisiting and clarifying the Dodd-Frank Act, but she is still firmly opposed to wholesale revisions. Cities choosing to cut back on police forces are unintentionally impacting property values, according to a study by John Burns Real Estate Consulting. The company surveyed almost 20,000 home shoppers and found that safety ranked above price when it came to important characteristics in purchasing a home. According to the real estate firm, demand is declining in certain cities and rising in neighboring cities due to deteriorating services such as police, fire and school quality. Cities that are pulling back on police forces tend to have a higher crime rate, which in turn causes people to choose neighboring communities. The California housing market is drastically tightening from a year ago, with house prices rising and affordability going down, an article in the Huffington Post said. For the first quarter of 2013, only 44% of buyers could afford a median-priced home costing $350,490 in California, down 56% from a year ago, the report said. Meanwhile, in the Los Angeles metro, 46% of buyers could afford the median-priced home costing $333,380, falling 56% from a year ago and from 50% in the fourth quarter. The Federal Advisory Council, which is made up of 12 bankers, warned the Federal Reserve that the student debt crisis is starting to mimic the housing bubble, according to an article in USA Today. Fed Chairman Ben Bernanke has dismissed continuously parallels between student lending and the subprime mortgage crisis. However, bankers cautioned that just as the mortgage-lending boom pushed home prices upward, student loan lending has put upward pressure on tuition, the article claims. Student loan debt has nearly reached $1 trillion, due to a significant growth in subsidized lending in pursuit of a social good—higher education. The Federal Deposit Insurance Corp. shut down two banks at the end of last week Sunrise Bank, located in Valdosta, Ga., was closed by the Georgia Department of Banking and Finance, which named the FDIC as the receiver. To ensure the depositors have a place to access their accounts, the FDIC entered into an agreement with Synovus Bank in Columbus, Ga. Additionally, Pisgah Community Bank in Asheville, N.C., was closed by the North Carolina Office of the Commissioner of Banks, which appointed the FDIC as the receiver. All deposits will be transferred to Capital Bank, National Association, located in Rockville, Md.
URL to original article: http://www.housingwire.com/news/2013/05/12/monday-morning-cup-coffee-california-housing-market-tightens-fdic-closes-2-banks
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Brena Swanson
Monday Morning Cup of Coffee is a quick look at the news coming across the HousingWire weekend desk, with more coverage to come on bigger issues. Rep. Maxine Waters' disconnected feelings toward the financial industry have eased up, The New York Times reports. Not long ago, Waters became the ranking Democrat on the House Financial Services Committee, replacing Barney Frank, D-Mass. Waters developed the nickname "kerosene Maxine," for her tendency to hurl flammable remarks. But after a meeting in March with community bankers, participants said they were taken aback by Waters' concern and interest in what they had to say. "We’ve heard [regulators] chase down silly stuff," Waters said in the article. "I’m willing to take a hit to help lower the capital requirements." Waters is open to modifying, revisiting and clarifying the Dodd-Frank Act, but she is still firmly opposed to wholesale revisions. Cities choosing to cut back on police forces are unintentionally impacting property values, according to a study by John Burns Real Estate Consulting. The company surveyed almost 20,000 home shoppers and found that safety ranked above price when it came to important characteristics in purchasing a home. According to the real estate firm, demand is declining in certain cities and rising in neighboring cities due to deteriorating services such as police, fire and school quality. Cities that are pulling back on police forces tend to have a higher crime rate, which in turn causes people to choose neighboring communities. The California housing market is drastically tightening from a year ago, with house prices rising and affordability going down, an article in the Huffington Post said. For the first quarter of 2013, only 44% of buyers could afford a median-priced home costing $350,490 in California, down 56% from a year ago, the report said. Meanwhile, in the Los Angeles metro, 46% of buyers could afford the median-priced home costing $333,380, falling 56% from a year ago and from 50% in the fourth quarter. The Federal Advisory Council, which is made up of 12 bankers, warned the Federal Reserve that the student debt crisis is starting to mimic the housing bubble, according to an article in USA Today. Fed Chairman Ben Bernanke has dismissed continuously parallels between student lending and the subprime mortgage crisis. However, bankers cautioned that just as the mortgage-lending boom pushed home prices upward, student loan lending has put upward pressure on tuition, the article claims. Student loan debt has nearly reached $1 trillion, due to a significant growth in subsidized lending in pursuit of a social good—higher education. The Federal Deposit Insurance Corp. shut down two banks at the end of last week Sunrise Bank, located in Valdosta, Ga., was closed by the Georgia Department of Banking and Finance, which named the FDIC as the receiver. To ensure the depositors have a place to access their accounts, the FDIC entered into an agreement with Synovus Bank in Columbus, Ga. Additionally, Pisgah Community Bank in Asheville, N.C., was closed by the North Carolina Office of the Commissioner of Banks, which appointed the FDIC as the receiver. All deposits will be transferred to Capital Bank, National Association, located in Rockville, Md.
