FRIDAY FACTS
December 17, 2010
Here’s an interesting REAL Trends Comment by Steve Murray: The times they have changed
“Can we move on from the days where we thought we could manipulate consumers with the old saying “it is a great time to buy a home”? In the Internet age they can see for themselves and read for themselves what is going on in the housing market wherever they live and come to their own conclusions about whether it is or isn’t the best time to buy. Further whether it is or isn’t the best time to buy is a highly personal decision as well – do I need to make more, do I want to, can I bear the cost, can I get a decent price. Because while for some it might be a great time to buy, even the most over optimistic real estate professional might admit that it is a lousy time to sell.
The report from Fannie shows that consumers are far from the tipping point as far as the belief that housing has finished correcting. In some markets yes and in more than a few further corrections in price and inventory have yet to be completed. Those are just the facts on the ground.
We don’t do anyone any favors spouting “it’s a good time to buy”. Many consumers might think the pressure of this tough market has caused us to lose our collective minds.”
Nationwide, the average sales price of properties sold in some stage of foreclosure during the third quarter were discounted more than 32% compared with the average sales price of properties not in the foreclosure process.
Zillow now provides agent ratings for those agents and clients who have activated profiles on their site. Zillow will screen the reviews before publishing. They join the ranks of the Houston Association of Realtors, Redfin and Ziprealty in providing rating systems.
From a recent court ruling on whether agents should disclose a short-sale situation: “When a real estate agent is aware that the amount of existing monetary liens and encumbrances exceeds the sales price of a residential property so as to require either the cooperation of the lender in a short sale or the ability of the seller to put a substantial amount of cash into the escrow in order to obtain the release of the monetary liens and encumbrances affecting title, the agent has a duty to disclose this state of affairs to the buyer, so that the buyer can inquire further and evaluate whether to risk entering into a transaction with a substantial risk of failure.”
Thursday, December 16, 2010
Monday, December 13, 2010
Friday Facts December 10, 2010
FRIDAY FACTS
December 10, 2010
Inman News noted Corelogic’s reporting that the “shadow” inventory of homes likely to be repossessed or already in REO inventory but not yet on the market reached 2.1 million units in August, up from 1.9 million units a year ago. Because home sales have also slowed, that represents 8 months supply, up from 5 months one year ago. Adding the 2.1 million shadow inventory to the 4.2 million homes on the market, causes the total supply to reach 23 months of inventory, almost double NAR’s estimate in September.
Also in Inman News, as of January 31, 2011, the FTC is banning collection of fees in advance by for profit companies providing foreclosure rescue and loan modification services.
Fannie Mae is piloting a six month program, Home Path Online Offers, on its REO properties in Orlando, San Diego, and Detroit. It requires that offers be submitted online by agents representing buyers in an effort to increase efficiency, transparency and provide buyer’s agents with receipt of offer confirmation and tracking.
HudUser.org/portal/regional.html is a new HUD site with US Census Bureau, Labor Department and HUD data along with info from state and local governments and housing industry sources providing the latest available data on individual markets.
An NAR survey shows the impact of low appraisals. In October, 10% of Realtors had a contacts cancelled, 13% had a contract delayed and 16% had a contract re-negotiated to a lower sales price.
December 10, 2010
Inman News noted Corelogic’s reporting that the “shadow” inventory of homes likely to be repossessed or already in REO inventory but not yet on the market reached 2.1 million units in August, up from 1.9 million units a year ago. Because home sales have also slowed, that represents 8 months supply, up from 5 months one year ago. Adding the 2.1 million shadow inventory to the 4.2 million homes on the market, causes the total supply to reach 23 months of inventory, almost double NAR’s estimate in September.
Also in Inman News, as of January 31, 2011, the FTC is banning collection of fees in advance by for profit companies providing foreclosure rescue and loan modification services.
Fannie Mae is piloting a six month program, Home Path Online Offers, on its REO properties in Orlando, San Diego, and Detroit. It requires that offers be submitted online by agents representing buyers in an effort to increase efficiency, transparency and provide buyer’s agents with receipt of offer confirmation and tracking.
HudUser.org/portal/regional.html is a new HUD site with US Census Bureau, Labor Department and HUD data along with info from state and local governments and housing industry sources providing the latest available data on individual markets.
An NAR survey shows the impact of low appraisals. In October, 10% of Realtors had a contacts cancelled, 13% had a contract delayed and 16% had a contract re-negotiated to a lower sales price.
