“The government program as currently structured is petering out. It is taking in fewer homeowners, more are dropping out and fewer people are ending up in permanent modifications,” said Mark Zandi, chief economist at Moody’s Analytics.
The program is intended to help those who are at risk of foreclosure by lowering their monthly mortgage payments. Friday’s report from the Treasury Department suggests the $75 billion government effort is failing to slow the tide of foreclosures in the US, economists say.
More than 2.3 million homes have been repossessed by lenders since the recession began in in late 2007, according to foreclosure listing service RealtyTrac Inc. Economists expect the number of foreclosures to increase well into next year.
Besides forcing people from their homes, foreclosures and distressed home sales have pushed down on home values and crippled the broader housing industry. Home builders have found it difficult to compete with the depressed prices that have discouraged potential sellers from putting their homes on the market.
Approximately 630,000 people who had tried to get their monthly mortgage payments lowered through the government program have been cut loose through July, according to the Treasury report. That’s about 48% of the ones who had enrolled since March 2009, and it is up from more than 40% through June.
Roughly 32% or about 421,804 of those who started the program, have received permanent loan modifications and are making their payments on time.
RealtyTrac reported that the number of US homes lost to foreclosure surged in July to approximately 92,858 properties, up 9% from June. The steady rise of repossessions has been increasing and the nation is now on track to having over more than 1 million homes lost to foreclosure by the end of 2010. That would be a significance loss of more than 900,000 homes repossessed in 2009, the firm says. According to RealtyTrac, lenders have taken over an estimated 100,000 homes a year.
Zandi said the government effort will likely end up helping only about 500,000 homeowners lower their monthly payments on a permanent basis. That’s a small percentage of the number of people who have already lost their homes to foreclosure or distressed sales like short sales - when lenders let homeowners sell for less than they owe on their mortgages.
Zandi predicts another 1.5 million foreclosures or short sales in 2011.
“We still have a lot more foreclosures to come and further home price declines,” Zandi said. He said home prices, which have already fallen 30% since the peak of the housing boom, would drop by another 5% by next spring.
Many borrowers have complained that the government program has been a nightmare for them. Borrowers also claim banks often lose their documents and then claim the necessary paperwork wasn't returned.
The banking industry said borrowers weren’t sending back their paperwork. They also have accused the Obama administration of initially pressuring them to sign up borrowers without insisting first on proof of their income. When banks later moved to collect the information, many homeowners dropped out or were disqualified.
Obama officials dispute that they pressured banks. They have defended the program, saying lenders are making more significant cuts to borrowers’ monthly payments than before the program was launched. Some of the largest lenders in the program have offered alternative programs to those who fell out.
Homeowners who qualify can receive an interest rate as low as 2% for 5 years and a longer repayment period. Those who have successfully navigated the program to reach permanent modifications have seen their monthly payments cut on average by about $500.
After all the required paperwork is finished, homeowners receive a temporary modification, this is to become permanent after they make 3 on time payments. That includes proof of income and a letter explaining the reason for their troubles. This process has taken far longer.
Over 100 participating lenders get taxpayer incentives to reduce payments. As of mid-June only $490 million had been spent out of a potential $75 billion the government has made available to help stem the wave of foreclosures.
Washington,
July 28, 2010
The restoration of the single-family rural housing program that
would guarantee home loans for rural buyers was passed by the Senate
today and is on its way to President Obama.
The National Association of Realtors® has vigorously lobbied to
restore funding for the rural program since last March, and hailed this
development as a great victory for rural home buyers.
“This is going to be a great lift for thousands of rural home buyers
who need to close on their home purchases before Sept. 30 to take
advantage of the home buyer tax credit,” said NAR President Vicki Cox
Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “Many
rural families would have been left out in the cold without these
guaranteed loans. Increasing the commitment authority will help rural
families, support local housing markets, create jobs and generate new
tax revenues,” Golder said.
