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New home sales across the United States rose 11% in the month of June. This rise has a lot to do with the drop in mortgage rates. Additionally, new home sales have noticed an increase of sales.
In Broward County, there were 78 new homes under construction in the second quarter of the year, as opposed to only 17 in the first quarter. Miami Dade shows a slight lag in new home sales and is correlated to the increased unemployment rate in Miami Dade County.
There is an influx of new homes that are vacant and ready for sale. Broward County has 2,725 newly constructed homes that are vacant. The average time that a property remains vacant in Broward County is approximately twelve months.
The 11% increase of sales also has a lot to do with the influx of distressed / bank owned properties. According to RealtyTrac, the second wave of foreclosures will be noticed in the coming months from those home owners who took out second loans and in the subprime market.
In Palm Beach County there were 213 single family homes ready to be moved into in the first quarter of the year, where there were only 139 in the first. Surprisingly, Palm Beach County accounted for more than half the total of the second quarter home sales in a 6county study conducted by Metrostudy’s.
There have been trends realized that show the amount of vacant properties are declining each quarter with the biggest drop in Palm Beach County. This is due to the increased amount of sales of distressed/foreclosed REO properties.
The National Association Of Realtors reported that the sales of existing homes were on the rise and that these distressed properties make up a vast majority of these sales. They also mentioned that with the second wave of foreclosures on the way, there is a pipeline of foreclosed properties that have yet to be released in the market and can carry well into next year, 2010.
The reasons that banks and lenders do not release all of their foreclosed properties are mainly for two reasons. First – There is a tremendous backlog of properties in which mountains of paperwork need to be completed including, foreclosing, evicting etc. In some cases foreclosure are done incorrectly and need to be redone. Second – If the foreclosed properties were released all at once into the market, home values would drop significantly in comparison to these distressed properties selling for less in a market that already has diminishing home values.
For more information for South Florida Foreclosures check back with us weekly at www.gsigllc.com
Friday, July 31, 2009
Tuesday, July 28, 2009
South Florida Foreclosures Fall By Half!
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According to a recent RealtyTrac report – The number of foreclosure filings in Miami fell by 40%, while Broward County foreclosure filings fell 60%! Statewide, the total amount of foreclosure filings fell 19%.
These figures are great news and may show us signs of the real estate market in the future however, with the unemployment rate rising not only in South Florida, but nationwide these numbers may last just a short while.
A lot has to do with new organizations and programs implemented by President Obama and government agencies such as Fannie Mae, who have set out new guidelines for loan re-modification programs that now allow more homeowners to qualify for assistance than before. The numbers can also be misleading for example; a drop in foreclosure filings can also mean an increase in short sales.
Government agencies are noticing that the new Home Affordable Program has not yet gotten into full effect. According to the Neighborhood Housing Services, many times they speak with lenders and inform them that a certain client may be able to re modify their loan. After which the lender asks questions not knowing anything about it.
It will take a few months for us to property digest these numbers and see if in fact they were not an anomaly. There are positive indications from the latest RealtyTrac findings which lead all of us to believe that there are signs of foreclosure decline ahead. How long ahead can only be seen after further research and market tests are conducted.
Another positive for the real estate market is the confidence index for homebuilders. It has risen dramatically by almost 20%. New home sales have surged and increased 11% in the past month. This has direct correlation to the new $8,000.00 tax credit the government is offering on home purchases.
We must be cautious of these signs. The $8,000.00 Credit expires in December. After which there is no word if it will still be available or not. How consumers act to the news in December will greatly effect next year’s projections and results. Housing sales may decline after an elimination of the Tax Credit. Extension of this tax credit has not yet been decided by Washington, D.C.
For the latest in South Florida Foreclosure news and reports check back with us weekly for our next blog installment.
According to a recent RealtyTrac report – The number of foreclosure filings in Miami fell by 40%, while Broward County foreclosure filings fell 60%! Statewide, the total amount of foreclosure filings fell 19%.
These figures are great news and may show us signs of the real estate market in the future however, with the unemployment rate rising not only in South Florida, but nationwide these numbers may last just a short while.
A lot has to do with new organizations and programs implemented by President Obama and government agencies such as Fannie Mae, who have set out new guidelines for loan re-modification programs that now allow more homeowners to qualify for assistance than before. The numbers can also be misleading for example; a drop in foreclosure filings can also mean an increase in short sales.
