Fannie, Freddie to start new securitization firm, regulator says

March 5, 2013 by

Fannie, Freddie to start new securitization firm, regulator says

A view shows the Fannie Mae logo at its headquarters in Washington March 30, 2012. REUTERS/Jonathan Ernst

By Margaret Chadbourn

 

(Reuters) – Fannie Mae and Freddie Mac will build a new joint company for securitizing home loans as a stepping stone toward shrinking the government’s role in the mortgage market, the regulator of the U.S. government-controlled firms said on Monday.

“The overarching goal is to create something of value that could either be sold or used by policymakers as a foundational element of the mortgage market of the future,” Edward DeMarco, acting director of the Federal Housing Finance Agency, told the National Association for Business Economics.

Fannie Mae and Freddie Mac, which were bailed out by the government in 2008, help finance about two-thirds of new U.S. home loans. DeMarco is seeking to shrink their footprint and reduce risks to the taxpayers that support the mortgage giants.

Since they were seized by the government, the companies have drawn nearly $190 billion from the U.S. Treasury to stay afloat.

By creating a new securitization company, FHFA intends to pave the way for a single securitization platform and force Fannie Mae and Freddie Mac to abandon their separate systems.

The aim is to shrink the role the two government-sponsored enterprises play in the housing system in the absence of legislation from Congress or direction from the Obama administration on their future.

DeMarco said the goal is to build a single infrastructure to support the mortgage credit business.

The new company will be structured as a joint venture that is owned by Fannie Mae and Freddie Mac, DeMarco told reporters on a conference call to discuss FHFA’s plans.

He said the new joint venture is not expected to begin securitizing loans next year. Instead, the focus will be on creating the business and hiring staff. The company will have a separate chief executive and board.

DeMarco expects Congress will ultimately decide how the securitization platform is operated and whether it should be privatized.

“We are on a path to replace the outdated proprietary operational systems of Fannie and Freddie,” DeMarco told reporters. “It could be turned to some form of a market utility.”

Fannie Mae and Freddie Mac do not directly make loans. They provide financing to banks and lenders by purchasing mortgages, which they either keep on their books or package as securities which they then sell to investors with a guarantee.

DeMarco, in laying out FHFA’s goals for 2013, said he also plans to start reducing Fannie Mae and Freddie Mac’s role in the housing finance system by shrinking their business by 10 percent in the loan market for multifamily homes.

Fannie and Freddie will also aim to complete $30 billion in single-family credit guarantee business in 2013, sharing some of the risk with the private market. Those transactions could include mortgage insurance or other types of debt securities.

The companies will also be required to reduce the less liquid portion of their portfolio of mortgages by 5 percent next year. This goal comes on top of an existing mandate that requires Fannie and Freddie to shrink their investment portfolios over time and turn over profits to taxpayers.

(Reporting by Margaret Chadbourn; Editing by Tim Ahmann and David Gregorio)

 

John Marcotte

720-771-9401

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Luxury Sellers Hang Tough on Prices

March 4, 2013 by

Luxury Sellers Hang Tough on Prices

R Even though the time it takes to sell a luxury property has increased to as long as 260 days in Chicago, 287 in Miami and 197 nationally, overall, fewer sellers are cutting prices.

Wintertime sluggishness has slowed luxury markets across the nation. Days on market have been increasing in nearly every major market tracked by the Institute for Luxury Home Marketing, and inventories are at a seasonal low, down from 27,600 properties in June to 18,400 in January.

Rather than falling with the end of the summer buying season, low inventories have placed upward pressure on prices, which have risen from a median of 1.11 million in September to 1.23 in January, according to ILHM data.

Perhaps as a result of strong prices, sellers are not responding as they normally do in the winter by cutting prices to generate interest among buyers. In fact, fewer are reducing prices today than when days on market were lower last summer.

