2009 Money Magazine Housing Devaluation Predictions.
Money Magazine recently put out a city-by-city home price forecast as well. Using data from Fiserv Lending Solutions, First American CoreLogic, city and county assessors, and realtors, the magazine determined that U.S. home prices will fall an average of 9.7 percent.
Miami is expected to see the most lost equity. Money Magazine is predicting a 24.9 percent drop. Cities in Texas and New York are expected to fare the best.
Metro Area Median Home Price Forecast May 09 (% chg)
Albuquerque, NM $174,000 -10.5%
Atlanta, GA $205,000 -2.3%
Baltimore, MD $264,000 -12.5%
Boston, MA $363,000 -10.5%
Chicago, IL $279,000 -6.8%
Cleveland, OH $145,000 -4.3%
Denver, CO $254,000 -10.8%
Detroit, MI $120,000 8.6%
Edison, NJ $358,000 -15.8%
Fort Lauderdale, FL $309,000 -22.2%
Honolulu, HI $625,000 -16.2%
Houston, TX $150,000 1.2%
Jacksonville, FL $197,000 -9.6%
Kansas City, KS $148,000 -0.6%
Las Vegas, NV $277,000 -18.3%
Los Angeles, CA $528,000 -16.8%
McAllen, Texas $109,000 4.0%
Miami, FL $329,000 -24.9%
New Orleans, LA $158,000 2.2%
New York City, NY $471,000 -13.2%
Philadelphia, PA $200,000 -11.1%
Phoenix, AZ $237,000 -18.3%
Portland, OR $306,000 -14.7%
Riverside, CA $340,000 -16.9%
Rochester, NY $121,000 2.7%
Sacramento, CA $330,000 -8.9%
Salt Lake City, UT $229,000 -9.8%
San Diego, CA $522,000 -9.7%
San Francisco, CA $840,000 -10.1%
San Jose, CA $750,000 -12.5%
Seattle, WA $430,000 -9.0%
Springfield, MA $195,000 -9.5%
Stamford, CT $562,000 -13.9%
May 13th
Tuesday, May 20, 2008
Predicted That Millions Of Homeowners Are Considering…Just Walking Away.
Can Mortgage Borrowers Be Punished for Walking Away?
In a recent interview with the San Francisco Chronicle, Freddie Mac consumer outreach manager Robin Stout Migala claimed that there are many reasons why homeowners shouldn’t walk away from homes, including federal income tax liability and the chance that lenders may pursue walkaway borrowers.
Although Robin’s statements may be true in certain circumstances, it is equally likely that borrowers may not face the above-mentioned consequences.
As Mike ‘Mish’ Shedlock pointed out in a blog post Monday, some states (like California) are non-recourse states, which basically means that borrowers owe lenders nothing more than the house should they default. There are also non-recourse loans in recourse states with the same provision. As for tax liabilities, there are provisions in the Mortgage Forgiveness Debt Relief Act that allow tax free debt forgiveness.
The bottom line is that there will be consequences for those who do walk away–like a drop in credit scores–but the end result may not be as bad for borrowers as Migala implies.
May 13th, 2008
In a recent interview with the San Francisco Chronicle, Freddie Mac consumer outreach manager Robin Stout Migala claimed that there are many reasons why homeowners shouldn’t walk away from homes, including federal income tax liability and the chance that lenders may pursue walkaway borrowers.
Although Robin’s statements may be true in certain circumstances, it is equally likely that borrowers may not face the above-mentioned consequences.
As Mike ‘Mish’ Shedlock pointed out in a blog post Monday, some states (like California) are non-recourse states, which basically means that borrowers owe lenders nothing more than the house should they default. There are also non-recourse loans in recourse states with the same provision. As for tax liabilities, there are provisions in the Mortgage Forgiveness Debt Relief Act that allow tax free debt forgiveness.
The bottom line is that there will be consequences for those who do walk away–like a drop in credit scores–but the end result may not be as bad for borrowers as Migala implies.
May 13th, 2008
Tuesday, May 13, 2008
A Record Month for California Foreclosure Activity
CALIFORNIA FORECLOSURE SALES EXCEED 1,000 PER DAY
A Record Month for California Foreclosure Activity
Discovery Bay, CA, May 13, 2008 – ForeclosureRadar (www.foreclosureradar.com), the only website that tracks every California foreclosure with daily auction updates; today issued it’s California Foreclosure Report.