URL to original article: http://www.housingwire.com/news/2013/05/12/monday-morning-cup-coffee-california-housing-market-tightens-fdic-closes-2-banks
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, May 1, 2013
Vacancy rates drop alongside homeownership rates
Source: Housingwire
By Megan Hopkins
Vacancy rates across the U.S. suggest more Americans are slowly coming back into the housing and rental markets, but at a very controlled and deliberate pace. Rental vacancy rates in the U.S. slowly inched down to 8.6% in the first quarter of 2013, down 0.2 percentage points from the first quarter of 2012 and decreasing 0.1 percentage point from the last quarter, according to data from the U.S. Census Bureau. For homeowners, the vacancy rate was a much lower 2.1%, dropping 0.1 percentage point from the first quarter of 2012, but rising 0.2 percentage points from the last quarter. It is important to note that these vacancy rates do not include units held off the market — those not for sale or rent. According to Trulia, homes held off the market now account for 54.5% of all year-round vacant units, remaining unchanged from 2012. However, Trulia ($32.94 3.88%) Chief Economist Jed Kolko notes that as prices continue to appreciate, some of these held-off market vacant units will come onto the market and improve the skin-and-bones inventory buyers are currently facing. Among regions, the rental vacancy was higher in the South, reaching 9.9%, and 9.5% in the Midwest. In the Northeast, the rental vacancy was at 7.2%, while the West saw a 6.9% vacancy rate. Homeowner vacancy rates in the South were 2.5%, 2.1% in the Midwest, 1.9% in the Northeast and 1.5% in the West. The West is the only region that dropped from one-year ago. Dropping 0.4 percentage points from both the first quarter of 2012 and the rate last quarter, the homeownership rate stood at 65%. Analysts at Capital Economics noted, "Some 14 months after the trough in house prices, the homeownership rate is still declining. In other words, although there are some signs that conventional, mortgage-dependent buyers are playing more of a role in the housing recovery, investors remain the dominant force behind the house price bounce-back." According to Trulia’s Kolko, the homeownership rate is back to the 1996 level. "Tight credit, tight for-sale inventory, the challenge of saving for a downpayment and more rental single-family supply all helped lower the homeownership rate," said Kolko. Trulia also adds that household formation slowed in the first quarter. The increase in households was 520,000 units in Q1 compared to one year earlier. That’s a drop from the six previous quarters, when household formation grew at a faster rate, notes Kolko, who says this is likely due to more young people being slow to form new households in the past year. In a report sent to HousingWire, Kolko writes, "The share of Millennials —18 to 34 year-olds — who headed their own household fell slightly from 37.1% in March 2012 to 37.0% in March 2013, according to Current Population Survey monthly data, after rising between 2011 and 2012."
URL to original article: http://www.housingwire.com/news/2013/04/30/vacancy-rates-drop-alongside-homeownership-rates
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Megan Hopkins
Vacancy rates across the U.S. suggest more Americans are slowly coming back into the housing and rental markets, but at a very controlled and deliberate pace. Rental vacancy rates in the U.S. slowly inched down to 8.6% in the first quarter of 2013, down 0.2 percentage points from the first quarter of 2012 and decreasing 0.1 percentage point from the last quarter, according to data from the U.S. Census Bureau. For homeowners, the vacancy rate was a much lower 2.1%, dropping 0.1 percentage point from the first quarter of 2012, but rising 0.2 percentage points from the last quarter. It is important to note that these vacancy rates do not include units held off the market — those not for sale or rent. According to Trulia, homes held off the market now account for 54.5% of all year-round vacant units, remaining unchanged from 2012. However, Trulia ($32.94 3.88%) Chief Economist Jed Kolko notes that as prices continue to appreciate, some of these held-off market vacant units will come onto the market and improve the skin-and-bones inventory buyers are currently facing. Among regions, the rental vacancy was higher in the South, reaching 9.9%, and 9.5% in the Midwest. In the Northeast, the rental vacancy was at 7.2%, while the West saw a 6.9% vacancy rate. Homeowner vacancy rates in the South were 2.5%, 2.1% in the Midwest, 1.9% in the Northeast and 1.5% in the West. The West is the only region that dropped from one-year ago. Dropping 0.4 percentage points from both the first quarter of 2012 and the rate last quarter, the homeownership rate stood at 65%. Analysts at Capital Economics noted, "Some 14 months after the trough in house prices, the homeownership rate is still declining. In other words, although there are some signs that conventional, mortgage-dependent buyers are playing more of a role in the housing recovery, investors remain the dominant force behind the house price bounce-back." According to Trulia’s Kolko, the homeownership rate is back to the 1996 level. "Tight credit, tight for-sale inventory, the challenge of saving for a downpayment and more rental single-family supply all helped lower the homeownership rate," said Kolko. Trulia also adds that household formation slowed in the first quarter. The increase in households was 520,000 units in Q1 compared to one year earlier. That’s a drop from the six previous quarters, when household formation grew at a faster rate, notes Kolko, who says this is likely due to more young people being slow to form new households in the past year. In a report sent to HousingWire, Kolko writes, "The share of Millennials —18 to 34 year-olds — who headed their own household fell slightly from 37.1% in March 2012 to 37.0% in March 2013, according to Current Population Survey monthly data, after rising between 2011 and 2012."
