Jeffrey Tung's Real Estate Blog » inventory decrease

REO inventory All-Time High

Jeff Tung — Thu, 05 May 2011 23:52:38 +0000

Bank owned inventory nationally grew to a record high of 2.2 million in March and foreclosures starts increased by 33% month over month. This may sound bad but foreclosure sales have increased and delinquencies are down by 11% which is the lowest since 2008.

Pending sales have increased which is a good sign that the demand is strong and the inventory will decrease hopefully faster then any increase. The U.S. is expected to add at least 750,000 new households in 2011 which is a healthy demand. A lot of these new homeowners are a result of lower home prices that are cheaper to buy then to rent, low interest rates, and more confidence in the recovery of the economy.

“The good news is that recent home buyers are staying well within budget, leading to exceptionally low loan default rates among home buyers over the past two years,” Yun added.

Fannie, Freddie, FHA combined REO Inventory at Record Level (calculatedriskblog.com)
RealtyTrac: Foreclosure Activity at Lowest Level in Three Years, by Carrie Bay, DSNEWS.com (oregonrealestateroundtable.com)
Holding Steady (sdierickx.wordpress.com)
Shadow Inventory may make now the time to purchase your Retirement Home (kellybryan.wordpress.com)
Delinquencies Continue to Decline (jefftung.net)
30 Percent Of All Loans In Foreclosure Have Had No Payment In Two Years (businessinsider.com)

Fannie offers to pay closing cost

Jeff Tung — Mon, 18 Apr 2011 00:03:08 +0000

If you plan to purchase a home in the near future, you might want to speed up the process in order to have 3.5% of your closing cost paid by Fannie Mae. That’s right, Fannie Mae is trying to decrease their inventory of REOs. If you close on a HomePath property by June 30, 2011, you’ll be able to save 3.5% of the purchase price in closing cost. So act now!!!!

Fannie Mae Buyer Incentives Back for Limited Time (brittaj17.wordpress.com)
Fannie Offers Closing Cost Help for REOs (reowablog.wordpress.com)
April 11 to June 30th: Buyers Get 3.5% of their Costs Paid When Purchasing a Qualified Fannie Mae Owned Property (mklenahan.wordpress.com)
Fannie Mae Announces 3.5% Buyer Assistance on REO Properties (saltlakecitymortgage.wordpress.com)
REALTOR Magazine – Fannie Offers Closing Cost Help for REOs (katytx2010.wordpress.com)
Fannie Mae Announces 3.5 Percent Buyer Assistance on HomePath(R) Properties Incentive Part of Continuous Effort to Stabilize Neighborhoods – CNBC (kentuckyfirsttimehomebuyer.com)

Preserve Mortgage Interest Deduction

Jeff Tung — Sun, 03 Apr 2011 00:03:55 +0000

There are about 78,000 homes that are either vacant and for sale, or under construction. This is an improvement and with a normal level of buying, the homes would sell in 2 1/2 months. The study shows that there is a housing shortage brewing. If this happens, then it would change the market to a seller’s market and buyers will have a hard time purchasing again. The market today is still considered a buyer’s market and there are more bargain hunters out looking for deals. More investors are also very active making all cash purchases. There are 6 cities that are considered to be cheaper then renting the same house. All this may be history if unemployment rises, which it is decreasing today, interest rates continue to rise and become non deductible.

Preserve, Protect and Defend the Mortgage Interest Deduction(realtorpartnership.wordpress.com)
What if the mortgage interest deduction was eliminated?(hsh.com)
Video: Deducting Mortgage Interest and Property Tax(turbotax.intuit.com)
Realtors Desperate To Preserve Mortgage Interest Deduction And Other Government Favors(chicagonow.com)
‘Tis the Season for Tax Breaks!(heardontheblock.wordpress.com)
About Tax Deductions for a Mortgage(turbotax.intuit.com)
Home Ownership Tax Deductions(turbotax.intuit.com)
Are Home Interest Loans Deductible From Taxes?(turbotax.intuit.com)
Housing – Time to Buy?(dgrifflawapc.wordpress.com)
Number Crunching(buildingstrategy.wordpress.com)

Delinquencies Continue to Decline

Jeff Tung — Mon, 28 Mar 2011 22:41:57 +0000

For the third month in a row, mortgage lates, 90 days or more, have declined. This could be another sign of recovery. With fewer defaults, the inventory level of REOs and short sales should go down as well. Could this be the bottom or is it a double dip situation. Only time will provide us with an answer. Either way, now is still a good time to purchase real estate.

Mortgage Delinquencies Fall in the Third Quarter(dailyfinance.com)
LPS’ Data Show Declines in Delinquencies and Foreclosure Inventories, by Carrie Bay, Dsnews.com (oregonrealestateroundtable.com)
Delinquencies May Be Down, But 4.3 Million Homes Are 90 Days Delinquent Or In Foreclosure(businessinsider.com)
Delinquency Rate for CMBS Hits a Record(online.wsj.com)
Short Sale FAQs(shortsalehelpnow.wordpress.com)
Cities Where Economies Are Getting Worse(forbes.com)

Increase in pending sales in San Francisco

Jeff Tung — Fri, 25 Mar 2011 22:41:50 +0000

In the coming months San Francisco will experience an increase in closed sales because the number of pending sales has increased by 8.9% which represents 2.6 months of the current supply of homes. If supplies continue to decrease and demand stays strong, maybe a seller’s market might be on the horizon.

