CoreLogic® Home Price Index Shows Fourth Consecutive Month-Over-Month Increase

Homeprices in the U.S. increased for the fourth consecutive month, inching up 0.8 percent on a month-over-month basis. On a year-over-year basis, however, national home prices, including distressed sales, declined by 5.2 percent in July 2011 compared to July 2010. In June 2011, prices declined by 6.0 percent* compared to June 2010. Excluding distressed sales, year-over-year prices declined by 0.6 percent in July 2011 compared to July 2010 and by 1.9* percent in June 2011 compared to June 2010. Distressed sales include short sales and real estate owned (REO) transactions.

Highlights as of July 2011

• Including
  distressed sales, the five states with the highest appreciation were: West
  Virginia (+14.0 percent), New York (+3.3 percent), Wyoming (+3.2 percent),
  Mississippi (+2.4 percent), and the District of Columbia (+2.3 percent).
• Including
  distressed sales, the five states with the greatest depreciation were: Nevada
  (-12.2 percent), Arizona (-11.9 percent), Illinois (-10.0 percent) Minnesota
  (-8.6 percent), and Idaho (-7.8 percent).
• Excluding
  distressed sales, the five states with the highest appreciation were: West
  Virginia (+16.8 percent), South Carolina (+5.5 percent), New York (+4.1
  percent), Wyoming (+3.8 percent), and North Dakota (+3.6 percent).
• Excluding
  distressed sales, the five states with the greatest depreciation were: Nevada
  (-9.6 percent), Arizona (-8.1 percent), Delaware (-6.5 percent), Minnesota (-5.7
  percent), and Michigan (-4.7 percent).
• Including
  distressed transactions, the peak-to-current change in the national HPI (from
  April 2006 to July 2011) was -30.5 percent. Excluding distressed transactions,
  the peak-to-current change in the HPI for the same period was -20.7 percent.
• Of
  the top 100 Core Based Statistical Areas (CBSAs) measured by population, 86 are
  showing year-over-year declines in July, two fewer than in June.

“While July’s numbers remained relatively positive, particularly for non-distressed sales which have been stable, seasonal influences are expected to fade in late summer. At that point the month-over-month growth will most likely turn negative,” said Mark Fleming, chief economist with CoreLogic. “The slowdown in economic growth and increased uncertainty caused by the recent stock market volatility will continue to exert downward pressure on prices.”

*June data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.

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Most Current, Most Comprehensive HPI Data

CoreLogic HPI monthly updates offer the quickest HPI collateral valuation information in the industry—complete HPI datasets five weeks after month’s end—and leverage the full authority of CoreLogic’s industry-leading real estate databases, covering
6,550 Zip codes, 608 Core Based Statistical Areas (CBSAs), and 1,130 counties in all 50 states and the District of Columbia.

CoreLogic HPI covers 6,550 ZIP codes, 608 Core Based Statistical Areas (CBSA) and 1,130 counties in all 50 states and the District of Columbia.

HPI for the Country’s Largest Core Based Statistical Areas (CBSAs):

	July 2011 12-Month HPI
	Change by CBSA
CBSA	Single Family	Single Family Excluding Distressed
Phoenix-Mesa-Glendale, AZ	-10.8%	-7.9%
Chicago-Joliet-Naperville IL	-10.7%	-1.3%
Atlanta-Sandy Springs-Marietta, GA	-6.6%	-1.6%
Riverside-San Bernardino-Ontario, CA	-6.2%	-4.2%
Los Angeles-Long Beach-Glendale, CA	-5.7%	0.8%
Philadelphia PA	-3.1%	-2.5%
Houston-Sugar Land-Baytown, TX	-2.4%	4.8%
Dallas-Plano-Irving, TX	-0.3%	2.9%
Washington-Arlington-Alexandria, DC-VA-MD-WV	2.0%	3.7%
New York-White Plains-Wayne, NY-NJ	2.8%	4.2%

Source:
CoreLogic

8.5 Billion Dollar Bank of America Gut Punch.

8.5 Billion Dollar Bank of America Gut Punch..

PMI Officially Hit’s the Skids… Ouch!

PMI Officially Hit’s the Skids… Ouch!.

Banks Donating Foreclosures to Public Servants

Banks Donating Foreclosures to Public Servants.

Home Prices Decline 5.9% in Second Quarter

Home prices in the U.S. fell 5.9 percent in the second quarter from a year earlier, the biggest decline since 2009, as foreclosures added to the inventory of properties for sale.