Monday, December 6, 2010
Friday facts December 3, 2010
FRIDAY FACTS
December 3, 2010
Facebook is launching a messaging service that will meld all 3 forms of communication: e-mail, instant messaging and texting that can be managed through a single inbox on a PC or a mobile device.
Brian Montgomery, past FHA Commissioner recommends pulling FHA out of HUD because they have different mission statements. Additionally, FHA monies go to HUD and HUD refunds FHA 21 cents on the dollar.
RealTrends reports that Massachusetts, Washington, Maryland, New Jersey and Connecticut are the top 5 states at the forefront of the nation’s movement toward a global, innovation based economy according to “The 2010 State New Economy Index”. It measures the extent to which state economies are knowledge based, globalized, entrepreneurial, IT driven and innovation-based.
Also from Steve Murray (RealTrends): “… What we think is that we have some ways to go before housing truly has found its footing. And, that there are markets that are already recovering and those with years left to do so. Each market will recover at its own rate. Pay less attention to all of the national market metrics but close attention to your local conditions. In the end, that’s all that will truly matter to your business.
There is no Massachusetts law that requires that a home have a stove in place in order for it to be sold, according to Steve Ryan, MAR General Counsel
Recent issues in the news including the robo-signing controversy illustrate the importance of buyer’s title insurance. According to Mary Umberger in Inman News, “Industry data suggests that 1 in 3 title searches turn up some kind of fly in the property ointment.” She also cautions that title insurance just covers the purchase price of the home, and in the case of an as-is REO, the buyer may want to purchase a rider that covers improvements. “The product at its most basic insures that the person or entity selling a property really owns it and that others don’t have a legal interest in it or that other legal circumstances don’t cloud the seller’s right to convey ownership.”
December 3, 2010
Facebook is launching a messaging service that will meld all 3 forms of communication: e-mail, instant messaging and texting that can be managed through a single inbox on a PC or a mobile device.
Brian Montgomery, past FHA Commissioner recommends pulling FHA out of HUD because they have different mission statements. Additionally, FHA monies go to HUD and HUD refunds FHA 21 cents on the dollar.
RealTrends reports that Massachusetts, Washington, Maryland, New Jersey and Connecticut are the top 5 states at the forefront of the nation’s movement toward a global, innovation based economy according to “The 2010 State New Economy Index”. It measures the extent to which state economies are knowledge based, globalized, entrepreneurial, IT driven and innovation-based.
Also from Steve Murray (RealTrends): “… What we think is that we have some ways to go before housing truly has found its footing. And, that there are markets that are already recovering and those with years left to do so. Each market will recover at its own rate. Pay less attention to all of the national market metrics but close attention to your local conditions. In the end, that’s all that will truly matter to your business.
There is no Massachusetts law that requires that a home have a stove in place in order for it to be sold, according to Steve Ryan, MAR General Counsel
Recent issues in the news including the robo-signing controversy illustrate the importance of buyer’s title insurance. According to Mary Umberger in Inman News, “Industry data suggests that 1 in 3 title searches turn up some kind of fly in the property ointment.” She also cautions that title insurance just covers the purchase price of the home, and in the case of an as-is REO, the buyer may want to purchase a rider that covers improvements. “The product at its most basic insures that the person or entity selling a property really owns it and that others don’t have a legal interest in it or that other legal circumstances don’t cloud the seller’s right to convey ownership.”
Monday, November 29, 2010
Friday Facts November 26, 2010
FRIDAY FACTS
November 26, 2010
According to “Think Big Work Small” HAMP, the federal government’s loan modification program has served 27,840 homeowners at a cost of $50 billion dollars. Hope Now, an alliance of 13 mortgage servicers, 360 counseling agencies and 1700 non-profits have served 147,425 homeowners at no cost to the taxpayer.
NAR is no longer making the email addresses of members available to other members after receiving complaints that spammers might be obtaining Realtors’ email addresses from NAR’s website.
RealTrends reports that third quarter homeownership rates remain at 66.9% which is equivalent to the 1999 rate of 66.7%. Each one point drop equates to roughly 1 million fewer homes.
Some lenders are abandoning MERS and going back to old-fashioned paper based system of physically recording mortgages to insure an unbroken chain of title.
NAR’s RPR is now live in 43 of 135 nationwide markets. CC&IMLS will be online December 14th. Realtors whose MLS’s haven’t signed onto the project won’t have access until the 4th quarter of 2011 and will then only have limited access. They won’t see active or historic listing data for their market.