“The rural housing program is a good example of the kind of program
needed for responsible and qualified home buyers who bring common sense
to the housing market,” said Golder. The legislation increases the
guarantee fee for borrowers, but allows the fee to be financed. “This
change will make the program completely self-sufficient,” she said.
Golder thanked Sen. Michael Bennet (D-Colo.), and Reps. Paul
Kanjorski (D-Pa.) and Shelley Moore Capito (R-W.Va.) for moving the bill
to passage in both houses.
The legislation was part of H.R. 4899, “The Emergency Supplemental
Appropriations Act” that the Senate passed today. The measure increases
the Rural Housing Service commitment authority allowing guaranteed
loans; previously, RHS has been providing conditional commitments. The
RHS is expected to announce new guidelines shortly after the president
signs the bill.
The National Association of Realtors®, “The Voice for Real Estate,”
is America’s largest trade association, representing 1.1 million members
involved in all aspects of the residential and commercial real estate
industries.
Resource: The National Association of Realtors®
http://tourthenewrealtor.com/press_room/news_releases/2010/07/rural_funding?tourthenewrealtor
According to the latest housing statistics from Florida Realtors, sales of existing single-family homes in Florida rose 21% in second quarter 2010 compared to the same period a year earlier.
A total of 51,564 existing homes sold statewide in 2Q 2010; during the same period the year before, a total of 42,604 existing homes sold. It marks the eighth consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.
Statewide sales of existing condominiums in the second quarter rose 45 percent compared to the same time the previous year. This marks the seventh consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
Statewide sales activity in 2Q 2010 also increased over 1Q 2010's sales figure in both the existing home and existing condo markets, Florida Realtors' records show. For 2Q 2010, statewide sales of existing homes rose 32.7 percent over the 1Q 2010 figure; statewide existing condo sales in 2Q 2010 increased 24.2% over the 1Q 2010 level.
Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased sales of existing homes in 2Q 2010 compared to the same three-month period a year earlier; 18 of the MSAs showed gains in condo sales.
The statewide existing-home median sales price was $141,300 in 2Q 2010; a year earlier, it was $143,000 for a decrease of 1%. The 2Q 2010 statewide existing-home median sales price was 5.6% higher than the statewide existing-home median sales price of $133,800 in 1Q 2010. According to industry analysts with the National Association of Realtors (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.
In the year-to-year quarterly comparison for condo sales, 20,986 units sold statewide for the quarter compared to 14,430 in 2Q 2009 for a 45 percent increase. The statewide existing-condo median sales price was $98,900 for the three-month period; in 2Q 2009, it was $110,300 for a decrease of 10 percent. The 2Q 2010 statewide existing-condo median sales price was 3.2 percent higher than the 1Q 2010 statewide existing-condo median sales price of $95,800.
Daytona Beach single family sales in the 2nd quarter were 2,607 vs 2nd quarter of 2009, 1,924, an increase of 35%. Median price for 2nd quarter this year was $122,500, and for 2009, $132,500.
Daytona Beach condo sales in the 2nd quarter were 536, compared to 373 last year. Median sales price was $126,700, vs $176,500 in 2009.
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
www.sherryarmstrong.com
Fannie Mae announced the launch of KnowYourOptions.com, a new consumer education website that outlines the choices available to homeowners who are struggling with their mortgage payments and high mortgage rates, and provides guidance on how they can contact and work with their mortgage company to find solutions.
The online resource, which offers reliable and easy-to-understand information in both English and Spanish, expands on Fannie Mae’s ongoing efforts to help struggling borrowers find alternatives to foreclosure.
Key features of KnowYourOptions.com include:
-Interactive Options Finder to help homeowners identify options that might be right for their situation;
-Calculators to help borrowers understand how many of the options work, including refinance, repayment, forbearance and modification;
-Videos featuring real homeowners discussing how they received help and housing counselors providing advice;
-A virtual assistant to walk homeowners through key areas of the site;
-Next steps and helpful forms, including a financial checklist and contact log to help borrowers be prepared when contacting their mortgage company or housing counselor.