The percentage of homes on the market that have lowered their asking price at least once over the past 90-day period has fallen 10 percentage points since the end of the summer, from 31.4 percent of properties to 24.4 percent. This statistic illustrates how many listed properties may be behind the “price curve” –listed at a price above what the market is willing to pay for similar properties.

Even in strong seller’s markets, the percent price decreased will be 10-12 percent, so some repricing of individual properties is common in any market. In weaker markets, this value begins rise into the teens, 20 percent, 30 percent, and higher. Percent price decreased is an insightful gauge of demand levels in the residential housing market.

The National Association of REALTORS® reported that sales of luxury homes spiked in the final months of 2012 as high-end homeowners rushed to take advantage of lower tax rates before January 1.

Many sellers wanted to cash in on their homes before a widely expected capital gains hike — to 20 percent from 15 percent — that was part of the fiscal cliff budget deal. According to the National Association of REALTORS® (NAR), sales of homes valued at $1 million or more spiked 51percent in November compared with a year earlier.

For more information, visit www.realestateeconomywatch.com

John Marcotte

www.boulderhomes4u.com

720-771-9401

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Do Your Part: It Won’t Cost you a Penny

March 3, 2013 by

Do Your Part: It Won’t Cost you a Penny

penny_piggy_bank Many times when we talk about “going green” we think about how much green it will cost us. However, there are many ways to live a healthier life and be gentler on the environment without spending a single penny. Here are five simple ways to Do Your Part and not only are they all free — some solutions will also save you money.

Stop Buying Water

Ditching plastic bottles of water and using reusable containers will save big bucks in the long run. But there are other situations where we pay for water without realizing it. Opting to buy concentrated juices is a cheaper alternative to buying many jugs of juice. You’ll save about a nickel on ounce. And, instead of using expensive irrigation systems in your yard, rain barrels or other collection devices will do the work for free.

Sell the Small Stuff

Got gadgets and other electronics collecting dust around your home? They are valuable even if they don’t work. Many major retailers now accept old electronics and will give you a store gift card in return. And, many online sites will pay to have you ship them your stuff and you’ll get a check after they receive it. These items get resold or recycled for metal. Check DoYourPart.com/Columns for a list of resources. Also, consider taking gently worn clothing, sporting equipment, and even children’s gear to consignment shops to earn a few dollars.

Refuse to Waste Gas

No one likes what it costs to fill up our cars at the gas station. To maximize your fuel efficiency and lower toxic emissions, make sure to keep your tires properly inflated, avoid aggressive driving where you accelerate and brake frequently, use cruise control on flat terrain, avoid driving around with extra weight, and keep up with routine maintenance. Another smart idea is to turn the engine off when you’ll be idling for more than 30 seconds in places such as carpool lines.

Put an End to Paper Towels

What’s worse than throwing out barely used paper towels? Spending all that money on them. The cheapest paper towels on the market are about a dollar per roll. If you go through two rolls a week, that’s more than $200 a year! Save that money and keep dish towels and rags handy. It’s much more eco-friendly to launder them than it is to keep buying one-use paper towels.

Lighten Your Laundry Load

Get this, up to 85 percent of the energy used to wash clothes comes from heating up the water. When you switch to cold water you’ll see instant energy savings and your clothes will still get clean.

Visit DoYourPart.com/Columns for more everyday living solutions to have you saving even more green.

Terri Bennett is a veteran TV meteorologist, eco-expert and author of “Do Your Part: A practical guide for everyday green living” available at DoYourPart.com. Send questions to terri@doyourpart.com .

Distributed by MCT Information Services

 

 

John Marcotte

www.boulderhomes4u.com

720-771-9401

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Exterior Replacement Projects Provide Biggest Return on Investment for Homeowners, Say REALTORS®

March 2, 2013 by

Exterior Replacement Projects Provide Biggest Return on Investment for Homeowners, Say REALTORS®

exterior_remodeling_roof Homeowners looking for the most return on their investment when it comes to remodeling should consider exterior replacement projects. According to the 2013 Remodeling Cost vs. Value Report, REALTORS® rated exterior projects among the most valuable home improvement projects.

