Banks are becoming more open to providing real estate professionals with “warm leads” of willing borrowers for short sales in order to boost the number of successful workouts, according to a panel at HousingWire’s REO Expo in Fort Worth, Texas.
This is a "completely new phenomenon," Marie Chung, director of REO and Short Sale Services at Modern Realty, told conference attendees of this “top down” approach to short sales.
What’s changing: Instead of real estate brokers having to cold call defaulting borrowers to offer their short sale services, more banks and mortgage servicers are becoming more open to giving brokers information of borrowers willing to participate in a short sale. The lenders contact the borrowers first and then pass on information of those willing to cooperate in a short sale to real estate professionals, the panel said.
"Our short sale closings increased about 20 percent," Jaysen Greenleaf, director of client relations and business development at Phoenix Asset Management, told conference attendees about the change to banks giving them leads.
Wednesday, June 15, 2011
Tuesday, June 14, 2011
7 Highest-Performing Major Housing Markets
Several real estate markets are starting to show signs of improvement with home prices in the last quarter as the industry demonstrates more signs of stabilizing, according to Clear Capital's latest monthly Home Data Index Market Report.
REO saturation rates have improved in the majority of the country’s largest markets. However, many areas are still battling year-over-year price declines. Clear Capital’s index reports that quarter-over-quarter home price declines were 2.3 percent in the latest quarter, which is less than half compared to the previous month.
“The latest market report results through May suggest that home prices are starting to ease back from the heavy declines seen over the winter,” says Alex Villacorta, director of research and analytics at Clear Capital. “We are still far away from the strong demand needed to fully turn things around for the housing market. However, it is clear from the initial spring sales data that prices are softening, suggesting stabilization in the market."
The High Performers
Seven of the top 15 markets posted quarter-over-quarter property price gains in this month's report, compared to none in last month’s, according to Clear Capital. Here are the seven highest-performing major real estate markets, according to the report.
1. Washington, D.C.-Arlington, Va.-Alexandria, Va.
Quarter-to-quarter home price change: 4.5%
Year-to-year price changes (May 2010-May 2011): 4.9%
REO saturation: 17.5%
2. St. Louis, Mo.
Quarter-to-quarter home price change: 2.2%
Year-to-year price changes: -11.4%
REO saturation: 35.3%
3. Pittsburgh, Pa.
Quarter-to-quarter home price change: 1.6%
Year-to-year price changes: 0.3%
REO saturation: 10.9%
4. New York, N.Y.-Long Island, N.Y.-No. New Jersey, N.J.
Quarter-to-quarter home price change: 1.5%
Year-to-year price changes: 1.4%
REO saturation: 9.6%
5. Virginia Beach, Va.-Norfolk, Va.-Newport News, Va.
Quarter-to-quarter home price change: 1.4%
Year-to-year price changes: -13.2%
REO saturation: 22.4%
6. Miami-Ft. Lauderdale-Miami Beach, Fla.
Quarter-to-quarter home price change: 0.6%
Year-to-year price changes: -5.2%
REO saturation: 39.6%
7. San Jose-Sunnyvale-Santa Clara, Calif.
Quarter-to-quarter home price change: 0.5%
Year-to-year price changes: -5%
REO saturation: 25%
Tthe lowest-performing market for the fifth straight month was Detroit-Warren-Livonia, Mich., with a 13.2 percent decrease in quarter-over-quarter home price change and a 58 percent REO saturation rate.
Source: “Clear Capital Reports Quarterly Home Price Decline Slows; Signs of Market Stability as Summer Approaches,” Clear Capital (June 9, 2011)
REO saturation rates have improved in the majority of the country’s largest markets. However, many areas are still battling year-over-year price declines. Clear Capital’s index reports that quarter-over-quarter home price declines were 2.3 percent in the latest quarter, which is less than half compared to the previous month.
“The latest market report results through May suggest that home prices are starting to ease back from the heavy declines seen over the winter,” says Alex Villacorta, director of research and analytics at Clear Capital. “We are still far away from the strong demand needed to fully turn things around for the housing market. However, it is clear from the initial spring sales data that prices are softening, suggesting stabilization in the market."
The High Performers
Seven of the top 15 markets posted quarter-over-quarter property price gains in this month's report, compared to none in last month’s, according to Clear Capital. Here are the seven highest-performing major real estate markets, according to the report.
