Tag Archives: median

NAR Index: Housing Affordability hits 42-year high in January

NARThe National Association of Realtors’ (NAR) Housing Affordability Index reached a record high this January, at 206.1. January 2012 is the first month since the index’s inception in 1970 that the index has hit or passed 200, the group announced this week…

…Late 2011 saw a steady monthly rise in the index from June’s 172.4, the 2011 low, to 197.9 in December 2011. The index has risen from 169.4 in 2009 to 174 in 2010, and to 184.5 in 2011.

Read this article in full by Inman.com here: “NAR Housing Affordability Index hits 42-year High in January.”

California housing affordability rises in Q3

California Building Industry AssociationHousing affordability increased in 22 of the state’s 28 metropolitan areas in the third quarter, according to the California Building Industry Association’s Housing Opportunity Index (HOI).

On a statewide basis, the HOI found that a family earning the median income could have afforded 63.5 percent of the new and existing homes that were sold during the third quarter, up from 61.3 percent in the second quarter.

The San Francisco, San Mateo and Marin County metro area was once again California’s least-affordable metro area for the twelfth consecutive quarter, and second in the nation, with just 32.9 percent of the homes sold being affordable to a family earning the median income, up from 27.5 percent in the second quarter. Orange County was California’s second least-affordable market and fifth in the nation (43 percent), followed by Los Angeles County (45.1 percent) and Santa Cruz County (47 percent).

Read the article from the California Building Industry Association here: “California Housing Affordability Rises in Third Quarter, CBIA Announces“.

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.

Industry’s Past-Due Mortgages Continue to Drop

How many homeowners in the United States are behind on their mortgage payments? It’s 6,373,000, according to Lender Processing Services (LPS).

past due mortgagesThe number is staggering, but it’s actually on the decline, down from 6,397,000 as of the end of August, and 6,538,000 at the end of July.

LPS offered the media an advance look at the high-level numbers from its mortgage performance report due out later this month.

The company’s data, which is derived from its loan-level database of nearly 40 million mortgage loans, provides evidence that servicers are pushing those loans that have been languishing in non-payment status through the pipeline at a faster pace.

At September month-end, the national mortgage delinquency rate – which includes loans 30 or more days past due, but not in foreclosure – stood at 8.09 percent. That’s down 0.5 percent from the previous month and 12.7 percent from a year earlier.

At the same time, the foreclosure inventory rate – which LPS calculates as loans that have been referred to an attorney but have not yet reached the final stage of foreclosure sale – rose to 4.18 percent in September, up 1.7 percent from August and up 8.9 percent from September of last year.

The same trend of a declining delinquency rate and rising foreclosure rate was reported last month as well.

Of the 6,373,000 mortgage going unpaid in the United States, LPS says approximately 2,172,000 are part of the foreclosure pre-sale inventory.

The remaining 4,202,000 are 30-plus days delinquent but not yet in foreclosure. Of these, 1,844,000 are past due by 90 days or more.

According to LPS’ September study, the five states with highest percentage of non-current loans – which combines foreclosures and delinquencies – have held onto their rankings for three consecutive months. These include: Florida, Mississippi, Nevada, New Jersey, and Illinois.

States with the lowest percentage of non-current loans include: Montana, Alaska, Wyoming, South Dakota, and North Dakota.

This article, “Industry’s Past-Due Mortgages Continue to Drop,” is by Carrie Bay at DSNews.com.