Several reports on home prices increasing & news about rising mortgage delinquencies. But what is happening in Anderson SC and what does this mean for you?
US Home Prices Up 2nd Quarter 2012
NAR just released the latest quarterly report on US home prices. NAR said that the median home price rose in 110 out of 147 metropolitan statistical areas in the second quarter of 2012 compared to the second quarter of 2011. Which is great news and Lawrence Yun, NAR’s chief economist, said:
It’s most encouraging to see a growing number of metro areas with rising median prices, which is improving the equity position of existing homeowners. Inventory has been trending down and home builders are still under-producing in relation to growing demand. Some of the improvement in prices is due to a smaller share of sales in low price ranges where inventory is tight.
But we have to remember that the NAR is always going to find a silver lining in any housing or real estate news.NAR says that tightened inventory is leading to higher prices. Not really true in our area since there is so much inventory BUT if you are looking in certain price ranges, it is very true.
If you are looking to buy a home over $500,000 in Upstate SC there are plenty of homes to choose from. If you are looking for a nice home under $100,000, then you know it can be tough. Not impossible but tough. Without a good buyers agent you are probably going to get frustrated quickly.
Also, NAR is talking about US home prices. Both buyers and sellers must look locally to really know what is going on. Such as in Upstate South Carolina:
Wow! The median price is the same for both time periods. The Average DOM, or days on market is also down. Days on market is just a fancy way of selling how long it took to sell a home. For buyers, this statistic combined with the recent uptick in mortgage rates, should be all the motivation you need to get serious about making an offer. For anyone selling a home, this should give you some hope that maybe, just maybe, the worst is behind us.
Another Report on Home Prices Going Up
FISERV just released their latest report on US home prices. They are reporting that home prices increased in 40% of the markets they track. The bad news is that US home prices are down 1.9% on a year over year basis and are expected to decrease 1% in the next 12 months. However, FISERV is expecting US home prices to increase 5% between the first quarter of 2013 and the first quarter of 2014. Any money saved with a 1% reduction in price may not be saved if mortgage rates keep increasing!
Of course, Upstate SC is not one of those areas but this is yet another positive sign for the economy and real estate. This is something else for sellers to be thankful for and for buyers to be aware of.
Is Foreclosure Activity Really Down?
RealtyTrac just reported that the US foreclosure filings dropped 3% in July 2012 from June 2012. It is also down 10% since July 2011. And as always, if you want to know about foreclosed homes you do NOT have to pay for an outdated list of foreclosed homes. As a REALTOR I can email you all the foreclosed homes that fit your specific wants/needs and budget. A list of homes that are actually still active on the MLS instead of homes that sold sometime last year…
Really, the point is that this is more good news for real estate and for sellers this could mean fewer foreclosures to compete with. Good news since the banks usually price them to sell quickly. It is hard to compete with someone willing to sell at a loss, such as the banks.
However, the number of foreclosure starts actually increased 6% year over year (for the entire US). Some of this may be due to the banks ramping their fraudclosure departments back up to high gear. Especially in judicial states such as South Carolina.
Something else to consider is that LPS is reporting that the number of delinquent mortgages has remained stable and late-stage delinquencies have also shown improvement over the last year. The total US loan delinquency rate is still way too high at 7.14%.
On the other hand, the Mortgage Bankers said that mortgage delinquencies increased and that foreclosure starts remained flat.
The Take Away
So are mortgage delinquencies increasing or decreasing?
Will there be more foreclosures?
More delinquent mortgages?
Are home prices really going to increase?
Have home prices really been increasing?
I would say mortgage delinquencies and foreclosure numbers are just bouncing up and down. Whether or not home prices are increasing is a more complex question. Overall, I would say NO in our area but there are exceptions. It really depends on the type home, the price range and the location/condition of the home.
We are still a long long way from a healthy real estate market. But we are much better than last year or the year before in some ways. Look at the DOM above again.
Just remember that there is no need for buyers to over analyze some things…
Despite the reports of increasing home prices & mortgage rates, it is still a great time for some people to buy a home.
If there are more foreclosure does not change the fact that it is still a great time for some people to buy a home.
If there are more mortgage delinquencies does not change the fact that it is still a great time for some people to buy a home.
The important thing to take away from all of this is…
Is it a great time for you to buy a home?