Daily Archives: August 10, 2013

CoreLogic: July Prices to Increase 12.5 Percent | Westchester Real Estate

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July 2013 home prices, including distressed sales, are expected to rise by 12.5 percent on a year-over-year basis from July 2012 and rise by 1.8 percent on a month-over-month basis from June 2013m, the fastest pace since 1977, according to CoreLogic’s Pending HPI released this morning.

Excluding distressed sales, July 2013 home prices are poised to rise 11.4 percent year over year from July 2012 and by 1.3 percent month over month from June 2013. The CoreLogic Pending HPI is a proprietary and exclusive metric that provides the most current indication of trends in home prices. It is based on Multiple Listing Service (MLS) data that measure price changes for the most recent month.

Home prices nationwide, including distressed sales, increased 11.9 percent on a year-over-year basis in June 2013 compared to June 2012. This change represents the 16th consecutive monthly increase in home prices nationally. On a month-over-month basis, including distressed sales, home prices increased by 1.9 percent in June 2013 compared to May 2013*.

Excluding distressed sales, home prices increased on a year-over-year basis by 11 percent in June 2013 compared to June 2012. On a month-over-month basis, excluding distressed sales, home prices increased 1.8 percent in June 2013 compared to May 2013. Distressed sales include short sales and real estate owned (REO) transactions.

“In the first six months of 2013, the U.S. housing market appreciated a remarkable 10 percent,” said Dr. Mark Fleming, chief economist for CoreLogic. “This trend in home price gains is moving at the fastest pace since 1977.”

“The U.S. housing market experienced robust price appreciation during the first half of 2013 and our forecast calls for double-digit growth through July,” said Anand Nallathambi, president and CEO of CoreLogic. “Despite their rebound of late, home prices remain reasonable in a historical context, with most states near peak affordability levels.”

Highlights as of June 2013:

  • Including distressed sales, the five states with the highest home price appreciation were: Nevada (+26.5 percent), California (+21.4 percent), Wyoming (+16.7 percent), Arizona (+16.2 percent) and Georgia (+14.3 percent).
  • Including distressed sales, this month only two states posted home price depreciation: Mississippi (-2.1 percent) and Delaware (-1.1 percent).
  • Excluding distressed sales, the five states with the highest home price appreciation were: Nevada (+23.6 percent), California (+18.7 percent), Arizona (+14.1 percent), Utah (+13.8 percent) and Florida (+12.7 percent).

 

CoreLogic: July Prices to Increase 12.5 Percent | RealEstateEconomyWatch.com.

Will rates kill the building rebound? | South Salem Real Estate

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McBride & Son had so many people waiting to buy houses in its new subdivision in south St. Louis County that it held a lottery last week to allocate the lots.

“We had 47 people give us checks,” McBride Chief Executive John Eilermann said. The lottery determined the order in which buyers could pick their home sites.

“I’ve been doing this 27 years, and that was the biggest demand I’ve ever seen,” said Eilermann of his new subdivision near Grant’s Farm.

Home building has been rising rapidly in St. Louis — although higher mortgage rates put the future in doubt.

From January through June, home construction permits were running 38 percent ahead of last year on the Missouri side of the area. Permits issued in June were up 66 percent from June 2012.

“The industry is healing. It’s getting better, and we’re putting more people back to work,” said Pat Sullivan, executive vice president of the Home Builders Association of St. Louis and Eastern Missouri.

The association counts the hours that carpenters work building houses in St. Louis. At the current rate, carpenters will work 2.1 million hours this year, up from 1.4 million last year.

But that’s still far below the 4.7 million of 2005, before the housing bust. And it’s below the 5.4 million record set in the late 1980s.

 

 

Will rates kill the building rebound? : Business.

Richmond real estate market getting stronger | Waccabuc Real Estate

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The real estate industry has been showing signs of sustained growth over the past year.

That’s good news for an industry that has been in a severe contraction since the recession of 2007-2009.

Residential investment grew by double digit rates in the nation over the past four quarters ending with the 2013’s second quarter, according to the gross domestic product report released last week.

The second quarter housing report released by George Mason University for the Richmond Association of Realtors points to improvements in the Richmond metro area market as well.

