Tag Archives: Home Sales

Existing-home sales rose again last month, according to the National Association of Realtors (NAR). That assessment, however, is coming off of lower sales numbers than previously thought, reflecting revisions to NAR's data going back to 2007. The trade group has adjusted sales and inventory figures for the last four years downward by 14.3 percent. NAR's November report shows sales of previously owned homes up 4.0 percent to an annual rate of 4.42 million from 4.25 million in October, and 12.2 percent above the 3.94 million-unit pace a year earlier.

Homebuyer demand appears to be intensifying, especially among lower-priced REO properties, according to an industry study released Tuesday. Time-on-market for move-in ready REO was just 10.1 weeks in November, the lowest in 15 months, according to the HousingPulse survey. Time-on-market for damaged REO was even lower at 9.0 weeks, also the lowest in 15 months. The HousingPulse survey polls approximately 2,500 real estate agents nationwide each month to assess market trends surrounding homes sales.

StreetLinks Lender Solutions has announced the launch of StreetLinks LVR, a new liquidation valuation report developed for mortgage servicers and asset management firms which is compliant with the Uniform Standards of Professional Appraisal Practice (USPAP). LVRs are performed by StreetLinks' nationwide panel of licensed appraisers, taking into account property condition, comparables, and local market trends. The company says its approach will provide an objective analysis of a distressed property's liquidation price within a 90-day marketing window.

Low property valuations and steep sales discounts reduce the proceeds from liquidated loans by almost a third, according to Moody's Investors Service. As home prices drop, equity erosion drives most of the losses incurred on defaulted loans, but Moody's says in today's environment that's not the whole story. The agency's analysis of 46,000 loans liquidated since 2007 found that on average, a foreclosed property will be valued about 18 percent lower than average home prices, and will be subject to an additional sales discount of about 15 percent.

It's now more affordable than ever to take out a home loan. According to Freddie Mac's nationwide survey, the 30-year fixed rate this week matched its average all-time record low of 3.94 percent, while the 15-year rate sank to a new low of 3.21 percent. The 5-year adjustable-rate mortgage also set a new all-time low at 2.86 percent. Included in Freddie Mac's report this week is a breakdown of average mortgage rates by region for the various loan products covered in the GSE's study. Rates are lowest in the West.

Citing data from Lender Processing Services estimating more than 2 million properties in some state of foreclosure, Fitch Ratings says REO sales - both single-property and bulk sales - will be an integral component of the housing market over the next two years. However, the timing and method of disposition will have significant implications for home prices, according to Fitch. The agency notes that distressed properties generally sell at a substantial discount, further exacerbated by the presence of excess inventory.

While home values are continuing to decline, they are beginning to stabilize as the market nears the bottom, according to the Zillow Real Estate Market Report released Tuesday. On a yearly basis, the average home price fell 5.1 percent in October, arriving at $147,000. However, on a monthly basis, the drop was just 0.3 percent, demonstrating a deceleration from recent declines. In addition to stabilizing prices, Zillow reported another positive sign for the market, with the foreclosure liquidation rate slipping to 8.1 out of every 10,000 homes.

Freddie Mac released the results of its weekly mortgage rate survey Thursday, showing average fixed mortgage rates largely unchanged and near their record lows, helping to keep housing affordability high for those borrowers who are in the market. The 30-year fixed rate dipped from 4.00 percent last week to 3.99 percent. At 3.27 percent, the 15-year fixed rate averaged just slightly above its all-time low of 3.26 percent on October 6, 2011. Adjustable-rate mortgages (ARMs) rose slightly this week, but are coming off of all-time historic lows recorded last week.

With about 800,000 REOs and about 1 million properties in some stage of default, it is difficult to see the light at the end of the tunnel. However, that is just what a group of four analysts tried to do at a panel session Monday during the Five Star MPact Mortgage Banking Conference and Expo. Rick Sharga of Carrington Mortgage Holdings noted that in every previous recession, housing has brought us out, but in this recession, it dragged us in. As a result, he says, recovery this time will be a bit different.

Looking for an REO buyer? It's becoming harder to find owner-occupants to fit that bill. New Vista Asset Management has published the results of a three-year study on buyers of foreclosed homes, covering 18 counties hit hardest by the mortgage crisis. The company says the percentage of REO homes sold to owner-occupants has decreased in almost every market. In Los Angeles, for example, the share of owner-occupant REO buyers dropped from 80 percent in 2009 to 60 percent by the third quarter of 2011.