Young Adults After the Recession

March 12, 2013 by

Young Adults After the Recession: Fewer Homes, Fewer Cars, Less Debt

 

SDT-2013-02-Financial-Milestones-00-01After running up record debt-to-income ratios during the bubble economy of the 2000s, young adults shed substantially more debt than older adults did during the Great Recession and its immediate aftermath—mainly by virtue of owning fewer houses and cars, according to a new Pew Research Center analysis of Federal Reserve Board and other government data.

SDT-2013-02-Financial-Milestones-00-02From 2007 to 2010, the median debt of households headed by an adult younger than 35 fell by 29%, compared with a decline of just 8% among households headed by adults ages 35 and older. Also, the share of younger households holding debt of any kind fell to 78%, the lowest level since the government began collecting such data in 1983.

Debt reduction among young adults during bad economic times has been driven mainly by the shrinking share who own homes and cars, but it also reflects a significant decline in the share who are carrying credit card debt, from 48% in 2007 to 39% in 2010.

On the other side of the ledger, many more younger households were carrying student loan debt after the recession than before: 40% had such debt in 2010, up from 34% in 2007 and 26% in 2001.

These shifts in the debt profile of younger adults reflect a broader societal shift toward delayed marriage and household formation that has been under way for decades. This report analyzes the patterns of debt holding and asset ownership among younger households over time.1 Here are its key findings:

Home

The share of younger households owning their primary residence fell sharply from 40% in 2007 to 34% in 2011. Among younger households, the fall in ownership was accompanied by a decline in how many younger households had debt secured by residential property.2 In 2007, 38% of younger households had debt secured by residential property. By 2010 only 35% had such debt. The median outstanding amount of residential property debt owed (by younger households with such debt) fell from about $150,000 in 2007 to $128,000 in 2010.

Cars

In 2007, 73% of households headed by an adult younger than 25 owned or leased at least one vehicle. By 2011, 66% of these young households had a vehicle. Among households younger than 35, outstanding vehicle debt declined from 2007 to 2010. In 2007, 44% of households younger than 35 had vehicle debt. By 2010, only 32% had vehicle debt. The typical outstanding amounts owed among young households with vehicle debt fell from $13,000 in 2007 to $10,000 in 2010.

Credit Card

Younger households have pared their credit card balances. In 2010 only 39% of them carried a balance, down from 48% in 2007 and 50% in 2001. The median outstanding amount owed among younger households with balances has fallen over the decade from $2,500 in 2001 to $2,100 in 2007 and diminishing further to $1,700 in 2010.

Student Loans

Student debt was the only major type of debt to increase in prevalence among young households during the recession. In 2007, 34% of young households had outstanding student debt. By 2010, 40% of younger households had student debt. However, the median amount owed by households with student debt fell from $14,102 in 2007 to $13,410 in 2010.

Debt-to-Income Ratios

SDT-2013-02-Financial-Milestones-00-03One way to measure a household’s financial well-being is its debt-to-income ratio, which compares total outstanding debt to annual income. As the figure to the right indicates, the debt-to-income ratio of younger adult households more than doubled from 1983 to 2007, when it peaked at 1.63. By 2010 it had fallen back to 1.46. By contrast, the ratio among older households continued rise through this entire period. As of 2010 it has risen to 1.22, still below that of younger households.

Concentration of Young Adult Debt

A significant majority of the outstanding debt of households headed by young adults was owed by households with college-educated heads. This partly reflects that better-educated households were more likely to owe student debt, but they were also much more likely to own their homes and have debt secured by residential property.

Younger and Older Households

During the Great Recession, households headed by younger and older adults were on different debt trajectories. From 2007 to 2010, the median debt of households headed by those 35 and older fell by just 8% — from $32,543 in 2007 to $30,070 in 2010 — compared with a 29% drop among younger households. The share of older households having any kind of debt declined slightly, from 75% in 2007 to 74% in 2010, as did the homeownership rate of older households. In 2011, 72% of older households owned their principal residence, down from 74% in 2007. But there has been very little change in the share of older households that have debt secured by a residential property, or the median amount of such debt.

