Tag Archives: 2011

REO Inventory in 2011

RealtyTrac’s year-end report released Thursday shows foreclosure filings – including default, auction, and bank repossession notices – were reported on 1,887,777 U.S. properties in 2011. Of that total, 804,423 homes were taken back by lenders as REO.

Last year’s tally of nearly 1.9 million properties with a foreclosure filing seems staggering, but it’s actually the lowest reported since 2007. It’s 34 percent below 2010, 33 percent below 2009, and 19 percent below the 2008 total.

RealtyTrac’s newly appointed CEO Brandon Moore describes foreclosure activity last year as being in “full delay mode.”

“The lack of clarity regarding many of the documentation and legal issues plaguing the foreclosure industry means that we are continuing to see a highly dysfunctional foreclosure process that is inefficiently dealing with delinquent mortgages – particularly in states with a judicial foreclosure process,” Moore said.

These delays, however, may be coming to an end. Moore says there were strong signs in the second half of 2011 that indicate lenders are finally beginning to push stalled foreclosures through in select local markets.

“We expect that trend to continue this year, boosting foreclosure activity for 2012 higher than it was in 2011, though still below the peak of 2010,” Moore said.

Despite signs that some markets are experiencing a pickup in foreclosures, RealtyTrac’s analysis shows that processing timelines continued to increase.

On the national stage, properties foreclosed in the fourth quarter took an average of 348 days to complete the process, up from 336 days in the third quarter and up from 305 days in the fourth quarter of 2010.

RealtyTrac says the length of the average foreclosure process has increased 24 percent from the third quarter of 2010, when lenders began to re-evaluate foreclosure procedures as a result of documentation and affidavit errors.

New York holds the title of ‘longest foreclosure process in the nation’ – an average of 1,019 days.

New Jersey documented the nation’s second longest end-to-end foreclosure process, at 964 days. Florida has the third longest at 806 days. Foreclosure activity in both these states dropped more than 60 percent from 2010 to 2011.

All three states with the longest foreclosure timelines employ the judicial foreclosure process.

Texas continues to register the shortest average foreclosure process of any state, at 90 days, but that still represents an increase from 86 days in the third quarter and 81 days in the fourth quarter of 2010.

At 106 days, Delaware has the second shortest foreclosure timeline in the nation, and Kentucky lays claim to the third shortest, at 108 days.

More than 6 percent of Nevada housing units (one in 16) had at least one foreclosure filing in 2011, giving it the nation’s highest state foreclosure rate for the fifth consecutive year. That’s despite a 31 percent decrease in foreclosure activity from 2010.

Arizona registered the nation’s second highest foreclosure rate for the third year in a row, with 4.14 percent of its homes (one in 24) receiving at least one filing in 2011.

California registered the nation’s third highest foreclosure rate for all of 2011, with 3.19 percent (one in every 31 homes).

Other states with 2011 foreclosure rates ranking among the nation’s 10 highest include: Georgia (2.71 percent), Utah (2.32 percent), Michigan (2.21 percent), Florida (2.06 percent), Illinois (1.95 percent), Colorado (1.78 percent), and Idaho (1.77 percent).

This article is by DSNews.com: “New REO Inventory in 2011=804,423 Homes.”

Unemployment Rate Falls to 8.5%

The nation’s unemployment rate continues to trend down. It slipped to 8.5 percent during the month of December as the economy added 200,000 new jobs, the U.S. Department of Labor said Friday morning.

The reported rate is down from 8.6 percent in November. The change in total nonfarm payroll employment for November was revised downward from +120,000 to +100,000. October’s data was revised upward from +100,000 to +112,000.

December’s results were better than expected, with the consensus forecast among analysts looking for the rate to inch up to 8.7 percent and net job growth over the month to tally 150,000.

December marks the sixth consecutive month of 100,000-plus job gains and the first such stretch employers have been able to string together since 2006.

The number of long-term unemployed – those jobless for 27 weeks or more – was little changed in December at 5.6 million and accounted for 42.5 percent of the unemployed.

The unemployment rate has declined by 0.6 percentage point since August, according to the Labor Department. At 8.5 percent, the rate ended 2011 at its lowest level in nearly three years.

Over the 2011 calendar year, nonfarm payroll employment rose by 1.6 million, up sharply from the 940,000 jobs added in 2010.

Employment in the private sector rose by 212,000 in December and by 1.9 million over the year.

Government employment changed little over the month but fell by 280,000 over the year.

The national unemployment rate averaged 8.9 percent in 2011, compared to 9.6 percent in 2010.

This article is from DSNews.com: “Unemployment Rate Falls to 8.5%“.

