Discussing home flipping statistics for Q1 2017, home owner equity improves, why you should sell your home this summer, mortgage rates and much more…
43,615 single family homes and condos were flipped — sold in an arms-length transfer for the second time within a 12-month period — nationwide in the first quarter of 2017. This is down 8% from the previous quarter and down 6% from a year ago. This is the lowest number of homes flipped since Q1 2015.
Home flips in Q1 2017 accounted for 6.7% of all single family home and condo sales during the quarter. This is up from 5.8% in the previous quarter and unchanged from a year ago.
33.3% of all single family homes and condos flipped in Q1 2017 were purchased by the flipper with financing. This is up from 31.9% in Q4 2016 and up from 29.5% in Q1 2016. This is the highest level of financed flips since Q3 2008, when 37.6% of completed home flips were financed.
While there are still plenty of opportunities to flip homes, you better know the market and your numbers.
Flipping can be a great way to make money or to go broke.
In some markets, you may find that holding properties to use as rentals makes more sense. Or that some price ranges are better suited for flipping while others are better for rentals.
It all boils down to knowing the local market…
The Consumer Financial Protection Bureau (CFPB) took action this week against mortgage servicer Fay Servicing for failing to provide mortgage borrowers with the protections against foreclosure that are required by law. The CFPB found that Fay violated the servicing rules by not telling borrowers about the process of applying for foreclosure relief.
The CFPB also found instances where the servicer illegally launched or moved forward with the foreclosure process while borrowers were actively seeking help to save their homes. The CFPB has ordered Fay Servicing to stop its illegal practices and pay up to $1.15 million to harmed borrowers.
CFPB Director Richard Cordray said:
The Bureau found that Fay violated the CFPB’s servicing rules by keeping borrowers in the dark about critical information about the process of applying for foreclosure relief. CFPB will continue to hold servicers accountable for violations of consumer protection laws.
While there are problems with over regulation, it appears there still is a need for someone to protect consumers…
Homeowner Equity Has More Than Doubled in Five Years
Excellent news from CoreLogic:
The amount of equity in mortgaged real estate increased by $171 billion in Q1 2017 compared with Q4 2016, and increased by $766 billion between Q1 2016 and Q1 2017. Homeowner equity has more than doubled in five years, increasing by nearly $4 trillion from Q1 2012 to Q1 2017.
The nationwide negative equity share for Q1 2017 was 6.1 percent of all homes with a mortgage, nearly 20 percentage points lower than the peak negative equity share – 26 percent – recorded in Q4 2009.
The improvement in the negative equity has been national, with all states registering a year-over-year decrease.
Frank Martell, president and CEO of CoreLogic said:
Since home equity is the largest source of homeowner wealth, the increase in home equity also supports consumer balance sheets, spending and the broader economy.
Nice to see this improvement. However, they also said that about 15.1% of properties with a mortgage still have less than 20% equity. As home prices continue to increase, this number will improve.
Also, as more home owners find themselves with equity, they may start to consider selling their home. Especially since today’s real estate market is smoking hot…
Why You Should Sell Your Anderson SC Home
The latest Buyer Traffic Report from NAR demonstrates that home buyer demand continues to be very good all over the US. These home buyers are prepared to buy and are looking today! Homes are selling quickly and buyers are competing to purchase a property.
US housing inventory is currently at a 4.2-month supply, and this is below the 6-months needed for a balanced real estate market. This means we are in a seller’s market! However, more homes may be coming to the market this summer.
There’s a pent-up desire for many owners to move, since they were not able to sell within the last few years because of negative equity. As you just read, many homeowners are now enjoying positive equity. Which means we could see more homes coming onto the market this summer.
Many of the same conditions that the entire US is seeing are duplicated in the Upstate SC area. This means that this summer could be a great time to sell your home!
30-Year Fixed Mortgage Rate Continues to Fall
Freddie Mac just reported that the 30-year fixed mortgage rate dropped for the 4th consecutive week and hit its lowest level in nearly 7 months! Check out the good news:
- 30-year fixed-rate mortgages averaged 3.89% with an average 0.5 point
- This is down from last week when it averaged 3.94%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.60%
- 15-year fixed-rate mortgages averaged 3.16% with an average 0.5 point
- This is down from last week when it averaged 3.19%
- Last year at this time, 15-year fixed-rate mortgages averaged 2.87%
Sean Becketti, chief economist, Freddie Mac said:
The 10-year Treasury yield fell 3 basis points this week. The 30-year mortgage rate moved in tandem with Treasury yields, falling 5 basis points to 3.89 percent. Mixed economic data and increasing uncertainty are continuing to push rates to the lowest levels in nearly seven months.