SDT-2013-02-Financial-Milestones-00-04With regard to other types of debt, older households have shed less than younger households. The prevalence of vehicle debt fell from 32% in 2007 to 30% in 2010 among older households, compared with a 12 percentage point drop among younger households. The share of older households carrying a credit card balance declined from 45% in 2007 to 40% in 2010, while the share among younger households dropped by 10 percentage points.

Debt Profile by Age

The recession did not significantly alter the overall debt profile of households 35 and older. In both 2007 and 2010, 86% of all their debt was secured by residential property. But among younger households, the debt profile has shifted. Student debt is a growing share of their total debt (rising from 9% in 2007 to 15% in 2010), and debt tied to residential property and vehicle and credit card debt have become relatively less important. Debt tied to residential property constituted 74% of the debt of young households in 2010, down from 79% in 2007.

Financial and Non-Financial Assets

SDT-2013-02-Financial-Milestones-00-05Younger and older adults both saw their median household assets – which includes homes, cars and other durable goods, plus all financial assets such as savings accounts and stock holding — decline from 2007 to 2010. Older adults have many times more assets overall than younger adults, and they suffered steeper asset declines during this period – a 22% drop, compared with 14% among younger adults. One reason for the difference is that older adults have more of their assets in financial holdings, and stock market valuations took a steep downturn from 2007 to 2010. Since then, the stock market has regained virtually of all its losses, while the housing market in most of the country has remained well below its historic peak.

 

 

John Marcotte

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Household debt falls sharply among younger Americans: study

March 11, 2013 by

Household debt falls sharply among younger Americans: study

A newly built housing project is seen near downtown Detroit, Michigan, January 4, 2012. REUTERS/Rebecca Cook

(Reuters) – The recession had a strong impact on young Americans who saw the credit crisis up close: they are taking on less credit card debt, delaying plans to buy homes and owning fewer cars, according to a study released on Thursday.

From 2007 to 2010, the median debt of U.S. households headed by people aged 35 and younger fell by 29 percent – from $21,912 to $15,473 – while debt of older Americans fell by just 8 percent, to $30,070, according to a Pew Research Center study titled “Young Adults After the Recession.”

Residential property accounts for at least three-quarters of average American debt, so much of the drop may be connected to a decrease in home ownership. The number of Americans under 35 who own their primary residence dropped to 34 percent in 2011 from 40 percent in 2007, Pew said. Meanwhile, the percentage of homeowners over age 35 fell by 2 percentage points to 72 percent.

“As younger people invest in education and wait longer to enter the workforce or start families, that may mean they will wait longer to buy homes,” said Richard Fry, a senior economist at Washington-based Pew and the author of the study.

Young adults are cutting back on credit card usage as well. Young households with credit card debt fell by 10 percentage points to 39 percent between 2007 and 2010.

Car ownership is an area in which younger Americans also cut back. The number of households led by adults under 35 with auto debt fell by 12 percent between 2007 and 2010. The typical outstanding car loan fell to $10,000 from $13,000.

As unemployment drove many young people to return to school, student debt increased during the recession. By 2010, 40 percent of households headed by young adults had student debt, up from 34 percent in 2007 and 26 percent in 2001.

Squeezed by increasing student debt, younger Americans are cutting debt in other areas. Their median level of debt fell to $15,473 in 2010 from $17,938 in 2010, according to the study.