April foreclosure numbers were up in all categories, creating extraordinary indicators. Average daily auction sales exceeded 1,000 properties a day for the first time in California’s history.
High-level findings include:
Notices of Default –the filings for the first step in California’s foreclosure process increased only
slightly to set a new record of 44,101 new filings.
Notices of Trustee Sale, which are issued approximately 3 months following a Notice of Default,
increased 7.8 percent in April surpassing the previous record with a total of 29,892 new filings.
April foreclosure sales at auction jumped 44 percent over March to a record 22,838 sales, with a combined loan value of $9.45 Billion. The majority of these sales received no third party bid and reverted back to the lender despite the largest across the board discounts ever offered at trustee sale
auctions.
“We expected a significant increase in auction sales based on previous default patterns” said Sean O'Toole,founder of ForeclosureRadar. “Unfortunately, the continued increases in defaults tell us that the worst is still ahead. It is time for lenders to accept this reality, and start approving short sales rather than forcing more than two-thirds of troubled homeowners through the entire foreclosure process.”
Lenders added 22,324 properties to their real estate owned or “REO” inventory in April. Last month DataQuick reported that 38.4% of all home sales in California were from this REO inventory, equaling approximately 9,432 properties. Based on those levels, lenders are increasing REO inventories 1.36 times faster than they are
able to resell them.
In April, it took lenders an average of 140 days from Notice of Default to the property being sold at auction.
Average discounts at auction were 25%, but nearly half of all properties taken to auction offered discounts of 30% or more from the current loan balance. The majority of these loans were 80% LTV first mortgages, making discounts of 40 to 50% from the prior sales price common in many parts of the state.
The largest discounts offered in major Southern California counties were in Santa Barbara (29 percent) and Riverside (28 percent). The smallest were Los Angeles (19 percent) and Orange (21 percent). The spread was wider in Northern California, with Merced offering the states larges discounts (37 percent), and San Francisco the smallest (12 percent).
In a sign that foreclosures are affecting every part of the state, foreclosure sales nearly doubled in both Marin
County (96 percent increase), and Orange County (up 82 percent).
A Record Month for California Foreclosure Activity
Discovery Bay, CA, May 13, 2008 – ForeclosureRadar (www.foreclosureradar.com), the only website that tracks every California foreclosure with daily auction updates; today issued it’s California Foreclosure Report.
April foreclosure numbers were up in all categories, creating extraordinary indicators. Average daily auction sales exceeded 1,000 properties a day for the first time in California’s history.
High-level findings include:
Notices of Default –the filings for the first step in California’s foreclosure process increased only
slightly to set a new record of 44,101 new filings.
Notices of Trustee Sale, which are issued approximately 3 months following a Notice of Default,
increased 7.8 percent in April surpassing the previous record with a total of 29,892 new filings.
April foreclosure sales at auction jumped 44 percent over March to a record 22,838 sales, with a combined loan value of $9.45 Billion. The majority of these sales received no third party bid and reverted back to the lender despite the largest across the board discounts ever offered at trustee sale
auctions.
“We expected a significant increase in auction sales based on previous default patterns” said Sean O'Toole,founder of ForeclosureRadar. “Unfortunately, the continued increases in defaults tell us that the worst is still ahead. It is time for lenders to accept this reality, and start approving short sales rather than forcing more than two-thirds of troubled homeowners through the entire foreclosure process.”
Lenders added 22,324 properties to their real estate owned or “REO” inventory in April. Last month DataQuick reported that 38.4% of all home sales in California were from this REO inventory, equaling approximately 9,432 properties. Based on those levels, lenders are increasing REO inventories 1.36 times faster than they are
able to resell them.
In April, it took lenders an average of 140 days from Notice of Default to the property being sold at auction.
Average discounts at auction were 25%, but nearly half of all properties taken to auction offered discounts of 30% or more from the current loan balance. The majority of these loans were 80% LTV first mortgages, making discounts of 40 to 50% from the prior sales price common in many parts of the state.
The largest discounts offered in major Southern California counties were in Santa Barbara (29 percent) and Riverside (28 percent). The smallest were Los Angeles (19 percent) and Orange (21 percent). The spread was wider in Northern California, with Merced offering the states larges discounts (37 percent), and San Francisco the smallest (12 percent).