URL to original article: http://www.housingwire.com/news/2013/04/30/vacancy-rates-drop-alongside-homeownership-rates
For further information on Fresno Real Estate check: http://www.londonproperties.com
Friday, April 26, 2013
Stamoules Produce Co. wins family biz award
Source: The Business Journal
Fourth-generation family business Stamoules Produce Co. in Mendota has won the 2013 California Family Business Award. It is the 24th year of the award, presented by the Institute for Family Business at Fresno State and The Business Journal at an awards ceremony last night at Pardini's in Fresno. Stamoules grows crops including cantaloupes, honeydew melons, green bell peppers and pistachios on 18,000 acres, employing some 2,000 workers at peak harvest. The company was founded by Speros Stamoules, who came to the US from Greece in 1903 in search of the American dream. He worked as a food server in a hotel in New York City, saving his money and saving the seeds of some of the cantaloupes he served in anticipation of planting them on his own farm some day. He eventually made his way to the West Coast, purchasing a small farm near Mendota in 1927. Stamoules adopted a daughter named Peggy, who eventually married Tom Stefanopolous, another Greek immigrant. Their children are the third generation in the business, with grandchildren as the fourth generation. There were five companies that were finalists for the award: Simonian Farms — Simonian Family Simonian Farms is a fourth generation Fresno farming/farm stand business founded in 1901 that recently expanded with the Simonian Old Town building that houses an antique collection. Mathews Harley-Davidson — Mathews Family Two generation of the Mathews family currently work at the newly expanded Mathews Harley-Davidson showroom in Downtown Fresno, originally built in 1961. Horstmann Financial & Insurance Services — Horstmann Family Horstmann Financial & Insurance Services is a second-generation family business in Fresno that was founded by John E. Horstmann in 1958. Dewar's Candy Shop — Dewar Family Dewar's Candy Shop is a fourth generation sweet shop and manufacturer in Bakersfield founded in 1909 and featured on national television programs including the Food Network's "Unwrapped" series. Bruno's Iron & Metal — Tosi Family Bruno's Iron & Metal is a third generation family business in Fresno that has grown into one of the Central Valley's most successful waste recycling centers. Nominees for the 2013 California Family Business Award are: • Siemens Family — Arise Solar • Smith Family — ClickCo LLC • Nekumanesh / Karimi Family — Colorado Grill • Clark Family — FTB Print and Mail • Conner Family — London Properties • Papulias Family — Pappy’s Fine Foods • Rodriguez Family — Pinedale Lawnmower Center • Wilson Family — SAN MAR Properties • Peck Family — Sumner Peck Ranch • Steele Family — Steel Printing • Verrastro Family — Travel Shoppe
URL to the original article: http://www.thebusinessjournal.com/news/small-business/5857-stamoules-produce-co-wins-2013-california-family-business-award
For further information on Fresno Real Estate check: http://www.londonproperties.com
Fourth-generation family business Stamoules Produce Co. in Mendota has won the 2013 California Family Business Award. It is the 24th year of the award, presented by the Institute for Family Business at Fresno State and The Business Journal at an awards ceremony last night at Pardini's in Fresno. Stamoules grows crops including cantaloupes, honeydew melons, green bell peppers and pistachios on 18,000 acres, employing some 2,000 workers at peak harvest. The company was founded by Speros Stamoules, who came to the US from Greece in 1903 in search of the American dream. He worked as a food server in a hotel in New York City, saving his money and saving the seeds of some of the cantaloupes he served in anticipation of planting them on his own farm some day. He eventually made his way to the West Coast, purchasing a small farm near Mendota in 1927. Stamoules adopted a daughter named Peggy, who eventually married Tom Stefanopolous, another Greek immigrant. Their children are the third generation in the business, with grandchildren as the fourth generation. There were five companies that were finalists for the award: Simonian Farms — Simonian Family Simonian Farms is a fourth generation Fresno farming/farm stand business founded in 1901 that recently expanded with the Simonian Old Town building that houses an antique collection. Mathews Harley-Davidson — Mathews Family Two generation of the Mathews family currently work at the newly expanded Mathews Harley-Davidson showroom in Downtown Fresno, originally built in 1961. Horstmann Financial & Insurance Services — Horstmann Family