(Editing by Lauren Young and Dan Grebler)

 

 

John Marcotte

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February – 2013 Real Estate Market Update

March 10, 2013 by

February – 2013 Real Estate Market Update

Inventory Levels

Entire MLS (All Areas)

Residential Highlights:

  • 19.5% increase in the number of closed sales year-over-year
  • 18.5% increase in the number of closed sales year to date
  • 23.6% decrease in average days on market (81)
  • 31.4% decrease in active listings
  • 11.7% increase in average price – sold
Condo Highlights:
  • 16.8% increase in number of closed sales year-over-year
  • 22.1% increase in number of closed sales year to date
  • 27.7% decrease in average days on market (73)
  • 37.9% decrease in number of active listings
  • 8.8% increase in average price – sold

Click here for Full report of entire MLS

 

Courtesy of Land Title

 

John Marcotte

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Regulators move forward on foreclosure relief

March 9, 2013 by

Regulators move forward on foreclosure relief

A lock secures a chain on the steel fence of a foreclosed home previously owned by U.S. Bancorp in Los Angeles, California July 17, 2012. REUTERS/Mario Anzuoni

By Aruna Viswanatha

(Reuters) – Borrowers whose homes were foreclosed on during the U.S. housing crisis will start receiving payments in April from a $3.6 billion fund under a previously announced settlement with 13 banks, regulators said on Thursday.

Certain borrowers whose mortgages were serviced by one of the 13 banks can expect to receive between a few hundred dollars and $125,000, under settlements designed to end case-by-case reviews of past foreclosures.

The Office of the Comptroller Currency and the Federal Reserve in 2011 ordered banks including Bank of America Corp, JPMorgan Chase & Co, and Wells Fargo to review individual loan files after widespread mistakes were discovered in the way mortgage servicers had processed home seizures.

The reviews were initially expected to determine which borrowers were harmed and to compensate them based on their individual experiences. The process proved slow and expensive, though, with more than $1.5 billion going to consultants.

In January regulators replaced the reviews with about $9.3 billion in settlements, including $3.6 billion in cash payments to foreclosed borrowers. Struggling borrowers will receive the rest of the money in the form of assistance, including loan modifications and forgiveness.

By the end of March, regulators will provide information about the payments to borrowers who fall into one of 11 categories, including those eligible for protections under the Servicemembers Civil Relief Act, those who were not in default when foreclosed on, and those denied a loan modification, the OCC said.

Regulators are still determining how many borrowers fall into each category, OCC Deputy Comptroller Morris Morgan said on a conference call with reporters. Once they have that figure, they can calculate how much money each borrower is likely to receive, he said.

DECLINING ERROR RATE

The OCC and the Fed have faced criticism from Congress over both the reviews and the settlement that ended them. Lawmakers have asked for more information about the consultants who conducted the reviews and what they turned up.

Regulators initially said about 6.5 percent of the loans reviewed appeared to have some errors. On Thursday Morgan said that error rate had declined, but did not provide a specific figure.

The banks are expected to try to keep borrowers in their homes, but the settlement does not mandate specific kinds of relief.

The servicers will receive varying degrees of credit for modifying first and second loans, waiving deficiency judgments, offering short sales, and other types of relief.

Three servicers subject to the original reviews, Everbank, OneWest and GMAC Mortgage, did not enter into the settlements and will continue their reviews, the OCC said.

(Reporting by Aruna Viswanatha; Editing by Gerald E. McCormick and Lisa Von Ahn)

 

John Marcotte

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January Existing-Home Sales Hold with Steady Price Gains, Seller’s Market Developing

March 7, 2013 by

January Existing-Home Sales Hold with Steady Price Gains, Seller’s Market Developing

homebuyers_sold_sign Existing-home sales edged up in January, while a seller’s market is developing and home prices continue to rise steadily above year-ago levels, according to the National Association of REALTORS®. Sales rose in every region but the West, which is the region most constrained by limited inventory.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.4 percent to a seasonally adjusted annual rate of 4.92 million in January from a downwardly revised 4.90 million in December, and are 9.1 percent above the 4.51 million-unit pace in January 2012.

“Buyer traffic is continuing to pick up, while seller traffic is holding steady,”says Robert Lawrence. “In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We’ve transitioned into a seller’s market in much of the country.”

