homesmillbrae.com » Corelogic

Mortgage alert: Borrowers change how they cheat

Thu, 26 Sep 2013 08:05:55 +0000

The good news: Fewer borrowers are lying on their mortgage applications. The bad news: The remaining cheaters may be pulling a more dangerous scam. Instead of inflating their home prices, they are now inflating their incomes and assets, according to researchers at CoreLogic.

“There’s no need to inflate the value of the home because home prices are rising,” said CoreLogic’s chief economist Mark Fleming.

But new federal regulations forcing lenders to prove that borrowers can repay their loans has some borrowers shifting the focus of their fraud to their personal balance sheets. Lenders are now scouring financial records, unlike during the recent housing boom, in order to make sure they are complying with new rules, so fraudsters are following suit, jacking up the numbers.

(Read more: Forget easing prices, new homes are up, up, up)

That could be more dangerous to the banks, because jacking up a home price only hurts if the home price falls, but inflating income means the borrowers may not be able to pay the loan no matter what.

Article source: http://www.cnbc.com/id/101062232

Sales Soar as Manhattan Condos Kick Co-Op Prices

Wed, 03 Jul 2013 08:25:02 +0000

“They have may have re-financed, and they may have taken out a second mortgage,” said Jonathan Miller, CEO of Miller Samuel, a real estate appraisal and consultancy. “When they bought the home they may have figured out a way to put a small amount down, smaller than what the co-op actually knew about. It is the same problem here that it is everywhere else.”

Nationwide, more than 40 percent of homeowners with a mortgage are in a negative or near-negative equity position (less than 20 percent equity in the home), according to Zillow. Housing may be local, but this particular credit issue is national.

(Read more: NY’s Luxury Penthouse Shortage Pinches Prices)

Short supply pushed prices higher for Manhattan condominiums, but not for co-ops. Condominiums, which have a median price of $1.25 million, about twice that of co-ops, are being helped by foreign, all-cash buyers. International buyers tend to shy away from tough Manhattan co-op boards.

(Read More: Mortgage Rates Pressure Home Builders)

“Scarcity is an important issue, and when apartments are properly priced they are selling quickly. While there is great demand and small supply, buyers are reluctant to pay a price that is not justifiable,” said Hall. F. Willkie, president of Brown Harris Stevens Residential Sales in a release. “Job growth remains strong in the city as does interest from both domestic and international buyers; this bodes well for a healthy market.”

Sales began to pick up dramatically this year, as fears of the fiscal cliff abated and optimism returned to real estate. While limited inventory would appear to make this a seller’s market, agents say savvy buyers are the norm in Manhattan, and that has kept price increases in check. While home prices in the rest of the nation were up just over 12 percent in May from a year ago, according to a new report from CoreLogic, Manhattan prices in general are not rising that fast.

Prices for co-ops, which account for 75 percent of the Manhattan market, were flat in the second quarter of this year, while the median price for a condo was up 14 percent from a year ago, according to the Douglas Elliman report. Larger co-ops saw bigger price gains, but for condos the gains were in studio apartments. Sellers are getting 98 percent of asking price, according to another report from Halstead Property.

(Read More: Pending Home Sales Soar to 6-Year High)

Article source: http://www.cnbc.com/id/100860538

Rising Rates Scare Borrowers Into Action

Thu, 13 Jun 2013 01:13:11 +0000

Roughly 10 million refinances took place over the past two years, although that may include borrowers who have refinanced more than once, according to Inside Mortgage Finance. From mid-2011 to mid-2012, rates dropped by 100 basis points, making it worthwhile for some to refinance more than once.In addition to low rates, the government’s refinance program, called HARP, for underwater borrowers with Fannie Mae and Freddie Mac loans, helped juice refinances as well.

In the first three months of this year, there were nearly 1.4 million refinances on Fannie Mae and Freddie Mac mortgages alone, according to the Federal Housing Finance Agency. Of those, 22 percent were through HARP, which was recently extended through 2015. More than 2.4 million borrowers so far have taken advantage of that program.

For borrowers who don’t have government-backed loans and therefore don’t qualify for that program, rising home prices have helped allow more of them to qualify for refinances. Among borrowers, 850,000 rose above water on their mortgages, moving into a positive equity position in the first three months of this year, according to a new report from CoreLogic. While nearly 10 million are still underwater, the more that rise above, the more refinances can happen.

