Today I talk about mortgage delinquencies, the latest news about home prices from FNC and house prices in Upstate South Carolina, household formation and immigration and much more!
Fewer Delinquent Mortgages
Some good news for the economy and real estate is that LPS is reporting fewer delinquent mortgages. How much of an improvement? 8.8% fewer delinquent mortgages in March 2012 compared to March 2011. LPS said the delinquency rate (loans 30 or more days past due, but not in foreclosure) is at the lowest level since back in August 2008. Will this mean fewer foreclosures in the coming year?
It would be nice to see fewer distressed sales considering that 29% of home sales in March 2012 were distressed…
FNC Home Price Index Declines
While FNC is reporting a 3% decrease in non-distressed home prices if you compare February 2012 to February 2011. Non-distressed means these homes were NOT foreclosures or short sales. And of course they are talking about the entire US and not just house prices in Upstate SC.
Because if we look at the data from the WUAR MLS for home prices in February 2012 we will see the median price has risen 10.4% compared to February 2011. Not only that, but the median home price for March 2012 was up 11.3% compared to March 2011 according to the March 2012 Market Indicators.
Does that mean that suddenly home prices in Upstate South Carolina have really started to increase?
The median price from the Market Reports on this website is for many different areas and many different types of homes. If you have questions about a specific home, then you have to look at comparable homes that have recently sold or that are for sale today. Heck you even need to look at comparable homes that have expired or been withdrawn. Whatever you do, please do not rely upon some website such as Zillow to give you an accurate value for a home in Upstate South Carolina.
Household Formation and Immigration
Recovery in housing is not going to happen without more households. Sure I talk all the time about consumer confidence or jobs being essential. And thankfully consumer confidence held steady in April.
But we also have to see an increase in house formation to start healing our hurting housing market and economy. Which is why this quote from an article I just read is scary:
The largest wave of immigration in history from a single country to the United States has come to a standstill. After four decades that brought 12 million current immigrants—most of whom came illegally—the net migration flow from Mexico to the United States has stopped and may have reversed
You may not realize that people immigrating to the US means more people buying homes. But every time a family moves to the US, then that is a household that is going to need somewhere to live. Sure they might rent. But most people immigrate to the US because they want the American Dream.
And part of the American Dream is owning a home…
More Real Estate News & Links
Since we will have to admit that some homeowners did contribute to the problems in real estate, maybe we need to look for new and sustainable methods to ensure home ownership is possible for all income levels. Please read A Blueprint for Responsible Homeownership
It is really hard to say I am a REALTOR® with pride since they are constantly getting busted for fibbing: The National Association of Realtors misrepresents how many people use the Mortgage Interest Deduction
It is usually called buy and hold: Housing downturn spurs a boom in foreclosure-to-rental conversions. People are always going to need someplace to live. Owning rentals can be profitable. It can also be a headache. But it is a great way to build wealth and there are plenty of opportunities in today’s market…