Total housing inventory at the end of January fell 4.9 percent to 1.74 million existing homes available for sale, which represents a 4.2-month supply at the current sales pace, down from 4.5 months in December, and is the lowest housing supply since April 2005 when it was also 4.2 months.

Listed inventory is 25.3 percent below a year ago when there was a 6.2-month supply. Raw unsold inventory is at the lowest level since December 1999 when there were 1.71 million homes on the market.

“We expect a seasonal rise of inventory this spring, but it may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth,” Yun explains.

The national median existing-home price for all housing types was $173,600 in January, up 12.3 percent from January 2012, which is the 11th consecutive month of year-over-year price increases; that last occurred from July 2005 to May 2006. The January gain is the strongest since November 2005 when it was 12.9 percent above a year earlier.

Distressed homes– foreclosures and short sales– accounted for 23 percent of January sales, down from 24 percent in December and 35 percent in January 2012. Fourteen percent of January sales were foreclosures and 9 percent were short sales. Foreclosures sold for an average discount of 20 percent below market value in January, while short sales were discounted 12 percent.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.41 percent in January from a record low 3.35 percent in December; it was 3.92 percent in January 2012.

NAR President Gary Thomas says homes are selling faster. “The typical home is selling nearly four weeks faster than it did a year ago,” he said. “In this environment, REALTORS® can help buyers strike a balance between moving quickly and protecting their interests, such as making offers contingent upon a satisfactory home inspection and obtaining a loan; of course, a loan pre-qualification may help too.”

The median time on market for all homes was 71 days in January, down from 73 days in December and is 28.3 percent below 99 days in January 2012. Short sales were on the market for a median of 94 days, while foreclosures typically sold in 47 days and non-distressed homes took 75 days; 31 percent of all homes sold in January were on the market for less than a month.

First-time buyers accounted for 30 percent of purchases in January, unchanged from December; they were 33 percent in January 2012.

All-cash sales were at 28 percent of transactions in January, down from 29 percent in December and 31 percent in January 2012. Investors, who account for most cash sales, purchased 19 percent of homes in January, down from 21 percent in December and 23 percent in January 2012.

Single-family home sales increased 0.2 percent to a seasonally adjusted annual rate of 4.34 million in January from 4.33 million in December, and are 8.5 percent above the 4.00 million-unit level in January 2012. The median existing single-family home price was $174,100 in January, up 12.6 percent from a year ago.

Existing condominium and co-op sales rose 1.8 percent to an annualized pace of 580,000 in January from 570,000 in December, and are 13.7 percent higher than the 510,000-unit level a year ago. The median existing condo price was $169,600 in January, up 9.4 percent from January 2012.

 

For more information, visit www.realtor.org 

For additional commentary and consumer information, visit www.houselogic.com  and http://retradio.com

 

John Marcotte

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What Do Home Buyers Really Want?

March 6, 2013 by

What Do Home Buyers Really Want?

homebuyers_young_couple_inside Many in the housing industry are wondering not only what today’s home buyers really want, but also what they are ready to leave behind in light of current economic realities. A new study recently released by NAHB, What Home Buyers Really Want , was designed to answer these questions, and more specifically, to provide the most current and accurate information on buyer preferences so that NAHB members can deliver the home (and community) that today’s buyers want and are willing to pay for.

So what do home buyers really want? The first answer is energy efficiency. Four of the top most wanted features involve saving energy: 94 % of home buyers want energy-star rated appliances, 91% want an energy-star rating for the whole home, 89 % want energy-star rated windows, and 88% want ceiling fans.

The second message buyers are sending is they want help keeping their home organized. The laundry room is wanted by 93 % of buyers; in fact, 57 % consider it essential and would be unlikely to buy a home without it. This shows that most buyers want to keep the dirty laundry contained in a room and away from plain view. Moreover, nine out of ten buyers want a linen closet in the bathroom to help keep towels and toiletries organized. Space in the garage to store bikes, sports equipment, or gardening tools (that can be bought from these websites) also ranks high on the buyers’ wish list: 86 % want it. And a walk-in pantry in the kitchen is something most buyers care a lot about as well (85 %).