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“We are still far below peak home price levels, but tight supplies in many areas coupled with continued demand for single family homes should help us close the gap,” said Anand Nallathambi, the CEO of CoreLogic.

Rising prices, however, are a double-edged sword, especially in a rising interest rate environment. Potential buyers are losing purchasing power every day, just as demand is surging.

—By CNBC’s Diana Olick. Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC.

Questions? Comments? RealtyCheck@cnbc.com.

Article source: http://www.cnbc.com/id/100810389

Housing Recovery Shows Up In Job Gains

Sat, 04 May 2013 02:08:15 +0000

Residential construction jobs increased by just over 6,000 in April from the previous month, according to the Bureau of Labor Statistics, and residential specialty trade contracting jobs (plumbers, electricians, roofers, etc.) grew by over 7,000.

Those workers need more trucks, which has been a boon to companies like Ford and General Motors, which saw sales of pick-ups jump 24 percent and 23 percent respectively.

(Read More: Here’s Why Pick-up Truck Sales are Surging)

Retailers are also seeing the effects of housing growth. Homeowners spend an average $7,400 furnishing a newly built home, according to the National Association of Home Builders.

“Spending at furniture and appliance stores is finally coming back, which has meant more hires there since the start of the year,” added Swonk.

Home prices were up just over 10 percent nationally in February, according to CoreLogic, which continues to bring thousands of homeowners out from underwater on their mortgages. That has allowed more borrowers to refinance to lower monthly payments, which in turn gives them more spending money. It also gives them more confidence that they will be able to afford more in the coming year.

(Read More: Back in Business: Jobs Picture Brightens in April)

“Consumers’ views regarding the housing market have been increasingly more positive,” noted Fannie Mae’s chief economist Doug Duncan. “Our April National Housing Survey, to be released next Tuesday, is expected to show that the housing market is gradually approaching its sweet spot, as the share of consumers who believe that it is a good time to buy remains high while the share of those who think it is a good time to sell continues its upward trend witnessed over the past year.”

Article source: http://www.cnbc.com/id/100705522

San Francisco Real Estate Market Shows Home Price Increase That’s …

Mon, 18 Feb 2013 06:00:38 +0000

North Beach San Francisco

Right now cash is king. Homes are consistently going for over list price with multiple offer scenarios being commonplace.

San Francisco, CA (PRWEB) January 31, 2013

The San Francisco market is seeing a great seller’s market. Multiple offer situations, cash in hand, and homes going to market earlier to meet buyer demand.

Business Insider reports, “Going into 2013, home prices are expected to rise 6 percent driven by steady demand, lower bank-owned (REO) sales, and lower inventory of unsold homes. This is according to CoreLogic’s latest report. The CoreLogic Home Price Index (HPI) increased 6.3 percent in 2012, the largest increase and highest level since 2006. And year-over-year home price increases were more widespread. This increase in home prices across a broader geographic spread is expected to continue in 2013.”

“Right now cash is king. Homes are consistently going for over list price with multiple offer scenarios being commonplace. Cash buyers who don’t have to deal with the financing world are winning.” Says Dahle. “A 6% increase for the year is a very promising number and we’re looking forward to a great 2013.”

Only the most informed real estate professionals can guide you through the ups and downs of the San Francisco Bay Area real estate market, and Kirk Dahle has been doing just that for buyers and sellers for several years. A relentless advocate for his clients, Kirk is constantly networking with real estate professionals to find the best listings and to bring a property to market. Contact Kirk directly at sfkirk(at)gmail(dot)com or call 415.203.8638.

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Article source: http://www.prweb.com/releases/2013/1/prweb10386770.htm

San Francisco Real Estate Market Shows Home Price Increase That’s …

Sun, 03 Feb 2013 03:49:25 +0000

The real estate market increased 6.3% in 2012 and is expected to maintain growth for 2013. The San Francisco market is already seeing an influx of buyers and higher selling prices.

San Francisco, CA (PRWEB) January 31, 2013

The San Francisco market is seeing a great seller’s market. Multiple offer situations, cash in hand, and homes going to market earlier to meet buyer demand.

For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/1/prweb10386770.htm

Article source: http://www.sfgate.com/business/prweb/article/San-Francisco-Real-Estate-Market-Shows-Home-Price-4241718.php

Home Prices Are Not Rebounding as Fast as You Think

Tue, 04 Sep 2012 21:56:48 +0000

Home prices are rising faster than expected so far this year, or are they?

