Market Studies

The company's data shows a total of 145,797 condos and houses were bought without mortgage financing in 2012, up from 125,812 in 2011 (the previous high) and 39,731 in 2007, when the housing market started to deflate. According to DataQuick president John Walsh, the increase in cash buying comes from high investor interest, a higher perceived return on investment, and a currently difficult mortgage environment.

At the end of 2012, the national median price saw the biggest annual gain in seven years, more metros reported price improvements, and housing affordability managed to finish the year at a record level despite rising values, the National Association of Realtors (NAR) reported Monday. In Q4 2012, median prices for existing single-family homes increased in 133 out of 152 metro areas compared to the same quarter in 2011. The NAR also found the national median price for an existing single-family home rose to $178,900 in Q4, up 10 percent from $162,600 in the fourth quarter of 2011.

For all of 2012, servicers completed more than 850,000 loan modifications, while the industry also continued to push for another foreclosure alternative--short sales, according to recent data from HOPE NOW. As of 2007, the number of completed mods now stands at 6.06 million. Since 2009, the industry has seen 1.15 million short sales, with 422,605 of the short sales occurring in 2012 alone. In 2011, completed short sales reached 372,168. ""In the past year, there has been unprecedented work from the industry with respect to short sales as a viable mortgage solution,"" said Eric Selk, executive director of HOPE NOW.

During the month of January, 14,500 homeowners received permanent mortgage modifications through the Home Affordable Modification Program (HAMP), while 53,100 homeowners lost their homes to foreclosure, according to the latest Housing Scorecard from the Obama administration. At the same time, 14,500 homeowners entered into trial modifications through HAMP, and 72,500 homes entered the foreclosure process. Proprietary modifications continue to outpace HAMP. HOPE Now reported 62,200 mortgage modifications completed in January.

Homebuyer interest got off to a strong start in 2013, according to Redfin's Real-Time Demand Pulse for February. The report, which reflects data for January, shows the number of Redfin customers requesting home tours rose 57.9 percent in January, up from 52.0 percent at the same time in 2012. January's monthly increase is a turnaround from December's slump, which saw a 7.0 percent decline in customers requesting tours.

With the increase in home and equity prices, Capital Economics suggests net household wealth may be on its way to rising above pre-recession levels later this year, which will lead to a boost to GDP. In a recent report, the firm forecasts the S&P 500 equity price index will end 2013 close to the current level of 1,500 and expects home prices to rise in the neighborhood of 5 percent. In turn, the growth in household wealth, the analytics firms says, could lift GDP by around 0.7 percent.

The national delinquency rate for commercial mortgage-backed securities (CMBS) began the year with another decline, marking the eighth consecutive month of decreases, according to Fitch Ratings. The rating agency, however, noted regional struggles in Georgia. In January, the CMBS delinquency rate fell 8 basis points, ending the month at 7.91 percent. January's CMBS delinquency rate is now at the lowest level since October 2010, when the rate stood at 7.78 percent.

After spiking last week, fixed mortgage rates held their ground this week as the economy showed signs of stability, at least for the near future. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.53 percent (0.8 point) for the week ending February 7, unchanged from last week. This time last year, the average FRM was 3.87 percent. Bankrate reported similar findings: The 30-year fixed average was 3.76 percent, down a single basis point from last week.

Atlanta, one of the metros hardest hit by the foreclosure crisis, has experienced an uptick in the role investors play in its housing market. Also, since the foreclosure crisis, the investors' activities and strategies in the market have shifted, according to a new report from Harvard's Joint Center for Housing Studies. At the start of the foreclosure crisis, investors stepped into the Atlanta market to buy up REO properties and flip them. However, starting in 2008, more investors began shifting their focus to renting their REO purchases.

In Fannie Mae's housing survey for January, consumers maintained their expectation for growth in home and rent prices and also expressed more optimism toward the economy. The January 2013 survey found 41 percent of consumers believe homes prices will rise in the next 12 months, down from 43 percent in December, but up from 30 percent a year ago. As prices continue to climb, more consumers also said now is a good time to sell. The percentage rose to 23 percent in January, up from 21 percent in December and 11 percent a year ago.