Government agencies are noticing that the new Home Affordable Program has not yet gotten into full effect. According to the Neighborhood Housing Services, many times they speak with lenders and inform them that a certain client may be able to re modify their loan. After which the lender asks questions not knowing anything about it.
It will take a few months for us to property digest these numbers and see if in fact they were not an anomaly. There are positive indications from the latest RealtyTrac findings which lead all of us to believe that there are signs of foreclosure decline ahead. How long ahead can only be seen after further research and market tests are conducted.
Another positive for the real estate market is the confidence index for homebuilders. It has risen dramatically by almost 20%. New home sales have surged and increased 11% in the past month. This has direct correlation to the new $8,000.00 tax credit the government is offering on home purchases.
We must be cautious of these signs. The $8,000.00 Credit expires in December. After which there is no word if it will still be available or not. How consumers act to the news in December will greatly effect next year’s projections and results. Housing sales may decline after an elimination of the Tax Credit. Extension of this tax credit has not yet been decided by Washington, D.C.
For the latest in South Florida Foreclosure news and reports check back with us weekly for our next blog installment.
Friday, July 24, 2009
The Face of Foreclosure - Florida's Effort In Foreclosure Awareness
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The Florida Association of Realtors (FAR) has teamed up to help Floridians across the state help raise foreclosure awareness as well as help with foreclosure prevention awareness.
What has been created is “The Face of Foreclosure” It is a website designed for people to share their stories and show the public as well as government and lenders that there is more to foreclosing on someone than a loan number.
The website was created with the help of a $97,000.00 grant from the National Association of Realtors. This will help FAR purchase statewide radio announcements as well as educate consumers about foreclosures and help them gain knowledge on how to prevent foreclosure as well as support for those being foreclosed on.
In addition to consumer stories, the Florida Association of Realtors (FAR) is using the website to conduct important research that will help the state as well as local and federal law makers make decisions about the current foreclosure crisis.
Florida is one of the most effected states in the United States of America leading the way in foreclosure filings month after month. FAR has realized this and is taking this opportunity to get answers directly from those affected, in hopes that it may not happen ever again – or at least stop the process.
The Florida Association of Realtors Vice President John Sebree explained “As part of this project, we are currently examining the past three years of Florida foreclosure data from numerous sources, which we expect will shed light on some of the reasons for disparities in foreclosure information reported in the media.”
In conjunction with data received from the research conducted on the “Face of Foreclosure” website, the goal will to be to significantly reduce foreclosures. More importantly through this project and the research conducted the hope is to create a strong resistance against foreclosures as well as build strong public policy for the state of Florida and all of its real estate facets.
For more information on the “Face of Foreclosure” website and to register visit http://www.floridafaceofforeclosure.com/
The Florida Association of Realtors (FAR) has teamed up to help Floridians across the state help raise foreclosure awareness as well as help with foreclosure prevention awareness.
What has been created is “The Face of Foreclosure” It is a website designed for people to share their stories and show the public as well as government and lenders that there is more to foreclosing on someone than a loan number.
The website was created with the help of a $97,000.00 grant from the National Association of Realtors. This will help FAR purchase statewide radio announcements as well as educate consumers about foreclosures and help them gain knowledge on how to prevent foreclosure as well as support for those being foreclosed on.
In addition to consumer stories, the Florida Association of Realtors (FAR) is using the website to conduct important research that will help the state as well as local and federal law makers make decisions about the current foreclosure crisis.
Florida is one of the most effected states in the United States of America leading the way in foreclosure filings month after month. FAR has realized this and is taking this opportunity to get answers directly from those affected, in hopes that it may not happen ever again – or at least stop the process.
The Florida Association of Realtors Vice President John Sebree explained “As part of this project, we are currently examining the past three years of Florida foreclosure data from numerous sources, which we expect will shed light on some of the reasons for disparities in foreclosure information reported in the media.”
In conjunction with data received from the research conducted on the “Face of Foreclosure” website, the goal will to be to significantly reduce foreclosures. More importantly through this project and the research conducted the hope is to create a strong resistance against foreclosures as well as build strong public policy for the state of Florida and all of its real estate facets.