For homeowners who are having trouble paying their mortgage, but want to stay in their homes, KnowYourOptions.com provides information on refinancing, repayment plans, forbearance, modifications and Deed-for-Lease.
For homeowners who recognize that they can no longer afford their mortgages, but want to avoid having a foreclosure on their credit history, the site provides information on alternatives including short sales and deeds-in-lieu.
Contact me with any questions you have about selling your home in the Daytona Beach area. I am qualified and experienced in helping buyers and sellers in short sale and bank-owned homes.
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
www.sherryarmstrong.com
www.ormondbeachscene.com
www.daytonabeachscene.com
www.activerain.com/blogs/sherrya
Great Oaks, Holly Hill - Announcing a price reduction on 1024 Grand Hickory Circle, a 1,382 sq. ft., 2 bath, 2 bdrm single story. Now 
MLS® $89,900 - Impeccable condition.
Property information
According to Freddie Mac's latest Primary Mortgage Market Survey (PMMS), the 30-year fixed-rate mortgages reached new record lows this week, again. This week's rate is the lowest since Freddit Mac began recording rates in 1971.
Frank Nothaft, vice president and chief economist of Freddie Mac commented, "For the sixth week in a row, interest rates on fixed-rate mortgages eased to all-time record lows during a week of mixed housing data reports."
The 30-year fixed-rate mortgage (FRM) averaged 4.54 percent with an average 0.7 point for the week ending July 29, 2010, down from last week when it averaged 4.56 percent. Last year at this time, the 30-year FRM averaged 5.25 percent.
The 15-year FRM this week averaged a record low of 4.00 percent with an average 0.7 point, down from last week when it averaged 4.03 percent. A year ago at this time, the 15-year FRM averaged 4.69 percent.
Contact me for recommendations to experienced local lenders. These rates are just too good to pass up!
Sherry Armstrong
386-679-3191
yourkeytothebeach@gmail.com
www.sherryarmstrong.com
The National Association of Realtors reported that existing home sales fell last month to a seasonally adjusted annual rate of 5.37 million units, down from 5.66 million in May. Sales year-over-year were up 9.8% but down 5.1% in June.
"The housing industry is slogging through a swamp looking for solid ground," said Mitchell Hochberg, a principal at Madden Real Estate Ventures. "With mounting foreclosures, growing consumer pessimism and a rise in inventory, the only path to recovery is an increase in employment."
Meanwhile, the inventory of homes on the market rose 2.5% in June to 3.99 million units. At that level, it would take 8.9 months to sell all the existing homes on the market, compared with 8.3 months of inventory in May. "The supply of homes on the market is higher than we'd like to see," said NAR chief economist Lawrence Yun, adding that home prices have held up well despite the glut.
We have some great buys in the Daytona Beach area now. Call or email me for some ideas.
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
www.sherryarmstrong.com
www.daytonabeachscene.com
www.ormondbeachscene.com
http://activerain.com/blogs/sherrya
Sales of existing homes in Florida rose 18 percent in May, marking 21 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.
A total of 16,745 single-family existing homes sold statewide last month compared to 14,172 homes sold in May 2009, according to Florida Realtors. The statewide existing-home median price of $140,400 in May was slightly higher – by $300 – than April’s statewide existing-home median price of $140,100. It marks the third month in a row that the statewide existing-home median price has increased over the previous month’s median.
Seventeen of Florida’s metropolitan statistical areas (MSAs) reported higher existing home and existing condo sales in May. A majority of the state’s MSAs have reported increased sales for 23 consecutive months.
Florida’s median sales price for existing homes last month was $140,400; a year ago, it was $143,800 for a decrease of 2 percent. The median is the midpoint; half the homes sold for more, half for less.