More than half of all buyers also discard the option of having only a shower stall in the master bathroom with no tub (51%), and many are saying ‘no’ to two-story spaces as well. About 43% of buyers do not want a two-story family room and 38% feel the same way about a two-story entry foyer. Many buyers now consider these large, open spaces as energy-inefficient – the last thing they want for their homes. A complete outdoor kitchen is not a very important priority to many buyers either, as 31% flat out discard the possibility of washing dishes, cooking, and keeping food refrigerated outdoors. For most buyers (62 %), an outdoor grill will suffice.

For more information, visit www.nahb.org

 

John Marcotte

720-771-9401

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Do Your Part: It Won’t Cost you a Penny

March 3, 2013 by

Do Your Part: It Won’t Cost you a Penny

penny_piggy_bank Many times when we talk about “going green” we think about how much green it will cost us. However, there are many ways to live a healthier life and be gentler on the environment without spending a single penny. Here are five simple ways to Do Your Part and not only are they all free — some solutions will also save you money.

Stop Buying Water

Ditching plastic bottles of water and using reusable containers will save big bucks in the long run. But there are other situations where we pay for water without realizing it. Opting to buy concentrated juices is a cheaper alternative to buying many jugs of juice. You’ll save about a nickel on ounce. And, instead of using expensive irrigation systems in your yard, rain barrels or other collection devices will do the work for free.

Sell the Small Stuff

Got gadgets and other electronics collecting dust around your home? They are valuable even if they don’t work. Many major retailers now accept old electronics and will give you a store gift card in return. And, many online sites will pay to have you ship them your stuff and you’ll get a check after they receive it. These items get resold or recycled for metal. Check DoYourPart.com/Columns for a list of resources. Also, consider taking gently worn clothing, sporting equipment, and even children’s gear to consignment shops to earn a few dollars.

Refuse to Waste Gas

No one likes what it costs to fill up our cars at the gas station. To maximize your fuel efficiency and lower toxic emissions, make sure to keep your tires properly inflated, avoid aggressive driving where you accelerate and brake frequently, use cruise control on flat terrain, avoid driving around with extra weight, and keep up with routine maintenance. Another smart idea is to turn the engine off when you’ll be idling for more than 30 seconds in places such as carpool lines.

Put an End to Paper Towels

What’s worse than throwing out barely used paper towels? Spending all that money on them. The cheapest paper towels on the market are about a dollar per roll. If you go through two rolls a week, that’s more than $200 a year! Save that money and keep dish towels and rags handy. It’s much more eco-friendly to launder them than it is to keep buying one-use paper towels.

Lighten Your Laundry Load

Get this, up to 85 percent of the energy used to wash clothes comes from heating up the water. When you switch to cold water you’ll see instant energy savings and your clothes will still get clean.

Visit DoYourPart.com/Columns for more everyday living solutions to have you saving even more green.

Terri Bennett is a veteran TV meteorologist, eco-expert and author of “Do Your Part: A practical guide for everyday green living” available at DoYourPart.com. Send questions to terri@doyourpart.com .

Distributed by MCT Information Services

 

 

John Marcotte

www.boulderhomes4u.com

720-771-9401

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Exterior Replacement Projects Provide Biggest Return on Investment for Homeowners, Say REALTORS®

March 2, 2013 by

Exterior Replacement Projects Provide Biggest Return on Investment for Homeowners, Say REALTORS®

exterior_remodeling_roof Homeowners looking for the most return on their investment when it comes to remodeling should consider exterior replacement projects. According to the 2013 Remodeling Cost vs. Value Report, REALTORS® rated exterior projects among the most valuable home improvement projects.