In a sign that foreclosures are affecting every part of the state, foreclosure sales nearly doubled in both Marin
County (96 percent increase), and Orange County (up 82 percent).
Thursday, April 24, 2008
Home Sales Data Just Released…Must Read.
Special report for HREU Students. This is the latest information about home sales. Use this information to better educate yourself and your buyers and sellers.
Remember, there has never been a time in the history of our country when caring, competent and skilled agents have been so needed. This is not a sellers market, despite what you have been told this is NOT a buyers market….this is an Agents market. This is your market. Learn the skills necessary and you will thrive beyond your wildest dreams. Start with learning and the earning always follows.
Click Here To Download a Free Copy Of Our Newest Book..How To Survive The Worst Real Estate Market In History
The two-year U.S. housing slump showed no sign of abating in March as sales of previously owned homes fell for the seventh time in eight months.
Purchases dropped 2 percent, less than forecast, to an annual rate of 4.93 million, from 5.03 million in February, the National Association of Realtors said today in Washington. The median sales price declined 7.7 percent from a year earlier.
The jump in subprime defaults and credit-market losses has caused banks to demand higher down payments and increased income documentation for home loans. Many legislators are now suggesting new laws that require buyers to put down at least 20% on home purchases.
A separate measure of home values published by the government’s Office of Federal Housing Enterprise Oversight showed that sales prices dropped 2.4 percent in February from a year earlier. The monthly house price index is down 3.1 percent from its peak in April 2007.
“The housing downturn continues in full swing,” Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pennsylvania. “Potential home buyers are sitting on the sidelines. They do sense that prices are going to go down further. We’re still a good six, 12 months away before we see buyers come in.”
Bank of America Corp., the nation’s second-biggest bank, said today it plans to curtail low-documentation loans and restrict credit to some borrowers after taking over Countrywide Financial Corp. Yesterday, the bank said profit fell for a third straight quarter as it set aside $6.01 billion for bad loans.
The number of homes for sale at the end of March increased by 40,000 to 4.06 million. At the current sales pace, that represented 9.9 months’ worth, up from 9.6 months’ worth at the end of the prior month.
Watch A Free Video Now. How To Make Money Now In This Market.
Median Price
The median price of an existing home dropped to $200,700 from $217,400 a year earlier.
Many economists consider new-home purchases, which are recorded when a contract is signed, a more timely barometer of the market.
Figures from the Commerce Department later this week may show sales of new houses fell in March to an annual pace of 580,000, a 13-year low.
Resales of single-family homes fell 2.7 percent to an annual rate of 4.35 million. Sales of condos and co-ops increased 3.6 percent to a 580,000 rate.
Housing Starts
Falling sales are prompting builders to pare back construction and reduce prices. Work began on 947,000 homes at an annual rate in March, less than forecast and the fewest in 17 years, Commerce figures showed last week.
Remember, there has never been a time in the history of our country when caring, competent and skilled agents have been so needed. This is not a sellers market, despite what you have been told this is NOT a buyers market….this is an Agents market. This is your market. Learn the skills necessary and you will thrive beyond your wildest dreams. Start with learning and the earning always follows.
Click Here To Download a Free Copy Of Our Newest Book..How To Survive The Worst Real Estate Market In History
The two-year U.S. housing slump showed no sign of abating in March as sales of previously owned homes fell for the seventh time in eight months.
Purchases dropped 2 percent, less than forecast, to an annual rate of 4.93 million, from 5.03 million in February, the National Association of Realtors said today in Washington. The median sales price declined 7.7 percent from a year earlier.
The jump in subprime defaults and credit-market losses has caused banks to demand higher down payments and increased income documentation for home loans. Many legislators are now suggesting new laws that require buyers to put down at least 20% on home purchases.
A separate measure of home values published by the government’s Office of Federal Housing Enterprise Oversight showed that sales prices dropped 2.4 percent in February from a year earlier. The monthly house price index is down 3.1 percent from its peak in April 2007.
“The housing downturn continues in full swing,” Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pennsylvania. “Potential home buyers are sitting on the sidelines. They do sense that prices are going to go down further. We’re still a good six, 12 months away before we see buyers come in.”
Bank of America Corp., the nation’s second-biggest bank, said today it plans to curtail low-documentation loans and restrict credit to some borrowers after taking over Countrywide Financial Corp. Yesterday, the bank said profit fell for a third straight quarter as it set aside $6.01 billion for bad loans.