Excellent news! Just like I say every time I share something about mortgage rates, you must talk to a real live mortgage lender to see what is possible for you! If you are unsure who to contact, you can ask friends, family and co-workers for their recommendations.
Or you can look in the Yellow Pages or search on the internet.
Or you can contact me. The main thing is that you take advantage of the low rates and don’t let this opportunity slip by…
Attorney General Sessions today issued the attached memo to all Department of Justice components and 94 United States Attorney’s Offices prohibiting them from entering into any agreement on behalf of the United States in settlement of federal claims or charges that directs or provides for a settlement payment to non-governmental, third parties that were not directly harmed by the conduct.
Attorney General Jeff Sessions said:
When the federal government settles a case against a corporate wrongdoer, any settlement funds should go first to the victims and then to the American people— not to bankroll third-party special interest groups or the political friends of whoever is in power. Unfortunately, in recent years the Department of Justice has sometimes required or encouraged defendants to make these payments to third parties as a condition of settlement. With this directive, we are ending this practice and ensuring that settlement funds are only used to compensate victims, redress harm, and punish and deter unlawful conduct.
The Obama Administration was making some of the companies that settled for misdeeds that lead to the housing meltdown pay “3rd party community organizations”. These organizations were not directly involved in the mortgage settlement or harmed by the conduct that lead to the housing meltdown.
All this means that the banks won’t be paying these groups anymore. While some of these groups may be OK, it always seemed to me just a little weird. Why not send the money directly to the people that were hurt by the banks or mortgage companies?
While I am not a fan of Sessions, I am glad to see this practice stopped.
Government-sponsored financing giant Fannie Mae will ease its requirements next month, raising its debt-to-income ceiling from 45 percent to 50 percent on July 29. The move could pave the way for a larger number of new buyers to qualify for a mortgage, particularly millennials who may be saddled with student loan debt.
According to data from the 2016 Zillow Group Report on Consumer Housing Trends, 19 percent of 2016 renters that moved within the prior 12 months seriously considered buying instead. An additional 39 percent said they considered buying, but were more serious about renting. The data indicate that unmet home buying demand could be even higher than closed home sales data suggest.
I know this comes from mean evil inaccurate Zillow, BUT…
If true it means that roughly 3.7 million renters were interested in buying a home in 2016. And they signed a 1 year lease instead of buying…
So maybe, possibly, God willing and the creek don’t rise, we could see an increase in the number of home buyers in the coming year!
U.S. railroads originated 1,286,075 carloads in May 2017, up 8.4% over May 2016. U.S. railroads also originated 1,339,417 containers and trailers in May 2017, up 4.6% from the same month last year. Combined U.S. carload and intermodal originations in May 2017 were up 6.4% over May 2016.
AAR Senior Vice President John T. Gray said:
All things considered, May was a good month for rail traffic. Thirteen of the 20 commodity categories we track had higher carloads in May 2017 than in May 2016, including the four biggest categories — coal, chemicals, crushed stone and sand, and grain. Excluding coal, carloads in May were up 4.1%, their biggest monthly increase in more than two years, and May was the best intermodal month of the year.
Excellent news and hopefully this will continue as the economy strengthens.
The three-month moving average of monthly nonfarm payrolls has fallen steadily from 201,000 in February to 121,000 in May, according to the Bureau of Labor Statistics. Are the below-average monthly job gains recorded in May due to a labor shortage, or is there weakness emerging in the employment market?
That’s the crucial question in the wake of the latest job figures released by the Bureau of Labor Statistics (BLS), which showed employers added 138,000 nonfarm payroll jobs in May, well below the 12-month average of 181,000 positions. Meanwhile, the unemployment rate fell from 4.4 percent in April to 4.3 percent in May.
Steve Hovland, director of research for HomeUnion said:
Most evidence points toward the former, and that should keep the Fed on track to lift rates two additional times in 2017, even if it waits until September. Members of the Federal Open Market Committee (FOMC) will need to weigh whether the lowest unemployment rate in 16 years is sufficient to justify a rate hike despite relatively low monthly employment gains thus far in 2017.
I have been wondering how the Fed will react to the latest economic and jobs/unemployment numbers. In some ways, the Fed has painted itself into a corner…
Good article and I strongly suggest you read it!
That’s it for today! Please hit the share buttons!