Did you know that the value of U.S. real estate purchased annually by international buyers was $66 billion? 55% of global buyers paid cash. The median price paid by international clients was $219,400. There are 59 countries with REALTOR alliances. Global transactions took place in all 50 states.
November 26, 2010
According to “Think Big Work Small” HAMP, the federal government’s loan modification program has served 27,840 homeowners at a cost of $50 billion dollars. Hope Now, an alliance of 13 mortgage servicers, 360 counseling agencies and 1700 non-profits have served 147,425 homeowners at no cost to the taxpayer.
NAR is no longer making the email addresses of members available to other members after receiving complaints that spammers might be obtaining Realtors’ email addresses from NAR’s website.
RealTrends reports that third quarter homeownership rates remain at 66.9% which is equivalent to the 1999 rate of 66.7%. Each one point drop equates to roughly 1 million fewer homes.
Some lenders are abandoning MERS and going back to old-fashioned paper based system of physically recording mortgages to insure an unbroken chain of title.
NAR’s RPR is now live in 43 of 135 nationwide markets. CC&IMLS will be online December 14th. Realtors whose MLS’s haven’t signed onto the project won’t have access until the 4th quarter of 2011 and will then only have limited access. They won’t see active or historic listing data for their market.
Did you know that the value of U.S. real estate purchased annually by international buyers was $66 billion? 55% of global buyers paid cash. The median price paid by international clients was $219,400. There are 59 countries with REALTOR alliances. Global transactions took place in all 50 states.
Friday, November 19, 2010
Friday Facts 11-19-10
FRIDAY FACTS
November 19, 2010
When your sellers want to wait for the spring market when all will be sunshine and roses, let them know:
Inman reports that housing is still deteriorating. The brand new guide to underwriters at Mortgage Guaranty Insurance Corporation (MGIC) covering 73 metropolitan areas found 27 “stable”, all the rest were “weak” or “soft”. Of the stable, 12 are softening leaving only one metro area in 5 truly steady.
Inman also quotes a Zillow report that nationwide, home values fell for the 17th straight quarter, a 25% drop from the market peak in June ’06. The current housing recession is rivaling the Great Depression’s real estate downturn.
According to NAR, during the year ending in June 2010, 1st time buyers accounted for half (47%) of all home sales.
WCVB Channel 5 lists the top 10 towns with the most foreclosures: Springfield, Worcester, Dorchester, Brockton, Lowell, New Bedford, Lynn, Lawrence, Fitchburg and Fall River.
On Cape Cod, year to date foreclosure deeds:
Town 2009 2010 %Change
Barnstable 15 10 - 33.37%
Bourne 19 37 94.74%
Brewster 5 9 80%
Centerville 22 30 36.36%
Chatham 6 15 150%
Cotuit 3 3
Dennis 21 47 123.81%
Eastham 8 14 75%
Falmouth 35 73 108.75%
Harwich 11 26 136.36%
Hyannis 67 99 47.76%
Marston’s Mills 8 26 225%
Mashpee 41 51 24.39%
Orleans 4 8 100%
Osterville 3 14 366.67%
Provincetown 6 18 200%
Sandwich 23 41 78.26%
Truro 1 2 100%
Wellfleet 3 4 33.33%
Yarmouth 47 97 106.38%
November 19, 2010
When your sellers want to wait for the spring market when all will be sunshine and roses, let them know:
Inman reports that housing is still deteriorating. The brand new guide to underwriters at Mortgage Guaranty Insurance Corporation (MGIC) covering 73 metropolitan areas found 27 “stable”, all the rest were “weak” or “soft”. Of the stable, 12 are softening leaving only one metro area in 5 truly steady.
Inman also quotes a Zillow report that nationwide, home values fell for the 17th straight quarter, a 25% drop from the market peak in June ’06. The current housing recession is rivaling the Great Depression’s real estate downturn.
According to NAR, during the year ending in June 2010, 1st time buyers accounted for half (47%) of all home sales.
WCVB Channel 5 lists the top 10 towns with the most foreclosures: Springfield, Worcester, Dorchester, Brockton, Lowell, New Bedford, Lynn, Lawrence, Fitchburg and Fall River.