For more information on the “Face of Foreclosure” website and to register visit http://www.floridafaceofforeclosure.com/
Tuesday, July 21, 2009
Freddie Mac Offers Homeowners Warranties on Foreclosure Properties – And Pay For Closing Costs!
www.g-sig.com
Freddie Mac’s foreclosure (REO) sales division called HomeSteps, the sales division of Freddie Mac owned properties nationwide announced on Monday that they will be offering potential home owners a few incentives in an effort to stimulate the market and encourage consumers to take advantage of the current real estate market – for example: a home warranty.
The new incentives are part of a promotion offered through Freddie Mac which began July 17, 2009 and will run through October 30, 2009.
Freddie Mac is now offering an opportunity for its home buyers. When purchasing a property Freddie Mac will pay up to 3.5% of the sales price in closing cost assistance. In addition to this incentive they are also offering a comprehensive 2 year warranty paid for by Freddie Mac.
The current state of foreclosure properties vary from excellent condition to absolutely deplorable. When a homeowner is facing foreclosure and is given notice to vacate the property often times properties are not taken care of and pre existing problems can turn into bigger more complicated issues such as roof damage due to the negligence of the previous home buyer.
The warranty offered will protect the homeowner from unforeseen problems such as the roof which can costs upwards of $10,000.00 depending on the property. The warranty will cover many other things as well such as electrical, plumbing, A/C and heating systems. After the first two years of the warranty have expired the homeowner will have the option of continuing the warranty and pay for it on their own.
There are some restrictions to this home warranty. The warranty is available on single-family residences only and the property must be sold through the HomeSteps Program. In addition the property must be sold as the owners’ primary residence and must be at least $25,000.00 in purchase price. Also, it is only available in the continuous 48 United States as well as Washington, D.C.
To qualify for these incentives initial offers on properties must be submitted no later than October 31, 2009 and property closing must be completed by December 31,2009.
With 3.5% closing costs paid for by Freddie Mac as well as a full 2 year warranty, Freddie hopes to spark up the housing market and increase sales as well as stabilize values and communities.
The warranty is NOT available to those purchasing property outside of the HomeSteps Program and those properties sold as an investment property or second home.
For more information effecting foreclosures and new incentives that homeowners can take advantage of, refer back to our blog weekly for updates.
Freddie Mac’s foreclosure (REO) sales division called HomeSteps, the sales division of Freddie Mac owned properties nationwide announced on Monday that they will be offering potential home owners a few incentives in an effort to stimulate the market and encourage consumers to take advantage of the current real estate market – for example: a home warranty.
The new incentives are part of a promotion offered through Freddie Mac which began July 17, 2009 and will run through October 30, 2009.
Freddie Mac is now offering an opportunity for its home buyers. When purchasing a property Freddie Mac will pay up to 3.5% of the sales price in closing cost assistance. In addition to this incentive they are also offering a comprehensive 2 year warranty paid for by Freddie Mac.
The current state of foreclosure properties vary from excellent condition to absolutely deplorable. When a homeowner is facing foreclosure and is given notice to vacate the property often times properties are not taken care of and pre existing problems can turn into bigger more complicated issues such as roof damage due to the negligence of the previous home buyer.
The warranty offered will protect the homeowner from unforeseen problems such as the roof which can costs upwards of $10,000.00 depending on the property. The warranty will cover many other things as well such as electrical, plumbing, A/C and heating systems. After the first two years of the warranty have expired the homeowner will have the option of continuing the warranty and pay for it on their own.
There are some restrictions to this home warranty. The warranty is available on single-family residences only and the property must be sold through the HomeSteps Program. In addition the property must be sold as the owners’ primary residence and must be at least $25,000.00 in purchase price. Also, it is only available in the continuous 48 United States as well as Washington, D.C.
To qualify for these incentives initial offers on properties must be submitted no later than October 31, 2009 and property closing must be completed by December 31,2009.
With 3.5% closing costs paid for by Freddie Mac as well as a full 2 year warranty, Freddie hopes to spark up the housing market and increase sales as well as stabilize values and communities.
The warranty is NOT available to those purchasing property outside of the HomeSteps Program and those properties sold as an investment property or second home.
For more information effecting foreclosures and new incentives that homeowners can take advantage of, refer back to our blog weekly for updates.
Friday, July 17, 2009
The Home Valuation Code of Conduct (HVCC)
www.g-sig.com
Due to the overwhelming amount of foreclosures in the country, the government has issued a new code of conduct that they hope will counteract some of the threats that current markets face today. The biggest issue with mortgages and lending are the unethical practices behind the lending qualification, more importantly the driver for all of this, home valuations.