1. Washington, D.C.-Arlington, Va.-Alexandria, Va.
Quarter-to-quarter home price change: 4.5%
Year-to-year price changes (May 2010-May 2011): 4.9%
REO saturation: 17.5%
2. St. Louis, Mo.
Quarter-to-quarter home price change: 2.2%
Year-to-year price changes: -11.4%
REO saturation: 35.3%
3. Pittsburgh, Pa.
Quarter-to-quarter home price change: 1.6%
Year-to-year price changes: 0.3%
REO saturation: 10.9%
4. New York, N.Y.-Long Island, N.Y.-No. New Jersey, N.J.
Quarter-to-quarter home price change: 1.5%
Year-to-year price changes: 1.4%
REO saturation: 9.6%
5. Virginia Beach, Va.-Norfolk, Va.-Newport News, Va.
Quarter-to-quarter home price change: 1.4%
Year-to-year price changes: -13.2%
REO saturation: 22.4%
6. Miami-Ft. Lauderdale-Miami Beach, Fla.
Quarter-to-quarter home price change: 0.6%
Year-to-year price changes: -5.2%
REO saturation: 39.6%
7. San Jose-Sunnyvale-Santa Clara, Calif.
Quarter-to-quarter home price change: 0.5%
Year-to-year price changes: -5%
REO saturation: 25%
Tthe lowest-performing market for the fifth straight month was Detroit-Warren-Livonia, Mich., with a 13.2 percent decrease in quarter-over-quarter home price change and a 58 percent REO saturation rate.
Source: “Clear Capital Reports Quarterly Home Price Decline Slows; Signs of Market Stability as Summer Approaches,” Clear Capital (June 9, 2011)
Thursday, June 9, 2011
Which Social Network Is Rated Most Important?
Nearly 60 percent of survey respondents say that it is important to have a LinkedIn account--more than any other social network, according to “S-Net (The Impact of Social Media),” a report from ROI Research Inc. of nearly 3,000 active social networkers.
And those surveyed say they use LinkedIn a lot, too. With those who have an active LinkedIn account, half of those surveyed say they visit the site at least weekly, and 20 percent visit the site at least daily.
“Factors including LinkedIn’s recent IPO announcement, the May uptick in national unemployment, and signs of a slowed market certainly contribute to LinkedIn’s attractiveness among social networkers,” says Daina Middleton, CEO of Performics, which released the survey results.
The survey also found:
•Social networkers listen to what their peers have to say about brands and businesses they like--or don’t. Sixty percent say they are at least somewhat likely to take action when a friend posts something about a product/service, company, or brand. Slightly more than half agree that others can influence business decisions made by companies and brands by sharing their opinions on social networking sites.
•Fifty-three percent frequently or occasionally use social networking sites to give feedback about a brand or business.
•The public is divided on using social networks to give and get advice about other companies. Fifty percent of respondents say they use social networks to give advice and another 50 percent say they use it to get advice about services and companies.
Source: “New Social Media Study: Nearly 60 Percent Say LinkedIn Is Most Important Social Network Account,” RISMedia (June 9, 2011)
And those surveyed say they use LinkedIn a lot, too. With those who have an active LinkedIn account, half of those surveyed say they visit the site at least weekly, and 20 percent visit the site at least daily.
“Factors including LinkedIn’s recent IPO announcement, the May uptick in national unemployment, and signs of a slowed market certainly contribute to LinkedIn’s attractiveness among social networkers,” says Daina Middleton, CEO of Performics, which released the survey results.
The survey also found:
•Social networkers listen to what their peers have to say about brands and businesses they like--or don’t. Sixty percent say they are at least somewhat likely to take action when a friend posts something about a product/service, company, or brand. Slightly more than half agree that others can influence business decisions made by companies and brands by sharing their opinions on social networking sites.
•Fifty-three percent frequently or occasionally use social networking sites to give feedback about a brand or business.
•The public is divided on using social networks to give and get advice about other companies. Fifty percent of respondents say they use social networks to give advice and another 50 percent say they use it to get advice about services and companies.
Source: “New Social Media Study: Nearly 60 Percent Say LinkedIn Is Most Important Social Network Account,” RISMedia (June 9, 2011)
Wednesday, June 8, 2011
Housing Shortage Is Likely Coming, Report Says
Within the next decade, 16 million new housing units will be needed to meet population growth and shifting demands, according to Harvard University’s Joint Center for Housing Studies in its latest annual "State of the Nation's Housing" report.
That means household growth, which has dropped drastically in recent years, will need to greatly reverse its trend to meet the forecasted spike in demand. From 2007-2010, household growth averaged about 500,000 per year--less than half the 1.2 million annual pace averaged prior from 2000-2007.