“REALTORS® know that curb appeal projects offer great bang for your buck, because a home’s exterior is the first thing potential buyers see,” says National Association of REALTORS® President Gary Thomas. “Projects such as siding, window and door replacements can recoup more than 70 percent of their cost at resale. REALTORS® know what home features are important to buyers in your area and can provide helpful insights when considering remodeling projects.” Most of them would suggest why not check here to opt with your concerns.

Results of the report are summarized on NAR’s consumer website HouseLogic.com, which provides information on dozens of remodeling projects, from kitchens and baths to siding replacements, including the recouped value of the project based on a national average. According to the Cost vs. Value Report, REALTORS® judged a steel entry door replacement as the project expected to return the most money, with an estimated 85.6 percent of costs recouped upon resale. The steel entry door replacement is the least expensive project in the report, costing little more than $1,100 on average. A majority of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects; all of these are estimated to recoup more than 71 percent of costs.

Three different siding replacement projects landed in the top 10, including fiber cement siding, expected to return 79.3 percent of costs, vinyl siding, expected to return 72.9 percent of costs, and foam backed vinyl, expected to return 71.8 percent of costs. Two additional door replacements were also among the top exterior replacement projects. The midrange and upscale garage door replacement were both expected to return more than 75 percent of costs.

According to the report, two interior remodeling projects in particular can recoup substantial value at resale. A minor kitchen remodel is ranked fifth and is expected to return 75.4 percent of costs. Nationally, the average cost for the project is just under $19,000.

The second interior remodeling project in the top 10 is the attic bedroom, which landed at number eight and tied with the vinyl siding replacement with 72.9 percent of costs recouped. With an average national cost of just under $48,000, the attic project adds a bedroom and bathroom within a home’s existing footprint. The improvement project projected to return the least is the home office remodel, estimated to recoup less than 44 percent.

The 2013 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 81 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 15th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with NAR.

REALTORS® provided their insights into local markets and buyer home preferences within those markets. The 2013 national average cost-to-value ratio rose to 60.6 percent, ending a six-year decline. The ratio represents nearly a three-point improvement over 2011-2012. Lower construction costs are the principal factor in the upturn, especially when measured against stabilizing house values. In addition, the cost-to-value ratio improved nationally for every project in this year’s report and is higher than it was two years ago for both remodeling and replacement projects.

“A REALTOR® is the best resource for helping homeowners decide what improvement projects will provide the most upon resale in their market,” says Thomas. “Each neighborhood is different, and the desirability and resale value of a particular remodeling project varies depending on where you live. When making a home remodeling decision, resale value is just one factor that homeowners should take into consideration. Consult a Realtor® to make sure you are making the best decision.”

Most regions followed the national trends; however the Pacific region, consisting of Alaska, California, Hawaii, Oregon and Washington, once again led the nation with an average cost-value ratio of 71.2 percent, due mainly to strong resale values. The next best performing regions were West South Central, South Atlantic, and East South Central. These regions attribute their high ranking to construction costs that were lowest in the country. While still remaining below the national average, most remaining regions showed strong improvement over last year. These are Mountain, New England, East North Central, Middle Atlantic, and West North Central.

To read the full project descriptions and access national and regional project data, visit www.costvsvalue.com “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.

For more information, visit www.realtor.org

John Marcotte

www.boulderhomes4u.com

720-771-9401

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Existing Home Sales Hit 5-year High in 2012

March 1, 2013 by

Existing Home Sales Hit 5-year High in 2012

sold_home_agent_couple Sales of existing homes ticked down in December from the month before, while the total for 2012 hit the highest level in five years, according to data released Tuesday by the National Association of REALTORS®.