“REALTORS® know that curb appeal projects offer great bang for your buck, because a home’s exterior is the first thing potential buyers see,” says National Association of REALTORS® President Gary Thomas. “Projects such as siding, window and door replacements can recoup more than 70 percent of their cost at resale. REALTORS® know what home features are important to buyers in your area and can provide helpful insights when considering remodeling projects.”

Results of the report are summarized on NAR’s consumer website HouseLogic.com, which provides information on dozens of remodeling projects, from kitchens and baths to siding replacements, including the recouped value of the project based on a national average. According to the Cost vs. Value Report, REALTORS® judged a steel entry door replacement as the project expected to return the most money, with an estimated 85.6 percent of costs recouped upon resale. The steel entry door replacement is the least expensive project in the report, costing little more than $1,100 on average. A majority of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects; all of these are estimated to recoup more than 71 percent of costs.

Three different siding replacement projects landed in the top 10, including fiber cement siding, expected to return 79.3 percent of costs, vinyl siding, expected to return 72.9 percent of costs, and foam backed vinyl, expected to return 71.8 percent of costs. Two additional door replacements were also among the top exterior replacement projects. The midrange and upscale garage door replacement were both expected to return more than 75 percent of costs. For any garage installation and repairs, visit the Lewis River Doors logo.

According to the report, two interior remodeling projects in particular can recoup substantial value at resale. A minor kitchen remodel is ranked fifth and is expected to return 75.4 percent of costs. Nationally, the average cost for the project is just under $19,000.

The second interior remodeling project in the top 10 is the attic bedroom, which landed at number eight and tied with the vinyl siding replacement with 72.9 percent of costs recouped. With an average national cost of just under $48,000, the attic project adds a bedroom and bathroom within a home’s existing footprint. The improvement project projected to return the least is the home office remodel, estimated to recoup less than 44 percent.

If you’re struggling with the size, layout, or organization of your bathroom, you may want to consider hiring bathroom remodeling services from Phoenix Home Remodeling, view it now to read more.

The 2013 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 81 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 15th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with NAR.

REALTORS® provided their insights into local markets and buyer home preferences within those markets. The 2013 national average cost-to-value ratio rose to 60.6 percent, ending a six-year decline. The ratio represents nearly a three-point improvement over 2011-2012. Lower construction costs are the principal factor in the upturn, especially when measured against stabilizing house values. In addition, the cost-to-value ratio improved nationally for every project in this year’s report and is higher than it was two years ago for both remodeling and replacement projects.

“A REALTOR® is the best resource for helping homeowners decide what improvement projects will provide the most upon resale in their market,” says Thomas. “Each neighborhood is different, and the desirability and resale value of a particular remodeling project varies depending on where you live. When making a home remodeling decision, resale value is just one factor that homeowners should take into consideration. Consult a Realtor® to make sure you are making the best decision.”

Most regions followed the national trends; however the Pacific region, consisting of Alaska, California, Hawaii, Oregon and Washington, once again led the nation with an average cost-value ratio of 71.2 percent, due mainly to strong resale values. The next best performing regions were West South Central, South Atlantic, and East South Central. These regions attribute their high ranking to construction costs that were lowest in the country. While still remaining below the national average, most remaining regions showed strong improvement over last year. These are Mountain, New England, East North Central, Middle Atlantic, and West North Central.

To read the full project descriptions and access national and regional project data, visit www.costvsvalue.com “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.

For more information, visit www.realtor.org

 

John Marcotte

www.boulderhomes4u.com

720-771-9401

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Existing Home Sales Hit 5-year High in 2012

March 1, 2013 by

Existing Home Sales Hit 5-year High in 2012

sold_home_agent_couple Sales of existing homes ticked down in December from the month before, while the total for 2012 hit the highest level in five years, according to data released Tuesday by the National Association of REALTORS®.

The pace of sales fell 1 percent in December to a seasonally adjusted annual rate of 4.94 million, according to NAR. For all of 2012, existing-home sales hit 4.65 million, the highest level since 2007 and up 9.2 percent from 2011.

