Entertainment Magazine: Real Estate Market
U.S. real estate prices remain stable
Data released by Standard & Poor's for its S&P/Case-Shiller(1) Home Price Indices, the leading measure of U.S. home prices, show that the annual growth rates in 16 of the 20 MSAs and the 10- and 20-City Composites slowed in July compared to June 2010.
The 10-City Composite is up 4.1% and the 20-City Composite is up 3.2% from where they were in July 2009. For June they were reported as +5.0% and +4.2%, respectively. Although home prices increased in most markets in July versus June, 15 MSAs and both Composites saw these monthly rates moderate in July.
The annual returns of the 10-City and 20-City Composite Home Price Indices show increases of 4.1% and 3.2%, respectively, in July 2010 compared to the same month in 2009. With July's data, 10 of the 20 MSAs are reporting negative annual growth rates. With June's report only five cities were negative on an annual basis Atlanta, Cleveland, Dallas, Denver and Portland all fell back to reporting declining annual growth rates. The three cities in California, Los Angeles, San Diego and San Francisco, showed the strongest annual growth rates of +7.5%, +9.3% and +11.2%, respectively; but these too are weaker than June's print.
"Home prices crept forward in July. Ten of the 20 cities saw year-over-year gains and only one Las Vegas made a new bottom, as the impact of the first time home buyer program continued to fade away," says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. "The year-over-year growth rates for 16 of the cities and both Composites weakened in July compared to June. While we could still see some residual support from the homebuyers' tax credit, which covers purchases closing through September 30th, anyone looking for home price to return to the lofty 2005-2006 might be disappointed. Judging from the recent behavior of the housing market, stable prices seem more likely.
"In the monthly data, 12 of the 20 MSAs and the two Composites were up in July over June; but the monthly rates also seem to be weakening. The next few months may give us an idea of the true strength of the housing market, as the temporary economic stimuli will have ended. Housing starts, sales and inventory data reported for August do not show signs of a robust market, and foreclosures continue."
As of July 2010, average home prices across the United States are back to the levels where they were in late 2003. Measured from June/July 2006 through July 2010, the peak-to-current declines for the 10-City Composite and 20-City Composite are -28.3% and -27.9%, respectively. The improvement from their April 2009 trough is +7.9% and +6.9%, respectively.
In July, continuing its downward trend in all but two of the past 46 months, Las Vegas posted another index low as measured by the current housing cycle, when it peaked in August 2006. Peak-to-trough, that market is down 57.0%. Charlotte, Dallas, Denver, Phoenix, Portland and Tampa also saw prices decline in July.
Twelve of the 20 MSAs and both Composites showed month-over-month increases in July. The 10- and 20-City Composites were up 0.8% and 0.6%, respectively.
San Diego posted its 15th consecutive monthly increase. Chicago, Detroit, New York and Washington DC posted monthly increases of greater than 1%.
The table below summarizes the results for July 2010. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data.
More than 23 years of history for these data series is available, and can be accessed in full by going to www.homeprice.standardandpoors.com.
Housing foreclosures continue to lead market into 2010 or 2011
Foreclosures are still the fastest growing sector of the real estate market. Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000 and helping to boost the second quarter total to the highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005.
RealtyTrac® (www.RealtyTrac.com), the leading online marketplace for foreclosure properties, released its Midyear 2009 U.S. Foreclosure Market Report.
Their report shows a total of 1,905,723 foreclosure filings default notices, auction sale notices and bank repossessions were reported on 1,528,364 U.S. properties in the first six months of 2009, a 9 percent increase in total properties from the previous six months and a nearly 15 percent increase in total properties from the first six months of 2008. The report also shows that 1.19 percent of all U.S. housing units (one in 84) received at least one foreclosure filing in the first half of the year.
Mixed Results for Existing-Home Sales; Mortgages Improving
Single-family existing-home sales were stable in October while the condo sector was down, according to the National Association of Realtors. Lingering effects of the credit crunch were a drag on sales but the mortgage situation has improved significantly.
Total existing-home sales -- including single-family, townhomes, condominiums and co-ops -- eased by 1.2 percent to a seasonally adjusted annual rate of 4.97 million units in October from a downwardly revised level of 5.03 million in September, and are 20.7 percent below the 6.27 million-unit pace in September 2006. Continue reading...
Mortgage problems will continue to hamper pending home sales
Pending sales of existing- homes activity will be dampened near-term as mortgage disruptions continue to impact the housing market, according to the National Association of Realtors( R). The Pending Home Sales Index*, a forward-looking indicator, fell 6.5 percent to a reading of 85.5 from an upwardly revised 91.4 in July, based on contracts signed in August. It was 21.5 percent below the August 2006 index of 108.9. Continue reading...
Tucson, AZ real estate market shows moderation
The whole mortgage mess is turning into a real made for TV political extravaganza. And, with the elections a year away many things can happen. The government wasn't going to bail out anyone and inflation was the big concern. Now, the politician's are tripping over each other with ways to solve the financial problems.
The local real estate market from my point of view is still moving, albeit slow. I have written a few deals recently and the sellers seem to not want to face reality and lower their price, or they don't watch the news. I spoke to a couple of appraisers and they agreed that this market is just as hard as couple of years ago when the market was on a rampage.
When the Tucson, Arizona real estate market was red hot 25-40% of the sales were to investors. Now the market is slowing down and my guess is the majority of investors are out of the market. It's back to a real market where buyers are buying homes to live in and enjoy. Continue reading...
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