The pace of sales fell 1 percent in December to a seasonally adjusted annual rate of 4.94 million, according to NAR. For all of 2012, existing-home sales hit 4.65 million, the highest level since 2007 and up 9.2 percent from 2011.

“Record-low mortgage interest rates clearly are helping many home buyers, but tight inventory and restrictive mortgage underwriting standards are limiting sales,” says Lawrence Yun, the NAR’s chief economist.

The rate in November was revised to 4.99 million from an earlier estimate of 5.04 million, which was the highest rate since November 2009. Economists polled by MarketWatch had expected a rate of 5.1 million for December, with buyers eager to take advantage of relatively high affordability in a housing market that is gaining steam.

Buyers’ concerns about the “fiscal cliff” may be at least partially behind December’s sales decline, wrote Millan Mulraine, macro strategist at TD Securities, in a research note.

“Given this, we anticipate that sales activity could rebound in January following the tax deal, given the very supportive buying conditions and the increasing incentive for first-time buyers (who are currently sitting on the fence) to slowly move into the market as prices begin to firm,” Mulraine wrote.

By region, it was a mixed bag. December’s existing-home sales fell by 5.9 percent in the Midwest and by 3 percent in the South, compared with the prior month; sales rose by 5.1 percent in the West and by 3.2 percent in the Northeast.

Sales in each of the four regions were up from same period in the prior year.

Despite the decline in December, existing-home sales are up 12.8 percent from the same period in the prior year. The median existing-home price rose 11.5 percent from the prior year to $180,800.

Inventories fell 8.5 percent to 1.82 million units in December, representing at the current sales rate a 4.4-month supply, the lowest supply ratio since 2005. It’s typical for inventories to decline in winter. But Yun warns that persistently low inventory could lead to too much price growth in 2013.

“We don’t want to see a rapid appreciation in prices,” he says.

Meanwhile, the median price reached $176,600 in 2012, up 6.3 percent from the prior year for the highest annual growth since 2005.

Other recent housing data have also shown a market gaining strength but still has far to go.

A report on home-builder sentiment showed that confidence is holding at a more-than-six-year peak. Separately, a report showed that new home construction jumped 12 percent in December to the highest rate in more than four years, rushing past Wall Street’s expectations.

©2013 MarketWatch
Distributed by MCT Information Services‘

John Marcotte

www.boulderhomes4u.com

720-771-9401

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2013: Transition to “Normal”?

February 28, 2013 by

2013: Transition to “Normal”?

economic_growth_chart_cash The trend of gradual but below-potential economic growth seen in 2012 is expected to carry over through 2013 and into 2014. This modest growth path combined with the real GDP growth rate during the recovery from 2009 to this point of 2.2 percent annualized give credence to claims that the recovery’s slow pace has become the “new normal,” according to Fannie Mae’s Economic & Strategic Research Group. The fiscal cliff and ongoing debt ceiling debate, which are likely to suppress consumer spending in the first half of 2013, continue to present potentially strong headwinds to meaningful growth activity. Overall, a 2 percent growth rate is forecasted for 2013, similar to the subdued pace of 2012.

This is despite the fact that the housing sector, which has become a bright spot in the economy since home prices began to rebound in 2012, is expected to provide a rising contribution to GDP in 2013 and in coming years. Recent data indicate that the housing recovery has transitioned to a faster upward track, boosted by an improving labor market and low mortgage rates. Overall, home sales, home prices, and home building activity as well as homebuilder confidence appear to be on the upswing, having risen to multi-year highs.

“What we view as sub-par economic growth may actually continue to be par for the course for the near term,” says Fannie Mae Chief Economist Doug Duncan. “We expect the fiscal policy climate to act as a drag on growth this year with possible implications on the direction of the economy in the long term. As fiscal policy debates subside later in the spring, we expect to see some upward trend in economic activity, with growth accelerating moderately in the second half of the year. That momentum will find support in the form of continued, albeit slow, improvement in the housing sector. In the longer term, the gradual return of manufacturing to the U.S. and increasing domestic energy production will work together to accelerate economic growth. However, we anticipate overall growth in 2013 will remain below its potential, extending what has been a slow recovery.”

