Realtor Coaching & Training: chief economist
More on the just released Case Shiller Home Price Index:
* US Home Prices have been rebounding since April 2009.
* Shadow Inventory…bank owned homes….are going to be a huge problem.
* Many buyers entering the market now because many people simply…feel better…more confident.
* Dr. Shiller thinks the banks Shadow Inventory could reverse the positive trend and there will be another 10% of home value loss in the next 24 months.
Agents, read this post about how to become a REO Listing Agent:
Popularity: 2% [?]
There is no question that after April 5 2010 Short Sales will dominate the market. Why?
Treasury Departments HAFA Guidelines! Read this post for everything you need to know about HAFA.
From the homeowners perspective a short sale is the best solution to rid themselves of their own ‘toxic assets’. For example, here are a few of the changes that will occurs as a result of the new 2010 HAFA Guidelines:
1) Commissions can’t be greater than 6%.
2) Lenders must respond to all short sale offers within 10 days!
3) Lenders can’t pursue the borrower after the short sale (or DIL) for any deficiency. In other words, even in states where mortgages are all recourse…even if its not a purchase money loan…no deficiency.
4) Homeowners will receive up to $1500 at closing!
What matters now is that you take action and learn now how to easily list and sell short sales. 2010 IS the year of the short sale. Agents who know the new ways to list and sell short sales are the agents in demand. Watch the free HREU CDPD (Certified Distressed Property Designation) video and download the FREE Short Sale book.
Big US banks including Bank of America, Wells Fargo, JPMorgan Chase and Citigroup are turning to a new tactic to clear their books of troubled mortgage loans: short sales, in which homeowners settle their debts by selling their properties for less than the mortgage value.
Short sales are expected to climb sharply this year as home values continue to plunge, leaving many borrowers underwater on their mortgages.
As moratoriums on mortgage payments and temporary loan modifications expire, a record 4.3m homes are entering or are in foreclosure, up from 3.4m in 2009. This creates an inventory overhang that will weigh on the housing market. Short sales are a way to help clear the pipeline.
Mark Zandi, chief economist of Moody’s Economy.com, forecasts short sales and another type of transaction – known as a deed-in-lieu, in which the homeowner turns over the deed to a property in lieu of paying the debts – to total 20 per cent of all lost home sales this year, up from 15 per cent last year.
After spending most of the past year focusing on largely ineffective loan modification plans, BofA, Wells Fargo, JPMorgan and other large banks said they were shifting their attention to short sales.
“If 2009 was the year of the loan modification, 2010 will be the year of the short sale,” said Jim Klinge, a real estate broker in San Diego, California.
Some of the largest mortgage servicers are scrambling to make the most of this shift. Wells Fargo is holding seminars to teach real estate brokers how to conduct short sales. Citigroup created a unit to expedite short sales and recently announced a pilot programme that gives home owners who voluntarily turn in their deed to the bank a minimum of $1,000 in relocation expenses.
BofA has hired staff to handle increased volume. “Short sales are growing faster than foreclosures and that’s a new development,” said Matt Vernon, a BofA executivenamed to a position overseeing short sales.
The moves come as the US government prepares to launch a programme in April that encourages homeowners, lenders and investors to complete short sales by providing up to $3,500 in incentives.
www.ft.com/usview
Popularity: 2% [?]
Breaking News…Rick Sharga from RealtyTrac just released their much anticipated report on foreclosure filings.
If you want a crystal ball so that you can look into the future…discovering what will happen next in your real estate market…this new report (and video) is it.
Bottom line our foreclosure ‘crisis’ is getting worse…much worse.
Talking points from the video:
* How bad is the foreclosure problem? “Setting new records daily….120% increase over 2 years ago”. getting worse.
* Sand states, Nevada, Arizona, Florida, California and Michigan and Ohio are the much worse.
* For example: Nevada..Vegas…10% of housing inventory in foreclosure. 1/10 of people you meet have a home in foreclosure.
* Nationally foreclosures are increasing….no signs of any notable improvement.
* How much longer will this crisis last?”There are 3 waves to the foreclosure crisis..we are in wave 2.”
