Daily Archives: July 31, 2015

Underwater borrowers increased for two straight quarters | North Salem Real Estate

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Home prices are still rising, and the economy is improving, but the ills of the housing crash are far from cured: 7.4 million borrowers were still “seriously” underwater on their mortgages at the end of June, according to RealtyTrac.

The real estate information company defines that as the loan amount being at least 25 percent higher than the property’s estimated market value.

Over 13 percent of all properties with a mortgage are in this predicament, and that is actually a slight increase from the first quarter of this year.

House underwater

Cherezoff | Getty Images

How can this be when home prices are still rising? It depends on how you read those prices. The National Association of Realtors reported that the median price of a home sold in June reached its highest level in history. The median, however, means half the homes sold for more and half sold for less, so if higher-priced homes are selling more, which they are, that skews the median higher. S&P/Case Shiller, which measures repeat sales of similarly priced homes, shows price gains have been shrinking in general but are still higher than a year ago.

Still, another report from Weiss Residential Research digs deeper in local areas and finds that nearly half the homes in the nation’s top markets are actually losing value.

“Don’t be fooled by averages,” said Allan Weiss, founder and CEO of Weiss Residential Research. “All of the largest metro indexes are rising more slowly than they were a year ago though market reports give the impression that values are rising across the board. However, people don’t own the entire market, they own one house.”

Larger, more expensive homes, are sitting on the market longer and seeing more price cuts than smaller homes with two bedrooms or less, according to Weiss. That is likely because there is so much less supply on the lower end of the market than on the high end.

Home prices are most often measured in terms of sale price, but RealtyTrac’s numbers are based on estimates of home all home values, not just the ones for sale.

 

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http://www.cnbc.com/2015/07/30/more-homeowners-drowning-in-debt.html

Smart Watering Tips for Every Gardener | Armonk Real Estate

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Tired of watering all the time, while praying for rain and smaller water bills? If your garden is planned, prepared, planted and watered properly, you can have a beautiful yard and save thousands in the long run.

Here’s how to get the most from your water this summer and remember if you have any water damage or need a cleaning flood, don’t think twice about calling water restoration Austin Tx, expect them fast and easy.

Start from the ground up

Plan your preemptive strike against drought. Get to know your yard, and note which areas tend to dry out quickly or develop puddles after it rains. Places that are especially prone to drying out include the soil under large and thirsty trees, or under the eaves of your roof.

Your soil type plays a big part in how often you’ll need to water. Loose, sandy soil holds very little moisture, so much of the water you dump on it slips away and goes to waste.

Treat runoff as if it’s money — don’t let it slip through your fingers.

Treat runoff as if it’s money — don’t let it slip through your fingers.

The soil you’re after is the rich, dark crumbly stuff called loam. Adding topsoil (good), composted manure (better) or compost (best) to your soil makes it loamy and performs some pretty amazing feats. It encourages beneficial organisms, improves the soil structure and texture, aerates the soil and helps it retain moisture.

If your garden is too big to amend with better dirt, consider growing vegetables in a raised bed, where you can easily focus your watering efforts and amend the soil without breaking the bank.

Choose the right plants

When it comes right down to it, you have to look at your water bill and ask yourself: Is that tomato vine really worth the absurd amount of money you spend each month?

If growing your own food is what motivates you to shell out for those big bills, consider raising cowpeas, hot peppers, okra or other edibles that require less water. Choose drought-tolerant plants whenever possible, unless you’re planting in a space that rarely dries out.

Texas sage is just one of the many plants that thrives without irrigation.

Texas sage is just one of the many plants that thrives without irrigation.

If you simply have to grow thirsty plants, group them together so you can easily water them without wasting a drop. You might even choose to submerge a perforated pond liner so water has a better chance to collect.

Native plants are often, but not always, good choices for a drought-tolerant landscape since they’re well adapted to the unique conditions of your region. Succulents and cacti are well equipped to handle drought because they store moisture in their leaves and stems.

If you have a lawn that requires regular irrigation, save money by replacing it with a mass of groundcovers like wooly thyme or liriope.

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http://www.zillow.com/blog/smart-watering-tips-180729/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+ZillowBlog+%28Zillow+Blog%29

Home Prices are now only 6.5 Percent below Peak | Cross River Real Estate

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In terms of national averages, the recovery has raised prices within a hair of their highest peaks reached during the boom nearly ten years ago, but on a market-by-market basis, median prices in fewer than half of the nation’s larger markets have fully rebounded from the housing crash.

At $251,000, US home prices are now just 6.5 percent off June 2006 peak of $268,000, and up over 25 percent from the market”s bottom, according to May data released today by Black Knight Financial Services.  Black Knight reported that its HPI index rose 1.1 percent in May over April and 5.1 percent over May 2014.

However, on a market-by-market basis, only 47 percent of the nation’s top 300 markets have met or exceeded their peaks in 2007. Homes.com, which tracks price rebounds by market, reported that in May 139 of the nation’s 300 largest markets had achieved full price recovery.