To absorb the current rate of foreclosed and distressed homes plaguing most markets, a more normal rate of household formation is critical, according to the report. However, household growth partially has stalled as young adults have delayed home ownership and immigration has slowed.
As such, in recent years, builders have drastically cut production of new homes.
"With inventories of new homes at historic lows, a turnaround in demand could quickly result in tighter markets," the report notes. "Over the longer term, the number of younger households is set to rise sharply, supporting growth in the population that fuels growth in both new renters and first-time buyers. The path of the economy and evolution of the mortgage market will determine when and if this increased demand materializes."
The report predicts a need for greater housing units for several reasons. For example, the report projects demand for 1 million new homes a year is needed to meet population growth in the coming decade. The report also predicts a surge in smaller homes, estimating that 3.8 million baby boomers will be looking to downsize their homes within the next decade. Also in adding to the increase in housing units needed, Immigration growth, the need to replace existing homes, and demand for second homes will contribute to rising demand, the report notes. Therefore, researchers conclude at least 16 million new housing units will be needed over the next decade.
Source: “Harvard: Real Estate Recovery Hinges on Return of Demand,” Inman News (June 6, 2011)
That means household growth, which has dropped drastically in recent years, will need to greatly reverse its trend to meet the forecasted spike in demand. From 2007-2010, household growth averaged about 500,000 per year--less than half the 1.2 million annual pace averaged prior from 2000-2007.
To absorb the current rate of foreclosed and distressed homes plaguing most markets, a more normal rate of household formation is critical, according to the report. However, household growth partially has stalled as young adults have delayed home ownership and immigration has slowed.
As such, in recent years, builders have drastically cut production of new homes.
"With inventories of new homes at historic lows, a turnaround in demand could quickly result in tighter markets," the report notes. "Over the longer term, the number of younger households is set to rise sharply, supporting growth in the population that fuels growth in both new renters and first-time buyers. The path of the economy and evolution of the mortgage market will determine when and if this increased demand materializes."
The report predicts a need for greater housing units for several reasons. For example, the report projects demand for 1 million new homes a year is needed to meet population growth in the coming decade. The report also predicts a surge in smaller homes, estimating that 3.8 million baby boomers will be looking to downsize their homes within the next decade. Also in adding to the increase in housing units needed, Immigration growth, the need to replace existing homes, and demand for second homes will contribute to rising demand, the report notes. Therefore, researchers conclude at least 16 million new housing units will be needed over the next decade.
Source: “Harvard: Real Estate Recovery Hinges on Return of Demand,” Inman News (June 6, 2011)
Which Housing Values Have Suffered the Most?
Lower priced homes have been harder hit than higher priced homes in the sluggish housing market, according to a study by Harvard University’s Joint Center for Housing Studies.
High-priced homes have lost 38 percent of their value since values peaked in 2006. Lower priced homes, on the other hand, have dropped 63 percent since peaking in 2007.
Why such a difference? Daniel McCue, senior research analyst for the Joint Center, says it’s because lower priced homes appreciated much more before reaching its peak and therefore had further to drop than higher priced homes.
For example, in San Francisco, lower end homes nearly tripled in price before peaking. High-end homes, meanwhile, did not even double before reaching its peak. McCue attributes this partially to lenders making more loans available to lower income households during the housing peak days, which increased demand and prices.
Foreclosures have also plagued low-income areas, more so than higher income areas, according to the study. Foreclosures in low-income neighborhoods are more than double that of high-income neighborhoods, according to the Joint Center for Housing Studies.
Prices range drastically among major housing market so what’s considered “high-priced” and “low-priced” in the study varies greatly from market to market. For example, in Atlanta low-tier homes were considered under $122,533 and high-tier homes above $221,679; in San Francisco, low-tier homes were considered $312,546 and high-tier homes over $573,577.
High-priced homes have lost 38 percent of their value since values peaked in 2006. Lower priced homes, on the other hand, have dropped 63 percent since peaking in 2007.
Why such a difference? Daniel McCue, senior research analyst for the Joint Center, says it’s because lower priced homes appreciated much more before reaching its peak and therefore had further to drop than higher priced homes.
For example, in San Francisco, lower end homes nearly tripled in price before peaking. High-end homes, meanwhile, did not even double before reaching its peak. McCue attributes this partially to lenders making more loans available to lower income households during the housing peak days, which increased demand and prices.
Foreclosures have also plagued low-income areas, more so than higher income areas, according to the study. Foreclosures in low-income neighborhoods are more than double that of high-income neighborhoods, according to the Joint Center for Housing Studies.