* Wave 1 was casued by overvalued housing..bad lending….2nd wave..unemployeement….3rd wave..option arms…upside down sellers.
* Loan modifications don’t seem to be making any real impact on the problem….kicking the can down the road. So far, govenment programs not doing anything significant.
* 2010 forecast: The next wave of the foreclosure crisis will only worsen the housing markets. The new wild card is what will happen to all the homeowners who are desperately upside down in their homes and make the financial decision to let the home go….in other words, ridding themselves of their own toxic assets.
Agents, here is the question you need to be answer…are YOU ready to become a REO Listing Agent? Literally millions of bank owned homes will need listed and sold over the next few years. Do this…watch the FREE Agent REO Secrets video and then download the FREE How-To List REOs book.
Popularity: 2% [?]
At this point there should be no doubt in your mind that this market…with short sales and REOs is here to stay. Making 2009-2012 real estate market predictions is easy…more of the same!
I search daily for any ‘optimistic’ housing news…believe me, I want the housing markets to return to ‘normal’ as much as you do. But, we can’t replace mere hoping with focused action. This is the market of the moment and as a real estate professional..you either learn how to do short sales and list REOs or chances are…you won’t be in the business much longer. Watch the videos that we created earlier this week that will help you to prepare for what will happen in 2010. Watch videos NOW.
In a dour year for the economy, the housing market has offered some glimmers of hope. Home sales have improved, recently hitting their highest level in more than two years. There’s been talk of bidding wars resuming in places like Silicon Valley and New York City. And cocktail party chatter everywhere has started to turn to talk of a bottom. So at least where housing’s concerned, things are looking not so bad — right?
If that’s what you think, you may not want to invite Mark Zandi to your next cocktail party. The chief economist of Moody’s Economy.com, Zandi has some sobering predictions: Home prices are going to fall 5% to 10% more — and over 30% in places like Miami — between now and this time next year. Then they might start turning around. (Emphasis on “might.”)
At the top of Zandi’s list of worries are foreclosures — specifically, the millions of loans that are in foreclosure or headed there that can’t or won’t be modified. According to RealtyTrac, nearly 2 million housing units in the U.S. are in foreclosure or bank-owned, and millions more are likely to join them.
Zandi estimates that 2.4 million homes will find their way into foreclosure next year. He expects banks to start putting those properties on the market more aggressively during the first half of the year, resulting in a flood of cut-rate inventory that will drag prices down.
As you know we have been offering short sale training for years and years now. We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.
It would be one thing if banks could sell into a hungry real estate market. But that brings us to Zandi’s second concern: skyhigh unemployment.
October’s 10.2% figure was higher than what most economists forecast for the peak. A soft job market, especially one this soft, means potential buyers don’t have money to pour into new homes or the confidence that they’ll be able to hang on to their jobs and pay the mortgage on their existing home.
Another concern: Policymakers will pull their support from the market prematurely. Aggressive government moves, like the recently extended first-time-homebuyer tax credit and the Fed’s purchase of mortgage-backed securities, have been propping up the market.
The purchase plan is set to expire in March, which Zandi says could bump mortgage rates up as much as a full point. “That raises the cost of buying a home, and in this fragile market people won’t buy,” he says. “And that’s a problem.”
All those factors are figured into Economy.com’s housing price outlook for 2010 — as are local figures for income, population, interest rates, and foreclosures.
The results are broken into 100 metropolitan areas. (Last year the projections were pretty accurate, forecasting a 14.5% decline in 2009; the actual figure is likely to come in around –13.2%.)
As the sea of red above shows, the numbers are negative across the country.
Agents, is there any question that 2010 IS the year of the Short Sale? We were the first national coaching company to teach agents how to do short sales…and we are by far the largest. Thousands of agents have received their HREU CDPD* (Certified Distressed Property Designation). We have made it easy for you to learn everything you need to know to easily list and sell short sales. Watch the FREE Short Sale Secrets video and grab your FREE Short Sale Book. If you would like to go ahead and enroll now for only $97 call 1-866-422-9497 or sign up here.
