Talking about the latest report from the Federal Reserve about real estate & the economy and falling foreclosure numbers…
Fed Beige Book Shows Improvement in Real Estate
Last week the Federal Reserve released their latest Beige Book and the Fed is saying that real estate has seen widespread improvement since their last report.The highlights:
- Existing home sales improved
- Prices were steady or rising
- New home sales & construction was mostly improved
The bad news is that credit standards are still tough but the good news is they also reported “steady to declining delinquency rates”. This is for all types of loans not just mortgages. Despite the controversy about the recent BLS unemployment numbers, the Fed said that employment conditions were unchanged since the last report. As I have been saying for several years, we must see serious improvement in the employment numbers if we are ever going to see real estate recover completely.
Which may be slowly beginning to happen since the Fed reported economic activity generally expanded modestly since the last report. More economic activity should translate to more jobs. If you are looking to buy a home, remember that home prices have started to climb and every time the banks hear good news they raise interest rates. If you are selling, hang in there because I think better days are ahead and the worst may be behind us.
Foreclosure Activity Drops to 5 Year Low
Yet more good news for real estate and the economy is that RealtyTrac is reporting that foreclosure activity for the US has dropped to a 5 year low. Sadly they are talking about the entire US because they are reporting that foreclosure activity increased 16% in South Carolina on a year-over-year basis. RealtyTrac is saying that 1 in 215 homes in South Carolina has a foreclosure filing which puts us in the top 10.
Last But Not Least…
According to the jerk that is CEO of JPMorgan Chase: Housing Has Turned the Corner