Horstmann Financial & Insurance Services is a second-generation family business in Fresno that was founded by John E. Horstmann in 1958. Dewar's Candy Shop — Dewar Family Dewar's Candy Shop is a fourth generation sweet shop and manufacturer in Bakersfield founded in 1909 and featured on national television programs including the Food Network's "Unwrapped" series. Bruno's Iron & Metal — Tosi Family Bruno's Iron & Metal is a third generation family business in Fresno that has grown into one of the Central Valley's most successful waste recycling centers. Nominees for the 2013 California Family Business Award are: • Siemens Family — Arise Solar • Smith Family — ClickCo LLC • Nekumanesh / Karimi Family — Colorado Grill • Clark Family — FTB Print and Mail • Conner Family — London Properties • Papulias Family — Pappy’s Fine Foods • Rodriguez Family — Pinedale Lawnmower Center • Wilson Family — SAN MAR Properties • Peck Family — Sumner Peck Ranch • Steele Family — Steel Printing • Verrastro Family — Travel Shoppe
URL to the original article: http://www.thebusinessjournal.com/news/small-business/5857-stamoules-produce-co-wins-2013-california-family-business-award
For further information on Fresno Real Estate check: http://www.londonproperties.com
Thursday, April 25, 2013
Bear vs bull: The current good and bad of the recovery
Source: Housingwire
By Megan Hopkins
While both single-family and multifamily housing starts anticipated to record double-digit gains over last year in 2013, there are factors that continue to hold back even more substantial growth as the recovery evolves, according to economists at the National Association of Home Builders. Single-family housing starts are expected to reach 672,000 in 2013, according to NAHB, up 23% from the 534,000 starts recorded last year. Looking ahead, NAHB is forecasting single-family production to increase an additional 28% to 858,000 units in 2014. It is anticipated multifamily starts will rise to 334,000 units in 2013, up 35% from last year's 247,000 level. NAHB noted that his will bring production back to the baseline level that is needed to keep the supply in balance with demand. In 2014, multifamily starts are expected to rise an additional 5% to 349,000 units. "The broadening housing expansion is evidenced by the NAHB/First American Improving Markets Index, which now lists 273 metros areas out of a universe of 361, or three-quarters of the metropolitan areas in the U.S.," said NAHB Chief Economist David Crowe. Crowe added that most of the recent surge is a result of home price appreciation in a majority of markets. In fact, the latest data shows a nearly 6% annual rate of home price appreciation nationwide. Housing growth is outpacing overall economic growth, noted Crowe. In the fourth quarter of 2013, the residential fixed investment component of GDP was up 17.5% whereas total economic output only registered a 0.4% gain. With housing demand gaining momentum, the need for building materials, developed lots and skilled workers will slowly begin to grow, although the process may take some time. In the meantime, most homebuilders are feeling strapped by the rising costs of key components in building — concrete, softwood lumber and gypsum prices are all above 90% of their housing boom peak — which, in turn, is pushing up the cost of home construction faster than appraised value can follow, according to NAHB. Consumer confidence and future housing demand continue to be dampened by ongoing difficulties in obtaining construction credit, tight mortgage lending rules and Washington’s uncertainty regarding the future of housing financial regulations and housing tax incentives. Meanwhile, Maury Harris, managing director and chief economist for the Americas for UBS, takes a more bullish approach to the housing and economic recovery. The economist expects housing starts to total 1.1 million units this year (700,000 single-family and 400,000 multifamily) and 1.35 million units (900,000 single-family and 450,000 multifamily) in 2014. "My view is that monetary policy is more important than fiscal policy," Harris said, noting that about $85 billion in spending will be cut out of the economy this year due to the sequester. Meanwhile, the Federal Reserve's monetary expansion policy is pumping $85 billion into the economy every month, he noted. "As the Fed buys securities and pumps reserves into the banking system, this is easing lending standards and that will help job growth," added Harris, who expects unemployment to drop to 7.5% at the end of this year and 6.7% at the end of 2014. "The bottom line: we're reasonably optimistic about the economy," Harris said. "The public doesn't sufficiently appreciate all the good that the Fed is doing."