The Home Valuation Code of Conduct (HVCC) has been created as a system of checks and balances so that home valuations can not only be done correctly, but also have an un-bias opinion. The details of this new code of conduct are as follows, to highlight a few points:
The first thing you should know is that this new code of conduct was created as a result an agreement between Fannie Mae, Freddie Mac and the Federal Housing Agency. To make their point, Fannie Mae and Freddie Mac explained that “they will no longer purchase any mortgage from any seller that does not adopt the new HVCC policy”.
Some of these new rules include:
1. Lenders, Mortgage Brokers, and Financial Institutions can no longer use their own appraiser for their appraisals. They must be chosen from a pool of appraisers by an appraisal management company.
The hope here is that this will eliminate collusion between lenders and appraisers to drive the values of homes higher than they are in order to either qualify for a higher loan amount, or re-finance more than the home is truly worth.
2. Out of area appraisers are not conducting appraisals on properties.
The logic behind this rule is that an out of area appraiser will have no bias towards a certain community, area or city. This is done so that certain areas are not given preference in their valuations of the property which leads to unfair valuations based on the property location.
There are several critics of this new Home Valuation Code of Conduct (HVCC), there are currently two senators in that are lobbying for a moratorium of these new rules so that they may be refined further for them to property work.
Some of the arguments facing this new code are that:
1. Appraisers out of area do not know the true value of the home because they do now know which areas are more or less desirable than others. Also, they will not have been in the area long enough to be able to tell the conditions of the inside of the property.
2. When lenders and banks cannot use their own appraisers, what ends up happening far too often are under-valued appraisals that lead to many transactions falling. This is due to the appraisal price not matching the sales price which leads to denied financing – unless the buyer pays the difference out of pocket.
This is currently a very hot topic in the real estate market, especially since there are so many foreclosure properties in South Florida. Valuations will be done incorrectly, leading to either undervalued properties or overvalued properties both which lead to bad news for the real estate market.
There will be more development coming from Washington, D.C. regarding possible moratoriums in the coming weeks. Stay tunes to our blog every week for the latest news regarding all real estate news and the South Florida Foreclosure market.
Due to the overwhelming amount of foreclosures in the country, the government has issued a new code of conduct that they hope will counteract some of the threats that current markets face today. The biggest issue with mortgages and lending are the unethical practices behind the lending qualification, more importantly the driver for all of this, home valuations.
The Home Valuation Code of Conduct (HVCC) has been created as a system of checks and balances so that home valuations can not only be done correctly, but also have an un-bias opinion. The details of this new code of conduct are as follows, to highlight a few points:
The first thing you should know is that this new code of conduct was created as a result an agreement between Fannie Mae, Freddie Mac and the Federal Housing Agency. To make their point, Fannie Mae and Freddie Mac explained that “they will no longer purchase any mortgage from any seller that does not adopt the new HVCC policy”.
Some of these new rules include:
1. Lenders, Mortgage Brokers, and Financial Institutions can no longer use their own appraiser for their appraisals. They must be chosen from a pool of appraisers by an appraisal management company.
The hope here is that this will eliminate collusion between lenders and appraisers to drive the values of homes higher than they are in order to either qualify for a higher loan amount, or re-finance more than the home is truly worth.
2. Out of area appraisers are not conducting appraisals on properties.
The logic behind this rule is that an out of area appraiser will have no bias towards a certain community, area or city. This is done so that certain areas are not given preference in their valuations of the property which leads to unfair valuations based on the property location.
There are several critics of this new Home Valuation Code of Conduct (HVCC), there are currently two senators in that are lobbying for a moratorium of these new rules so that they may be refined further for them to property work.
Some of the arguments facing this new code are that:
1. Appraisers out of area do not know the true value of the home because they do now know which areas are more or less desirable than others. Also, they will not have been in the area long enough to be able to tell the conditions of the inside of the property.
2. When lenders and banks cannot use their own appraisers, what ends up happening far too often are under-valued appraisals that lead to many transactions falling. This is due to the appraisal price not matching the sales price which leads to denied financing – unless the buyer pays the difference out of pocket.
This is currently a very hot topic in the real estate market, especially since there are so many foreclosure properties in South Florida. Valuations will be done incorrectly, leading to either undervalued properties or overvalued properties both which lead to bad news for the real estate market.
