Real estate market update
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Notice of Default

[highlight bg=”#fff199″ color=”#000000″]What’s the real estate market doing now?[/highlight]

Lots of contrasting trends. On one hand,Notices of default are up 39% .

But houses actually getting foreclosed on fell 28% from the prior quarter as short sales are becoming more common. Actual foreclosures fell 55% from last year. Default notices are more common in the lower areas= under 200k.

The median price in Southern California rose 28% in June from a year ago-most since statistics have been gathered. That puts it at $385,000 up from $300 last June. At the peak it was $505 so we have room to go.

The LA Times gives a monthly chart of prices by zip code and change from 2012.

[note color=”#fff199″][label style=”important”]YOU MUST SEE THIS[/label] Some areas are up over 75%. Remember averages are averages. There are many far above. You can view this chart by logging on to dqnews.com and check out the LA Times chart. text[/note]

All this is giving cash investors 2nd thoughts about buying at any price. The higher prices reduce their return on investment . That is good for us because they are the elephant in the room distorting everything.

If  you willing to work hard, your return is amazing. If you are not willing to work at it, you won’t find anything. You can’ at simply go to the MLS anymore. You have to learn how to find your own deals.

What’s the real estate market doing now?

Lots of contrasting trends. On one hand,Notices of default are up 39% .

But houses actually getting foreclosed on fell 28% from the prior quarter as short sales are becoming more common. Actual foreclosures fell 55% from last year. Default notices are more common in the lower areas= under 200k.

The median price in Southern California rose 28% in June from a year ago-most since statistics have been gathered. That puts it at $385,000 up from $300 last June. At the peak it was $505 so we have room to go.

The LA Times gives a monthly chart of prices by zipcode and change from 2012.YOU MUST SEE THIS. Some areas are up over 75%. Remember averages are averages. There are many far above. You can view this chart by logging on to dqnews.com and check out the LA Times chart.

All this is giving cash investors 2nd thoughts about buying at any price. The higher prices reduce their return on investment . That is good for us because they are the elephant in the room distorting everything.
[quote style=”3″]If you willing to work hard, your return is amazing. If you are not willing to work at it, you won’t find anything. You can’ at simply go to the MLS anymore. You have to find your own deals.[/quote]


Hedge funds leaving
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Thank god that trend is going away . It’s been impossible to find deals when those big boys are in there buying without regard to comps. They don’t have to worry about appraisals  since they are paying cash. We as investors have to be concerned about what the house will appraise for when we sell it. So, it’s been a problem.

Current homeowners are playing a bigger role as housing market participants amid a sharp slowdown in investor activity, according to data from theCampbell/Inside Mortgage Finance HousingPulse Trackingsurvey.

Among three buyer types-current homeowner, first-time homebuyer, and investor-the survey showed current homeowners were the only group to see activity rise in June.

Last month, current homeowners represented 44.6 percent of the purchase market, up from 43.8  p eent in May based on a three-month moving average.

At the same time, the share for first-time homebuyers fell to 35.7 percent from 36 percent month-over-month.

Even more notable was the decrease in investor purchases. As rising home prices discourage investors,  home purchases from investors slipped to 19.7 percent, down significantly from 23.1 percent from February. The percentage also represents the lowest level since September 2012.

Falling in line with the decrease in investor activity was a drop in the supply of distressed properties.

According to HousingPulse, the share of foreclosure or short sales transactions plummeted year-over-year, falling to 28.2 percent from 40.3 percent in June 2012. The percentage represents the lowest level in at least three and half years.

The HousingPulse survey also revealed investor traffic decreased for the fourth straight month in June.

Agents across the United States also offered insight into investor activity, with one Arizona agent stating, “Investors have left our market with rising house prices,”

In California, one agent reported, “Values have increased by 20% since January and investors are backing away.”

The survey includes about 2,000 real estate agents nationwide.

Current homeowners are playing a bigger role as housing market participants amid a sharp slowdown in investor activity, according to data from theCampbell/Inside Mortgage Finance HousingPulse Trackingsurvey.

The survey includes about 2,000 real estate agents nationwide.


Banks say they are fulfilling terms -yeah-right
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Under terms of a settlement with Banks and NY attorney general, Banks are supposed to do more to help homeowners.

They are are actually doing not too much in principal reduction which was supposed to be the main benefit. They are leaning heavily towards short sales and write downs of 2nds. Big deal- 2nds will go away in foreclosure anyhow.

Wells ( the worst in my opinion)uses almost short sales exclusively. Chase discounts 2nds, Citi does more 2nd mortgage discounts and short sales than write downs of first mortgages.

The banks are not abiding by the other rules of the game and the NY attorney general plans to go to court to force them.

We have heard stories of banks still going to sale while loan modifications were taking place- a no-no under the new laws.

Is anyone surprised?

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N.Y. to sue Wells Fargo, Bank of America over mortgage practices
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foreclosure crimesNo surprise here. They are continuing to violate loan modification, short sale requirement time lines. I know this personally since i am involved in a short sale with my mom’s place in Fla. We had 3 offers over 270 which the bank turned down.  We had another offer of 270 in Jan and the Bank (Wells Fargo) has not responded ,   Cleaned the place out and ready to do a jingle mail- shut off the elec and cancel the insurance. Do you have any idea what a place in Fla is like with a/c?

Read more on N.Y. to sue Wells Fargo, Bank of America over mortgage practices…

Lenders return to subprime market
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lendersNo- its not like last time. Last time if you could breathe you got a loan. Today you have  it’s prove income, assets and have a healthy down payment. You will pay  a high interest rate and if your credit score is low, you might have to put down up to 40%.

Read more on Lenders return to subprime market…