2011 had lowest mortgage rates on record

You’ve probably been hearing all year long how mortgage interest rates were at record lows.

Now, the final data is in. And it shows that 2011 had the lowest average interest rates in the 41 years that mortgage giant Freddie Mac has been tracking loan rates.

Specifically, the U.S. average was 4.45% on the 30-year fixed-rate mortgage, Freddie Mac reported. That beats the previous low of 4.69% set in 2010.

The past two years are the only ones in Freddie Mac’s records in which the annual average rates were below 5% for a 30-year, fixed-rate loan. In 1981, 30-year mortgage rates averaged nearly 17%. As recently as 2008, rates were averaging above 6%.

Interest rates fell below 4% for the first time in Freddie Mac’s data in October – and stayed at or below 4% for the last nine weeks of the year. Thirty-year rates set six records last year, falling to an all-time low of 3.91% on Dec. 22.

Other types of mortgages were in record territory as well. According to Freddie Mac:

  • Fifteen-year, fixed-rate mortgages set eight records in 2011, falling to an all-time low of 3.21% on Dec. 15.
  • Five-year, adjustable-rate mortgages set nine records in 2011, falling to an all-time low of 2.85% on Dec. 22.
  • One-year, adjustable-rate mortgages set 14 records in 2011, falling to an all-time low of 2.77% on Dec. 22.

The record low mortgage rates failed to spark a revival in the housing market, with fewer buyers able to qualify for a loan or able to afford to purchase a home. Overall, local and U.S. home sales remain well below average levels.

This article is from the Orange County Register; read it here: 2011 had lowest mortgage rates on record.”

Is it a “Happy New Year” for the Housing Market?

Goodbye 2011 & Hello 2012! Is this a Happy New Year?

Is it goodbye to a bad year or hello to the same?  While the economy is still struggling, unemployment slightly better, and real estate showing signs of improvement only to retract its position, I believe the glass is still half full, with an asterisk.

What's in store for 2012's housing market?The holiday season began strong on Thanksgiving weekend, reports are that retailers numbers receded which led to heavy markdowns the week of Christmas. Final numbers are still to come, while job growth is modest, mostly in low-paying sectors like retail and hospitality. This past year also saw an increase in credit card spending for gifts as a result of higher gasoline, food prices, and general inflation.

With mortgage rates still at historic low rates, the housing industry is still struggling with values dropping, even though sales have shown signs of recovery. With more than one in every five borrower still owing more than their home is worth, many homeowners are too pressed to spend on much more than the essentials which leave us to the big question: WHAT SHOULD I DO?

With all predictions expecting more of the same this year as last, there is still and always will be optimism, but each homeowner out there who is still upside-down, either waiting for or in a modification, is so far upside down that they most likely will never recoup the past negative equity in the future.  They are at the same time struggling to make ends meet with just the essentials. Mortgage companies and investors are still holding the belt tight and are not reducing principle for most people waiting for  modifications or who have them–leaving homeowners to finally make that decision that enough is enough.

There are opportunities to purchase and leave your upside-down home, but you would need to act fast. Other opportunities are also available and action now will help you live a life more care-free and stress-free in a fast-paced, ever-uncertain economic time.

Call me now and let’s talk. My direct line of contact is 619-890-3648.

God Bless

Balboa Park December Nights 2011

12/02/11 – 12/03/11

December NightsSan Diego’s favorite kick-off to the holiday season, will take place for the 34th consecutive year on Friday, 5:00-10:00 pm and Saturday, noon-10:00 pm. In the spirit of the holidays, participating Balboa Park museums open their doors free of charge from 5:00 to 9:00 pm both evenings. The largest free community festival in San Diego, December Nights is expected to attract more than 300,000 visitors over two days.

Entertainment, wonderful food and holiday cheer are all part of this classic and elaborate San Diego celebration. Long-standing traditions—including food from around the globe at the International Christmas Festival at the House of Pacific Relations Cottages; the charming Santa Lucia Procession at the San Diego Museum of Man; unique gift shopping at the museum stores and with the artisans of Spanish Village; and musical and dance presentations from the San Diego Junior Theatre, San Diego Civic Youth Ballet, Del Cerro Baptist’s Christmas Story Tree and more—fill the heart of Balboa Park.

In addition, the varied museums open for free from 5:00-9:00 pm both nights feature a wide variety of exhibitions and entertainment.

This event will be held at Balboa Park, located at 1549 El Prado, San Diego. This event is free!

For more details, please go to the website or call (619) 239-0512. 

Existing-Home Sales Rise Unexpectedly in October

Sales of previously owned homes got an unexpected boost last month while the number of homes on the market continued to decline, according to data released Monday by the National Association of Realtors (NAR).

