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Housing Crisis

Can Traditional Buyers Save the Recovery?

tippin

  The recovery is at a tipping point because traditional buyers are not making up for the decline in sales to investors, who cannot find enough houses to buy profitably.  Cash buyers competing for distressed and low-tier inventory who helped to jump start the overall recovery now are fading from the market.  They have fallen to just 16.8% of all sales, suggesting ... Read More »

Wells Circles the Wagons

Wells

Growing concern over the faltering housing recovery has inspired an unusual vote of confidence for housing’s fundamentals from two of Wells Fargo’s top economists. In a “special commentary” published in the bank’s web site, senior economists Mark Vitner and Anika R. Khan argue that too much progress has been made restoring growth to the overall economy for the recovery to ... Read More »

With Equity on the Mend, Homeowners Hit on HELOCs

balloon

Equity is now piling up in homes that have been money pits for years and now their owners are rushing to spend their new found wealthy. In the past two years, housing gains and a strong stock market have restored $14.22 trillion to household wealth, the largest such increase in any two-year period in US history, according to the Federal ... Read More »

Distress Sales Ride into the Sunset

cowboy+into+the+sunset

Some of us will even miss ‘em…but not for long.  Foreclosures and short sales introduced a new way of thinking about real estate and new ways to make a living, like short sales, broker price options and rental property management.  Now they have faded away in most markets. Distressed sales (REO and short sales) accounted for only 11.1 percent of ... Read More »

Only 10.7 Percent of All Mortgaged Homes Still Underwater

underwater

Nearly 950,000 homes returned to positive equity in the second quarter of 2014, bringing the total number of mortgaged residential properties with equity in the U.S. to more than 44 million. Nationwide, borrower equity increased year over year by approximately $1 trillion in Q2 2014.  Approximately 5.3 million homes, or 10.7 percent of all residential properties with a mortgage, were ... Read More »

Are You Ready for the HELOC Crisis?

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  At least 2.5 million home equity lines of credit (HELOCs) will reset over the next three years, increasing borrowers’ monthly payments by an average of $250 per month and resulting in a surge of defaults, according to Black Knight Services’ September Mortgage Monitor report. According to Kostya Gradushy, Black Knight’s manager of Research and Analytics, this average is based ... Read More »

Clear Capital: Welcome Back to 2004

Bush-vs-Kerry

  National home prices have been nominally unchanged for a lost decade and we’re back to 2004 levels without even accounting for inflation, leaving many homeowners with no more equity than when they bought.  That’s the grim assessment by Clear Capitol in its September market report. If national home price growth continues to diminish, the lost decade will drag out. August home price ... Read More »

Hello Moderation, Bye Distress Sales

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As a percent of all sales, distressed sales fell to 18 percent in July from their peak of 40.8 percent in March of 2011. The major shift in home sale type, from distressed to fair market, will continue to impact future growth potential for markets overall, reports Clear Capital’s July Market Report. Does that mean home price gains will continue ... Read More »

One State Leads the Foreclosure Marathon

Florida-two

As the Foreclosure Era enters its final months, completed foreclosures are increasingly concentrating in a handful of states and one state reports three times as many as the next runner-up.  Regions of the nation have virtually returned to normal as their foreclosure inventories dry up and are not refilled. Five states account for almost half of all completed foreclosures in ... Read More »

Spring Price Increases Barely Budge Underwater Homes

teaparty

Price increases slowed so much in the second quarter that the numbers of seriously underwater homes and the percentage of equity rich properties barely increased over the first quarter of 2014. The second quarter of 2014 saw only a small percentage decline in the percentage homes that were seriously underwater, 17.2 percent versus 17.4 percent in the first quarter of ... Read More »