The weakest areas are Florida, California, Nevada, and Arizona — what Zandi calls the “usual suspects” — where foreclosures are highest and likely to rise. The worst market: Miami, where the 2009 median home price of $183,530 is expected to fall 33%.
But Zandi also points to less discussed regions where prices are still inflated relative to rents, like the Pacific Northwest and New York through Virginia.
If there’s a bright spot, it’s pockets of the Midwest — states like the Dakotas, Kansas, and Nebraska, which have stronger economies based on agricultural and energy industries.
Then there’s Pittsburgh, which didn’t have much of a housing bubble to begin with and is the only market projected to grow next year, up 0.41%.
The good news? “It’s clear we’re closer to the end of this crash than the beginning,” says Zandi. Housing is more affordable, and construction is still low, so sales will eat up excess inventory. “We’re moving in the right direction, and that’s reason for optimism,” he says.
Another plus: He says there’s almost zero possibility of another U.S. housing bubble anytime soon. Great article from CNNMoney.com
| Rank by 2010 price change | Metro Area | 2009 median house price | Projected price change 2010 | Projected price change 2011 |
|---|---|---|---|---|
| 1 | Pittsburgh, PA | 114,750 | 0.41% | 2.23% |
| 2 | Rochester, NY | 114,630 | -0.39% | 1.93% |
| 3 | Birmingham, AL | 139,330 | -0.78% | 1.29% |
| 4 | Memphis, TN | 107,690 | -1.53% | 2.41% |
| 5 | Buffalo, NY | 108,170 | -1.54% | 0.86% |
| 6 | Houston, TX | 146,350 | -1.75% | 0.38% |
| 7 | Kansas City, MO | 135,420 | -1.81% | 0.16% |
| 8 | Louisville, KY | 124,660 | -2.24% | 1.05% |
| 9 | Little Rock, AR | 130,380 | -2.27% | 2.01% |
| 10 | Charlotte, NC | 185,880 | -2.30% | 1.42% |
| 11 | Wichita, KS | 115,260 | -2.32% | 0.42% |
| 12 | St. Louis, MO | 115,720 | -2.39% | 0.28% |
| 13 | Dallas, TX | 149,320 | -2.57% | 0.39% |
| 14 | Fort Worth, TX | 118,920 | -2.59% | 0.44% |
| 15 | Columbia, SC | 135,980 | -2.66% | 1.96% |
| 16 | Omaha, NE | 131,290 | -2.75% | 1.46% |
| 17 | Denver, CO | 204,570 | -2.79% | 3.02% |
| 18 | Greensboro, NC | 135,920 | -2.80% | 0.95% |
| 19 | Albany, NY | 188,600 | -2.82% | 0.78% |
| 20 | Baton Rouge, LA | 160,370 | -2.85% | 0.39% |
| 21 | Tulsa, OK | 131,600 | -2.86% | 1.50% |
| 22 | Syracuse, NY | 122,420 | -2.87% | 2.32% |
| 23 | New Orleans, LA | 158,900 | -3.10% | -0.69% |
| 24 | Indianapolis, IN | 105,100 | -3.23% | 0.73% |
| 25 | Gary, IN | 101,180 | -3.30% | 0.44% |
| 26 | Austin, TX | 187,590 | -3.33% | 0.96% |
| 27 | Seattle, WA | 340,050 | -3.42% | 6.54% |
| 28 | San Antonio, TX | 148,580 | -3.71% | 0.71% |
| 29 | Grand Rapids, MI | 76,620 | -3.88% | 0.83% |
| 30 | Milwaukee, WI | 199,820 | -3.92% | -0.22% |
| 31 | Oklahoma City, OK | 127,740 | -4.02% | 0.98% |
| 32 | Greenville, SC | 140,430 | -4.10% | 1.26% |
| 33 | El Paso, TX | 131,350 | -4.27% | 1.03% |
| 34 | Chicago, IL | 200,650 | -4.30% | 2.24% |
