Market Studies

Short-sale disputes were designated as the most significant legal issue facing real estate professionals, according to a recent study by the National Association of Realtors. Almost 55 percent of survey respondents listed short sales as the cause of ""a significant number of disputes."" REO-related issues also ranked high on the legal barometer. NAR conducts its ""legal scan"" study every two years, combining legal data and research with survey results from key industry participants.

The nation's housing crisis has forced unprecedented numbers of homeowners out of their homes, made for a difficult homebuying environment, and tainted many Americans' ideal of owning a home. These factors are taking their toll on homeownership in this country. The Census Bureau says homeownership in the United States has fallen to its lowest level in more than 13 years, slipping to 65.9 percent in the second quarter. The increase in the homeownership rate seen during the housing boom has been more than completely wiped out by the bust.

RE/MAX ranked highest for customer satisfaction among both buyers and sellers in J.D. Power and Associates 2011 Home Buyer/Seller Study released this week. On a 1,000-point scale, home buyers rated RE/MAX 805, while home sellers gave the company a rating of 791. Overall satisfaction among home sellers increased from 2010, up to 779 from 742. Overall satisfaction among homebuyers was 797, a slight decrease of six points since the 2010 J.D. Power study.

A recent report by the Lincoln Institute of Land Policy found that delinquency and foreclosure rates among owner-occupants living in homes in Community Land Trusts (CLT) were consistently lower than overall market numbers. While 1.3 percent of CLT homeowners were seriously delinquent at the end of 2010, 8.57 percent of homeowners nationwide were seriously delinquent. CLTs are a type of shared equity homeownership -- a resale-restricted housing model designed to help low- to moderate-income families achieve homeownership.

Economic activity continues to grow but the pace has moderated in many parts of the country, weighed down by a persistent weakness in the residential real estate sector, according to the latest market-gauging Beige Book from the Federal Reserve. Contacts in the Boston district said housing markets ""remain in the doldrums."" A pickup in sales of higher-priced homes was evident in the D.C. area. In the Kansas City region, they're seeing an increase in all-cash purchases of existing homes, while demand in the Dallas district was described as ""choppy.""

The National Association of Realtors said Thursday that pending home sales rose for the month of June, marking the third of the last four months its index has increased. Pending sales last month were up 2.4 percent from May and 19.8 percent from June 2010. The measurement is a forward-looking index based on contracts but not actual closings. Some economists are warning not to read too much into the latest numbers considering contract cancellations are on the rise.

Data released by Freddie Mac Thursday shows that amid mixed economic reports and ongoing debate over the nation's debt, the average rate for a 30-year fixed mortgage edged up ever so slightly this week but hit its highest mark in three weeks. Rates for adjustable-rate mortgages, on the other hand, inched down to a three-week low. The 15-year fixed-rate mortgage remained unchanged from a week earlier.

Eighty-four percent of the country's largest metro areas experienced declines in foreclosure activity in the first half of the year, according to RealtyTrac's midyear metropolitan foreclosure report released Thursday. However, RealtyTrac attributes these declines not to an improving market, but to delays in local foreclosure processes. Even the top 10 metro areas with the highest foreclosure rates in the first half of the year showed a year-over-year decrease in foreclosure activity.

Trepp, LLC estimates decreases in all types of bank loan delinquencies in the second quarter of 2011. Delinquencies are expected to decline among residential mortgages, commercial mortgages, construction loans, and commercial and industrial loans, according to the research firm. Based on its research and analysis of earnings reports and call report filings from smaller banks, Trepp says the credit recovery that began in mid-2010 has resumed, after stalling in the first quarter.

Concerns have begun to mount that underwriting standards for loans in newly issued commercial mortgage-backed securities (CMBS) are on the decline. Addressing this issue, the analysts at Fitch Ratings say they believe there is quite a way to go before standards approach levels seen in 2007, a year viewed by many as the most volatile vintage for CMBS. While Fitch agrees that underwriting standards have declined in recent months, the company stressed that deterioration so far has been off of ""very high standards.""