There will be more development coming from Washington, D.C. regarding possible moratoriums in the coming weeks. Stay tunes to our blog every week for the latest news regarding all real estate news and the South Florida Foreclosure market.
Wednesday, July 15, 2009
The Housing Economic and Recovery Act (HERA)
www.g-sig.com
On July 30, 2009, the new Housing and Economic Recovery Act (HERA) laws will go into effect. They require all mortgage lenders and mortgage brokers to help prevent deceptive lending practices and protect customers by helping them become more informed.
In addition, there has been a new agency created to overview and regulate organizations like Fannie Mae, Freddie Mac and the Federal Home Loan Banks. This overview, regulatory agency is called the Federal Housing Finance Agency. The main purpose of this agency is to regulate and ensure that these entities operate within certain, strict guidelines to make sure that they maintain enough capital to operate healthy national housing finance markets.
FHA revised – FHA has changed its policy’s, the FHA loan limit for conforming loans has now increased to $625,000, relative to how expensive the particular market is.
The Hope For Home Owners Program – as mentioned briefly on a previous blog, created a new FHA program that allows eligible homeowners that are in danger of foreclosure to pay off their original loan with a 30-year fixed rate and up to 90% of the appraised value. Certain restrictions apply for example; the borrower must currently be spending at least 31% of their income on their mortgage payments.
This new act also protects the men and women in the U.S. Armed Forces. Foreclosure protection for these servicemen has increased temporarily the loan guarantee the VA will give. Lenders must now wait 9 months before starting foreclosure as opposed to the previous 90 days.
In an effort to stimulate the real estate markets first time home buyers can also take advantage. If you purchased a home after April 8, 2008 but before July 1, 2009 first time home owners may receive a refundable tax credit for up to 10% of the purchase price (or a maximum of $7,500). However, the borrowers who receive this credit must repay it in equal installments over 15 years (Max. $500/year) and will appear as a surcharge on their annual income tax return.
In addition to the above mentioned changes other programs have been altered either permanently or temporarily in an effort to boost spending, and save home owners from possible repossession of their home. Such programs that will receive a change are; the rehabilitation credits given, tax-exempt housing bonds, and interestingly enough – liberation of rules for real estate investment trusts to be allowed to earn foreign currency income associated with real estate activities. (To promote international investment and spending into the market)
For more information on new programs being implemented and South Florida real estate market trends check back weekly for another blog update!
On July 30, 2009, the new Housing and Economic Recovery Act (HERA) laws will go into effect. They require all mortgage lenders and mortgage brokers to help prevent deceptive lending practices and protect customers by helping them become more informed.
In addition, there has been a new agency created to overview and regulate organizations like Fannie Mae, Freddie Mac and the Federal Home Loan Banks. This overview, regulatory agency is called the Federal Housing Finance Agency. The main purpose of this agency is to regulate and ensure that these entities operate within certain, strict guidelines to make sure that they maintain enough capital to operate healthy national housing finance markets.
FHA revised – FHA has changed its policy’s, the FHA loan limit for conforming loans has now increased to $625,000, relative to how expensive the particular market is.
The Hope For Home Owners Program – as mentioned briefly on a previous blog, created a new FHA program that allows eligible homeowners that are in danger of foreclosure to pay off their original loan with a 30-year fixed rate and up to 90% of the appraised value. Certain restrictions apply for example; the borrower must currently be spending at least 31% of their income on their mortgage payments.
This new act also protects the men and women in the U.S. Armed Forces. Foreclosure protection for these servicemen has increased temporarily the loan guarantee the VA will give. Lenders must now wait 9 months before starting foreclosure as opposed to the previous 90 days.
In an effort to stimulate the real estate markets first time home buyers can also take advantage. If you purchased a home after April 8, 2008 but before July 1, 2009 first time home owners may receive a refundable tax credit for up to 10% of the purchase price (or a maximum of $7,500). However, the borrowers who receive this credit must repay it in equal installments over 15 years (Max. $500/year) and will appear as a surcharge on their annual income tax return.
In addition to the above mentioned changes other programs have been altered either permanently or temporarily in an effort to boost spending, and save home owners from possible repossession of their home. Such programs that will receive a change are; the rehabilitation credits given, tax-exempt housing bonds, and interestingly enough – liberation of rules for real estate investment trusts to be allowed to earn foreign currency income associated with real estate activities. (To promote international investment and spending into the market)
For more information on new programs being implemented and South Florida real estate market trends check back weekly for another blog update!
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