| 35 | Raleigh, NC | 215,510 | -4.38% | 1.91% |
| 36 | McAllen, TX | 62,280 | -4.54% | 2.29% |
| 37 | Boston, MA | 315,020 | -4.56% | 3.42% |
| 38 | Cambridge, MA | 341,430 | -4.73% | 4.17% |
| 39 | Oakland, CA | 360,660 | -4.97% | 11.96% |
| 40 | Minneapolis, MN | 178,870 | -4.99% | 2.31% |
| 41 | Atlanta, GA | 117,910 | -5.12% | 1.71% |
| 42 | Lake County, IL | 223,770 | -5.39% | 1.10% |
| 43 | Richmond, VA | 203,100 | -5.50% | 1.29% |
| 44 | Tacoma, WA | 210,430 | -5.57% | 10.82% |
| 45 | Knoxville, TN | 141,240 | -5.76% | 0.90% |
| 46 | Toledo, OH | 74,940 | -6.00% | 2.40% |
| 47 | Washington, DC | 288,280 | -6.26% | 4.61% |
| 48 | Nashville, TN | 166,150 | -6.36% | 0.64% |
| 49 | Warren, MI | 142,450 | -6.40% | 2.59% |
| 50 | Columbus, OH | 129,030 | -6.54% | 2.02% |
| 51 | Cleveland, OH | 86,910 | -6.98% | 1.34% |
| 52 | Allentown, PA | 219,080 | -7.17% | -0.78% |
| 53 | Worcester, MA | 199,410 | -7.39% | 1.70% |
| 54 | Dayton, OH | 91,420 | -7.43% | 1.17% |
| 55 | Bridgeport, CT | 377,710 | -7.62% | 2.30% |
| 56 | San Francisco, CA | 510,210 | -7.97% | 14.30% |
| 57 | Cincinnati, OH | 113,320 | -8.30% | 1.19% |
| 58 | Akron, OH | 68,030 | -8.42% | 1.17% |
| 59 | Virginia Beach, VA | 202,660 | -8.58% | -2.37% |
| 60 | Portland, OR | 241,650 | -9.01% | 5.35% |
| 61 | Hartford, CT | 228,810 | -9.02% | 4.89% |
| 62 | Springfield, MA | 181,150 | -9.18% | 4.48% |
| 63 | Peabody, MA | 292,300 | -9.23% | 4.80% |
| 64 | Philadelphia, PA | 209,070 | -9.23% | 5.20% |
| 65 | Detroit, MI | 83,360 | -9.40% | 2.82% |
| 66 | New Haven, CT | 226,560 | -10.50% | 3.97% |
| 67 | Youngstown, OH | 60,330 | -10.71% | 1.61% |
| 68 | Bethesda, MD | 332,910 | -11.02% | 1.05% |
| 69 | Albuquerque, NM | 177,680 | -11.03% | 2.89% |
| 70 | Poughkeepsie, NY | 220,170 | -11.24% | 0.72% |
| 71 | Newark, NJ | 367,380 | -11.29% | 4.53% |
| 72 | San Diego, CA | 325,600 | -11.65% | 9.62% |
| 73 | Providence, RI | 208,170 | -12.09% | 3.51% |
| 74 | Honolulu, HI | 551,910 | -12.81% | 3.31% |
| 75 | Sacramento, CA | 169,100 | -12.87% | 6.10% |
| 76 | Nassau, NY | 368,260 | -13.14% | -3.65% |
| 77 | Santa Ana, CA | 436,680 | -13.15% | 6.32% |
| 78 | Edison, NJ | 323,260 | -13.25% | 2.77% |
| 79 | Wilmington, DE | 199,940 | -13.28% | 2.34% |
| 80 | Salt Lake City, UT | 215,530 | -13.31% | 2.31% |
| 81 | Baltimore, MD | 243,980 | -13.87% | 2.65% |
| 82 | Camden, NJ | 197,470 | -14.12% | 1.36% |
| 83 | San Jose, CA | 461,660 | -15.28% | 6.14% |
| 84 | New York, NY | 416,730 | -15.63% | -1.33% |
| 85 | Tucson, AZ | 170,650 | -15.93% | 2.97% |
| 86 | Stockton, CA | 166,300 | -15.98% | 10.08% |
| 87 | Bakersfield, CA | 159,070 | -16.31% | 9.82% |
| 88 | Oxnard, CA | 283,240 | -17.52% | 8.58% |
| 89 | Fresno, CA | 184,720 | -17.71% | 7.19% |
| 90 | Riverside, CA | 162,240 | -18.90% | 7.71% |
| 91 | Los Angeles, CA | 260,250 | -19.41% | 8.43% |
| 92 | Phoenix, AZ | 122,770 | -20.50% | 0.74% |