The number of homes for sale at the end of March increased by 40,000 to 4.06 million. At the current sales pace, that represented 9.9 months’ worth, up from 9.6 months’ worth at the end of the prior month.
Watch A Free Video Now. How To Make Money Now In This Market.
Median Price
The median price of an existing home dropped to $200,700 from $217,400 a year earlier.
Many economists consider new-home purchases, which are recorded when a contract is signed, a more timely barometer of the market.
Figures from the Commerce Department later this week may show sales of new houses fell in March to an annual pace of 580,000, a 13-year low.
Resales of single-family homes fell 2.7 percent to an annual rate of 4.35 million. Sales of condos and co-ops increased 3.6 percent to a 580,000 rate.
Housing Starts
Falling sales are prompting builders to pare back construction and reduce prices. Work began on 947,000 homes at an annual rate in March, less than forecast and the fewest in 17 years, Commerce figures showed last week.
Tuesday, April 22, 2008
Median price of SoCal homes plunged 24 pct to 4-year low
By MICHAEL LIEDTKE
SAN FRANCISCO - Southern California home values plummeted 24 percent during March, leaving prices at an almost four-year low amid the real estate market's deepening distress.
The median price of homes sold in a six-county region stood at $385,000 in March, a sobering turnaround from the previous year when values had reached a record $505,000, according to data released Tuesday by DataQuick Information Services.
Southern California homes haven't sold for so little since April 2004 when the region's median price stood at $380,000.
The median price represents the point where half the homes sell for more and half sell for less.
Tuesday's report covered Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties - a region that once ranked among the nation's hottest real estate markets as lenders aggressively lowered their rates and standards for qualifying for home loans.
As it turned out, many borrowers couldn't afford their mortgages after they adjusted upward from temporarily low rates. That has led to a wave of foreclosures that is prompting lenders to sell Southern California homes at sharp discounts and depressing the value of neighboring properties.
More than a third of the Southern California homes sold last month had been through a foreclosures at some point during the past year, according to DataQuick.
Riverside and San Bernardino counties - a rapidly growing region known as the Inland Empire - was particularly hard hit.
Foreclosures accounted for 56 percent of the sales in Riverside County, where the median price of a home fell 27 percent to $306,250. The erosion was even worse in San Bernardino County, where the median home price plunged 28 percent to $265,000.
Orange County remained Southern California's most expensive housing market with a median sales price of $506,000, but that was still 20 percent below last year's level.
The depressed market is prompting many prospective home sellers to stay on the sidelines until they see signs of an upturn, said Marshall Prentice, DataQuick's president.
"Often what we're left with, especially in inland areas, are sales driven by foreclosure or the threat of it," he said.
SAN FRANCISCO - Southern California home values plummeted 24 percent during March, leaving prices at an almost four-year low amid the real estate market's deepening distress.
The median price of homes sold in a six-county region stood at $385,000 in March, a sobering turnaround from the previous year when values had reached a record $505,000, according to data released Tuesday by DataQuick Information Services.
Southern California homes haven't sold for so little since April 2004 when the region's median price stood at $380,000.
The median price represents the point where half the homes sell for more and half sell for less.
Tuesday's report covered Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties - a region that once ranked among the nation's hottest real estate markets as lenders aggressively lowered their rates and standards for qualifying for home loans.
As it turned out, many borrowers couldn't afford their mortgages after they adjusted upward from temporarily low rates. That has led to a wave of foreclosures that is prompting lenders to sell Southern California homes at sharp discounts and depressing the value of neighboring properties.
More than a third of the Southern California homes sold last month had been through a foreclosures at some point during the past year, according to DataQuick.
Riverside and San Bernardino counties - a rapidly growing region known as the Inland Empire - was particularly hard hit.
Foreclosures accounted for 56 percent of the sales in Riverside County, where the median price of a home fell 27 percent to $306,250. The erosion was even worse in San Bernardino County, where the median home price plunged 28 percent to $265,000.
Orange County remained Southern California's most expensive housing market with a median sales price of $506,000, but that was still 20 percent below last year's level.
The depressed market is prompting many prospective home sellers to stay on the sidelines until they see signs of an upturn, said Marshall Prentice, DataQuick's president.
"Often what we're left with, especially in inland areas, are sales driven by foreclosure or the threat of it," he said.
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