Fiserv: Home Prices Still Have a Long Way to Climb

Fiserv: Home Prices Still Have a Long Way to Climb

New-Home Building at Highest Level in 3 Years

DAILY REAL ESTATE NEWS | THURSDAY, JULY 19, 2012

The home-building industry continues to dig out of its slump as the pace of construction posts big jumps for single-family and multifamily houses. Builders had a level of starts in June not seen since October 2008, the Commerce Department reported Wednesday.

Housing starts in June soared 6.9 percent, reaching a seasonally adjusted annual rate of 760,000 units. Broken down, single-family home construction, which makes up the largest segment of those new housing starts, increased 4.7 percent in June. Multifamily housing starts, considered a volatile segment of the market, jumped 12.8 percent last month. 

Housing starts were nearly 24 percent higher in June compared to last year at that time. 

“Housing continues to be the one sector of the U.S. economy that is outperforming expectations,” Michael Gapen, an economist at Barclays, told Reuters.

Still, while housing starts posted a big leap in June, new housing permits — a gauge of future building — dropped 3.7 percent in June. 

Source: “Housing Starts Are Up, but Building Permits Decline,” Reuters (July 18, 2012)

June Existing-Home Prices Rise Again

June Existing-Home Prices Rise Again

Inventory of For-Sale Homes Continues to Plummet

Inventory of For-Sale Homes Continues to Plummet

Celebrating Independence Day!

4th of July History & Trivia -Did You Know…

• The major objection to being ruled by Britain was taxation without representation. The colonists had no say in the decisions of English Parliament.
• In May, 1776, after nearly a year of trying to resolve their differences with England, the colonies sent delegates to the Second Continental Congress. Finally, in June, admitting that their efforts were hopeless; a committee was formed to compose the formal Declaration of Independence. Headed by Thomas Jefferson, the committee also included John Adams, Benjamin Franklin, Philip Livingston and Roger Sherman. On June 28, 1776, Thomas Jefferson presented the first draft of the declaration to Congress.
• Betsy Ross, according to legend, sewed the first American flag in May or June 1776, as commissioned by the Congressional Committee.
• Independence Day was first celebrated in Philadelphia on July 8, 1776.

• The Liberty Bell sounded from the tower of Independence Hall on July 8, 1776, summoning citizens to gather for the first public reading of the Declaration of Independence by Colonel John Nixon.
• June 14, 1777, the Continental Congress, looking to promote national pride and unity, adopted the national flag. “Resolved: that the flag of the United States be thirteen stripes, alternate red and white; that the union be thirteen stars, white in a blue field, representing a new constellation.”
• The word ‘patriotism’ comes from the Latin patria, which means ‘homeland’ or ‘fatherland.’
• The first public Fourth of July event at the White House occurred in 1804.
• Before cars ruled the roadway, the Fourth of July was traditionally the most miserable day of the year for horses, tormented by all the noise and by the boys and girls who threw firecrackers at them.
• The first Independence Day celebration west of the Mississippi occurred at Independence Creek and was celebrated by Lewis and Clark in 1805.
• On June 24, 1826, Thomas Jefferson sent a letter to Roger C. Weightman, declining an invitation to come to Washington, D.C., to help celebrate the 50th anniversary of the Declaration of Independence. It was the last letter that Jefferson, who was gravely ill, ever wrote.
• Both Thomas Jefferson and John Adams died on Independence Day, July 4, 1826.
• The 56 signers of the Declaration of Independence did not sign at the same time, nor did they sign on July 4, 1776. The official event occurred on August 2, 1776, when 50 men signed it.
• The names of the signers of the Declaration of Independence were withheld from the public for more than six months to protect the signers. If independence had not been achieved, the treasonable act of the signers would have, by law, resulted in their deaths.
• Thomas McKean was the last to sign in January, 1777.
• The origin of Uncle Sam probably began in 1812, when Samuel Wilson was a meat packer who provided meat to the US Army. The meat shipments were stamped with the initials, U.S. Someone joked that the initials stood for “Uncle Sam”. This joke eventually led to the idea of Uncle Sam symbolizing the United States government.
• In 1941, Congress declared 4th of July a federal legal holiday. It is one of the few federal holidays that have not been moved to the nearest Friday or Monday.

Are Banks ‘Hoarding Foreclosures’?

Are Banks ‘Hoarding Foreclosures’?