Prices nationwide in July rose 3.8 percent year-over-year, according to the latest reading from CoreLogic. This includes prices of distressed properties and is the biggest annual jump since August of 2006.

This is also the fifth consecutive month that home prices have increased both year-over-year and month-to-month.

“The housing market continues its positive trajectory with significant price gains in July, and our expectation of a further increase [4.6 percent] in August,” notes CoreLogic’s chief economist Mark Fleming in a press release. “While the pace of growth is moderating as we transition to the off-season for home buying, we expect a positive gain in price levels for the full year.

Home prices nationally are in real recovery, but the factors pushing those numbers may not be real organic strength in the housing market, but rather stimulus and simple comparisons. This summer the market saw a huge drop in the number of distressed homes for sale, as banks tried to modify more borrowers or opted for short sales, which is when the home is sold for less than the value of the mortgage. Short sales often garner higher prices than bank-owned (REO) sales. Investors, especially big money bulk buyers, flooded the market, pushing prices up on the higher end and causing a severe drop in supplies. (Read More: Pending Home Sales Beat Expectations in July)

Now to comparison, which reveals a striking truth in home prices. They are definitely higher, but not nearly as high as we think. We have to remember that 2011 was what some have deemed the “hangover year” from the government’s home buyer tax credit. The tax credit offered first-time home buyers in 2009 and the first half of 2010 an $8000 credit. That may not sound like much, but the median price of a home in 2009 was $172,500 according to the National Association of Realtors. That means the credit was a full 5 percent of the price of a home…or a full quarter of a 20 percent down payment.

The home buyer tax credit juiced home sales and prices by a lot, but prices then dropped precipitously in 2011. Home prices dropped a full 4 percent from 2010 to 2011 on both the CoreLogic and the Realtors’ index. The SP/Case Shiller national home price index was down 5 percent from Q2 2010 to Q2 2011. In addition to recovery from a hangover, this year mortgage rates are a full percentage point lower than they were in July of 2011, which creates much more purchasing power/stimulus, thereby skewing the comparison even more. (For More: Home Prices on the Rise)

“Bottom line, when you un-adjust, normalize, handicap, overlay stimulus periods, and analyze — based on the massive increase in rates driven purchase power, the distressed mix shift positive skew, pulled-forward effect, and the overwhelmingly more positive sentiment — the June year-over-year Case-Shiller indices only up 0.1 percent and 0.5 percent respectively and July CoreLogic Home Price Index only up 3.8 percent can be viewed as ‘net’ house price depreciation…and should be very disappointing for those looking for ‘escape velocity’ and a ‘durable recovery,’” says housing analyst Mark Hanson.

We are comparing home prices now to the double dip in home prices that we saw last year. On SP/Case Shiller, the national home price index in Q2 2012 is actually down, just under 1 percent from Q2 2009, which was just when the tax credit began but hadn’t fully affected price readings yet. DataQuick shows home median prices at the end of July up 7 percent from a year ago, but up just 4.6 percent from three years ago.

None of this is to say that we are not seeing recovery in housing. It is just important to keep this recovery in perspective, especially when mortgage rates and distressed homes still play such a large role in these monthly numbers. Any shift in either of those categories could have a material effect on the numbers that we watch so closely each month and which play such a critical role in overall housing sentiment.

Questions? Comments? And follow me on Twitter @Diana_Olick

Article source: http://www.cnbc.com/id/48895286?__source=RSS*blog*&par=RSS

In a Twist, Both Home Prices and Rents Rise

Wed, 08 Aug 2012 00:32:55 +0000

Home prices across the nation continued their upswing in June, according to a new report from CoreLogic. Including sales of foreclosures and short sales (selling for less than the value of the mortgage), prices rose 2.5 percent from a year ago. That is not quite as high as the annual increases seen in April and May. With the first half of the year now on the books, analysts are asking if prices can sustain.
“At the halfway point, 2012 is increasingly looking like the year that the residential housing market may have turned the corner,” said Anand Nallathambi, president and CEO of CoreLogic. “While first-half gains have given way to second-half declines over the past three years, we see encouraging signs that modest price gains are supportable across the country in the second-half of 2012.”

