Market Studies

Although some argue the push for homeownership was the root cause leading to the housing downturn, a report from the Bipartisan Policy Center's (BPC) Housing Commission argued it was actually a wide range of factors that converged to create the crisis and offered its own formula for encouraging sustainable homeownership for those with modest incomes. With past mistakes in mind, the commission argued sustainable homeownership should be encouraged among lower-income borrowers and can be achieved through broad availability of prime, fixed-rate mortgage financing and adjustable-rate mortgages with clear terms and limits on adjustments and maximum payments.

Wells Fargo kept its place as the largest servicer in the fourth quarter, according to a ranking from Mortgage Daily, while Ocwen made its way to No. 6, a spot previously held by Residential Capital in the third quarter.

The fast-growing population of single-family renters is more likely to dwell in their home for longer periods of time compared to multifamily occupants, which suggests demand for single-family rentals offers greater stability than the multifamily market, according to a new survey from Premier Property Management Group. In a survey of renters conducted by ORC International, 26 percent of single-family renters said they were more likely to stay in their current home five or more years compared to 22 percent of apartment dwellers. Single-family renters were also characterized as earning more income, but are more likely to have a bigger household.

DS News took some time to chat with Daren Blomquist, VP of RealtyTrac, to get a reading on the current state of the foreclosure market and what is expected to come. Although foreclosures served to strip homes of their value during the housing crisis, Blomquist says foreclosures will be seen as a welcome sign this year and act as a stimulus. While this may seem counterintuitive, Blomquist said, ""because of the severe lack of inventory available for sale, foreclosures could actually fill that inventory and provide more fuel to the fire that's been slowly building over the past year as more sales occur.""

President Obama unleashed a predictable firestorm when he proposed during the State of the Union address that the minimum wage be increased to $9.00 an hour from the current $7.25. The reactions were expected: conservative economists criticizing the suggestion while progressives either endorsed it outright or noted the proposal was less than the $9.50 minimum wage proposed by then-candidate Obama.

Home values in January posted their biggest annual increase since July 2006, beating national gains in rent, according to a recent report from Zillow. The Zillow Home Value Index rose for the 15th straight month to $158,100 in January 2013. The improvement represents a 6.2 percent year-over-year gain and a 0.7 percent increase from December 2012. The winter season, however, slowed gains for the Zillow Rent Index, which was down 0.2 percent from December, but still 4.3 percent higher compared to a year ago.

Challenger, Gray & Christmas, a nationwide outplacement firm, is predicting a relocation surge in 2013 from job-seeking homeowners who are finally able to list their properties. As home prices improve, more homeowners have been lifted out of negative equity, and thus more free to sell their properties and relocate. ""One factor that has kept unemployment rates high has been the inability of underwater homeowners to relocate for employment opportunities. With home prices bouncing back, even those who may now simply break even on a home sale might consider moving to a region where jobs are more plentiful,"" said John A. Challenger, the firm's CEO.

While most representation and warranty guidelines for recent residential mortgage-backed securities (RMBS) have been substantially stronger than observed in pre-crisis transactions, according to Fitch, the ratings agency has begun to encounter some proposals that fall short of the industry's recently-enhanced standards. Fitch is a strong proponent of the American Securitization Forum's Project Restart, which created a rep and warranty framework following the housing crisis. According to Fitch, the framework offers ""a high standard that provides the most assurances about loan origination and underwriting quality."" Some of the most recent RMBS transactions the agency reviewed stray from these guidelines and are ""weak,"" according to Fitch.

Even with tax hikes and spending cuts creating a significant headwind to the economy, Fannie Mae's Economic & Strategic Research Group is maintaining its outlook for slow and steady growth in 2013. On the housing front, continued lean inventory and the increase in rate of household formation bode well for homebuilding activity and residential construction employment, the outlook says, giving housing an opportunity to contribute more to economic growth. However, one unknown variable on the supply side is how many underwater borrowers are waiting to list their homes.

Florida's housing market continued its upswing into the new year, according to the latest housing data released by Florida Realtors. Statewide closed sales of existing single-family homes totaled 13,679 in January, up 11.7 percent year-over-year, the group reported. Prices also rose: The statewide median sales price for single-family existing homes in January was $145,000, up 12.4 percent over January 2012.