URL to original article: http://www.housingwire.com/news/2013/04/25/bear-vs-bull-current-good-and-bad-recovery
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Megan Hopkins
While both single-family and multifamily housing starts anticipated to record double-digit gains over last year in 2013, there are factors that continue to hold back even more substantial growth as the recovery evolves, according to economists at the National Association of Home Builders. Single-family housing starts are expected to reach 672,000 in 2013, according to NAHB, up 23% from the 534,000 starts recorded last year. Looking ahead, NAHB is forecasting single-family production to increase an additional 28% to 858,000 units in 2014. It is anticipated multifamily starts will rise to 334,000 units in 2013, up 35% from last year's 247,000 level. NAHB noted that his will bring production back to the baseline level that is needed to keep the supply in balance with demand. In 2014, multifamily starts are expected to rise an additional 5% to 349,000 units. "The broadening housing expansion is evidenced by the NAHB/First American Improving Markets Index, which now lists 273 metros areas out of a universe of 361, or three-quarters of the metropolitan areas in the U.S.," said NAHB Chief Economist David Crowe. Crowe added that most of the recent surge is a result of home price appreciation in a majority of markets. In fact, the latest data shows a nearly 6% annual rate of home price appreciation nationwide. Housing growth is outpacing overall economic growth, noted Crowe. In the fourth quarter of 2013, the residential fixed investment component of GDP was up 17.5% whereas total economic output only registered a 0.4% gain. With housing demand gaining momentum, the need for building materials, developed lots and skilled workers will slowly begin to grow, although the process may take some time. In the meantime, most homebuilders are feeling strapped by the rising costs of key components in building — concrete, softwood lumber and gypsum prices are all above 90% of their housing boom peak — which, in turn, is pushing up the cost of home construction faster than appraised value can follow, according to NAHB. Consumer confidence and future housing demand continue to be dampened by ongoing difficulties in obtaining construction credit, tight mortgage lending rules and Washington’s uncertainty regarding the future of housing financial regulations and housing tax incentives. Meanwhile, Maury Harris, managing director and chief economist for the Americas for UBS, takes a more bullish approach to the housing and economic recovery. The economist expects housing starts to total 1.1 million units this year (700,000 single-family and 400,000 multifamily) and 1.35 million units (900,000 single-family and 450,000 multifamily) in 2014. "My view is that monetary policy is more important than fiscal policy," Harris said, noting that about $85 billion in spending will be cut out of the economy this year due to the sequester. Meanwhile, the Federal Reserve's monetary expansion policy is pumping $85 billion into the economy every month, he noted. "As the Fed buys securities and pumps reserves into the banking system, this is easing lending standards and that will help job growth," added Harris, who expects unemployment to drop to 7.5% at the end of this year and 6.7% at the end of 2014. "The bottom line: we're reasonably optimistic about the economy," Harris said. "The public doesn't sufficiently appreciate all the good that the Fed is doing."
URL to original article: http://www.housingwire.com/news/2013/04/25/bear-vs-bull-current-good-and-bad-recovery
For further information on Fresno Real Estate check: http://www.londonproperties.com
Now is the perfect time to sell, say sellers
Source: Housingwire
Home-Seller Confidence Doubles in the Second Quarter
by Tim Ellis
Responses to Redfin’s Real-Time Seller Survey indicated a dramatic shift in the confidence of home sellers in the second quarter—45 percent of sellers believe now is a good time to sell, up from just 22 percent in the first quarter and 15 percent in the fourth quarter. Meanwhile, 44 percent of sellers believe now is a good time to buy. This is the first time sellers have been more optimistic about the market for selling than for buying since Redfin began conducting this survey, in the third quarter of last year. Nearly a third of sellers have no major concerns about selling, up from just 19 percent in the first quarter. Here’s what sellers told us this quarter: •45 percent believe it is a good time to sell, up from 22 percent last quarter, while 44 percent believe it is a good time to buy, down from 54 percent last quarter; •32.3 percent indicated that missing out on future price gains was a major concern about selling now—down from 34.1 percent last quarter and barely exceeding the 31.9 percent of respondents that have no concerns; •52 percent of respondents indicated that they were planning to sell, up from 49 percent in the first quarter; •15 percent of those not planning to sell are renting out their home, while 52 percent of those who are planning to sell would also consider renting out their home instead of selling, up from 47 percent in the first quarter; •85 percent of sellers believe that home prices will rise in their area in the next 12 months, up from 81 percent in the first quarter; and •21% of sellers believe that they would not get a higher price for their home if they waited a year to sell, up from 15% in the first quarter. About the Survey This quarter’s seller survey took place between April 18th and 21st, 2013. We surveyed 1,984 people who had used Redfin in the last three months and who indicated that they were a homeowner. 1,036 of the respondents indicated an intention to sell his or her home at some point in the foreseeable future, while 948 respondents were not planning to sell. The results span 20 metropolitan markets in the U.S.: Atlanta, Austin, Baltimore, Boston, Charlotte, Chicago, Dallas, Denver, Las Vegas, Los Angeles, New York, Orange County, Philadelphia, Phoenix, Portland, Raleigh, Riverside / San Bernardino, Sacramento, San Diego, San Francisco, Seattle, and Washington DC.