On Cape Cod, year to date foreclosure deeds:
Town 2009 2010 %Change
Barnstable 15 10 - 33.37%
Bourne 19 37 94.74%
Brewster 5 9 80%
Centerville 22 30 36.36%
Chatham 6 15 150%
Cotuit 3 3
Dennis 21 47 123.81%
Eastham 8 14 75%
Falmouth 35 73 108.75%
Harwich 11 26 136.36%
Hyannis 67 99 47.76%
Marston’s Mills 8 26 225%
Mashpee 41 51 24.39%
Orleans 4 8 100%
Osterville 3 14 366.67%
Provincetown 6 18 200%
Sandwich 23 41 78.26%
Truro 1 2 100%
Wellfleet 3 4 33.33%
Yarmouth 47 97 106.38%
Friday, November 12, 2010
Friday Facts November 12, 2010
November 12, 2010
Real Trends blog gives the following tips to become a market expert:
1. Narrow it down. Geographic area, price range, waterfront, golf course properties, etc.
2. View them. Look at properties all day every day. Know the inventory
3. Analyze. Understand where the best locations are
4. Write it down. Keep a spread sheet. For any property in your specialty, know the stats.
5. Become a detective. Know where the value is and who is motivated to sell and why
Broadcast your expertise only to Boomers. An article by Bernice Ross in Inman News breaks out the buying habits of the different generations:
o Born before 1965, Baby boomers and Traditionalists value expertise.
o Born between 1965 and 1976, Gen X doesn’t trust experts but has a strong belief in their ability to research and find information own their own
o Born between 1976 and 1994, Gen Y also has little or no use for expertise and is more concerned about what their peer group has to say.
You need to be the expert, but model your role based on the generation. Also remember that younger clients may watch you via your blog or social media activities for months before they contact you personally.
When your potential seller wants to wait to list their home until the spring market when all will be rosy, you might give them the following:
o Morgan Stanley analysts expect housing prices to continue to slide reaching new depths in 2012.
o Carter Murdoch, Senior Official with Bank of America’s Business Development Program says that the economy and housing will stay relatively flat through at least the end of 2011 because:
1. Consumer confidence though rising remains low
2. Income growth is anemic.
3. Unemployment may remain above 9% through 2011
o Allen L. Sinai, Chief Global Economist at the consulting firm, Decision Economics notes that median house prices have dropped 20% since 2005, and that given an inflation rate of 2%, it will take 13 years for housing prices to climb back to their peak.
From NAR’s 2009 Survey of Home Buyers and Sellers:
A third of all buyers looked online as the 1st step, 3% more than in ‘08
90% of home buyers used the Internet to search for a home, up 30% in 6 years
60% of buyers were likely to walk through homes viewed online.
36% found their home online, up 4% from ‘08
60% of homebuyers used MLS websites, the most frequently used online resource.
Where the buyer found the home they purchased. In 2001, 48% was through the real estate agent, and 8% was through the Internet. In 2009, 36% was through the real estate agent and 36% was through the Internet.
· In 2009, 13% of buyers had a purchase agreement that was cancelled, terminated, or fell through.
Real Trends blog gives the following tips to become a market expert:
1. Narrow it down. Geographic area, price range, waterfront, golf course properties, etc.
2. View them. Look at properties all day every day. Know the inventory
3. Analyze. Understand where the best locations are
4. Write it down. Keep a spread sheet. For any property in your specialty, know the stats.
5. Become a detective. Know where the value is and who is motivated to sell and why
Broadcast your expertise only to Boomers. An article by Bernice Ross in Inman News breaks out the buying habits of the different generations:
o Born before 1965, Baby boomers and Traditionalists value expertise.
o Born between 1965 and 1976, Gen X doesn’t trust experts but has a strong belief in their ability to research and find information own their own
o Born between 1976 and 1994, Gen Y also has little or no use for expertise and is more concerned about what their peer group has to say.
You need to be the expert, but model your role based on the generation. Also remember that younger clients may watch you via your blog or social media activities for months before they contact you personally.
When your potential seller wants to wait to list their home until the spring market when all will be rosy, you might give them the following:
o Morgan Stanley analysts expect housing prices to continue to slide reaching new depths in 2012.
o Carter Murdoch, Senior Official with Bank of America’s Business Development Program says that the economy and housing will stay relatively flat through at least the end of 2011 because:
1. Consumer confidence though rising remains low
2. Income growth is anemic.
3. Unemployment may remain above 9% through 2011
o Allen L. Sinai, Chief Global Economist at the consulting firm, Decision Economics notes that median house prices have dropped 20% since 2005, and that given an inflation rate of 2%, it will take 13 years for housing prices to climb back to their peak.
