Tag Archives: First-Time Homebuyers

The percentage of distressed properties in home purchase transactions climbed to its highest level in nearly a year last month, according to an industry report released Tuesday. The distressed property index tracked as part of the report indicates that the share of sales transactions involving distressed homes climbed to 49.6 percent in January. Comments from real estate agents collected as part of the survey confirms the growing share of distressed properties, particularly in hard-hit markets.

Sales of distressed properties surged in December as many banks resumed foreclosures following the suspensions prompted by robo-signing issues last fall, according to an industry study conducted by Campbell Surveys. The company's distressed property index jumped to 47.2 percent last month, reflecting the distressed share of home sales transactions. December's level was up from 44.5 percent in November and nearly matched the index's peak recorded in September, before the robo-signing controversy came to light.

Existing-home sales got back on an upward path in November, resuming a growth trend since bottoming in July, the National Association of Realtors (NAR) reported Wednesday. Sales of previously owned homes rose 5.6 percent last month. Distressed homes accounted for 33 percent of the month's total sales volume. Housing inventory at the end of November fell 4 percent to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace.

Rising mortgage rates pushed first-time homebuyers to buy properties in November, while investors lost their enthusiasm for distressed properties, according to a new report from Campbell Surveys. The research firm found first-time buyers' share of home purchases jumped from 34.4 percent in October to 37.2 percent last month as long-term rates began to climb from record lows set in early November. Meanwhile, investor activity continued a two-month decline.

First-time homebuyers purchased half of all homes that were sold from July 2009 to June 2010, according to an annual survey of buyers and sellers conducted by the National Association of Realtors (NAR). It's the highest share of first-time homebuyers in the history of NAR's study, which dates back to 1981. The trade group attributed its findings to the success of the government's tax credits, but also voiced concern that today's credit policy restrictions are locking responsible borrowers out of homeownership.

Housing conditions continued to show signs of stabilizing during the second quarter, following a downward trend that began to reverse itself in mid-2009, HUD says in a new report. The federal agency immediately follows that assessment, though, with ""the housing market's recovery remains fragile."" HUD's quarterly commentary on the state of housing in the U.S. sums up a dichotomy of positives and negatives in market indicators. For example, sales and prices of existing homes rose in Q2, but fell for new homes.

The California Housing Finance Agency (CalHFA) has partnered with the Federal Housing Administration (FHA) to offer a fixed rate, 30-year FHA-insured mortgage to low- and moderate- income California families who purchase their first home. Benefits include below-market interest rates and affordable down payments. CalHFA says many first-time homebuyers cannot meet the loan requirements of conventional lenders and its new program will help open the door to homeownership for California families.