Home price gains will continue to be as much a factor of supply as they are of overall consumer confidence. While confidence in the overall economy has slipped slightly, optimism in the housing market remained strong in July, according to a just-released Fannie Mae survey:

“Survey respondents expect home prices to increase 1.7 percent in the next 12 months, down slightly from the survey high of 2.0 percent recorded in June. Eleven percent of respondents – the lowest level recorded since the survey began in June 2010 – believe home prices will drop in the next year. Also, in the highest level seen since the survey’s inception, 16 percent of consumers say it is a good time to sell.”

Still one quarter of respondents, an increase from June, are concerned about losing their jobs, and jobs have been the leading factor in the housing recovery. It is that unemployment uncertainty that has led so many younger Americans in the past few years to rent. That continued demand is pushing rents ever higher.

Asking rents rose in 24 of the 25 largest rental markets from a year ago, according to a new report from online real estate company Trulia. Rents are pushing double digit gains in San Francisco, Miami, Oakland, Denver, Seattle and Boston, and rents are rising faster than asking prices in 21 of the 25 largest rental markets year-over-year.

“For the first time, [home] prices are up year over year in a majority of metros, and asking home prices have increased for six straight months,” writes Trulia’s chief economist Jed Kolko in a release. “Rents, however, are rising even faster than prices in most markets. These price and rent increases, along with declining vacancies, should encourage new construction, which means housing will finally start contributing to the economic recovery.”

The question remains, where is the tipping point? As it becomes more expensive to rent than buy in more markets, more Americans should turn to buying, but so far they are not. Issues with negative equity, credit and confidence continue to plague home buying.

And are rents approaching bubble status? Investors continue to flock to the distressed housing market, trying to take advantage of rising rents, specifically in single family. Many of those investors say they are not concerned about a bubble, believing there has been a sea change in attitudes toward home ownership that could last through the decade. Whether it is attitudes or lack of available credit keeping the rental market on a tear, at some point, as happened during the housing bubble, prices will prevail.

Questions? Comments? And follow me on Twitter @Diana_Olick

Article source: http://www.cnbc.com/id/48547923?__source=RSS*blog*&par=RSS

Excluding Distressed Sales, Are Home Prices Just Fine?

Thu, 30 Jun 2011 21:08:31 +0000

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Home prices in May were down 7.4 percent year-over-year, according to a new report from CoreLogic. This is the first of the May numbers, as SP Case Shiller, which was released earlier this week, looks back two months.

CoreLogic’s [ CLGX 16.71 +0.13 (+0.78%) ] report is unique, though, in that it gives the big bad number (which was a bigger dip than the 6.7-percent annual drop in April) and then it strips out the distressed sales and comes up with a new number. Distressed sales include foreclosed properties (bank-owned/REO) and short sales, where the home is sold for less than the value of the mortgage to avoid foreclosure.

Without the distressed sales, home prices fell just 0.4 percent in May, essentially flat. Overall, according to the report, “including distressed transactions, the peak-to-current change in the national HPI (Home Price Index, from April 2006 to May 2011) was -32.7 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -21.2 percent.”

So should we consider that home prices are really just fine? After all, they might not be moving up, but they’re not falling, and they’re down far less than the headlines scream.

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Article source: http://www.cnbc.com/id/43594875?__source=RSS*blog*&par=RSS

Don’t Let Falling Foreclosure Numbers Fool You

Fri, 24 Jun 2011 00:58:08 +0000

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Let me preface with an apology for the huge supply of numbers in this post, but if you can make it through them all, I think you will get the picture I’m drawing here.

The so-called “shadow inventory” of residential properties is falling, according to a new report from CoreLogic.

This is the number of homes with seriously delinquent loans (90+ days), loans in the foreclosure process and bank-owned homes which are not yet listed for sale.

The supply as of April 2011 declined to 1.7 million units, representing a five months’ supply. This is down from 1.9 million units, also a five months’ supply, from a year ago.

“The decline was due to fewer new delinquencies and the high level of distressed sales, which helped reduce the number of outstanding distressed loans,” according to the report.

Good news, no? Wait. There’s more:

“In addition to the current shadow inventory, there are 2 million current negative equity loans that are more than 50 percent or $150,000 “upside down.” These current but underwater loans have increased risk of entering the shadow inventory if the owners’ ability to pay is impaired while significantly underwater.”

And then there’s this other report from Lender Processing Services (LPS), which also reports a drop in newly delinquent loans, but gives the actual, mind-numbing numbers of loans in trouble:

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Article source: http://www.cnbc.com/id/43495174?__source=RSS*blog*&par=RSS