From NAR’s 2009 Survey of Home Buyers and Sellers:
A third of all buyers looked online as the 1st step, 3% more than in ‘08
90% of home buyers used the Internet to search for a home, up 30% in 6 years
60% of buyers were likely to walk through homes viewed online.
36% found their home online, up 4% from ‘08
60% of homebuyers used MLS websites, the most frequently used online resource.
Where the buyer found the home they purchased. In 2001, 48% was through the real estate agent, and 8% was through the Internet. In 2009, 36% was through the real estate agent and 36% was through the Internet.
· In 2009, 13% of buyers had a purchase agreement that was cancelled, terminated, or fell through.
Friday, November 5, 2010
Friday Facts November 5, 2010
FRIDAY FACTS
November 5, 2010
Something different. Inman News reports that on September 25th, the “Race for the Home Event”, planned and executed by gaming platform SCVNGR converted 50 open homes into a virtual game board. Competitors downloaded challenges at each location. After 3 hours, nearly 500 contestants gathered to see who won runner-up prizes such as tee shirts and sports tickets and who won the grand prize, a $20,000 down payment.
NAR statistics show that nationally, pendings rose 4.3% in August, but that was 20% below the pace in August 2009. Regionally, pendings were up 7% in the South, 6% in the West, 2% in the Midwest, but down 3% in the East. NAR anticipates a 6.4% drop in existing home sales in 2010 compared with 2009 to $4.82 million.
Inman News reports that GMAC Mortgage, JP Morgan Chase and Bank of America have halted foreclosure filings in 23 states because:
1. Documents were signed by employees who have not verified information
2. There was questionable legal notarization of documents
3. Different signatures of a single officials name appear leading to questions of forgery
4. Multiple banks claim the right to foreclose on the same property
Lawyers representing homeowners in foreclosure proceedings have challenged lenders on such grounds before and have mostly succeeded in delaying, not stopping foreclosure proceedings. Ultimately, most lenders have been able to prove they are the note holder. However, it could raise fears among homebuyers that if they buy a foreclosed home they could find themselves in a legal challenge by a former owner.
An article in Inman News explains that Poig is an online social network tool used to increase and expand the strength of your social network. The social object of Poig tends to be a small-scale get-together. Let’s say you’re going to grab a cup of coffee and wouldn’t mind having someone from your network show up. Here’s how it works:
1. Complete a profile
2. Select your event type
3. Enter in some details about the event
4. Publish your invitation to Facebook and/or Twitter.
Wells Fargo has put a stop on all short sale extensions.
November 5, 2010
Something different. Inman News reports that on September 25th, the “Race for the Home Event”, planned and executed by gaming platform SCVNGR converted 50 open homes into a virtual game board. Competitors downloaded challenges at each location. After 3 hours, nearly 500 contestants gathered to see who won runner-up prizes such as tee shirts and sports tickets and who won the grand prize, a $20,000 down payment.
NAR statistics show that nationally, pendings rose 4.3% in August, but that was 20% below the pace in August 2009. Regionally, pendings were up 7% in the South, 6% in the West, 2% in the Midwest, but down 3% in the East. NAR anticipates a 6.4% drop in existing home sales in 2010 compared with 2009 to $4.82 million.
Inman News reports that GMAC Mortgage, JP Morgan Chase and Bank of America have halted foreclosure filings in 23 states because:
1. Documents were signed by employees who have not verified information
2. There was questionable legal notarization of documents
3. Different signatures of a single officials name appear leading to questions of forgery
4. Multiple banks claim the right to foreclose on the same property
Lawyers representing homeowners in foreclosure proceedings have challenged lenders on such grounds before and have mostly succeeded in delaying, not stopping foreclosure proceedings. Ultimately, most lenders have been able to prove they are the note holder. However, it could raise fears among homebuyers that if they buy a foreclosed home they could find themselves in a legal challenge by a former owner.
An article in Inman News explains that Poig is an online social network tool used to increase and expand the strength of your social network. The social object of Poig tends to be a small-scale get-together. Let’s say you’re going to grab a cup of coffee and wouldn’t mind having someone from your network show up. Here’s how it works:
1. Complete a profile
2. Select your event type
3. Enter in some details about the event
4. Publish your invitation to Facebook and/or Twitter.
Wells Fargo has put a stop on all short sale extensions.
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