URL to original article: http://www.housingwire.com/fastnews/2013/04/25/now-perfect-time-sell-say-sellers
For further information on Fresno Real Estate check: http://www.londonproperties.com
Home-Seller Confidence Doubles in the Second Quarter
by Tim Ellis
Responses to Redfin’s Real-Time Seller Survey indicated a dramatic shift in the confidence of home sellers in the second quarter—45 percent of sellers believe now is a good time to sell, up from just 22 percent in the first quarter and 15 percent in the fourth quarter. Meanwhile, 44 percent of sellers believe now is a good time to buy. This is the first time sellers have been more optimistic about the market for selling than for buying since Redfin began conducting this survey, in the third quarter of last year. Nearly a third of sellers have no major concerns about selling, up from just 19 percent in the first quarter. Here’s what sellers told us this quarter: •45 percent believe it is a good time to sell, up from 22 percent last quarter, while 44 percent believe it is a good time to buy, down from 54 percent last quarter; •32.3 percent indicated that missing out on future price gains was a major concern about selling now—down from 34.1 percent last quarter and barely exceeding the 31.9 percent of respondents that have no concerns; •52 percent of respondents indicated that they were planning to sell, up from 49 percent in the first quarter; •15 percent of those not planning to sell are renting out their home, while 52 percent of those who are planning to sell would also consider renting out their home instead of selling, up from 47 percent in the first quarter; •85 percent of sellers believe that home prices will rise in their area in the next 12 months, up from 81 percent in the first quarter; and •21% of sellers believe that they would not get a higher price for their home if they waited a year to sell, up from 15% in the first quarter. About the Survey This quarter’s seller survey took place between April 18th and 21st, 2013. We surveyed 1,984 people who had used Redfin in the last three months and who indicated that they were a homeowner. 1,036 of the respondents indicated an intention to sell his or her home at some point in the foreseeable future, while 948 respondents were not planning to sell. The results span 20 metropolitan markets in the U.S.: Atlanta, Austin, Baltimore, Boston, Charlotte, Chicago, Dallas, Denver, Las Vegas, Los Angeles, New York, Orange County, Philadelphia, Phoenix, Portland, Raleigh, Riverside / San Bernardino, Sacramento, San Diego, San Francisco, Seattle, and Washington DC.
URL to original article: http://www.housingwire.com/fastnews/2013/04/25/now-perfect-time-sell-say-sellers
For further information on Fresno Real Estate check: http://www.londonproperties.com
Wednesday, April 24, 2013
Credit proves a hurdle for potential homebuyers
Source: The Housingwire
By Megan Hopkins
Spring has already proven to be a success for the housing industry. In its latest report, CoreLogic noted that there are a number of factors that could help strengthen the housing sector even more, but homebuyers are still facing major obstacles standing between themselves and homeownership. Right now, sellers are facing the challenge of owning enough equity in their existing home to have a strong enough downpayment on a home in a competitive sellers’ market. Not only that, they need to have a qualifying credit profile in a tight lending industry. Luckily, many of those markets that were hit the hardest have had strong price improvements in 2012, removing some of the insufficient equity constraint. With more equity in their hands, owners are putting their homes up for sale and contributing to a tight housing inventory, CoreLogic writes, then transitioning into the buyer role once their home has sold. Not only that, increasing equity is reviving trade-up buyer demand, creating a healthy housing cycle. Coinciding with this newfound equity is increased investor activity, which is expecting to continue driving demand throughout the year. It is anticipated that the first-time homebuyer will also make a stronger appearance in the near future. Today’s household formation has many potential first-time buyers running to rentals, but CoreLogic notes that is part of the cycle. The report’s author, Mark Fleming, writes, "As new renter-households are formed, rental prices are bid up, making the prospect of owning more attractive to existing renters." Fleming notes that the expectation this spring is that more renters will take advantage of historically low interest rates and low home prices and become first-time homebuyers. While the economy is getting back on its feet, slowly but surely, the housing sector is establishing itself as a substantial contributor to this improvement. With equity becoming more sufficient, creditworthiness seems to be one of the only obstacles for potential homebuyers.
