Asking prices rise 2.6 percent nationwide
BY INMAN NEWS, THURSDAY, AUGUST 16, 2012.
July’s data, like June’s, further solidifies a geographical recovery trend. The inventory drop and simultaneous median list price jump that occurred in Florida during the last half of 2011 has shifted to California (and Seattle and Atlanta) in the first half of this year. These areas account for eight of the 10 metros to see the sharpest year-over-year inventory drops (by percentage) last month.
Metros with greatest year-over-year inventory reductions (July 2011 to July 2012)
Oakland, CA -59.3%
Fresno, CA -47.8%
Bakersfield, CA -44.7%
Seattle-Bellevue-Everett, WA -42.2%
San Jose, CA -41.8%
San Francisco, CA -40.3%
Stockton-Lodi, CA -40.2%
Riverside-San Bernardino, CA -40%
Atlanta, GA -38.3%
Sacramento, CA -36.4%
Oakland, Calif., for the fifth month in a row, has the lowest for-sale inventory of any of the 146 metros Realtor.com tracks with 3,280 listings and a minuscule median age of inventory of 22.
Oakland’s big Bay Area cousin, San Francisco (along with San Jose, Calif., and Seattle-Bellevue-Everett, Wash., metros), scored a housing recovery trifecta in July, climbing to No. 6 on the list of metros with the greatest year-over-year drop (-40.3 percent) in inventory, No. 5 among the metros with the greatest year-over-year median list price increases (15 percent) and No. 6 among metros with properties with the shortest median age of inventory (46 days) on the market.
Metros with greatest year-over-year list price increases (July 2011 to July 2012)
Santa Barbara-Santa Maria-Lompoc, CA 31.5%
Phoenix-Mesa, AZ 27.7%
Boise City, ID 16.8%
San Francisco, CA 15%
San Jose, CA 13.8%
Seattle-Bellevue-Everett, WA 13.5%
Reno, NV 13.1%
West Palm Beach-Boca Raton, FL 12.6%
Washington, D.C.-Md.-Va.-WV (D.C.) 12.2%
Fresno, CA 10.9%
Oakland, San Jose, Seattle-Bellevue-Everett, and San Francisco were also named Top 10 Turnaround Towns in Realtor.com’s second-quarter report at No. 2, No. 5, No. 6 and No. 8, respectively.
Metros with shortest median age of inventory (July 2012) Days
Oakland, CA 22
Denver, CO 36
Fresno, CA 42
Bakersfield, CA 43
Seattle-Bellevue-Everett, WA 45
San Francisco, CA 46
San Jose, CA 47
Anchorage, AK 48
Phoenix-Mesa, AZ 49
Foreclosure starts drop in California
BY INMAN NEWS, WEDNESDAY, AUGUST 15, 2012.
In California, the number of homes repossessed by lenders but not yet resold, known as bank-owned or real estate owned (REO) inventory, was down 36.4 percent to 66,000 properties last month. Banks sold REOs in 283 days on average, up from 232 days in July 2011. By contrast, homes bought by third parties at auction, usually investors, were resold in an average 138 days, up from 128 days a year ago.
Nonetheless, there are some signs the pipeline of foreclosures in the Golden State is speeding up a bit. Foreclosure starts rose 12.3 percent year over year in July to 21,175. The average number of days between the initial notice of default and the end of the foreclosure process (with the property either sold to a third party or repossessed by the bank) was 276 days last month (equivalent to about nine months), down from 310 days (about 10 months) a year ago.
Among the California homes in the foreclosure process whose fates were decided in July, most (10,398) experienced a cancellation of the process due to a successful loan modification or short sale, among other possible reasons. The number of properties that went back to the bank as REOs declined 54.2 percent on an annual basis to 4,512. Foreclosure sales to third parties fell 6.6 percent to 3,269.
10 States Still Battling High Foreclosure Rates
DAILY REAL ESTATE NEWS | MONDAY, AUGUST 13, 2012
Several states continue to be plagued with high foreclosure rates. RealtyTrac reported last week that foreclosure starts rose 6 percent year-over-year, which is the third consecutive month for increases following what had been more than a year of declines.
California has the highest foreclosure rate in the country, according to RealtyTrac, with one in every 325 housing units receiving a foreclosure filing in July (more than twice the national average). California had the highest foreclosure rate in the country despite an 11 percent decline month-over-month and a 25 percent drop year-over-year, according to RealtyTrac.
The states with the highest foreclosure rates in JulyRealtyTrac’s most recent data–are:
- California: 1 in every 325 housing units
- Arizona: 1 in every 346 housing units
- Florida: 1 in every 352 housing units
- Georgia: 1 in every 376 housing units
- Illinois: 1 in every 385 housing units
- Nevada: 1 in every 415 housing units
- Michigan: 1 in every 518 housing units
- Ohio: 1 in every 528 housing units
- South Carolina: 1 in every 536 housing units
- Indiana: 1 in every 665 housing units
CAR: Distressed properties accounted for 42 percent of pending deals in June
BY INMAN NEWS, TUESDAY, JULY 24, 2012.