| 93 | Jacksonville, FL | 145,250 | -22.31% | 0.09% |
| 94 | Tampa, FL | 135,260 | -22.77% | 1.26% |
| 95 | Las Vegas, NV | 137,410 | -23.65% | -0.93% |
| 96 | West Palm Beach, FL | 223,470 | -23.85% | 1.39% |
| 97 | Bradenton, FL | 152,640 | -25.98% | 0.60% |
| 98 | Fort Lauderdale, FL | 187,170 | -30.16% | -1.59% |
| 99 | Orlando, FL | 142,920 | -30.73% | -2.40% |
| 100 | Miami, FL | 183,530 | -32.99% | -4.20% |
| Rank by 2010 price change | Metro Area | 2009 median house price | Projected price change 2010 | Projected price change 2011 |
|---|---|---|---|---|
| 1 | Kansas City, MO | 135,420 | -1.81% | 0.16% |
| 2 | Wichita, KS | 115,260 | -2.32% | 0.42% |
| 3 | St. Louis, MO | 115,720 | -2.39% | 0.28% |
| 4 | Omaha, NE | 131,290 | -2.75% | 1.46% |
| 5 | Indianapolis, IN | 105,100 | -3.23% | 0.73% |
| 6 | Gary, IN | 101,180 | -3.30% | 0.44% |
| 7 | Grand Rapids, MI | 76,620 | -3.88% | 0.83% |
| 8 | Milwaukee, WI | 199,820 | -3.92% | -0.22% |
| 9 | Chicago, IL | 200,650 | -4.30% | 2.24% |
| 10 | Minneapolis, MN | 178,870 | -4.99% | 2.31% |
| 11 | Lake County, IL | 223,770 | -5.39% | 1.10% |
| 12 | Toledo, OH | 74,940 | -6.00% | 2.40% |
| 13 | Warren, MI | 142,450 | -6.40% | 2.59% |
| 14 | Columbus, OH | 129,030 | -6.54% | 2.02% |
| 15 | Cleveland, OH | 86,910 | -6.98% | 1.34% |
| 16 | Dayton, OH | 91,420 | -7.43% | 1.17% |
| 17 | Cincinnati, OH | 113,320 | -8.30% | 1.19% |
| 18 | Akron, OH | 68,030 | -8.42% | 1.17% |
| 19 | Detroit, MI | 83,360 | -9.40% | 2.82% |
| 20 | Youngstown, OH | 60,330 | -10.71% | 1.61% |
| Rank by 2010 price change | Metro Area | 2009 median house price | Projected price change 2010 | Projected price change 2011 |
|---|---|---|---|---|
| 1 | Pittsburgh, PA | 114,750 | 0.41% | 2.23% |
| 2 | Rochester, NY | 114,630 | -0.39% | 1.93% |
| 3 | Buffalo, NY | 108,170 | -1.54% | 0.86% |
| 4 | Albany, NY | 188,600 | -2.82% | 0.78% |
| 5 | Syracuse, NY | 122,420 | -2.87% | 2.32% |
| 6 | Boston, MA | 315,020 | -4.56% | 3.42% |
| 7 | Cambridge, MA | 341,430 | -4.73% | 4.17% |
| 8 | Allentown, PA | 219,080 | -7.17% | -0.78% |
| 9 | Worcester, MA | 199,410 | -7.39% | 1.70% |
| 10 | Bridgeport, CT | 377,710 | -7.62% | 2.30% |
| 11 | Hartford, CT | 228,810 | -9.02% | 4.89% |
| 12 | Springfield, MA | 181,150 | -9.18% | 4.48% |
| 13 | Peabody, MA | 292,300 | -9.23% | 4.80% |
| 14 | Philadelphia, PA | 209,070 | -9.23% | 5.20% |
| 15 | New Haven, CT | 226,560 | -10.50% | 3.97% |
| 16 | Poughkeepsie, NY | 220,170 | -11.24% | 0.72% |
| 17 | Newark, NJ | 367,380 | -11.29% | 4.53% |
| 18 | Providence, RI | 208,170 | -12.09% | 3.51% |
| 19 | Nassau, NY | 368,260 | -13.14% | -3.65% |
| 20 | Edison, NJ | 323,260 | -13.25% | 2.77% |
| 21 | Camden, NJ | 197,470 | -14.12% | 1.36% |
| 22 | New York, NY | 416,730 | -15.63% | -1.33% |
| Rank by 2010 price change | Metro Area | 2009 median house price | Projected price change 2010 | Projected price change 2011 |
|---|---|---|---|---|
| 1 | Birmingham, AL | 139,330 | -0.78% | 1.29% |