“Record-low mortgage interest rates clearly are helping many home buyers, but tight inventory and restrictive mortgage underwriting standards are limiting sales,” says Lawrence Yun, the NAR’s chief economist.

The rate in November was revised to 4.99 million from an earlier estimate of 5.04 million, which was the highest rate since November 2009. Economists polled by MarketWatch had expected a rate of 5.1 million for December, with buyers eager to take advantage of relatively high affordability in a housing market that is gaining steam.

Buyers’ concerns about the “fiscal cliff” may be at least partially behind December’s sales decline, wrote Millan Mulraine, macro strategist at TD Securities, in a research note.

“Given this, we anticipate that sales activity could rebound in January following the tax deal, given the very supportive buying conditions and the increasing incentive for first-time buyers (who are currently sitting on the fence) to slowly move into the market as prices begin to firm,” Mulraine wrote.

By region, it was a mixed bag. December’s existing-home sales fell by 5.9 percent in the Midwest and by 3 percent in the South, compared with the prior month; sales rose by 5.1 percent in the West and by 3.2 percent in the Northeast.

Sales in each of the four regions were up from same period in the prior year.

Despite the decline in December, existing-home sales are up 12.8 percent from the same period in the prior year. The median existing-home price rose 11.5 percent from the prior year to $180,800.

Inventories fell 8.5 percent to 1.82 million units in December, representing at the current sales rate a 4.4-month supply, the lowest supply ratio since 2005. It’s typical for inventories to decline in winter. But Yun warns that persistently low inventory could lead to too much price growth in 2013.

“We don’t want to see a rapid appreciation in prices,” he says.

Meanwhile, the median price reached $176,600 in 2012, up 6.3 percent from the prior year for the highest annual growth since 2005.

Other recent housing data have also shown a market gaining strength but still has far to go.

A report on home-builder sentiment showed that confidence is holding at a more-than-six-year peak. Separately, a report showed that new home construction jumped 12 percent in December to the highest rate in more than four years, rushing past Wall Street’s expectations.

©2013 MarketWatch
Distributed by MCT Information Services‘

John Marcotte

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720-771-9401

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Fannie Mae and Freddie Mac Help More Than 2.5 Million with Foreclosure Prevention Actions

February 27, 2013 by

Fannie Mae and Freddie Mac Help More Than 2.5 Million with Foreclosure Prevention Actions

Fannie Mae and Freddie Mac completed more than 134,000 foreclosure prevention actions in the third quarter of 2012, bringing the total foreclosure prevention actions to more than 2.5 million since the start of conservatorship in 2008 with nearly 1.3 million of those actions being permanent loan modifications. These actions, which have helped more than 2.1 million borrowers stay in their homes, are detailed in the Federal Housing Finance Agency’s third quarter 2012 Foreclosure Prevention Report, also known as the Federal Property Manager’s Report.

The quarterly report has information on state delinquencies and an updated, interactive Borrower Assistance Map for Fannie Mae and Freddie Mac mortgages, with information on delinquencies, foreclosure prevention activities and Real Estate Owned (REO) properties.

Also noted in the report:

• Year-to-date, Fannie Mae and Freddie Mac have completed nearly 411,000 foreclosure prevention actions.
• Nearly 38,000 short sales and deeds-in-lieu were completed in the third quarter, up 4 percent compared with the second quarter.
• 45 percent of troubled borrowers who received loan modifications in the third quarter had their monthly payments reduced by more than 30 percent.
• More than one-third of loan modifications completed in the third quarter included principal forbearance.
• The number of the Enterprises’ delinquent borrowers has declined 9 percent since the beginning of 2012.

REO inventory continued to decline as property dispositions outpaced property acquisitions during the third quarter.

For more information, click here

 

John Marcotte

www.boulderhomes4u.com

720-771-9401

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