Prices range drastically among major housing market so what’s considered “high-priced” and “low-priced” in the study varies greatly from market to market. For example, in Atlanta low-tier homes were considered under $122,533 and high-tier homes above $221,679; in San Francisco, low-tier homes were considered $312,546 and high-tier homes over $573,577.
Monday, June 6, 2011
Suburbs Being Reshaped by Lack of Kids
Children playing outside is a natural picture of the American suburban landscape. But in 2011, people are wondering — where did all the kids go?
William Frey, demographer at the Brookings Institution, calls children in the suburbs an “endangered species.”
The dropping children population is reshaping the look of suburbs, experts say. As more women delay having children and more families have fewer children, the childhood population under the age of 18 has dropped in 95 percent of U.S. counties since 2000, according to an analysis by USA Today of 2010 Census data. Despite a 9.7 percent growth in the overall population, the number of households with children under age 18 has remained at 38 million since 2000 — that’s fewer than the number of households with dogs (which stands at 43 million).
"All of a sudden, there may technically be no children in the neighborhood," says James Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy, Rutgers University.
So what’s this all mean for suburbia? In some areas of the country, schools have closed from declining enrollments, some child-oriented businesses are closing, and housing needs are shifting.
"Lots of singles, lots of elderly, fewer kids — what this does really is free people in their location decisions to a certain extent if they're not bound by school and safety aspects," says Armando Carbonell, chair of the department of planning and urban form at the Lincoln Institute of Land Policy. "It can mean growth in the central city where schools might have been a concern. More households will be able to locate to places without the attributes of the suburbs."
William Frey, demographer at the Brookings Institution, calls children in the suburbs an “endangered species.”
The dropping children population is reshaping the look of suburbs, experts say. As more women delay having children and more families have fewer children, the childhood population under the age of 18 has dropped in 95 percent of U.S. counties since 2000, according to an analysis by USA Today of 2010 Census data. Despite a 9.7 percent growth in the overall population, the number of households with children under age 18 has remained at 38 million since 2000 — that’s fewer than the number of households with dogs (which stands at 43 million).
"All of a sudden, there may technically be no children in the neighborhood," says James Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy, Rutgers University.
So what’s this all mean for suburbia? In some areas of the country, schools have closed from declining enrollments, some child-oriented businesses are closing, and housing needs are shifting.
"Lots of singles, lots of elderly, fewer kids — what this does really is free people in their location decisions to a certain extent if they're not bound by school and safety aspects," says Armando Carbonell, chair of the department of planning and urban form at the Lincoln Institute of Land Policy. "It can mean growth in the central city where schools might have been a concern. More households will be able to locate to places without the attributes of the suburbs."
What's That '+1 Button' All Over the Internet?
Google recently launched the “+1 button” and you’ll spot it on a range of Web sites from YouTube and Blogger to the Washington Post and many others. Google added the +1 button to its search engine three months ago but is now making the “+1 button” available to other Web sites to add.
So what is it?
The button is similar to Facebook’s Like button. You click the +1 button when you think “this is pretty cool” or when you want to say “you should check this out” when viewing Web sites, according to Google.
The button gives you the ability to vote on Web sites and advertisements (the button can appear next to the headline of search ads), and the information is then used to tailor search results for you and your contacts.
For example, "with a single click you can recommend that raincoat, news article, or favorite sci-fi movie to friends, contacts, and the rest of the world,” writes Google software engineer Evan Gilbert in a blog post. “The next time your connections search, they could see your +1's directly in their search results, helping them find your recommendations when they're most useful."
You’ll need to be signed into your Google Account to see when friends and contacts have endorsed certain Web pages using the +1 button.
Google says it hopes the added button will help improve click-through rates for content and advertising and is encouraging Web site owners to add the button to their Web pages to get their search results to stand out more.
So what is it?
The button is similar to Facebook’s Like button. You click the +1 button when you think “this is pretty cool” or when you want to say “you should check this out” when viewing Web sites, according to Google.
The button gives you the ability to vote on Web sites and advertisements (the button can appear next to the headline of search ads), and the information is then used to tailor search results for you and your contacts.
For example, "with a single click you can recommend that raincoat, news article, or favorite sci-fi movie to friends, contacts, and the rest of the world,” writes Google software engineer Evan Gilbert in a blog post. “The next time your connections search, they could see your +1's directly in their search results, helping them find your recommendations when they're most useful."
You’ll need to be signed into your Google Account to see when friends and contacts have endorsed certain Web pages using the +1 button.
Google says it hopes the added button will help improve click-through rates for content and advertising and is encouraging Web site owners to add the button to their Web pages to get their search results to stand out more.
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