AP Survey: More Homeowners Avoid Buying Homes
April 18, 2008 | Filed Under Real Estate News | 1 Comment
A growing number of Americans say they don’t plan to buy a home anytime soon, according to a new Associated Press-AOL Money and Finance survey. Nearly two-thirds (60 percent) of homeowners say they definitely will not buy a home within the next two years, up from 53 percent in September 2006. More than a quarter of homeowners worry that their home will lose value over the next two years, and one in seven fear they won’t be able to make a mortgage payment on time over the next six months.
Homebuyers Lose Case Against Buyer’s Agent
April 18, 2008 | Filed Under Real Estate News | Leave a Comment
A jury ruled against the Carlsbad, Calif., couple who sued their real estate agent for fraud and negligence, claiming his actions caused them to overpay by approximately $150,000 for the home they purchased in 2005. Marty and Vernon Ummel claimed their buyer’s agent withheld information that similar homes in the neighborhood were selling for less than the home they eventually bought for $1.2 million. The jury found that the agent “executed a reasonable standard of care” when he showed the Ummels more than 80 homes in 2005 prior to the couple’s purchase, Voice of San Diego reports.
When news of the lawsuit broke in January, some real estate lawyers predicted that a ruling against the real estate agent might trigger more lawsuits against REALTORS® from homeowners saddled with shrinking home values.
David Bright, the agent’s defense attorney, said, “I think REALTORS® are scapegoats for a declining market. There are always people out there who will blame someone for something that is beyond their control.”
Foreclosures Rise in March
April 18, 2008 | Filed Under Real Estate News | Leave a Comment
Foreclosure filings nationwide increased 5 percent in March from the previous month, and they were 57 percent higher than in March 2007, according to the latest report from RealtyTrac, an online marketer of foreclosure properties. One in every 538 U.S. households received a foreclosure filing last month — including default notices, auction sale notices and bank repossessions — on a total of 234,685 properties.
Nevada posted the nation’s highest foreclosure rate again, which was 3.9 times higher than the national average. California and Florida ranked second and third, respectively, for the fourth straight month. States posting the lowest foreclosure rates were Vermont, North Dakota and South Dakota.
Columbus Center Project moving forward
April 14, 2008 | Filed Under Real Estate News, Commercial Real Estate, Boston Condos, Boston Luxury Developments, Boston Real Estate | Leave a Comment
The 1.3 million-square-foot mixed-use development to be built above the Mass Turnpike seems to be pushing forward. Despite financial setbacks, Columbus Center’s developer said the $800 million project is still alive and well.”We have no intention of abandoning it,” Roger Cassin, managing partner of WinnDevelopment, told Banker & Tradesman in an interview.
The Columbus Center Project will consist of 443 Condominiums, a 162-room hotel, three parks and 39,400 square feet of retail space. The project will stradle the Back Bay, South End and Bay Village neighborhoods of Boston. Other new developments in the area are 285 Columbus Lofts and The Clarendon.
Some Cities Still Boast Low Foreclosure, Unemployment Rates
April 12, 2008 | Filed Under Real Estate News, Mortgage and Finance | Leave a Comment
MainStreet.com compared U.S. foreclosure data from RealtyTrac to employment rates supplied by the Bureau of Labor Statistics to compile a list of five cities that are surviving the mortgage and foreclosure problems best. All five cities had low foreclosure rates and a February unemployment rate lower than or equal to the national average of 4.8 percent. They are: Lubbock, Texas; Charlottesville, Va.; York/Hanover, Pa.; Tuscaloosa, Ala.; and Burlington, Vt.
NAR Predicts Rising Pace of Existing-Home Sales
April 8, 2008 | Filed Under Real Estate News | Leave a Comment
The pace of existing-home sales is expected to rise to 5.9 million in the fourth quarter, a jump from the first-quarter pace of 4.9 million, according to NAR’s latest housing forecast released this morning. But sales of existing homes for all of 2008 are forecast to reach 5.39 million, 4.6 percent below the 2007 level, before increasing 6.6 percent to 5.74 million in 2009. The median existing-home price is expected to fall 1.4 percent to $215,800 in 2008 before recovering 3.7 percent to $223,800 next year. National median existing-home prices fell 1.4 percent last year.