URL to original article: http://www.housingwire.com/news/2013/04/23/credit-proves-hurdle-potential-homebuyers
For further information on Fresno Real Estate check: http://www.londonproperties.com
By Megan Hopkins
Spring has already proven to be a success for the housing industry. In its latest report, CoreLogic noted that there are a number of factors that could help strengthen the housing sector even more, but homebuyers are still facing major obstacles standing between themselves and homeownership. Right now, sellers are facing the challenge of owning enough equity in their existing home to have a strong enough downpayment on a home in a competitive sellers’ market. Not only that, they need to have a qualifying credit profile in a tight lending industry. Luckily, many of those markets that were hit the hardest have had strong price improvements in 2012, removing some of the insufficient equity constraint. With more equity in their hands, owners are putting their homes up for sale and contributing to a tight housing inventory, CoreLogic writes, then transitioning into the buyer role once their home has sold. Not only that, increasing equity is reviving trade-up buyer demand, creating a healthy housing cycle. Coinciding with this newfound equity is increased investor activity, which is expecting to continue driving demand throughout the year. It is anticipated that the first-time homebuyer will also make a stronger appearance in the near future. Today’s household formation has many potential first-time buyers running to rentals, but CoreLogic notes that is part of the cycle. The report’s author, Mark Fleming, writes, "As new renter-households are formed, rental prices are bid up, making the prospect of owning more attractive to existing renters." Fleming notes that the expectation this spring is that more renters will take advantage of historically low interest rates and low home prices and become first-time homebuyers. While the economy is getting back on its feet, slowly but surely, the housing sector is establishing itself as a substantial contributor to this improvement. With equity becoming more sufficient, creditworthiness seems to be one of the only obstacles for potential homebuyers.
URL to original article: http://www.housingwire.com/news/2013/04/23/credit-proves-hurdle-potential-homebuyers
For further information on Fresno Real Estate check: http://www.londonproperties.com
Influence of new immigrants evident in US housing markets
Source: The Housingwire
Posted by Megan Hopkins on April 24, 2013 10:30 AM
One of the hottest debates coming out of Washington D.C. right now is immigration. But one thing that’s not debatable is the contribution of new immigrants to the housing recovery. In fact, new legal status for current non-citizens could result in a potential $100 billion in new mortgage loans, the Financial Times reported in Wednesday’s paper. As homeownership plummeted to a 17-year low of 65.3% in the third quarter of 2012, immigrant homeownership rates have continued increasing, the paper writes. For many of these foreign settlers who have come to the U.S., homeownership is the American dream for which they’ll work years to obtain. And while they only make up 13% of the country’s population, immigrants totaled nearly 36% of homeownership growth between 2000 and 2010, Financial Times reported. It is anticipated that in six gateway states, including California and New York, immigrants will account for more than 50% of the rise in home buying by 2020, according to a report by the Research Institute for Housing America and the Mortgage Bankers Association. We've all heard of the uber wealthy foreign investors reviving the California market. However, it's not just the glitzy markets that are seeing an effect. Due to their affordability and quick commute to work, neighborhoods that would otherwise be rundown and vacant are flourishing thanks to immigrant interest. So it’s important to remember what these foreign settlers are doing to our housing recovery. To many Americans, homeownership is just another predicted step in life. However, for many of these immigrants, it is a life goal worked many years to achieve.
