Category Archives: Pound Ridge

Local Market Reports: 90-Day Delinquencies | Pound Ridge NY Homes

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The 90-day delinquency rate has begun to fall in many markets across the United States. Modest price growth in roughly half of the markets monitored by NAR Research coupled with declining unemployment rates have helped to draw down the flow of delinquent properties into foreclosure. Cities in the Midwest have performed particularly well as they dominated the ten metro areas with the lowest 90-day delinquency rate in February of 2012. Kennewick-Richland-Pasco, Washington was the only market in the top 10 that is from outside of the Midwest.

For more information on delinquency trends in local housing markets, see the Local Market Reports for the 1st quarter of 2012.

via economistsoutlook.blogs.realtor.org

Local Market Reports: Foreclosure Rates | Pound Ridge Real Estate

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Since February of 2011, the foreclosure rate has fallen in many metro areas around the country. The markets with the largest absolute declines were dominated by markets that experienced the harshest impact from the subprime meltdown and subsequent housing market recession. Las Vegas experienced a decline of 3.4%, from 8.3% in February of 2011 to 4.9% in February of 2012. Markets in Michigan and Arizona also made the top 10 in terms of largest absolute change, but Florida dominated the list with five markets and several more in the next group of ten (e.g. 11-20 largest improvements). Seattle was a surprise on the list, improving 0.8%, from 2.0% to 1.2% over this same 12-month period and is less than half the national foreclosure rate of 2.8%.

For more information on foreclosure patterns in local housing markets, see the Local Market Reports for the 1st quarter of 2012.

via economistsoutlook.blogs.realtor.org

First-quarter housing data shows promise: Freddie Mac | Pound Ridge NY Real Estate

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Initial economic growth estimates for the first quarter hit 2.2%, slower than the fourth quarter of 2011, but still improved from three of the past four quarters, Freddie Mac said in its U.S. Economic and Housing Market Outlook.

Optimism also spread through the market due to a rise in new housing construction and remodeling initiatives. Personal consumption also grew at a 15.3% annual rate as more Americans spent on kitchen appliances and consumer durables, Freddie Mac said.

“Taken together, the first-quarter data releases provide an encouraging sign for both the macroeconomy and the housing recovery,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “While not uniformly positive, for the most part, the data trend in the right direction.”

Nothaft also pointed out that home prices are now at or near the trough in many housing markets and delinquency rates are beginning to decline.

Another incentive for homebuyers comes in the form of record low interest rates, which offer purchasers a chance to jump into the market at rates not experienced in 60 years.

via housingwire.com

Realtors® Confidence Index: Residential Market Recovery Continues | Pound Ridge NY Realtor

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The recent Realtors® Confidence Index survey shows that the residential real estate markets continue to recover. Respondents continued to note problems associated with real estate transactions:

  • Obtaining a mortgage continues to be difficult for individuals with lower credit scores or individuals with non-standard credit characteristics, e.g., self-employed.
  • Bargain hunters and low-price bids continue.
  • The short sale process continues to be slow and frustrating.
  • Pricing continues to be a challenge.
  • The appraisal process continues to be a problem.

However, fewer respondents noted major problems than had previously been the case. In contrast, a growing number of respondents indicated a growing number of cases of multiple offers, fewer seller concessions, low inventories, and some increase in buyer interest. Many respondents noted that correctly priced properties sell quickly.

The graph for “Total Home Sales” on a twelve month roll (i.e., total sales for the current and previous 11 months reported monthly) shows a market achieving stability from a sales viewpoint, with modest improvement expected based on continued economic and employment expansion. This is consistent with the survey conclusions.

The media has discussed home prices in detail for the last four years. The graph “Prices By Month” indicates that home prices have been headed towards stability. NAR’s forecast is for the attainment of stable prices this year.

The available data indicate continued expansion in residential real estate markets. Like all forecasts, this conclusion is subject to market risks affecting the outlook:

Potentially Negative News

  • The Economic Recovery is slow and weaker than normal: Unexpected and unfavorable economic news (i.e., a European bond default, an additional run-up in gas prices) could have a negative impact on the recovery.
  • Credit standards imposed by financial institutions in making a mortgage are reported as excessively stringent.
  • Job gains are well below normal.
  • Consumer Confidence is lower than would otherwise be expected.

Potentially Positive News

  • Falling Inventories of homes for sale.
  • Stabilization of Distressed Sales in the neighborhood of 30 to 35 percent.
  • Home Affordability: Low interest rates and attractive prices continue to facilitate home purchases.
  • Demographics: Sales are at a level of approximately 10 years ago, but the population has increased significantly.

The economic recovery is clearly weaker than the historical norm, but appears to be proceeding. Realtor® confidence and price expectations are higher than was the case a few months ago, rising rental rates have favorable implications for home sales, and time on market continues to decrease. Prices and interest rates continue to be lower than has been the case in the past. These are the reasons that we continue to view the outlook as favorable for home purchases.

Given that the typical homeowner will occupy a house for approximately 8 years and that home ownership is basically a lifestyle decision, one can make a very good case that this is a good time to buy a house, remembering that staying within a reasonable budget and acceptable mortgage is important. Additional information on a variety of topics related to current residential market conditions may be found at http://www.realtor.org/reports/realtors-confidence-index.

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via economistsoutlook.blogs.realtor.org

Pound Ridge NY Real Estate | Housing nears bottom, investors ready to buy

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Home prices will not reach a true bottom until late 2013, Fitch Ratings said.  

Still, investors are busy scoping the market for deals, with more real estate professionals and mid-sized private equity firms acquiring homes in key areas to rent them out, Fitch Senior Director Suzanne Mistretta said in a new structured finance report.

The New York-based ratings giant believes home prices in the U.S. will decline another 7.8%, which is improved from a previous estimate of an additional 9.8% drop. Research firm Capital Economics expressed similar optimism, declaring Tuesday that a rise in April existing-home sales suggests a modest recovery driven by cash buyers and investors.

Fitch said other parties on the securitization side have built and offered distressed residential mortgage-backed securities funds. In addition, larger firms are now allocating capital to distressed mortgage bonds, sending additional doses of optimism throughout the market.

Fitch believes 12 states are now undervalued in terms of prices while 14 states now have price levels in a sustainable range. The company cited Arizona as an example of a state that experienced steep price declines but is now beginning to stabilize.

But prices aren’t up everywhere. New York and New Jersey are seeing prices fall.

Market recoveries will hinge on what happens at the local level, the report added. Georgia is one of the worst performing states with prices 32% below levels reached in 2000.

“Those losses are second only to Michigan’s. But a closer look at Atlanta exemplifies the local nature of the crisis and recovery,” Fitch said. “Prices in the central portion of the city and its affluent northern suburb have largely held ground, while the southern portion of the city’s prices collapsed.”

Fitch believes there’s a need to stop steep price declines in parts of the South. The research firm suggests REO-to-rental programs in troubled neighborhoods could fill vacant homes, making the neighborhoods more viable again.

via housingwire.com