Fed Weighs Move to Take Mortgage Rates Even Lower

Fed Weighs Move to Take Mortgage Rates Even Lower

FHA Revokes Controversial Credit Dispute Rule

FHA Revokes Controversial Credit Dispute Rule

Shadow Inventory Drops to 2008 Lows

Shadow Inventory Drops to 2008 Lows

Luxury Homes Fetching Multiple Bids

Luxury Homes Fetching Multiple Bids

Bidding Wars Catch Buyers Off-Guard

Bidding Wars Catch Buyers Off-Guard

Buyer Urgency Improves, More See Now Good Time to Buy

Buyer Urgency Improves, More See Now Good Time to Buy

SHORT SALES: TOP 10 MYTHS DEBUNKED!

2012 is the year of the short sale. As an agent, one of your most valuable business tools is the understanding of how to help underwater homeowners avoid foreclosure. Don’t make the mistake of believing these myths:Myth #1: The homeowner must fall behind on mortgage payments in order to qualify for a short sale.    Debunked:  Years ago this may have been true, but not in 2012.   A financial hardship must exist, such as the ARM (Adjustable Rate Mortgage) increasing in monthly payments.  Loss of job or income.   Health or medical issues. Extraordinary loss in home value (which may be considered a hardship). Note: Agents should not advise a homeowner to miss a mortgage payment.  Myth #2: Banks would rather foreclose on a property than approve a short sale.   Debunked:  Many still believe this myth to be true, but more accurately, banks would prefer not to foreclose on a property due to the $50-70k it may cost the bank per transaction. Banks lose less money on a short sale than on a foreclosure.   Note: In California, some lenders may pay owners as much as $25,000 to opt for a short sale.  Myth #3: Homeowners must be pre-approved by their lender to be eligible for a short sale. Debunked:  Absolutely not true. By and large, most lenders will consider short sale offers. However, each lender may have unique and specific processes to follow, from listing the home to the acceptance of a short sale. Bypassing any part of this process may result the sale not closing, so be sure to follow each lenders’ processes closely. Myth #4: Short sales never close.   Debunked:  Obviously not true. In some areas of the U.S., nearly 50% of all closings are considered to be “distressed” properties, meaning REOs and short sales. Myth #5: Short sales take months (and months) to close.   Debunked:  The short sale processes must be learned. Once mastered, it may not be uncommon to close a short sale in 30 days.  However, certain idiosyncrasies may slow the process and each lender presents their own unique set of specific challenges. No two short sale transactions are identical.  WARNING: Short Sales - love 'em or hate 'em, they’re here to stay! Go beyond the basic ‘expert’ short sale designation.  Watch the FREE 2012 Agent Short Sale Secrets video and download the FREE Short Sale training guide NOW.  NOTICE: Free book guaranteed for the first 100 agents only.  Myth #6: Damage to the homeowner’s credit standing is comparable in a short sale and a foreclosure.  Debunked:  In many cases, credit repercussions and deficiency protections are more damaging with a foreclosure. Short sale transactions can often lead to faster financial recovery for the homeowner and should be carefully considered. Note: If the homeowner missed no mortgage payments, they may be eligible to finance the purchase of a home immediately following a short sale transaction.  Myth #7: Following a short sale, the homeowner will be ineligible to purchase another property for the next 5-7 years.   Debunked:  Not true. Using conventional lending guidelines, some consumers may obtain a Fannie Mae backed mortgage a short 24 months after the close of their short sale. Myth #8: After a short sale transaction, the homeowner will receive a 1099 and be forced to declare the loss as income. Debunked: The owner may indeed receive a 1099, but due to the 2007 Mortgage Forgiveness Debt Relief Act, among other considerations, the homeowner may not owe any taxes on their transaction.*Note: This Act is due to expire at the end of 2012.Myth #9: The lender will sue the homeowner after the close of a short sale (or foreclosure, or deed in lieu of foreclosure) for the deficiency.Debunked: California has certain anti-deficiency protections in place for short sales and foreclosures, depending on the circumstances.*Myth #10: As an agent, I don’t need additional training to learn all of the ins and outs of the short sale process. And if I wait long enough, the market will recover so I may not need to deal with short sales at all. Debunked: How long are you willing to wait? Based on the most recent housing reports, home values are still falling. Hopefully, 2012 will see the bottom of the housing market but price recovery may continue to take some time.*As an agent, please do not offer accounting, tax, or legal advice. Refer questions regarding these topics to appropriately trained professionals.

When Will the Housing Supply Normalize?

When Will the Housing Supply Normalize?

Mortgage Rates Drop Closer to All-Time Lows

Mortgage Rates Drop Closer to All-Time Lows

Banks Offer More Cash Incentives for Short Sales

Banks Offer More Cash Incentives for Short Sales

HUD Grants $1.8 Billion to Enhance Affordable Housing

HUD Grants $1.8 Billion to Enhance Affordable Housing

Home Affordability Offering Up 40-Year Deals

Home Affordability Offering Up 40-Year Deals