For an audio synopsis of the January 2013 Economic Outlook, listen to the podcast on the Economic & Strategic Research site at www.fanniemae.com. Visit the site to read the full January 2013 Economic Outlook, including the Economic Developments Commentary, Economic Forecast, Housing Forecast, and Multifamily Market Commentary.

For more information, visit www.fanniemae.com

John Marcotte

www.boulderhomes4u.com

720-771-9401

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Fannie Mae and Freddie Mac Help More Than 2.5 Million with Foreclosure Prevention Actions

February 27, 2013 by

Fannie Mae and Freddie Mac Help More Than 2.5 Million with Foreclosure Prevention Actions

Fannie Mae and Freddie Mac completed more than 134,000 foreclosure prevention actions in the third quarter of 2012, bringing the total foreclosure prevention actions to more than 2.5 million since the start of conservatorship in 2008 with nearly 1.3 million of those actions being permanent loan modifications. These actions, which have helped more than 2.1 million borrowers stay in their homes, are detailed in the Federal Housing Finance Agency’s third quarter 2012 Foreclosure Prevention Report, also known as the Federal Property Manager’s Report.

The quarterly report has information on state delinquencies and an updated, interactive Borrower Assistance Map for Fannie Mae and Freddie Mac mortgages, with information on delinquencies, foreclosure prevention activities and Real Estate Owned (REO) properties.

Also noted in the report:

• Year-to-date, Fannie Mae and Freddie Mac have completed nearly 411,000 foreclosure prevention actions.
• Nearly 38,000 short sales and deeds-in-lieu were completed in the third quarter, up 4 percent compared with the second quarter.
• 45 percent of troubled borrowers who received loan modifications in the third quarter had their monthly payments reduced by more than 30 percent.
• More than one-third of loan modifications completed in the third quarter included principal forbearance.
• The number of the Enterprises’ delinquent borrowers has declined 9 percent since the beginning of 2012.

REO inventory continued to decline as property dispositions outpaced property acquisitions during the third quarter.

For more information, click here

 

John Marcotte

www.boulderhomes4u.com

720-771-9401

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Homeowners Take a Fresh Look at Remodeling

February 26, 2013 by

Homeowners Take a Fresh Look at Remodeling

remodel_kitchen_blueprint If you’ve put off redoing that kitchen or adding a deck while waiting for the economy to perk up, welcome to the club.

Like the rest of the housing market, home improvements and remodeling plunged during the recession as consumers hunkered down.

But now that economic conditions are improving, the forecast for home fix-ups is looking up, too.

“Future market indicators, which have been lagging a little bit, have jumped up,” said Paul Emrath, a research vice president with the National Association of Home Builders. “Calls for bids and appointments for remodeling proposals are increasing significantly.

“They are basically as high as they have ever been,” Emrath told builders meeting for the industry’s annual exposition last week in Las Vegas.

The outlook for home remodeling in the year ahead is the best it’s been in almost a decade, based on the most recent remodeling industry surveys by the homebuilders’ association.

Home improvement expenditures are forecast to rise by almost a third from the worst of the market in early 2011 to late this year.

Remodeling fell by about 30 percent during the recession.

“That’s not as big as the decline in housing starts, which was closer to 80 percent,” Emrath said. “Our forecast is for slow and steady increases going forward.

“There is still pent-up activity waiting to be released,” he said. “We had a lot of projects put off as we went through the decline.”

Some remodelers say they’ve already seen a bounce in their business.

“Most remodelers definitely saw a rebound in the market in 2012 and are expecting continued growth in 2013,” said Lisa Parelli, president of the Dallas chapter of the National Association of the Remodeling Industry.