| 2 | Memphis, TN | 107,690 | -1.53% | 2.41% |
| 3 | Houston, TX | 146,350 | -1.75% | 0.38% |
| 4 | Louisville, KY | 124,660 | -2.24% | 1.05% |
| 5 | Little Rock, AR | 130,380 | -2.27% | 2.01% |
| 6 | Charlotte, NC | 185,880 | -2.30% | 1.42% |
| 7 | Dallas, TX | 149,320 | -2.57% | 0.39% |
| 8 | Fort Worth, TX | 118,920 | -2.59% | 0.44% |
| 9 | Columbia, SC | 135,980 | -2.66% | 1.96% |
| 10 | Greensboro, NC | 135,920 | -2.80% | 0.95% |
| 11 | Baton Rouge, LA | 160,370 | -2.85% | 0.39% |
| 12 | Tulsa, OK | 131,600 | -2.86% | 1.50% |
| 13 | New Orleans, LA | 158,900 | -3.10% | -0.69% |
| 14 | Austin, TX | 187,590 | -3.33% | 0.96% |
| 15 | San Antonio, TX | 148,580 | -3.71% | 0.71% |
| 16 | Oklahoma City, OK | 127,740 | -4.02% | 0.98% |
| 17 | Greenville, SC | 140,430 | -4.10% | 1.26% |
| 18 | El Paso, TX | 131,350 | -4.27% | 1.03% |
| 19 | Raleigh, NC | 215,510 | -4.38% | 1.91% |
| 20 | McAllen, TX | 62,280 | -4.54% | 2.29% |
| 21 | Atlanta, GA | 117,910 | -5.12% | 1.71% |
| 22 | Richmond, VA | 203,100 | -5.50% | 1.29% |
| 23 | Knoxville, TN | 141,240 | -5.76% | 0.90% |
| 24 | Washington, DC | 288,280 | -6.26% | 4.61% |
| 25 | Nashville, TN | 166,150 | -6.36% | 0.64% |
| 26 | Virginia Beach, VA | 202,660 | -8.58% | -2.37% |
| 27 | Bethesda, MD | 332,910 | -11.02% | 1.05% |
| 28 | Wilmington, DE | 199,940 | -13.28% | 2.34% |
| 29 | Baltimore, MD | 243,980 | -13.87% | 2.65% |
| 30 | Jacksonville, FL | 145,250 | -22.31% | 0.09% |
| 31 | Tampa, FL | 135,260 | -22.77% | 1.26% |
| 32 | West Palm Beach, FL | 223,470 | -23.85% | 1.39% |
| 33 | Bradenton, FL | 152,640 | -25.98% | 0.60% |
| 34 | Fort Lauderdale, FL | 187,170 | -30.16% | -1.59% |
| 35 | Orlando, FL | 142,920 | -30.73% | -2.40% |
| 36 | Miami, FL | 183,530 | -32.99% | -4.20% |
| Rank by 2010 price change | Metro Area | 2009 median house price | Projected price change 2010 | Projected price change 2011 |
|---|---|---|---|---|
| 1 | Denver, CO | 204,570 | -2.79% | 3.02% |
| 2 | Seattle, WA | 340,050 | -3.42% | 6.54% |
| 3 | Oakland, CA | 360,660 | -4.97% | 11.96% |
| 4 | Tacoma, WA | 210,430 | -5.57% | 10.82% |
| 5 | San Francisco, CA | 510,210 | -7.97% | 14.30% |
| 6 | Portland, OR | 241,650 | -9.01% | 5.35% |
| 7 | Albuquerque, NM | 177,680 | -11.03% | 2.89% |
| 8 | San Diego, CA | 325,600 | -11.65% | 9.62% |
| 9 | Honolulu, HI | 551,910 | -12.81% | 3.31% |
| 10 | Sacramento, CA | 169,100 | -12.87% | 6.10% |
| 11 | Santa Ana, CA | 436,680 | -13.15% | 6.32% |
| 12 | Salt Lake City, UT | 215,530 | -13.31% | 2.31% |
| 13 | San Jose, CA | 461,660 | -15.28% | 6.14% |
| 14 | Tucson, AZ | 170,650 | -15.93% | 2.97% |
| 15 | Stockton, CA | 166,300 | -15.98% | 10.08% |
| 16 | Bakersfield, CA | 159,070 | -16.31% | 9.82% |
| 17 | Oxnard, CA | 283,240 | -17.52% | 8.58% |
| 18 | Fresno, CA | 184,720 | -17.71% | 7.19% |
| 19 | Riverside, CA | 162,240 | -18.90% | 7.71% |
| 20 | Los Angeles, CA | 260,250 | -19.41% | 8.43% |
