REO Saturation Rate Falls for First Time in 2012: Clear Capital
Via Esther Cho, DSNew.com
While home prices remained little changed, the REO saturation rate fell for the first time this year, according to Clear Capital’s Home Data Index Market report, which included data to the end of August.
The REO saturation rate, which calculates the portion of REO sales relative to total sales, slipped 6.4 percentage points from the previous quarter to 20.5 percent. The drop is the lowest the REO saturation rate has been since April 2008. At its peak, the REO saturation rate was 40.2 percent in the first quarter of 2009.
Although the market is seeing a decrease in the volume of REO sales, fair market sale volumes are increasing, leading to more activity in the owner-occupied sector, the real estate data provider explained.
According to the report, the first phase of the recovery was strengthened by REO-only price trends, but August gains were due largely to strengthening in the fair market segment as investment purchases slow down.
“Sustained growth in the fair market segment could build a foundation for Phase Two of the recovery,” Clear Capital stated.
Home prices, which include sales prices for REOs, increased 1.9 percent on a quarterly basis in August, little changed from the 2 percent quarterly gain in July. Year-over-year, home prices rose 2.9 percent.
All four regions saw price gains, with the West leading growth with a 3.8 percent quarterly increase and 7.7 percent yearly rise. Prices in the Midwest rose for the first time since April 2010 on a yearly basis, edging up 0.5 percent; quarter-over-quarter, prices were up 2 percent.
Prices increased quarterly and yearly in the South by 1.5 percent and 2.5 percent, respectively. The Northeast saw respective quarterly and yearly increases of 0.5 percent and 1.3 percent.
Quarter-over-quarter, two metros posted double-digit gains: Milwaukee, Wisconsin (12.5 percent) and Seattle (10.4 percent).
Despite having an REO saturation of 48.8 percent, Detroit managed to see a 5.9 percent price gain, but still experienced a yearly decline of 1.7 percent.
Dayton and Houston were the worst performing metros on a quarterly basis, each seeing price declines of 4.9 percent.
July Home Prices See Biggest Yearly Increase Since 2006: CoreLogic
Via Tory Barringer, DSNews.com
Home prices in July saw the biggest nationwide year-over-year increase since August 2006, CoreLogic reported Tuesday.
According to the company’s July Home Price Index (HPI), home prices-including distressed sales-increased year-over-year by 3.8 percent in July. On a month-over-month basis, prices increased 1.3 percent from June.
July marked the fifth consecutive increase in home prices on both a monthly and yearly basis.
Of the top 100 Core Based Statistical Areas (CBSAs), only 23 showed year-over-year declines, four fewer than June.
Removing distressed sales, home prices increased year-over-year by 4.3 percent compared to July 2011 and 1.7 percent relative to June 2012-the fifth consecutive month-over-month decrease.
CoreLogic also reported that its Pending HPI forecasts more monthly and yearly increases ahead. According to the report, prices (including distressed sales) are expected to rise at least 0.6 percent from July to August, putting August on track for a 4.6 percent year-over-year increase. Excluding distressed sales, CoreLogic anticipates price gains of 1.3 percent month-over-month and 6.0 percent year-over-year.
Mark Fleming, chief economist for CoreLogic, said the positive growth will likely lead to price gains for the full year.
“The housing market continues its positive trajectory with significant price gains in July and our expectation of a further increase in August,” Fleming said. “While the pace of growth is moderating as we transition to the off-season for home buying, we expect a positive gain in price levels for the full year.”
Company president and CEO Anand Nallathambi agreed.
“It’s been six years since the housing market last experienced the gains that we saw in July, with indications the summer will finish up on a strong note,” Nallathambi said. “Although we expect some slowing in price gains over the balance of 2012, we are clearly seeing the light at the end of a very long tunnel.”
With Low Supply, Asking Prices Rise for Fifth Straight Month
Via The Wall Street Journal
By Nick Timiraos
Home sellers are staying on the sidelines this summer, which is helping to firm up prices in more U.S. housing markets.
The number of homes listed for sale rose by just 0.5% in June from May and was down 19.4% from one year ago, according to Realtor.com. Slightly less than 1.89 million homes were listed for sale in June, which is lower than at any time in 2011 or 2010.
Listings are down in part because banks have been slower to move foreclosed properties onto the market and investors are buying up more of them at courthouse auction sales and renting them out. Meanwhile, traditional sellers are frequently unwilling to list their homes amid signs that prices are turning around in more markets. And in some of the markets with the biggest inventory drops, many owe more than their homes are worth and may be unable to sell without taking a big loss.
Compared with one year ago, listings were down in all but two of the 146 markets tracked by Realtor.com. Inventory has fallen by nearly 58% in Oakland, Calif.; by 49% in Fresno, Calif.; by 47% in Bakersfield, Calif.; and by 43% in Seattle.
Big inventory drops are pushing up prices. Median asking prices rose for the fifth straight month and were 2.7% higher than one year ago, though they were up by just 0.05% for the month. By contrast, last year’s disappointing spring sales season prompted sellers to cut prices by 1% in June from May.
About two thirds of all markets saw median prices increase in June from one year ago, and about one third of all markets saw median prices rise by at least 5%. The biggest gainers were Phoenix, San Francisco, and Santa Barbara, Calif. Prices declined in just 19 markets, with the biggest declines reported in Allentown, Pa.; Peoria, Ill.; and Toledo, Ohio.
Another sign of the improvement this spring: The median age of inventory listed for sale fell by nearly 10% from one year ago. That means sellers are finding buyers more quickly for their homes.