In Florida’s year-to-year comparison for condos, 6,779 units sold statewide last month compared to 4,845 units in May 2009 for an increase of 40 percent. The statewide existing condo median sales price last month was $98,700; in May 2009 it was $113,500 for a 13 percent decrease. The national median existing condo price was $171,000 in April, according to NAR.
with Your Key to the Beach,
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
www.sherryarmstrong.com
www.daytonabeachscene.com
www.ormondbeachscene.com
According to Clear Capital's latest Home Data Index (HDI), federal homebuyer tax credits helped springtime price gains, as national quarter-over-quarter price increases reached 5.2%; year-over-year prices were up 8.8%.
"Price trends nationwide have a seen a considerable upswing driven in large part by the flurry of recent sales attributed to the tax credit and springtime buying activity," said Dr. Alex Villacorta, Senior Statistician, Clear Capital. "This month's national quarterly gains are certainly a positive sign that many markets have responded to the tax credit incentive, but overall markets remain volatile as evidenced by the six month price change keeping mostly flat."
Regionally, the Midwest and South saw the largest quarterly price growth, while the West and Northeast show more stable quarterly gains.
Only two markets, Baltimore, Md. and Orlando, Fl. saw prices remain below their levels of a year ago. However, both markets did move closer to positive year-over-year numbers, when compared to last month.
(resource: RealEstateChannel.com)
Contact me to discuss prices in your Daytona Beach neighborhood.
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
www.sherryarmstrong.com
www.ormondbeachscene.com
www.daytonabeachscene.com
According to Freddie Mac's latest Primary Mortgage Market Survey (PMMS), the 30-year fixed-rate mortgage (FRM) averaged 4.58$ with an average 0.7 point for the week ending July 1, 2010. This is down from last week when it averaged 4.69%. Last year at this time, the 30-year FRM averaged 5.32 percent.
"Interest rates on fixed-rate mortgages and the 5-year hybrid ARM fell once again to all-time record lows this week in a period where the economy struggles to gain momentum and inflation remains very low," said Frank Nothaft, Freddie Mac vice president and chief economist.
Annual inflation, as measured by the 12-month change in the core CPI, held at 0.9 percent in April and May, which is the slowest pace in over 44 years, as reported by the Bureau of Labor Statistics.
If you haven't bought yet, either as an investor or owner-occupant, how can you pass up this opportunity?! Let'[s talk about the possibilities of Daytona and Ormond Beach real estate.
Sherry Armstrong
386-679-3191
www.sherryarmstrong.com
www.daytonabeachscene.com
www.ormondbeachscene.com
According to the National Association of Realtors , existing-home sales remained at elevated levels in May on buyer response to the tax credit, characterized by stabilizing home prices and historically low mortgage interest rates. Gains in the West and South were offset by a decline in the Northeast; the Midwest was steady.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain.
Lawrence Yun, NAR chief economist, said he expects one more month of elevated home sales. "We are witnessing the ongoing effects of the home buyer tax credit, which we'll also see in June real estate closings."
In the South, existing-home sales increased 0.5 percent to an annual level of 2.15 million in May and are 22.9 percent above a year ago. The median price in the South was $159,000, up 1.0 percent from May 2009.
Single-family home sales declined 1.6 percent to a seasonally adjusted annual rate of 4.98 million in May from a pace of 5.06 million in April, but are 17.5 percent above the 4.24 million levels in May 2009. The median existing single-family home price was $179,400 in May, which is 2.7 percent above a year ago.
Single-family median existing-home prices were higher in 16 out of 20 metropolitan statistical areas reported in May from a year ago. In addition, existing single-family home sales rose in 18 of the 20 areas from May 2009.
Existing condominium and co-op sales fell 6.8 percent to a seasonally adjusted annual rate of 680,000 in May from 730,000 in April, but are 32.6 percent above the 513,000-unit pace in May 2009. The median existing condo price5 was $181,300 in May, up 3.4 percent from a year ago.
Contact me for real estate details on any community in Daytona or Ormond Beach. It's a great buyer's market!
Sherry Armstrong
386-679-3191
yourkeytothebeach@gmail.com
www.sherryarmstrong.com
www.daytonabeachscene.com
www.ormondbeachscene.com
Some recovery in the labor market and record low mortgage rates could help offset some of the pressures on the housing market, according to a new study released by the Joint Center for Housing Studies at Harvard University.