The market will change if employment increases and interest rates stays affordable. However, if more distressed homes come on the market, we may not see a market shift for a long time or we may see a double dip in prices.

Home sales rebound in 49 states

Jeff Tung — Sat, 12 Feb 2011 01:19:02 +0000

During the 4th quarter of 2010, over half of the metropolitan areas have experienced price gains from a year ago, but the rest of the areas did not. NAR chief economist Lawrence Yun is encouraged by the trend and says the sales in the last quarter of 2010 has absorbed much of the inventory including distress properties. This could be a good sign that we may be recovering. With the continued improvement of the market and more jobs become available, the market will be back to normal.

Interest rates have been a big factor in sustaining the sales of homes. Last year we have seen interest rates at its all time low, but the rates have been inching up. This is a reaction to the housing recovery that we might be experiencing. We may never see rates lower then 5% in the future. In my 30 years of working in this industry, I thought I would never see interest rates lower than 6%, but it did happen. If you’re planning to finance a purchase or refinancing an existing property, you may want to do it now before the rates go sky high.

Home sales grow, aided by more stable prices (money.cnn.com)
Pending Home Sales Rebound Strongly in October (dailyfinance.com)
Home Sales Increase in Late 2010, but Prices Continue to Slide (wsunews.wsu.edu)
Explaining the Realtors’ Rosy Housing Data (blogs.wsj.com)
Mortgage payments have hit bottom, expert says (seattlepi.com)
Rising Home Sales Point to a Housing Recovery (dailyfinance.com)
U.S. home market struggles to gain traction (financialpost.com)
Buyers have the edge! (kmckeeth.wordpress.com)
U.S. home sales surge, jobless claims decline (financialpost.com)
Existing Home Sales Up, But Prices Still Weak (247wallst.com)

Calm before the storm?

Jeff Tung — Thu, 23 Dec 2010 04:27:30 +0000

HAPPY HOLIDAYS!! Foreclosures are down 21% of the previous month and 14% below November of last year. This is great news but I think we will see another wave of foreclosures and short sales in 2011. It could be as early as January 2011. We probably will see another wave of distressed properties on the market in the coming year.

If you remember in 2008-2009, the market was flooded with the first wave of distress properties for sale. There are still a lot of people having problems with their loan payments and the banks will have to follow through with their right to foreclose to recuperate the losses.

Distressed Homeowners Beware: Foreclosures Have Slowed, But Not For Long(prweb.com)

Home sales improving!!!

Jeff Tung — Fri, 05 Nov 2010 23:46:16 +0000

Now that we are in the last part of the year, how is the real estate market? Well for the month of September, existing home sales were up by 10% from the month of August. However, sales are down by 19.1% compared to September 2009. This is a great opportunity for buyers to take advantage of the market. It’s no wonder that Americans still think about owning their own home. 80% of Americans believe in buying a home is a good financial decision.

Pending Home Sales Slump Further In September(realestateradiousa.com)
William Lyon Homes Reports Third Quarter 2010 Results(eon.businesswire.com)
Fed sees West’s housing as ‘unchanged’(lansner.ocregister.com)
REFILE-US Sept pending home sales fall 1.8 pct–NAR(reuters.com)
CREA slashes home-sales forecast(theglobeandmail.com)

CAR home sales report for August

Jeff Tung — Wed, 06 Oct 2010 23:07:49 +0000

Are you wondering what your home is worth these days? The California Association of REALTORS have published the results. Some areas have experienced some appreciation. My guess is that the valueshave bottomed out and are starting to go up. San Francisco and the peninsula home values seem to be doing better then a lot of other areas.

Calif. home sales rebound slightly (lansner.ocregister.com)
Fading Economic Recovery Affects San Francisco Housing Sales (eon.businesswire.com)
California home sales to drop 10% this year (lansner.ocregister.com)
California real estate market: the good and the bad (sfgate.com)
Slump to last 3 to 5 more years (lansner.ocregister.com)
Can You Guess Which American City Tweets The Most? San Francisco, New York or Washington? (socialtimes.com)
Cash paid to homesellers at all-time low (lansner.ocregister.com)
Federal Home Loan Bank of San Francisco Releases August 2010 Cost of Funds Index (eon.businesswire.com)

HAFA program

Jeff Tung — Fri, 17 Sep 2010 00:31:00 +0000

Have you had an experience working with a short sale? If you did, you’ll agree that there is no guarantee that the home will be sold to you, no matter how long it takes to get an approval and how frustrating it is to not know if you are going to be able to buy the home. Well, the HAFA program is designed to help with the frustrations homeowners, sellers, buyers, and agents experience when going through the short sale process. This program should help speed up the process and help people but there is no guarantee. Only time will tell.

HAFA: Is it really half the time?(agentgenius.com)
Short sales, a product that changes with the blink of an eye(agentgenius.com)
Ten Dirty Secrets of a Short Sale(stealthmode.com)
July 21st(slideshare.net)
75% of modified home loans will redefault(money.cnn.com)
The Mortgage Mess: Are Solutions Out There?(news.firedoglake.com)

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