Tag Archives: united-states
Year on year US foreclosure inventory falls for 43rd month in a row
Foreclosure inventory in the United States has fallen for 43 consecutive months, year on year, down to just 1.3% of homes. The latest data from CoreLogic shows that national foreclosure inventory fell by 27.4% in May compared with the previous year to approximately 491,000 homes. Also in May 2015, the 12 month sum of completed foreclosures fell by 18.1% to 528,000, since May 2014 while the seriously delinquent inventory fell to 1.3 million loans, a 22.7% year on year decline. There were 47 states that posted year on year declines in the foreclosure inventory, and 27 of those states had decreases of more than 20% while only three states had year on year increases. The five states with the largest year on year drop in the foreclosure inventory were Florida with a fall of 47%, Connecticut at 36.5%, Idaho at 35.6, Washington at 35.3% and Illinois at 34.5%. The District of Columbia saw a 22.5% rise and the three states with foreclosure inventory growth were Massachusetts up 22.4%, Wyoming up 18.2% and South Dakota up 1.1%. Judicial foreclosure states continued to have higher foreclosure rates in May 2015 than non-judicial states, averaging 2.2% and 0.7% percent, respectively. The data also shows that the foreclosure rate for judicial states peaked in February 2012 at 5.4% while non-judicial states experienced peak foreclosure rates of 2.5% in January 2011. As of May 2015 some 42% of outstanding mortgages were in judicial states, but 71% of total loans in foreclosure were in those states. Continue reading
US pending home sales at highest for over nine years
Pending home sales in the United States continued to rise in May and are now at their highest level in over nine years, the latest index data shows. Gains in the Northeast and West were offset by small decreases in the Midwest and South, according to the Pending Home Sales index from the National Association of Realtors which is a forward-looking indicator based on contract signings. The index climbed 0.9% to 112.6 in May from a slight downward revision of 111.6 in April and is now 10.4% above May 2014 when it was 101.9. The index has now increased year on year for nine consecutive months and is at its highest level since April 2006. According to Lawrence Yun, NAR chief economist, contract activity rose again in May for the fifth straight month, increasing the likelihood that home sales are off to their best year since the downturn. ‘The steady pace of solid job creation seen now for over a year has given the housing market a boost this spring. It's very encouraging to now see a broad based recovery with all four major regions showing solid gains from a year ago and new home sales also coming alive,’ he explained. However, Yun warned that this year's stronger sales amidst similar housing supply levels from a year ago have caused home prices to rise to an unhealthy and unsustainable pace. ‘Housing affordability remains a pressing issue with home price growth increasing around four times the pace of wages. Without meaningful gains in new and existing supply, there's no question the goalpost will move further away for many renters wanting to become home owners,’ he added. The PHSI in the Northeast increased 6.3% to 93.9 in May, and is now 10.6% above a year ago. In the Midwest the index declined 0.6% to 111.4 in May, but is still 7.8% above May 2014. Pending home sales in the South decreased 0.8% to an index of 127.8 in May but are still 10.6% above last May. The index in the West rose 2.2% in May to 104.5, and is 13% above a year ago. Continue reading
US home prices up 0.3% nationally in May
The median US home value increased 0.3% in May compared to the previous month but overall prices are still 8.8% below the peak of the market in April 2007. This takes the median price to $179,200, according to the latest Zillow Real Estate market report which tracks 514 areas around the country. The data shows that 64% or metropolitan areas saw prices rise month on month and 67.3% saw annual price rises. In May the four fastest growing markets among the nation’s 35 largest all experienced double digit annual home value appreciation; Denver, San Jose, Dallas-Fort Worth and San Francisco. In all four of these markets, home values have already surpassed their bubble-era peaks. The most sluggish large markets in May were Boston were prices increased by just 0.2% annually, New York where prices were down 0.1% and Baltimore down 0.3%. All three are in the north east of the country. According to Stan Humphries, Zillow chief economist, the market isn’t back to normal. ‘Low inventory, persistent negative equity and still low mortgage interest rates continue to distort the market in various ways,’ he said. ‘But the fact that local markets are once again largely rising and falling on their own merits and continuing to find some kind of equilibrium based on real market fundamentals like household formation rates and job and wage growth is encouraging. A truly normal national housing market is one in which local conditions rule,’ he added. Over the next year home value growth is expected to slow even further to 2.2%, according to the Zillow Home Value Forecast. This will be some way below 2014 when home values rose 4.9%. ‘The country by and large rode the same big roller coaster through the housing bubble, bust, and recovery. May’s report shows local markets diverging, with some chugging along, some stalled out and some continuing to accelerate amid rising prices and competition. This is a positive sign that the market is returning to full health,’ Humphries pointed out. ‘In general, as mortgage rates begin to rise and incomes and household formation rates slowly increase, the baton is being passed in housing from a stimulus driven market to one driven by fundamentals. This transition from housing recovery to a more normal market is a good thing long term, but we can expect some bumps along the way. In the end, increasing household formation and stronger income growth should overcome the headwind of rising mortgage rates,’ he concluded. Continue reading
