Category Archives for "National"

November 30, 2010

Forecast for Housing and the Economy: Dim

The following is an excerpt of the article, “Moody’s Forecast for Housing and the Economy: Dim” by Carrie Bay for DSNews:

The analysts at Moody’s Investors Service are downbeat in their outlook for both the U.S. economy and the housing market. In the agency’s ResiLandscape report issued last week, they warn that there’s a stronger chance the country will slide back into a recession, and they are forecasting a “longer and deeper housing correction.”

Mark Zandi, chief economist for Moody’s Analytics, said in the report, “We have lowered the near-term economic outlook and raised the risk of a double-dip recession from one in four to one in three.”

He says the U.S. recovery has lost significant momentum since the spring. Retailing, housing, business investment, and industrial activity have all weakened, and the job market is no longer improving. After ticking higher to 9.6 percent in August, Zandi is expecting the nation’s unemployment rate to drift back into double digits in the coming months.

“The recovery is sputtering,” according to Zandi, and the odds of a double-dip recession during the coming year have risen “uncomfortably high.”

On the housing side, Celia Chen, senior director for Moody’s Analytics says the market’s nascent recovery is already back-sliding into a double-dip.

“We have downgraded the near-term housing outlook based on the lingering weakness in the demand for homes, the expectation that job creation will remain soft this year, and the slow speed at which the mortgage industry is working through distressed mortgages,” Chen said in the report.
Chen expects house prices to fall until the third quarter of next year, significantly longer than Moody’s previous projections of a first-quarter 2011 bottom in home prices.

Read more:
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More NEW Homeowners are Becoming Delinquent – CDPE

Reposted from a Blog entry:

According to the Federal Reserve Bank of New York, 2.7% of current mortgage balances transitioned to delinquency, up from 2.6 percent last quarter. Additionally, industry research firm Foresight Analytics predicts residential mortgage delinquencies at 13.3% for the third quarter.

New threads are popping up every day on ActiveRain, RealTown and other sites posing the question: Has the real estate market hit bottom? Unfortunately, the answer is no … not yet. We actually think we’re a few years away from a recovery.

However, these numbers show an overwhelming need for educated real estate agents to help homeowners in distress. This is where the market is today, and successful agents are working within these conditions, not avoiding them.

Helping homeowners avoid foreclosure, especially through short sales, has kept real estate agents relevant, assisted in community stabilization, and helped families find greater financial stability.

We continue to maintain that real estate agents will lead the housing industry out of the current crisis. And we’re seeing it happen, one homeowner at a time.

For more information regarding foreclosures, short sales and distressed properties visit our CDPESite click here.

Foreclosure Activity Up in 65%of US Metros in Q3: RealtyTrac (Excerpt)

Data released by RealtyTrac Thursday shows that foreclosure activity rose in 65 percent of the nation’s major metropolitan areas during the third quarter.

Cities in California, Florida, Nevada, and Arizona once again claimed the nation’s highest foreclosure rates, accounting for 19 of the top 20 metros at the top of RealtyTrac’s list. The only exception was Boise City-Nampa, Idaho at No. 14. However, the largest increases in foreclosure filings were reported from Seattle, Chicago, and Houston.

Among all 206 metro areas tracked in the report 133 posted year-over-year increases in foreclosure activity, including 11 of the nation’s 20 largest metro areas.
Seattle-Tacoma-Bellevue led the way with a 71 percent increase in foreclosure activity from the third quarter of 2009, followed by Chicago-Naperville-Joliet with a 35 percent increase. Houston-Sugar Land-Baytown posted a 26 percent increase in foreclosure activity from a year earlier. Detroit-Warren-Livonia saw filings up nearly 23 percent, and Atlanta-Sandy Springs-Marietta recorded a 20 percent increase.

“The underlying problems that are causing homeowners to miss their mortgage payments – high unemployment, underemployment, toxic loans and negative equity – are continuing to plague most local housing markets,” said James J. Saccacio, CEO of RealtyTrac. “And these historically high foreclosure rates will continue until those problems are resolved.”

For the full story by Carrie Bay for click here.
For more information regarding foreclosures or to speak with a licensed Realtor click here.

Charlotte Home Prices Drop, US Existing Home Sales Jump

According to the Charlotte Business Journal, Charlotte-area home prices drop 3.4% and existing US home sales jump 10%.
The following are two excerpts from articles about each of these subjects:

Charlotte-area home prices drop 3.4%

“Homes prices in the Charlotte market fell 3.4 percent in August from a year earlier, according to the Standard & Poor’s/Case-Shiller Home Price Index. And August’s local prices dipped 0.4 percent from the July level, the report says.

The year-over-year price drop was the third-largest among the 10 U.S. cities that posted declines. The local downward trend runs counter to S&P/Case-Shiller’s overall national index of 20 cities, which saw a 1.7 percent price increase in August from a year ago.”

Read more: Charlotte-area home prices drop 3.4%

Existing-home sales jump 10%
“Sales of existing homes in the United States jumped in September, though they remained lower than year-ago levels.

The National Association of Realtors says sales of existing single-family houses, townhomes, condos and co-ops rose 10 percent from August to September — the biggest monthly gain in nearly 28 years.

But compared with a year ago, existing-home sales nationwide were down 19.1 percent in September.

Still, the Realtors’ group says the housing market is in the early stages of recovery.

“A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium,” says Lawrence Yun, NAR chief economist. “But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions.”

Distressed-home sales accounted for 35 percent of all sales in September, up from 34 percent in August.

Sales in the South rose 10.6 percent in September. That region includes the Carolinas but also stretches from Delaware to Florida, under the association’s reporting system.”

Read more: Existing-home sales jump 10%

For more information regarding buying or selling homes in Charlotte Metro and surrounding areas, click here.