"Right now, economists expect the unemployment rate to stay high, but if employment growth surprises on the upside or downside, housing numbers could too," Eric Belsky, executive director of the center, said in a statement.
Home owners' level of debt relative to equity stood at a record 163 percent at the beginning of the year, and housing costs have become a severe burden for more borrowers, the center adds.
Source: Reuters, Al Yoon (06/14/10)
Palm Grove, South Daytona - Announcing a price reduction on 810 Reed Canal Rd, a 1,617 sq. ft., 2 bath, 3 bdrm single story. Now MLS® $127,900 - Price Reduced.
Property information
The size of new single-family homes declined last year, dropping to a nationwide average of 2,438 square feet, according to numbers released by the Census Bureau.
After increasing continually for nearly three decades, the average size of single-family homes completed in the United States peaked at 2,521 square feet in 2007. It was essentially flat in 2008, then dropped in 2009, so that new single-family homes were almost 100 square feet smaller in 2009 than in 2007. The average number of bedrooms also has fallen, from 39% with 4 or more in 2005, to 34% in 2009; those with 3 bedrooms increased from 49% in 2005 to 53% last year.
“We also saw a decline in the size of new homes when the economy lapsed into recession in the early 1980s,” said NAHB Chief Economist David Crowe. “The decline of the early 1980s turned out to be temporary, but this time the decline is related to phenomena such as an increased share of first-time home buyers, a desire to keep energy costs down, smaller amounts of equity in existing homes to roll into the next home, tighter credit standards and less focus on the investment component of buying a home. Many of these tendencies are likely to persist and continue affecting the new home market for an extended period.”
In 1973, the first year for which the Census Bureau reports characteristics of single-family homes completed, most new single-family homes–67%–had only one story. Twenty-three percent had two or more stories, and 10% were split levels. The proportion of one-story homes declined steadily for more than three decades, dropping to a low of 43% in 2006 and 2007. At the same time, the proportion of single-family homes with two or more stories increased, rising from 23% in 1973 to a high of 57% in 2006 (split level homes currently account for less than one percent of all single-family homes). Since 2006 the trends have been reversed, as the share of single-family homes with one-story increased to 47% last year, while the share with two or more stories dropped to 53%.
Regionally,
*Three-car garages were found in only about 11% of homes in the Northeast and the South
*Brick construction was the leader in the South, where it was found in 40% of new single-family homes. Twenty-eight percent of new homes in the South had vinyl siding and 13% had stucco
*99% of homes in the South had air conditioning
Contact me to find the home of your dreams, any square footage, any location.
With Your Key to the Beach,
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
www.sherryarmstrong.com
www.daytonabeachscene.com
www.ormondbeachscene.com
(resource: RisMedia.com)
A recent article on RealtorMag.com reported that economists speaking at the recent annual meeting of the National Association of Real Estate Editors said the housing market likely will not recover until 2013.
Stan Humphries, Zillow chief economist, said home prices continue to decrease, and he sees the "tremendous amount of shadow inventory" delaying recovery. "We think the market will be flat in nominal terms for three to five years," remarked Humphries. "We are not going to hit bottom and see a V-shaped recovery."
Meanwhile, Fannie Mae chief economist Doug Duncan said it will be another three years before new household formation and housing starts pick up. Duncan believes home prices will fall another 1 percent to 3 percent before bottoming out in the third quarter.
Both Humphries and Duncan said the federal home buyer tax credits shifted demand so that buyers took action earlier than they would have otherwise. "We're going to see a payback in July and August," noted Humphries.
Source: Inman News, Glenn Roberts Jr. (06/07/10)
This means our great Buyer's Market will continue. Contact me for some ideas on how to find good investments now in our Daytona Beach real estate.
Sherry Armstrong
386-679-3191
yourkeytothebeach@gmail.com
www.ormondbeachscene.com
www.daytonabeachscene.com