Homes.com reported that:

  • Dallas-Fort Worth-Arlington, TX (115.17% rebound percentage), Austin-Round Rock, TX (113.15%), and Denver-Aurora-Lakewood, CO (113.04%) led the nation’s top 100 markets  in rebound percentage in May.  In fact, nine of the top ten leading rebound markets were in the West.
  • Three of the nation’s beste online casino largest markets had at least a 7% increase yearly while seven markets had an annual percentage increase of at least 6%. Five markets are from California which is the most from a single state.
  • The West was home to nine of the top ten markets achieving the greatest year over year price appreciation in May.

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http://www.realestateeconomywatch.com/2015/07/home-prices-only-6-5-percent-below-peak/

Sellers are Pocketing their Biggest Profits since the Peak | Waccabuc Real Estate

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Single family home and condo sellers in the first half of 2015 sold for more above their purchase price in the first half of this year than any time since prices were at the peak of the boom.

Homes sold for an average of 13 percent above their original purchase prices, the highest average percentage in home price gains realized by sellers since 2007, when it was 30 percent, according to RealtyTrac.

Major markets where sellers in the first half of 2015 realized the biggest average home price gains were San Jose, California (41 percent); San Francisco (37 percent); Denver (29 percent); Portland (25 percent); Los Angeles (25 percent); and Seattle (20 percent).

“Sales activity has been strong this year and the metrics point to a solid foundation for steady growth. Growing boomerang buyer interest and first time buyer participation combined with smarter lending requirements are fostering a sustainable market,” said Mark Hughes, chief operating officer with First Team Real Estate, covering the Southern California market. “Lower investor, cash, and distressed activity are three reliable indicators that peripheral buying and selling activity is settling back down and the traditional owner occupied residential market is back on solid ground and healthy.”

There were six major markets where sellers in the first half of 2015 on average sold below their original purchase price: Chicago (7 percent below); Cleveland (7 percent below); Hartford, Connecticut (3 percent below); Jacksonville, Florida (2 percent below); St. Louis (1 percent below); and Orlando (1 percent below).

Zillow and Case-Shiller both reported strong appreciation in their first quarter reports, Zillow at 5.2 percent year over year for its 20-city composite and Case-Shiller at 5.0 percent.

“Home price appreciation has settled into a nice groove over the past few months, and ought to remain there going forward. This is still more proof that the for-sale market, while certainly not yet fully healed, is continuing to return to normal,” said Zillow Chief Economist Dr. Stan Humphries when the first quarter results were released May 26. “But relative strength in one indicator shouldn’t be confused with full recovery. Inventory is very low and the housing market is still very much out of balance, particularly on the rental side, where rapid rent increases and tepid wage gains are contributing to a deepening rental affordability crisis. This will make it more difficult for current renters to save up and make the transition into homeownership, particularly for younger would-be buyers the market so sorely lacks and needs.”

Single family homes and condos in June sold for an average of $291,450 compared to an average $287,634 estimated market value for those same homes at the time of sale – a 101 percent price-to-value ratio. June was the first time since July 2013 that the national price-to-value ratio exceeded 100 percent.

Major metro areas with the highest price-to-value ratios — where homes sold the most above estimated market value — were San Francisco (106 percent); Hartford, Connecticut (105 percent); Baltimore (105 percent); Rochester, New York (104 percent); and Providence, Rhode Island (103 percent).

 

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http://www.realestateeconomywatch.com/2015/07/sellers-are-pocketing-the-biggest-profits-since-the-peak/

Nearly Half of Homes in Top Markets are Losing Value | South Salem Real Estate

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Despite market reports of strong median home price appreciation this spring, gains are very uneven and nearly half of homes in ten of the nation’s largest markets actually lost value in May. On a house-by-house basis, about one-third fewer homes in the largest markets gained value during the heart of the spring buying season this year compared to last, according to Weiss Residential Research’s Indexes.

Only 54 percent of homes in the markets appreciated during May compared to 81 percent in May 2014, a sign that the downward trend may continue in the coming months.  In Denver, the hottest market in the nation, 84 percent of houses appreciated in May compared to 95 percent last year.  In the Washington, DC market, weakest of the top ten, only 34 percent of houses gained value in May compared to 57 percent in May 2014.

“Don’t be fooled by averages,” said Allan Weiss, founder and CEO of Weiss Residential Research.  ‘All of the largest metro indexes are rising more slowly than they were a year ago though market reports give the impression that values are rising across the board.  However people don’t own the entire market, they own one house.”

Larger homes are having a harder time than smaller homes with two bedrooms or less.  In Denver, larger homes appreciated 5.8 percent on a year over year basis in May compared to smaller homes.  In Washington, DC, larger homes actually fell -0.7 percent.  Smaller homes declined less, -0.2 percent year over year.

 

Same Pattern as the Housing Crash

In a metro like DC with a median price increase of 1.2 percent in the past year according to Case-Shiller, 60 percent of the houses are rising and the other 40 percent are stagnant or falling.  Since the ones that are appreciating outnumber the ones falling the average is a low positive number, Weiss said.

“The same pattern occurred before the great housing meltdown ten years ago.  The percent of houses rising in DC declined from 100 percent to 60 percent while the metro index showed a slowdown but did not go negative.  Once the population of houses that had been rising fell below 50 percent, the index began its descent,” Weiss said.

 

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http://www.realestateeconomywatch.com/2015/07/nearly-half-of-homes-in-top-markets-are-losing-value/