Sales in the greater Richmond area — a broader statistical area of four cities and 12 surrounding counties — rose 12 percent compared with the same period in 2012.

In the Tri-Cities area, home sales grew at a double-digit rate in the second quarter compared with a year ago in all jurisdictions except Dinwiddie County.

 

The average days that a home was on the market before it is sold also has continued to inch downward in the broader statistical area. It is now 57 days compared with 76 day two years ago.

 

 

Christine Chmura: Local real estate market getting stronger – Richmond Times-Dispatch: Richmond’s Latest Business & Economic News.

Mortgage foreclosure filings fall 35% in July | Katonah Real Estate

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Mortgage foreclosure filings in July were about 35% lower than in the same month a year ago in southeast Wisconsin, extending a trend that has helped keep a general recovery in housing on course.

Court records show there were 581 filings in Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington and Waukesha counties last month, compared with 896 in July of 2012. It was the lowest July total since before the housing slump and recession occurred.

Through the first seven months of 2013, mortgage foreclosure filings were down about 37% in the region, to 4,288 from 6,797 during the same span last year.

However, the 581 filings recorded in July were the most for one month since March of this year, when there were 636 filings.

The July filings decreased in all seven counties in southeast Wisconsin.

While bank-owned foreclosures have dropped, the City of Milwaukee is facing an increase in city-owned tax foreclosures. To date, the city holds title to well over 900 properties, with the prospect of several hundred more properties going into tax foreclosure by the end of the year.

The Common Council has taken steps to help homeowners avoid tax foreclosure. Specifically, homeowners have been given more time to pay back special charges owed to the city. The old policy required strapped homeowners to pay back the special charges in full.

 

 

Mortgage foreclosure filings fall 35% in July.

Small Dog’s Death Raises Concern About Coyotes | Mount Kisco Homes

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Concerns about a coyote invasion in Westchester County have been heightened since the animals attacked and killed one woman’s beloved dog.

As CBS 2’s Tracee Carrasco reported Monday night, a tiny backyard memorial has been set up for the small dog that lost her life to three vicious members of her own taxonomic genus.

“She was a Chihuahua-terrier mix, about 7 pounds; full of heart,” said Kristin Porteus.

But the tiny pup, Roxy, was no match for a pack of three coyotes last Friday morning.

Like any other day, Porteus let her three dogs into the backyard of her Mount Kisco home in Westchester County. But on this particular day, there were three coyotes right there waiting.

“Right around here, I saw a lot of commotion and Roxy was barking, and I saw two coyotes come,” Porteus said.

Two of Porteus’ small dogs were able to escape as she chased the coyotes out of her backyard. But Roxy could not get away.

Now, Porteus and other Mount Kisco residents have become worried that the brazen animals are becoming more aggressive. They are afraid the animals may attack a child next.

 

 

 

Small Dog’s Death Raises Concern About Coyotes In Westchester County « CBS New York.

Colombia Inflation Remained Low in July As Housing Prices Fell | Pound Ridge Homes

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Colombia’s consumer price index rose less than expected last month as housing prices fell and food inflation was low.

The consumer price index rose 0.04% in July from a month earlier, the government’s statistics agency, known as DANE, said Monday. That was lower than the 0.11% rise in price economists were expecting, and it puts 12-month trailing inflation at 2.22%, well within the central bank’s 2% to 4% target range.

Colombia has seen persistently low price increases amid a slowing economy that’s crimped consumer demand for goods and services. With little pressure on prices, the central bank could reduce its benchmark interest rate further this year in a bid to spur economic activity, although analysts say the current, key lending rate of 3.25% is already low enough to foster higher growth.

Most economists expect the bank to keep rates unchanged until 2014, when rate increases begin assuming the economy picks up.

Housing prices fell 0.38% last month, while food prices, the sector carrying the most weight in the CPI, rose 0.21%. Entertainment prices saw the highest increases, rising 1.3%.

The moderate inflation last month suggests consumer price increases could end this year similar to last year, when inflation ended at 2.44%.

Colombia’s oil- and coal-driven economy expanded at a 4% clip in 2012, down from 6.6% growth in 2011 as global prices fell for many of the commodities that Colombia produces. During the first quarter of this year, the economy slowed further, to a 2.8% on-year rise.

