Tag Archives: united-states
Home price growth in the US continues to moderate
National home price gains in the United States fell to 6.7% year on year and 1% quarter on quarter in November, according to the latest index from Clear Capital. National trends were echoed at the regional level, with the West seeing the strongest moderation across the country and overall growth has slowed now for 11 months in a row. In fact, for the first time since the start of the recovery three years ago, the West’s yearly rates of growth fell below 10%, a sure sign of more moderation to come over the next several months for the nation, according to the firm. At the height of the recovery in 2013, national prices including distressed sales outperformed the performing only sale segment of the market by 4.2%. Now the all sale segment is outperforming the performing only sale segment by 3%. These segments’ rates of growth will likely continue to fall in line with each other as investor engagement dwindles, a result of fewer distressed sale opportunities. As this occurs, markets will be more reliant on performing only sale demand and price growth,’ the index report explains. It also points out that improvements in the broader economic landscape have not instilled confidence in traditional home buyers and the general lack of demand in the performing only segment, coupled with a dwindling supply of distressed inventory, leaves the future of home prices squarely in the hands of traditional home buyers, who have yet to show any signs of re-engaging. It says that performing only sales are not yet strong enough to support recovery sized market growth without distressed sales. The data also shows that it has been a steady descent for national yearly rates of growth. They have dropped 5% from a high of 11.7% in December 2013. This is due in part to the market’s natural normalisation as the correction to the correction subsides and distressed sale inventory dries up. While this is healthy for markets overall, the weakness of price growth in the performing only segment is further cause for concern. Excluding distressed sales, performing only national home price growth over the last year was just 4.4%, down from a recovery high of 7.2%. Even more concerning is the performing only segment’s drop in quarterly growth to 0.6%, nearly cut in half over the last rolling quarter which saw quarterly rates of growth at 1.1%. ‘Reduced reliance on distressed sales and diminishing gains in the performing only sale segment could be too much for the recovery to overcome as we enter winter. The recovery is at a tipping point. Markets need non investor demand to ramp up, and home buyer confidence restored,’ said Alex Villacorta, vice president of research and analytics at Clear Capital. ‘Should this turn into a negative feedback loop, the likelihood for quarterly price declines at the national level could turn into yearly price declines by the end of 2015. Performing only sale trends are a bellwether for what’s to come next year,’ he explained. ‘Think of… Continue reading
Some 20% of house seekers in UK would consider moving abroad to find affordable home
A fifth of disillusioned house hunters in the UK would consider leaving the country due to the cost involved in getting on the housing ladder. The United States is the most popular location with 31% saying they would consider moving there, according to research from comparison website Gocompare. Some 29% would consider moving to Australia and 20% to New Zealand with men more likely than women to consider a move overseas while those aged between 18 and 24 years old were most keen to leave the UK. Overall the most popular step to get on the property ladder is the government’s flagship Help to Buy scheme with 30% saying that is their preferred option but 20% willing to move abroad. The poll also shows that 15% would consider buying with friends, 14% would look at buying a micro home, 13.5% a static caravan or park home, 12% with their parents and 12% with other family members such as siblings. ‘A lack of affordable housing has resulted in a property market that is closed off to an increasing number of would-be homeowners. As such, it’s hardly surprising that many people feel like they may have to take some rather drastic steps to own a home,’ said Matt Sanders, spokesperson for Gocompare.com Mortgages. ‘While shared ownership, settling for small or alternative forms of accommodation, and even getting on a plane to another country are being mulled over as options for many, it’s also encouraging to see from our research that people are actively considering making use of the Help to Buy scheme. The majority of people who have applied to the scheme so far are first time buyers, but it’s open to all borrowers,’ he pointed out. ‘If you’re actively looking to buy a home, it’s well worth seeking advice from a qualified, impartial mortgage broker, who can give you an idea of what you can afford and the options available to you,’ he added. Continue reading
US foreclosure figures tailing off, latest data suggests
The foreclosure crisis is over in the United States but the distress caused by the housing bust is still lingering, according to the latest report from housing data firm RealtyTrac. Foreclosure filings were reported on 116,913 properties in August, an increase of 7% from the previous month but still down 9% from a year ago, the smallest decrease in the last 47 consecutive months of year on year declines in US foreclosure activity. A total of 51,192 properties were scheduled for foreclosure auction during the month, down 1% from the previous month but up 1% from a year ago, the first annual increase in scheduled foreclosure auctions following 44 consecutive months of annual decreases. Scheduled foreclosure auctions in judicial foreclosure states where foreclosures are processed through the court system increased 5% from a year ago. ‘The August foreclosure numbers demonstrate that although the foreclosure crisis is well behind us, the messy business of cleaning up the distress lingering from the housing bust continues in many markets,’ said Daren Blomquist, vice president at RealtyTrac. ‘The annual increase in foreclosure auctions, the first since the robo-signing controversy rocked the foreclosure industry back in late 2010, indicates mortgage servicers are finally adjusting to the new paradigms for proper foreclosure that have been implemented in many states, whether by legislation or litigation or both,’ he added. Scheduled foreclosure auctions increased from a year ago in 24 states, including Colorado with a rise of 160%, Oregon up 117%, Connecticut up 81%, New York also up 81%, Oklahoma up 72%, New Jersey up 71%, Illinois up 25%, South Carolina up 21% and Maryland up 17%. The report also shows that more than 55,000 properties started the foreclosure process in August, up 12% from previous month and flat from year ago. It was the second consecutive month where foreclosure starts have increased on a month on month basis. Foreclosure starts, which in some states are the scheduled foreclosure auctions, increased from a year ago in 19 states, including Oklahoma up 147%, Indiana up 136%, New Jersey up 115%, Massachusetts up 55%, Florida up 24% and Maryland up 20%. Lenders repossessed 26,343 properties via foreclosure (REO) in August, up 2% from the previous month but down 33% from a year ago. It was the 21st consecutive month where REO activity declined on a year on year basis nationally. REOs increased from a year ago in seven states, included Georgia up 146%, Hawaii up 42%, Oregon up 20%, Pennsylvania up 12% and Connecticut up 10%. Six of the nation’s 20 largest metro areas posted year on year increases in foreclosure activity. In Washington, D.C. there was a rise of 18%, New York up 18%, Baltimore up 12%, Atlanta up 11%, Philadelphia also up 11% and San Francisco up 2%. Among the nation’s 20 largest metros those with the five highest foreclosure rates were Miami with one in every 359 housing units with a foreclosure filing, Tampa one in every 407 housing units, Baltimore one in every 17 housing units,… Continue reading