The trade group recorded a 1.4 percent month-over-month increase in existing-home sales in October, pushing the annual rate of sales to 4.97 million. NAR’s latest reading is 13.5 percent above the 4.38 million-unit sales pace in October 2010.

Housing inventory fell 2.2 percent to 3.33 million existing homes available for sale as of the end of October, which represents an 8.0-month supply.

That’s down from an 8.3-month supply in September. NAR says the housing supply has been trending gradually down since setting a record of 4.58 million in July 2008.

Distressed homes – foreclosed REOs and short sales – slipped to 28 percent of October’s transactions, down from 30 percent in September. They were 34 percent in October 2010.

NAR says 17 percent of last month’s existing-home sales were foreclosures and 11 percent were short sales.

Market analysts were expecting up to a 3 percent drop in overall existing-home sales between September and October. Forecasts ranged between an annual rate of 4.76 million and 4.80 million.

According to NAR, October home sales should have risen higher than the 1.4 percent the trade group recorded.

According to Lawrence Yun, NAR’s chief economist, contract failures reported by Realtors jumped to 33 percent in October from 18 percent in September. Only 8 percent of contracts fell through in October of last year.

“A higher rate of contract failures has held back a sales recovery,” Yun said. “Home sales have been stuck in a narrow range despite several improving factors that generally lead to higher home sales such as job creation, rising rents, and high affordability conditions. Many people who are attempting to buy homes are thwarted in the process.”

NAR’s report shows the national median existing-home price was $162,500 in October, which is 4.7 percent below October 2010.

“In some areas we’re hearing about shortages of foreclosure inventory in the lower price ranges with multiple bidding on the more desirable properties,” Yun said. “Realtors in such areas are calling for a faster process of getting foreclosure inventory into the market because they have ready buyers.”

Yun adds that extending credit to responsible investors would help to absorb distressed inventory at an even faster pace, which he says “would go a long way toward restoring market balance.”

NAR’s data indicates investors purchased 18 percent of homes in October, while first-time buyers accounted for 34 percent of transactions. All-cash sales made up 29 percent of last month’s purchases.

This article is by DSNews.com.

What’s in store for the housing market in 2012?

2011 was supposed to ratchet up steady, if not, robust growth in the US economy. However, several economic and geo-political events tripped up the economy during the year that have left would be home buyers dazed and confused about jumping into the housing market.
2011: A Year of Wild CardsLooking in the rearview mirror: 2011

Here’s what we know–2011 has been wrought with uncertainty and unexpected shocks that has hobbled output in the US and around the globe and caused a huge crisis of confidence for consumers, investors, and businesses alike. The list of wildcards is long: the DC midterm elections, the change of power in the House, the Japanese earthquake and tsunami, the Arab uprising, the oil price shocks, the European debt crisis, the battle over debt ceiling, the downgrading of the US long-term debt, and the fallout with the volatility in the stock market. All of which have left output through the first half of the year below the growth rates that accompany a recovery. The probability of a double-dip recession has gone up and has caused economists far and wide to downgrade their outlook for this year and next.

What does next year have in store for housing?

California Housing Market OutlookHere is what C.A.R. is forecasting for 2012:
  • While the probability for a double-dip recession is higher, the most likely scenario is for a continuation of the slow-moderate growth we have seen for the last few years. The outlook is for modest but positive growth with GDP coming in at 1.7% in 2011, 2.0% in 2012.
  • We are moving forward, albeit bouncing along the bottom for most of 2011 and we can expect the same for next year, with a flat sales forecast for 2011/2012 (-0.1% year-to-year loss in 2011 and 1.0% gain in 2012).
  • Prices are expected to come in 4% below 2010 levels and should show a modest gain in 2012 (+1.7% year-over-year).

Overall, we’ve seen uncertainty and a lack of urgency put a damper on the housing market in 2011.

Hopefully, 2012 will prove less uncertain and could even show signs of urgency as current prices and mortgage rates are phenomenal and will not stay this low forever.

Event: Arts & Culture Fest 2011

San Diego Arts & Culture Fest 2011Celebrate arts and the cultural influences of the Americas, Africa, and Asia at the sixth annual Arts & Culture Fest in San Diego this Saturday.  Three stages of entertainment will present the influences of these three parts of the world, along with an international market and food area, art contests, wine tastings, music, and more. 

Details: Arts & Culture Fest 2011. Noon to 6 p.m. Market Creek Plaza, 310 Euclid Ave., Lincoln Park. Free.
For more information, call (619) 527-6161 or go to artsandculturefest.com