 

 

Colombia Inflation Remained Low in July As Housing Prices Fell – WSJ.com.

Local Housing Prices hit 31-Month High | Cross River Real Estate

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A significant jump in July home prices and leap in housing inventory are the latest statistics confirming that the Rockford real estate market is realizing the return of home sellers. 
The three-month rolling average price hit $113,178 in July, the highest monthly average since $117,520 in January 2011. 
The July 2013 price was up slightly from $112,679 in July 2011. However, this marked seven out of the last eight months of year-over-
year price increases.
Housing sales were up 2.7 percent in Winnebago, Boone and Ogle Counties from 364 home sales in July 2012 to 374 home sales this July. 
Year-over-year monthly sales have been up 10 out of the last 12 months.
“This extended run of year-over-year sales gains shows the drive to own a home is powering the Rockford housing market,” said Steve Bois, CEO of Rockford Area Realtors.
“Rising home prices fuel the selling market because existing home owners feel more secure about selling their current homes at a profit and moving up to bigger houses.”
Rockford area housing inventory reached 2,093 homes in July, the highest all year and marking the first time properties hit the 2,000 level this year.
“Enthusiasm on the part of buyers shows no signs of flagging,” Bois commented, “and add to that the addition of more than 100 sellers to the market. This indicates that both buyers and sellers believe the time is right to get into the market.”
Driving sales are the return of two key home buyer groups: millennials and move-up buyers.
Almost a quarter of now-married millennials purchased a home with their current spouse before their wedding, according to Coldwell Banker’s new Mortgage and Homebuying study. 
By comparison, just 14 percent of those 45 and older purchased a
home with their current spouse before marriage.
Rising Rockford housing inventory levels indicate the return of sellers to the market.
“Existing home owners looking to purchase a better or larger home are coming back in the housing market,” Bois remarked. 
“Move-up buyers coming back into the market is a true sign of housing recovery and economic growth.”
Bois said inventory should continue to expand as existing homeowners put their homes on the market, giving first-time buyers more opportunities to find a suitable home.
New national research confirms this move. Nearly half of Americans (47 percent) say they feel morecomfortable purchasing a home today than at any other time in the past five years, say results of a survey by Mayflower Research.
“The data reflects an easing of the wariness Americans have felt in recent years following the housing bubble.” Bois said. 
“The top two reasons for a delay—economic instability and declining real estate market—are now falling by the wayside. Americans
have rising faith in the housing market.”

 

 

Local Housing Prices hit 31-Month High.

Australian House Prices Jump Most in 3 Years on Rate Cuts | Bedford Corners Homes

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Australian house prices rose by the most in more than three years in the second quarter as home buyers responded to a series of interest rate cuts by the central bank since November 2011.

Home prices across Australia’s eight major cities jumped 2.4 percent in the three months to June 30 after a revised 0.8 percent gain in the first three months of the year, according to an index of established homes released by the statistics bureau. The rise was the biggest since the first quarter of 2010, beating the median estimate of 15 economists surveyed by Bloomberg News of a 1 percent increase, and sent the index to the highest level since it was established in March 2002.

 

The Reserve Bank of Australia, which today continued its easing cycle with a 25 basis-point cut of its benchmark interest rate to a record-low 2.5 percent, is rebalancing the economy toward industries including residential construction as the mining investment boom fades. The cuts have boosted housing demand, with the number of homes available for sale in the biggest cities falling 2.5 percent in July from a year ago, according to real estate data provider SQM Research Pty.

“This is further confirmation that the housing market is starting to stir,” said Matthew Hassan, senior economist at Westpac Banking Corp. (WBC) “Lower interest rates have been the key catalyst, with the improvement in June, July and August coming after the last interest rate cut in May.”

Mortgage Rates

National Australia Bank Ltd. (NAB) said it will reduce its variable mortgage rate by 25 basis points to 5.88 percent from Aug. 12, following the central bank’s decision today. Westpac Banking Corp. and Commonwealth Bank of Australia (CBA) are reviewing their rates, and Australia and New Zealand Banking Group Ltd. will consider its loan rate on Aug. 9, according to the respective spokesmen at the banks. A basis point is 0.01 percentage point.