New-home sales are expected to fall 25.7 percent in 2008 to 576,000, then rise 4.6 percent in 2009 to 602,000. However, housing starts, including multifamily units, are forecast to drop 26.3 percent to 999,000 this year, then fall another 0.5 percent to 994,000 in 2009. The median new-home price is likely to decrease by 3.6 percent to $238,400 this year, and then increase 4.0 percent to $247,800 next year.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, was 84.6, a 1.9 percent decrease from 86.2 in January and a 21.4 percent decline from February 2007. The Northwest was the only region that saw an increase in pending home sales, rising 3.2 percent, but it was still 25.4 percent below levels from a year ago. The Midwest index decreased 3.7 percent, which is 17.4 percent lower than a year ago. In the South, the index fell 5.5 percent for the month and 30.0 percent for the year, while the West decreased 9.8 percent in February and 17.1 percent from last year.
“The economy will not grow in the first half of the year,” said Lawrence Yun, NAR chief economist. “However, the combination of recent fiscal stimulus enactment and the lagged impact of monetary policy will help jump start the economy in the second half.”
Zillow Enters the Mortgage Business
April 8, 2008 | Filed Under Real Estate News, Mortgage and Finance | 2 Comments
This might seem like an odd time for a company to break into the mortgage lending business, but that is exactly what online real estate marketer Zillow.com is doing. The company announced that its Zillow Mortgage Marketplace will offer borrowers an open forum to request custom loan quotes directly from registered lenders, anonymously and without hassle. The Marketplace also includes a public feedback system where borrowers can rate the lenders they choose to contact. The process makes it easier for borrowers to compare multiple loan quotes and make more informed decisions about their lender and loan, the company says.
Borrowers complete an online Request for a Quote (RFQ) with their financial details, but are not required to provide any personal information about themselves, such as their name, address, phone number or Social Security number. Once they submit their request, lenders that are registered with Zillow can submit loan quotes. The borrower decides which lender(s) to contact, if any, thereby maintaining control of the entire process.
Fannie Mae Tightens Mortgage Rules
April 5, 2008 | Filed Under Real Estate News, Mortgage and Finance | Leave a Comment
Fannie Mae will soon require a minimum credit score of 580 for most loans that it buys on an individual basis, the company announced earlier this week. The new rule is one of several new lending standards that Fannie Mae is implementing to stem the tide of default-related losses. In the past, Fannie Mae did not require a minimum credit score. The company said that it will still acquire loans with lower credit scores in certain circumstances.
Other rule changes include:
• Increasing the time period needed for borrowers to re-establish their credit history after a foreclosure from four years to five years.
• Allowing loan service firms — the companies that collect loan payments — to increase the forbearance period from four months to as much as six months to give borrowers more time to seek alternatives to foreclosure. Fannie Mae hopes the move will reduce the number of loans that it needs to recognize as losses.
• Adding fees for riskier types of loans.
Some Housing Markets Show Improvement: Report
April 5, 2008 | Filed Under Real Estate News, Real Estate Trends and Statistics, Boston Real Estate | Leave a Comment
While most U.S. cities posted home price declines in January compared to a year ago, some markets are faring better, according to the latest housing market report by Radar Logic, a real estate data and analytics company. Of the 25 Metropolitan Statistical Areas (MSAs) examined, only two cities — Charlotte, N.C. and New York City — showed year-over-year appreciation with 3.9 percent and 2.0 percent, respectively. Milwaukee and Philadelphia posted virtually no change for the year, while Seattle (-1.4 percent) showed year-over-year depreciation for the first time. While 21 of the 25 MSAs showed declines compared to a year ago, nine posted returns above or equal to those recorded in December 2007.
The MSAs with the largest year-over-year depreciation in January were markets that experienced high appreciation rates during the housing boom: Sacramento, Calif. (-27.8 percent); Las Vegas (-25.4 percent); San Diego (-21.2 percent); Los Angeles (-16.6 percent); and Tampa, Fla. (-15.6 percent).
The study also showed that many MSAs posted impressive appreciation rates compared to five years ago. Leading cities were Miami (10.4 percent); Seattle (9.4 percent); Washington D.C. (9.1 percent); New York (9.0 percent); and Los Angeles (8.6 percent).
According to the report, Boston is now among the trailing metro areas.
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