URL to original article: http://www.housingwire.com/rewired/2013/04/24/influence-new-immigrants-evident-us-housing-markets
For further information on Fresno Real Estate check: http://www.londonproperties.com
Posted by Megan Hopkins on April 24, 2013 10:30 AM
One of the hottest debates coming out of Washington D.C. right now is immigration. But one thing that’s not debatable is the contribution of new immigrants to the housing recovery. In fact, new legal status for current non-citizens could result in a potential $100 billion in new mortgage loans, the Financial Times reported in Wednesday’s paper. As homeownership plummeted to a 17-year low of 65.3% in the third quarter of 2012, immigrant homeownership rates have continued increasing, the paper writes. For many of these foreign settlers who have come to the U.S., homeownership is the American dream for which they’ll work years to obtain. And while they only make up 13% of the country’s population, immigrants totaled nearly 36% of homeownership growth between 2000 and 2010, Financial Times reported. It is anticipated that in six gateway states, including California and New York, immigrants will account for more than 50% of the rise in home buying by 2020, according to a report by the Research Institute for Housing America and the Mortgage Bankers Association. We've all heard of the uber wealthy foreign investors reviving the California market. However, it's not just the glitzy markets that are seeing an effect. Due to their affordability and quick commute to work, neighborhoods that would otherwise be rundown and vacant are flourishing thanks to immigrant interest. So it’s important to remember what these foreign settlers are doing to our housing recovery. To many Americans, homeownership is just another predicted step in life. However, for many of these immigrants, it is a life goal worked many years to achieve.
URL to original article: http://www.housingwire.com/rewired/2013/04/24/influence-new-immigrants-evident-us-housing-markets
For further information on Fresno Real Estate check: http://www.londonproperties.com
Tuesday, April 23, 2013
Report: Distressed home sales come down in March
Source: The Business Journal
Distressed home sales in California fell to their lowest level in five years, a trend reflected just as strongly in the San Joaquin Valley. According to the California Association of Realtors, distressed sales, which include short sales, sales of bank-owned properties and other foreclosure sales, were down to 41 percent of all home sales in Fresno County in March. That compares to 44 percent in February and 60 percent in March 2012. In Madera County, distressed sales fell to 46 percent in the month from 53 percent the prior month and 68 percent last year. Tulare County saw its distressed sales plummet to 38 percent in March compared to 48 percent in February and 62 percent a year ago. Kings County figures weren't as promising, with distressed sales shooting up to 54 percent in March over 41 percent the prior month. March 2012 percentages weren't available. The statewide average was even lower than the San Joaquin Valley with 28 percent of home sales considered distressed. That's down from 33 percent in February and 49 percent a year ago. Of California's home sales, the share of short sales was 17.3 percent in March, down from 19.8 percent the prior month and 22.6 percent a year ago. The share of real estate-owned sales, including bank-owned homes, dropped to 10.2 percent compared to 12.9 percent and 25.9 percent, respectively. Equity sales, or non-distressed property sales, shot up to 72.1 percent from 66.8 percent in February and 51.2 percent in March 2012. The available supply of real estate-owned homes remained tight in February, or number of months to deplete the supply of homes at the current sales rate, slipping from two months in February to 1.8 months in March. The index for short sales 2.7 months in March compared to 3.2 months in February while equity sales dropped from 3.8 months to three months.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/5763-report-distressed-home-sales-come-down-in-march
For further information on Fresno Real Estate check: http://www.londonproperties.com
Distressed home sales in California fell to their lowest level in five years, a trend reflected just as strongly in the San Joaquin Valley. According to the California Association of Realtors, distressed sales, which include short sales, sales of bank-owned properties and other foreclosure sales, were down to 41 percent of all home sales in Fresno County in March. That compares to 44 percent in February and 60 percent in March 2012. In Madera County, distressed sales fell to 46 percent in the month from 53 percent the prior month and 68 percent last year. Tulare County saw its distressed sales plummet to 38 percent in March compared to 48 percent in February and 62 percent a year ago. Kings County figures weren't as promising, with distressed sales shooting up to 54 percent in March over 41 percent the prior month. March 2012 percentages weren't available. The statewide average was even lower than the San Joaquin Valley with 28 percent of home sales considered distressed. That's down from 33 percent in February and 49 percent a year ago. Of California's home sales, the share of short sales was 17.3 percent in March, down from 19.8 percent the prior month and 22.6 percent a year ago. The share of real estate-owned sales, including bank-owned homes, dropped to 10.2 percent compared to 12.9 percent and 25.9 percent, respectively. Equity sales, or non-distressed property sales, shot up to 72.1 percent from 66.8 percent in February and 51.2 percent in March 2012. The available supply of real estate-owned homes remained tight in February, or number of months to deplete the supply of homes at the current sales rate, slipping from two months in February to 1.8 months in March. The index for short sales 2.7 months in March compared to 3.2 months in February while equity sales dropped from 3.8 months to three months.
URL to original article: http://www.thebusinessjournal.com/news/real-estate/5763-report-distressed-home-sales-come-down-in-march
For further information on Fresno Real Estate check: http://www.londonproperties.com
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