In June, lenders signed-off on more short sales, but brought fewer “real estate owned” properties, or REOs, to market. REO’s accounted for 20.2 percent of pending sales in June, down from 29.2 percent a year ago. Short sales were up, but only slightly, accounting for 21.4 percent of sales statewide, compared with 20 percent a year ago.
All told, distressed properties (short sales, REOs and others) accounted for 42 percent of pending sales, down from 49.5 percent a year ago.
“Pending sales declined in June, partly due to a lack of housing supply — especially in REO properties,” CAR President LeFrancis Arnold said in a statement.
“The shortage of REO inventory is also putting upward pressure on bank-owned home prices, with the median price of REO properties showing a double-digit year-over-year gain of 11 percent in June.”
Y-T-D thru June: 7 of the top 10 nationwide metros with the most foreclosure activity were in California
BY INMAN NEWS, FRIDAY, JULY 13, 2012.
“Nationwide, foreclosure starts began boiling over in more markets in the first half of the year, particularly in the second quarter,” said Brandon Moore, CEO of RealtyTrac, in a statement. “The increases in foreclosure starts in the first half of the year will likely translate into more short sales and bank repossessions in the second half of the year and into next year,” he said.
In June 2012, an 18 percent year-over-year increase in foreclosure starts in California left the Golden State with the highest foreclosure rate of any state for the month. For the first half of the year, California metros took the top five spots, with Stockton, Modesto, Riverside-San Bernardino-Ontario, Vallejo-Fairfield and Merced collectively averaging a foreclosure rate of 2.5 percent, with about 1 in 40 housing units in those markets receiving a foreclosure-related filing.
Our focus is on Riverside-San Bernardino-Ontario just east of Los Angeles. These metros rank No. 1, No. 2 and No. 3, respectively, for foreclosure activity through the first half-year. Two other California metros — Bakersfield (No. 8) and Visalia-Porterville (No. 10) — also made the top 10.
California for-sale inventory at 2005 levels
Homes on the market in May represented just 3.5 months of supply
BY INMAN NEWS, FRIDAY, JUNE 15, 2012.
Inventories of homes for sale in California continued to shrink in May, as the highest pace of sales since February 2009 reduced the supply of available homes to just 3.5 months — down from 4.2 months in April and 5.7 months at the same time a year ago. Many housing analysts view a six-month supply of homes as a good balance of supply and demand — anything less means there are not enough homes to meet demand.
Shortage of homes for sale creates fierce competition
With housing inventory at a low, would-be buyers are scrambling to bid on homes before they’re even listed, and real estate agents are vying to represent the few sellers that do exist.
RealtyTrac® FORECLOSURE RATE HEAT CHART
ForeclosureRadar® TREND CHARTS
Foreclosure Filings—Notice of Default filings are the first step in the foreclosure process. Notice of Trustee Sale filings set the date and time of an auction, and serve as the homeowner’s final notice before sale.
Foreclosure Outcomes—After the filing of a Notice of Trustee Sale, there are only three possible outcomes. First, the sale can be Cancelled for reasons that include a successful loan modification or short sale, a filing error, or a legal requirement to re-file the notice after extended postponements. Alternatively, if the property is taken to sale, the bank will place the opening bid. If a 3rd party, typically an investor, bids more than the bank’s opening bid, the property will be Sold to 3rd Party; if not, it will go Back to the Bank and become part of that bank’s REO inventory.
Foreclosure Inventories—Preforeclosure inventory is an estimate of the number of properties that have had a Notice of Default filed against the property, but have not yet been Scheduled for Sale. The Scheduled for Sale inventory indicates those properties that have had a Notice of Trustee Sale filed, but have not yet been sold or had the sale cancelled. The Bank Owned (REO) inventory indicates the number of properties that have been sold Back to the Bank at the trustee sale, and which the bank has not yet resold to another party.
Foreclosure Bids—The Published Bid is the amount listed in the Notice of Trustee Sale and is typically the balance due at the original date of sale. The Opening Bid is the bank’s starting bid at auction, and is often discounted from the Published Bid. The Winning Bid is the highest bid received at auction and reflects the amount at which the bank or 3rd party purchased the foreclosure.
Foreclosure Discounting—This chart compares the winning Bid Amount of properties sold at trustee sale to both the outstanding Loan Amount, and the current Market Value. Banks place an Opening Bid for each property and if a 3rd Party does not make a higher bid, the property will be sold Back to Bank (REO) for the Opening Bid amount. Properties Sold to 3rd Parties will typically have Winning Bids with deeper discounts to both Loan Amount and Market Value as only low Opening Bids will attract investor interest.
Time to Foreclose—The average number of days between the filing of the Notice of Default and the final sale at auction for foreclosure sales that occurred during the specified month. Time to Resell—The average number of days between the final sale at auction and when the property was resold by the bank or 3rd party.
Filings By Estimated Market Value—The number of foreclosures that have received either a Notice of Default or Notice of Sale, shown in columns arranged by the estimated market value of the property in foreclosure.
Filings By Loan Balance—The number of foreclosures that have received either a Notice of Default or Notice of Sale, shown in columns arranged by the balance of the loan in foreclosure.
Filings By Loan Origination Date—The number of foreclosures that have received either a Notice of Default or Notice of Sale, shown in columns arranged by the quarter and year in which the loan was originally made.