 

Australian House Prices Jump Most in 3 Years on Rate Cuts – Bloomberg.

Housing prices drop in real terms in Israel for first time in year | Armonk Real Estate

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The real estate industry does not believe that housing prices are dropping, despite the slight decline recorded in the second quarter of 2013. The Government Assessors Office reported on Sunday that housing prices dropped 0.3% in the second quarter, the first decline in real terms in a year-and-a-half.

“The market is still rising, but the rate of increase is falling,” said Adina Hacham, the CEO of Anglo-Saxon real estate compay. “I believe it will moderate further, but there won’t be dramatic changes.”

Hacham said property investors are still active in the residential real estate market, despite the introduction of new taxes and other restrictions, which, she said, do not offset the continuing shorfall between demand and supply. “Unless something dramatic happens economacally, there’ll be no drama in home prices,” she added.

That opinion was seconded by Ohad Dannus, head of the Israel Real Estate Appraisers Association, who said the govenrment had failed to act on promises to restrain prices. “Until all the promises are translated into action, the market is going to remain strong,” he said. “Buyers who listened to promises by decision-makers and didn’t buy a home paid a penalty of NIS 50,000 to NIS 70,000 in higher prices.”

Moreover, the downtick detected by the assessors office is based on a survey that is so small that the results could be due to statistical error. In any event, in nominal terms, apartment prices rose nationwide in the second quarter, albeit by a slight 1%. The consumer price index rose 1.3% in the same period, meaning that in real terms prices appeared to have fallen. Home prices rose 4.6% in nominal terms from the second quarter of 2012.

The assessor’s survey tracks the prices of three-bedroom homes in 16 cities across Israel. The sharpest rise in the second quarter was in Modi’in, which saw a 5% increase over the previous quarter. Behind Modi’in, there were 3% increases in Ashkelon, Be’er Sheva and Rishon Letzion. Prices in Tel Aviv, Jerusalem, Petah Tikva, Netanya and Eilat didn’t move, while they actually dropped in nominal terms in Ashdod (2%) and Ramle (1%).

Since the second quarter of last year, home prices have held more or less steady, according to Government Assessor Tal Alderoti. “Its a stagnant trend, with a creeping nominal rise,” he wrote in the second-quarter report. “The big boom hasn’t come. It seems we’ve reached the upper limit, where every home is expensive and price rises have stopped. On the other hand, prices aren’t falling, because the govenment hasn’t succeeded in creating enough supply.”

 

 

Housing prices drop in real terms in Israel for first time in year and a half – Real Estate – Israel News | Haaretz.

HUD Report Questions Westchester Zoning Laws | Mt. Kisco Real Estate

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Seven Westchester municipalities have been accused in a U.S. Department of Housing and Urban Development report of having zoning laws that keep out and segregate low-income families.

Croton-on-Hudson, Harrison, Lewisboro, the Town of Mamaroneck, the Town of Ossining, Pelham Manor and Pound Ridge were the seven municipalities named in the report recently released from Housing Monitor James Johnson. Johnson is trying to ensure that Westchester County meets the terms of a 2009 anti-discrimination housing settlement that requires the county to build 750 units of affordable housing by 2016, according to a news release.

Johnson said the towns lack zoning laws that provide incentives for or mandate affordable housing.

“Our work made clear (that) seven municipalities did not meet the first standard. I believe more data is required before one can conclude on the second,” Johnson said.

The county settled the anti-discrimination suit with HUD in 2009, but the two sides have butted heads since County Executive Robert Astorino took office in 2010. HUD is threatening to withhold $20 million in federal grants for nonprofits if the county does not meet HUD’s terms.

Ned McCormack, communications director and senior adviser to Astorino rejected the HUD report.

“The county’s comprehensive analysis in eight submissions to HUD – running to thousands of pages of documentation – found no evidence of any exclusionary zoning,” McCormack said in a statement.  “The county executive once again demands that HUD release the $17 million it is arbitrarily withholding from our local communities. There is no reason for HUD to continue to hold this money hostage, which is designed to help our neediest residents.”

 

 

HUD Report Questions Westchester Zoning Laws | The Mt. Kisco Daily Voice.