| 21 | Phoenix, AZ | 122,770 | -20.50% | 0.74% |
| 22 | Las Vegas, NV | 137,410 | -23.65% | -0.93% |
Popularity: 6% [?]
More information on the Obama Administrations crack down on the lenders.
Anything that helps more folks keep their homes…
Anything that helps to expedite the short sale process….for those who can’t or choose not to keep their homes…
Anything that leads to the end of this housing crisis….
Every agent should support.
In this market agents must know about loan modifications. Even if that simply means having the ability to answer questions about loan mods….agents must be ready and able to be the nations resource for all things housing. Yes, you can mod your own loan…save yourself $100s per month and $1000s per year…yes, you can do loan mods for profit. Watch the FREE Agent Loan Mod Secrets video and download the FREE Loan Mod Secrets book.
Here is the CNBC Video:
Popularity: 1% [?]
Enough already!
When will the foreclosure mess finally level off…when will all of this be over so we can return to a ‘normal’ real estate market….when can we expect all of this real estate foreclosure contagion to end?
Lets ask an expert…Jay Brinkmann, Chief Economist of the MBA.
(NOTE: It is interesting to see the differences in predictions between the NAR and the MBA. The NARs recent forecast called for a partial market rebound in 2010…)
Mr. Brinkmann recently reported the results of the Mortgage Bankers Association’s (MBA) Q3 2009 National Delinquency Survey
Here are the leading points:
Click on graph for larger image in new window.PRIME RATE FORECLOSURE RATE. Prime mortgages account for nearly 80% of all mortgages in the U.S.
Prime ARMs (adjustable rate mortgages) have a higher delinquency rate than Prime FRMs (fixed rate mortgages)
The third graph shows the delinquency and in foreclosure process rates for subprime loans.
IMPORTANT: Yesterday we posted a video that revealed more info on this topic…for example: 14.4% of ALL mortgage in the US are now IN foreclosure or seriously delinquent. Watch the video NOW.
40% of subprime loans are delinquent or in foreclosure.
Bottom line, we are at least 2-3 years away from a ‘peak’ in the foreclosure crisis. Until that happens….there won’t be any hope for any home value recovery. Realistically, homes in most areas of the country won’t be worth what they were at the peak of the bubble for 7-10 years.
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Here is a short quiz for you…(HREU Students, this should be easy for you…we have been preparing you for this market)
1) How many homes in the U.S. are vacant?
2) How many homes received a default or auction notice or were repossessed by banks last in September?
3) In the second quarter of 2009 what was the total value of all the homes that the banks were holding (to be sold via REO)?
If you are new to HREU…here is a hint to pass this quiz.
Take whatever numbers you think are correct and double if not triple them.
