Market Studies

New data from RealtyTrac shows foreclosure activity in the U.S. has fallen to its lowest level in 40 months. Filings were reported on 219,258 properties in April, down 34 percent from a year earlier. While the numbers may be an attention-grabber, RealtyTrac says they don't necessarily mean we've turned the corner since the slowdown can be traced to two specific areas of delays in processing. The curb in activity wasn't entirely widespread. REOs hit a new record high in Nevada, while defaults spiked in Massachusetts and New Jersey.

Freddie Mac's economists see some positive signs for housing in terms of affordability and low mortgage rates, but extended unemployment dampens the forecast. The average duration of unemployment was just over 38 weeks in April. The GSE says the large number of workers unemployed for a long period remains the predominant force behind seriously delinquent mortgages. According to Freddie Mac, the economy needs to add over 250,000 new jobs per month, on a sustained basis, to reabsorb all the jobs lost since the recession.

One out of every 17 homes within Ohio's three largest cities has been reported as a foreclosure since the beginning of 2009. That's a rate equal to more than one home falling into foreclosure for every city block, according to the nonprofit community advocacy group National People's Action. After a 27-month long study, the organization found that since 2009, foreclosures have resulted in an estimated total loss of $1.6 billion in property values for homeowners in Cincinnati, Cleveland, and Columbus, and cost local governments in those cities nearly $30 million.

Integrated Asset Services (IAS) says the size and scope of home price declines are accelerating across the nation. The firm's IAS360 House Price Index declined another 2.6 percent over the first three months of 2011. At the end of March, the IAS360 was standing at a level not seen since the second quarter of 2003. The company says foreclosures are expected to rise to 1.2 million this year, adding to an already engorged housing supply and exerting further downward pressure on property values.

Data released by the National Association of Realtors Tuesday show that distressed properties - including bank-owned homes and pre-foreclosure short sales - made up 39 percent of the first quarter's existing-home sales. Overall, sales of previously owned homes rose to an annual rate of 5.14 million units during the first three months of this year. That pace is 8.3 percent higher than during the previous quarter and essentially flat compared to the same period last year.

Recent news has highlighted the severity of the renewed downturn in home prices, but Capital Economics says although condominiums will not escape altogether, over the next year or so condo prices are likely to fall by less than their single-family counterparts. The research firm notes that demand for condos is currently stronger than demand for single-family homes, due to cash buyers and investors seeking rental income. The condo market also boasts a lower delinquency rate, which suggests fewer foreclosed properties will support the supply of condos.

CoreLogic says its home price index has posted year-over-year declines for eight months in a row now. The company's latest reading shows home prices nationally fell 7.5 percent in March 2011 compared to March 2010 when distressed sales - including REO and short sale transactions - are factored into the equation. The data clearly demonstrates the extent to which pre- and post-foreclosure sales are weighing down overall market assessments. CoreLogic says if you take out the distressed factor, home prices are down just 0.96 percent from a year ago.

Fiserv, Inc. on Monday released an analysis of home price trends in more than 375 U.S. markets. While residential property values are continuing to fall on a year-over-year-basis in three-quarters of the metros, Fiserv sees signs of stabilization on the horizon. The company contends that the slide in prices has greatly improved home affordability. This dynamic, combined with growing economic strength, has prompted Fiserv's projection that average U.S. home prices will stabilize in the third quarter of this year.

The Federal Reserve Bank of New York says it's seeing ""signs of healing"" in consumer credit markets, as evidenced by a decline in new foreclosures, bankruptcies, and mortgage delinquencies during the first three months of this year. About 368,000 borrowers had a foreclosure notation added to their credit reports in the first quarter, while new bankruptcies dropped to 434,000. At the same time, about 2.4 percent of current mortgage balances transitioned into delinquency, the second straight quarterly improvement in this measure.

Incidents of fraud reported by mortgage professionals during the 2010 calendar year were down 41 percent compared to the previous 12 months, according to data released Monday by the LexisNexis Mortgage Asset Research Institute. The company says misrepresentation on loan applications and verifications of deposit, along with appraisal and valuation issues, were the most blatant fraud problems last year. However, multiple industry reports indicate that identity, bankruptcy, and income-related frauds are on the rise.