During the recession, more of the remodels that Parelli saw in the Dallas area were home facelifts necessary to fix up a property for sale. “But, now they are starting to see the bigger projects come back to life such as additions, complete tear-outs, whole house renovations,” she said.

Nationwide, the most popular home remodeling jobs, based on total expenditures, include kitchen remodels, bathroom upgrades and bedroom add-ons, according to a new study released this week by the Joint Center for Housing Studies of Harvard University, but a new study was also released this day, homeowners would eagerly spend a lot for their home security and privacy, you might want to browse around this web-site to learn more and see what it is.

“There is pent-up demand and stuff that has been put off,” said Harvard housing researcher Kermit Baker.

Baker said Americans have spent big dollars repairing and remodeling formerly foreclosed and distressed homes, about $10 billion in 2011. If you would like more information, you can click this link here now. If your home remodel includes replacing the beds, you may do a little online research to view more options. Homeowners who are planning to replace their staircases may hire Innovative Staircase Construction contractors.

Researchers are also predicting a surge in home retrofitting to improve energy efficiency. “We still think there is a lot of opportunity for greening up the housing stock,” Baker said.

Houston remodeler Bill Shaw said many homeowners get sticker shock when they finally decide to remodel.

“They still want new kitchens, they still want new baths,” said Shaw, who has been in business for 30 years. “All the ingredients for growth are there, until they find out how much it is going to cost.”

Shaw said during the recession when remodeling business lagged, his industry saw new competition from traditional builders.

“We’ve seen a tremendous increase in custom builders getting into remodeling,” he said.

And unlike in previous downturns, many of these builders have decided to stay in the home improvement business even as home starts increase, Shaw said. Home value declines in many markets during the last few years also made it tougher for remodelers. Lenders and appraisers wouldn’t OK expensive home improvements in neighborhoods where home prices fell sharply.

“As the equity and housing values increase, I think we will get back to more larger projects,” said Bob Hanbury, a remodeler from New England.

He said homeowners are more frugal when it comes to redos. “It doesn’t have as many of the bells and whistles; people are picking and choosing what they want,” Hanbury said. “You can’t provide them all the great features as in the past because their budget isn’t big enough.”

©2013 The Dallas Morning News
Distributed by MCT Information Services

John Marcotte

www.boulderhomes4u.com

720-771-9401

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Harvard Study Reports on Recent Trends in Home Equity and Housing Stock

February 25, 2013 by

Harvard Study Reports on Recent Trends in Home Equity and Housing Stock

 2011, down 4 percent from 2009 levels and some 16 percent below the market peak in 2007. Loss of home equity with the onset of the housing crash contributed to the decline in home repairs, according to a new study by the Harvard Joint Center for Housing Studies.

With the decline in spending on discretionary projects, home improvement expenditures per owner in 2011 stood well below levels averaged over the previous decade. In fact, per-owner spending fell from about 25 percent above the decade average in 2007 to about 10 percent below that level in 2011,

Near the top of the list of causes for the decline in home improvement spending is the loss of home equity resulting from the unprecedented plunge in house prices during the housing crash. After several years of strong house price appreciation, homeowners nationwide had almost $13 trillion in equity in 2006, or almost $170,000 per owner on average. By 2011, however, aggregate home equity had dropped by half to $6.5 trillion, or $87,000 per owner.

Since home equity is a major source of wealth for most owners, sharply lower house values make owners feel less wealthy and therefore less likely to spend in general and on improvements in particular. And with less equity available and credit still tight, households are finding it more difficult to get financing for projects. In 2011, owners with under 20 percent equity in their homes spent about 22 percent less on average on home improvements and about 30 percent less on discretionary projects than owners with at least 20 percent equity. In fact, owners with some but less than 20 percent equity spent about the same as those with zero or negative equity in that year. Owners without mortgages-primarily older owners-also spent about the same as owners with less than 20 percent equity.