Answers:1) Nearly 19,000,000. To put that into perspective..there are currently around 4,000,000 home actively listed for sale now. 2) Nearly 1,000,000. Thats one million NEW REOs coming for sale soon in a town near you. 3) 34 BILLION! Thats the total estimated value of all the homes the banks took back via foreclosure in second quarter alone.
Its very important that you are clear what is really happening. You need to be focused on what opportunities you have today…and where the opportunities are in 2010. Clearly, the agents who have become Short Sale Specialists and REO Listing Agents will be the agents with a majority of the business.
Now, given what you now know about the massive number of REOs that must be listed and sold….over the next few months…and years….why wouldn’t you want to become a HREU Certified REO Specialist? Don’t make the mistake in believing that the banks have already selected their REO listing agents. Nothing could be further from the truth. Watch the FREE Agent REO Secrets video and grab your free how-to list REO’s book.
Here is an article from Bloomberg:
About 18.8 million homes stood empty in the U.S. during the third quarter as banks seized properties from delinquent borrowers and new home sales fell in September.
The number of vacant properties, including foreclosures, residences for sale and vacation homes, rose from 18.4 million a year earlier and 18.7 million in the second quarter, the U.S. Census Bureau said in a report today. The record high was in the first quarter, when 18.95 million homes were vacant. The homeownership rate, meaning households that own their own residence, stood at 67.6 percent.
The worst U.S. housing crash since the Great Depression has led to a record number of foreclosures and shaved almost a third off property values. The S&P/Case-Shiller Index of 20 cities in August was 29 percent below its 2006 high, after rising for four consecutive months.
“We are bumping along the bottom of the housing market,” said James Lockhart, vice chairman of WL Ross & Co. and the former director of the Federal Housing Finance Agency. “There is the potential for another swing down.”
Sales of new U.S. homes fell 3.6 percent in September to an annual pace of 402,000, the Commerce Department said yesterday. That was lower than the 440,000 median forecast of 75 economists surveyed by Bloomberg News.
OK, lets take a little breath and think about what you are reading.
Obviously, what is going to happen in 2010 will NOT be any sort of price recovery…if anything, there will be additional home value losses. We are predicting that most markets could see another 10-15% loss in value. For homes in the $200,000 and lower ranges the losses will be less…if any at all. The biggest hit will come from the ‘luxury’ home value segment.
So, what can you do now to help folks avoid foreclosure? Simple, learn how to do Short Sales. Forget EVERYTHING you think you know about short sales. The short sale process has changed significantly over the last 60 days and 2010 will be the ‘Year of the Short Sale’. Bottom line, if you plan on being in real estate…for the next few years….you simply must be doing short sales. Do you really have a choice? Do this…watch the FREE Agent Short Sale Secrets video and download the FREE Agent Short Sale Secrets book.
The percentage of all U.S. homes empty and for sale, known as the vacancy rate, rose to 2.6 percent from 2.5 percent in the second quarter. It hit an all-time high of 2.9 percent in the first and fourth quarters of 2008, the Census Bureau said.
There were 130.3 million homes in the U.S. in the third quarter, according to the report. In addition to the 2 million empty properties for sale, the report counted 4.6 million vacant homes for rent and 4.6 million seasonal properties that are only used for part of the year.
Foreclosures are included in a part of the Census Bureau that also includes vacation homes intended for year-round use and homes that are unoccupied because they are under renovation or tied up in legal proceedings. There were 7.7 million such properties empty in the first quarter, up from 7.5 million a year earlier, the report said.
Foreclosures could also be counted as vacant homes for sale or rent, or as owner-occupied properties if lenders have not yet evicted previous owners, the federal agency said.
U.S. foreclosure filings climbed to a record in the third quarter as lenders seized more properties from delinquent borrowers, according to RealtyTrac Inc. in Irvine, California. A total of 937,840 homes received a default or auction notice or were repossessed by banks, a 23 percent increase from a year earlier, the data company said.
U.S. banks in the second quarter held $34 billion of properties acquired through foreclosure, including repossessed homes and condominium projects gone bust, according to the Federal Deposit Insurance Corp. in Washington. That’s almost double the $18.9 billion of real estate a year earlier.
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