Prices dropped 0.6 percent from the prior three months, theFederal Housing Finance Agency said today in a report from Washington. In June, prices retreated 4.3 percent from a year earlier, while increasing 0.9 percent from the previous month.

Foreclosures are boosting the supply of properties on the market and undercutting the confidence of homebuyers, sapping demand even as mortgage rates tumble to the lowest in more than half a century. The U.S. inventory of homes for sale averaged 3.7 million during the second quarter, the highest since the third quarter of 2010, data from the National Association of Realtors show. The mortgages on 6.5 million U.S. homes had late payments or were in foreclosure in June, according to Lender Processing Services Inc. in Jacksonville, Florida.

“Foreclosures water down home prices because banks want to get rid of properties as fast as they can,” said Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts. “The key number driving foreclosures is theunemployment rate, and we saw that worsen in the second quarter.”

The unemployment rate in the three months ended June 30 rose to 9.1 percent from 8.9 percent, the first quarterly increase since 2009, according to the Labor Department.

California, Nevada

Home prices in June fell the most in the region that includes California, slumping 8 percent from a year earlier, the FHFA said. They decreased 7.9 percent in the area that includes Nevada and Arizona.

The month-over-month gain in prices exceeded analysts’forecast of 0.2 percent, the median of 16 estimates compiled by Bloomberg. The region that includes Wisconsin, Illinois and Ohio had the biggest increase from May, with a 3.3 percent rise.

Mortgage rates for 30-year fixed loans fell to 4.15 percent last week, McLean, Virginia-based Freddie Mac said. The rate probably will average 4.6 percent this year, lower than 2010’s 4.7 percent, according to Fannie Mae in Washington.

Sales of U.S. previously owned homes dropped in July, reflecting an increase in contract cancellations due to strict lending rules and low appraisals, Lawrence Yun, chief economist of the National Association of Realtors, said Aug. 18. Purchases decreased 3.5 percent to a 4.67 million annual rate, the weakest since November.

Today’s FHFA report measures changes in real estate values using repeat data on individual properties with mortgages backed by Fannie Mae or Freddie Mac. It doesn’t include a dollar value for homes. The U.S. median home price was $171,900 in the second quarter, according to NAR.

By Kathleen M. Howley – Bloomberg

2Q 2011 – There is more behind the numbers in Chatham County – SFH Inventory Report

Looking at 2Q numbers in Chatham County does not tell the whole story.  Builder sales are down -31% (76 sales 2Q 2011, 110 sales 1Q 2011), builder inventory is up +19.9% (229 units 2Q 2011, 191 units 1Q 2011) and overall monthly supply increased +8.4% (12.98  mths of inventory 2Q 2011, 11.97 mths of inventory 1Q 2011).

A deeper look shows a county that is building vigorously to meet the demands of new developments such as Briar Chapel, the fifth largest subdivision based on absorption in the Tri-County market according to 2Q Metrostudy.

Yet how can you explain builder starts increasing 30% in 2Q 2011 (108 starts*) compared to 1Q 2011 (83 starts*)?  How can you explain homes under construction increasing 65% in 2Q 2011 (130* under const) compared to 1Q 2011 (79* under const)?

It is the opinion of Coldwell Banker Advantage New Homes that a surge of pending contracts is awaiting to be closed.  Expect to see positive numbers and drastic improvement in 3Q 2011 for Chatham County.

Click Below for the 2Q 2011 Chatham County Inventory Report

Chatham Cnty SFH 2Q 2011

Doing Short Sales? Behave Or Get The Freddie Smackdown!

Doing Short Sales? Behave Or Get The Freddie Smackdown!.

2Q 2011 – Wake County Builders increase closings 13.8% in 2Q 2011. Overall SFH inventory drops 3.6%

2Q 2011 was much kinder to builders than 1Q 2011.  Closed sales for builders increased 13.8% from 823 in 2Q 2011 as compared to 723 closings in 1Q 2011.

Builder inventory has been reduced overall by 3.7%.  2Q builder inventory has been reduced to 2231 units as compared to 2317 units in 1Q 2011.

Overall in Wake County, inventory for single family homes (SFH) has dropped 3.6% from 10,073 SFH in 1Q 2011 to 9709 SFH in 2Q 2011.

There is currently 8.78 months of SFH inventory (includes MLS & builder inventory).