In 2011, the Harvard study found that more than a million distressed properties came back onto the housing market, including 760,000 lender-owned units and 300,000 short sales. Lenders improved about a third of their foreclosed properties prior to sale, with an average expenditure of about $6,500 per unit. About 60 percent of owner-occupant purchasers undertook improvements, averaging $11,100, while investors spent even more per unit on average than either lenders or owner-occupants, $15,600.

The Harvard study also noted the role investors are playing turning foreclosures into affordable rentals. Some 4.4 million formerly owner-occupied units were shifted to the rental market between 2007 and 2011. Another 4.6 million were vacant in 2011 and may become part of the rental stock as demand continues to grow.

The unexpected investor expenditures to improve the quality of America’s single family housing stock came as the nation began to experience what the Harvard study calls an “uptick” in the deterioration of housing quality at the outset of the housing crash. In 1997, 4.4 percent of owner-occupied homes were considered inadequate, the study said. By 2007, these same units accounted for almost 8 percent of homes that were no longer owner-occupied (i.e., stood vacant or were converted to rental or nonresidential uses), indicating their increasing deterioration. Even more telling is that these inadequate units accounted for almost 17 percent of the homes that were demolished within the decade.

The study also tracked lender spending to restore REO properties for sale. During the housing downturn, the plunge in house prices precipitated a wave of foreclosures in many metropolitan areas. The foreclosure process often takes years to complete, wreaking havoc on mothballed and backlogged properties. But once foreclosure is completed, banks and other institutions typically invest in repairs to get the homes ready for sale and back into active use.

According to Joint Center estimates, lender expenditures on distressed properties amounted to $1.7 billion in 2011, with Atlanta, Las Vegas, Orlando, Phoenix, and Riverside posting the highest shares of spending. Local housing market conditions dictate the average amount that banks and institutions expend to prepare distressed properties for the market. In 2011, lenders invested considerably more per property in higher-priced markets such as Denver, Los Angeles, Portland, Raleigh, and Washington, DC. In large measure, this disparity reflects the fact that properties in these markets often need to be in better condition to sell at a competitive price within a reasonable amount of time.

By comparison, in depressed Rust Belt metros such as Cleveland, Detroit, Milwaukee, and Pittsburgh, improvement spending per REO property was less than a third of outlays in more competitive markets.

“Renovating foreclosed or abandoned homes benefits the entire neighborhood. Joint Center research has shown that home prices in neighborhoods with higher levels of improvement spending appreciate more rapidly, explaining why investing in blighted neighborhoods has been a national priority in dealing with the foreclosure crisis,” said the report.

For more information, visit www.realestateeconomywatch.com

 

John Marcotte

www.boulderhomes4u.com

720-771-9401

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FHFA House Price Index Up 0.6 Percent in November

February 24, 2013 by

FHFA House Price Index Up 0.6 Percent in November

U.S. house prices rose 0.6 percent on a seasonally adjusted basis from October to November, according to the Federal Housing Finance Agency’s monthly House Price Index (HPI). The previously reported 0.5 percent increase in October was revised upward to a 0.6 percent increase. For the 12 months ending in November, U.S. prices rose 5.6 percent. The U.S. index is 15.2 percent below its April 2007 peak and is roughly the same as the August 2004 index level. National home prices have not declined on a monthly basis since January 2012.

For the nine census divisions, seasonally adjusted monthly price changes from October to November ranged from -1.0 percent in the East North Central division to +2.1 percent in the Mountain division, while the 12-month changes ranged from +0.5 percent in the Middle Atlantic division to +14.8 percent in the Mountain division. FHFA uses the purchase prices of houses with mortgages owned or guaranteed by Fannie Mae or Freddie Mac to calculate the monthly index. Monthly index values and appreciation rate estimates for recent periods are provided in the table and graphs on the following pages.

For more information, click here

 

John Marcotte

www.boulderhomes4u.com

720-771-9401

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