Click below to view 2Q 2011 Wake County SFH Inventory Report

Wake Cnty SFH 2Q 2011

2Q 2011 – Downtown Raleigh condo Inventory drops 28%, Vulture Buyers increasing their influence in the REO condo market.

Wake County condominium inventory drops 11.7% compared to 1Q 2011.  The biggest drop in inventory within this submarket is originating from downtown Raleigh developer inventory showing a drastic 28% reduction in inventory when compared with 1Q 2011 numbers.  West Condo showed the biggest reduction by moving 13 units based on Wake County Deed conveyance.  “West condo has definitely benefited from their October auction.  A successful auction campaign increases post auction sales by driving in additional traffic and repositioning the value of the property”, said Sean Mena, VP of Business Development for Coldwell Banker Advantage New Homes.

“Properties that have been dormant for some time, we are now seeing healthy sales activity such as the Quorum Center which closed ten (10) units in 2Q and has only one (1) unit remaining, 222 Glenwood Plaza closed seven (7) homes, RBC Plaza closed five (5) homes and both Palladium and the newly sold Bloomsbury Estates both closed two (2) homes.  The important thing to note is that inventory levels are finally dropping and heading toward stabilization”.  The current inventory of Wake condos, including developer owned inventory, is 1.19 yrs of supply for 2Q 2011 compared to 1.56 yrs for 1Q 2011.

We are also seeing clear evidence of vulture buyers increasing their influence in REO/Foreclosure condo market.  REO condo sales in 1Q 2011 were only 3.32% of all closed MLS sales.  In 2Q 2011, REO condo sales more than double and represent 8.98% of all 2Q 2011 closed MLS sales.  “Vulture buyers are making their presence known in this market.  Like most vulture buyers, they are picking up the least desirable, most affordable properties.  Condos that are priced below $100k increased 5% in market share from 31% of all closed MLS sales in 1Q 2011 to 36% in 2Q 2011.”

Click Below to view 2Q 2011 Wake County Condo Inventory Report

Wake Cnty Condo 2Q 2011

Housing Affordability Hovers Near Record Level as Some Markets Begin to Stabilize

Released on Aug. 18, the NAHB/Wells Fargo Housing Opportunity Index (HOI) shows nationwide housing affordability during the second quarter of 2011 hovering for the 10th consecutive quarter near its highest level going back 20 some years.

The HOI indicated that 72.6% of all new and existing homes sold in the second quarter of the year were affordable to families earning the national median income of $64,200.

The affordability measure dipped slightly from the record high of 74.6% set last quarter but remained above the 70% threshold initially achieved in the first quarter of 2009.

“At a time when homeownership is within reach of more households than it has been for more than two decades and interest rates are at historically low levels, the sluggish economy and the extremely tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales,” said NAHB Chairman Bob Nielsen.

“However, some housing markets across the country have stabilized and are beginning to show signs of a budding recovery,” he said.

In Youngstown-Warren-Boardman, Ohio-Pa. — the most affordable major housing market in the country during this year’s second quarter — 93.7% of all homes sold were affordable to households earning the area’s median family income of $54,900.

Also ranking near the top of the most affordable major metro housing markets were Syracuse, N.Y.; Indianapolis-Carmel, Ind.; Dayton, Ohio; and Lakeland-Winter Haven, Fla.

Among smaller housing markets, the most affordable was Kokomo, Ind., where 95.8% of homes sold during the second quarter were affordable to families earning a median income of $59,100.

Other smaller housing markets ranking near the top of the index included Wheeling, W.Va.-Ohio; Lansing-East Lansing, Mich.; Bay City, Mich.; and Sandusky, Ohio.

In New York-White Plains-Wayne, N.Y.-N.J. — the nation’s least affordable major housing market for the 13th consecutive quarter — 25.2% of all homes sold during the second quarter were affordable to those earning the area’s median income of $67,400.

Other major metro areas near the bottom of the affordability index included San Francisco-San Mateo-Redwood City, Calif.; Santa Ana-Anaheim-Irvine, Calif.; Los Angeles-Long Beach-Glendale, Calif.; and Honolulu.

Ocean City, N.J., where 40.9% of the homes were affordable to families earning the median income of $70,100, was the least affordable of the smaller metro housing markets in the country during the second quarter.

Other small metro areas ranking near the bottom included Laredo, Texas; Santa Cruz-Watsonville, Calif.; San Luis Obispo-Paso Robles, Calif.; and Santa Barbara-Santa Maria-Goleta, Calif.