Single Women Are Buying More Homes Than Single Men

Single women outpace men in buying residential real estate


WASHINGTON – May 11, 2010 – Single women have moved ahead of unmarried men in the area of homeownership, according to National Association of Realtors^® (NAR) statistics.

When the group first began tracking this data nearly 30 years ago, males and females were evenly matched – with each representing 10 percent of home sales. NAR figures show that unwed males held at that level in 2009, while homeownership by single females rose to 21 percent after holding steady at 20 percent for at least five years.

The trend is most prevalent in the California, Texas and District of Columbia markets, according to Brooke Warrick of American Lives, a market research company, who warns that real estate developers and sellers must be careful not to dismiss unmarried young women as mere bystanders to the homebuying process.

Source: Wall Street Journal (05/10/10) Goldberg, Eleanor

© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688

 Steve Geving
Premiere Plus Realty Co
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Steve@nextgenerationrealtygroup.com
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April Delinquencies Fall For Alt-A Mortgages

April delinquencies fall for ‘Alt-A’ mortgages

NEW YORK – May 11, 2010 – Fitch Ratings on Monday said late payments on high-risk residential mortgages known as ‘Alt-A’ loans fell last month for the first time in four years as more borrowers caught up on their payments and modified their loans.

Fitch said delinquencies on so-called ‘Alt-A’ residential mortgage-backed securities declined to 34.1 percent in April from 34.4 percent in March – marking the first month-over-month decline in that category since April 2006.

However, last month’s delinquency rate was still up from 27.4 percent in April 2009. Fitch also cautioned that about 8 percent of current ‘Alt-A’ loans and 35 percent of subprime loans have been modified from their original terms, and consequently have a substantial risk of going back in default.

‘Alt-A’ mortgages required little or no documentation of the borrower’s ability to pay. They were a key part of the surge in subprime mortgage delinquencies that helped trigger a broader downturn in the housing market starting in 2007. Mortgages in California and Florida represent more than 50 percent of the nationwide volume of ‘Alt-A’ loans outstanding.

Fitch said late payments on subprime mortgages offered to borrowers with shaky credit ratings fell for the second straight month in April, to 45.2 percent from 46.3 percent. However, prime jumbo delinquencies for those with more solid credit ratings rose slightly as unemployment benefits begin to run out for many and job openings are slow to return. After nearly tripling in 2009, those delinquencies are up another 98 basis points since the beginning of the year.

Vincent Barberio, a Fitch managing director, said April’s month-to-month declines for Alt-A and subprime delinquencies “may be a signal that residential mortgage-backed securities performance is beginning to turn the corner.”

“The next few months will be a better indicator of whether we’re witnessing the beginnings of a legitimate turnaround or a short-term seasonal effect of tax refunds,” Barberio said.

Also Monday, government-controlled lender Fannie Mae asked taxpayers for another $8.4 billion after reporting another steep loss for the first quarter. Though there have been some signs of stability in the housing market this year, Fannie Mae warned that mortgage defaults will remain elevated, foreclosures will increase and that home prices will decline slightly.

Copyright © 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed

Steve Geving
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High End Homes Fall Prey To Foreclosure

High-end homes fall prey to foreclosure

FORT MYERS, Fla. – May 11, 2010 – Heated pools, ocean views and media rooms are not what most people would expect to find in a foreclosed property, but more high-end homes – priced at more than a million dollars – have been falling into the hands of banks this year.

Foreclosures of homes worth more than $1 million began increasing at the end of 2009, according to data provided to CNBC.com by foreclosure tracking website RealtyTrac.

Foreclosures reached a high in February 2010, the last month data were available, when 4,169 high-end homes were somewhere in the foreclosure process; having received a foreclosure notice, had an auction scheduled or had ownership taken over by the lender. That’s a 121 percent increase from a year ago.

The deterioration comes just as housing experts say that foreclosures in the low and middle ends of the housing market are showing signs of stabilization.

Owners of expensive homes “were able to stave off foreclosure longer,” says independent real estate analyst Jack McCabe, CEO of McCabe Research and Consulting in South Florida. “Lower-end homeowners were the first ones to see the escalating foreclosures, because they generally do not have the cash reserves or credit available that the luxury homeowners do. They had the ability to take their credit cards and pull out thousands of dollars, while the lower-end buyers were already tapped out.”

McCabe expects foreclosures in the high-end market will increase into 2011.

Though the RealtyTrac data on high-end homes are not available on a regional or metropolitan basis, anecdotal evidence indicates the problem is cropping up across the country. High-end and luxury categories vary widely from market to market. In some suburban areas, in the Northeast and California, for instance, million-dollar homes are fairly common; but nationwide, they represent 1.1 percent of overall housing stock.

“We have seen an increase, in the million-plus range, of the number of foreclosures and short sales in the greater Chicago area,” says Jim Kinney, vice president of luxury home sales at Baird & Warner.

He says that of the 295 million-dollar, single-family properties sold in the first quarter this year, 37 were either a foreclosure or short sale, when a bank and homeowner agree to sell the home for less than the loan is worth. During the same period a year ago, 10 of 231 fell into those categories.

In the Fort Myers, Fla., area, Mike McMurray of McMurray and Nette and the VIP Realty Group says he has seen a few foreclosed high-end homes on the market compared with none last year. He’s currently showing a 4,800-square-foot, $3.65 million home on Captiva Island, where foreclosures are usually rare. The bank-owned home has five bedrooms and access to 150 feet of Gulf Coast beachfront.

“There are more we see coming down the pipeline,” McMurray says.

Data show that may be the case around the country. The 90-day delinquency rate on home loans worth more than a million dollars hit a high in February at 13.3 percent, above the overall rate of 8.6 percent, according to real estate data firm First American CoreLogic. Foreclosure proceedings generally start after a homeowner has been at least 90 days late on a mortgage payment, experts say.

One difference in the high-end market is that lenders are willing to do more to head off foreclosure by renegotiating the loan or accepting a short-sale transaction, which is essentially a last-ditch effort.

“Lenders are far more likely to go the short-sale route,” says Andrew LePage, an analyst at real estate research firm DataQuick. “There’s a lot more money at stake, and maintenance can be high if a foreclosure just sits there.”

A $1.15 million condominium in Chicago in the landmark Palmolive Building was initially offered as a short sale, but after a buyer did not materialize, it’s now owned by the bank, says Janice Corley, founder of Sudler Sotheby’s International Realty, which is currently listing it. The condo has lake views and a long list of luxury-building amenities, including a steam room, doorman and gym.

The rise in luxury foreclosures has one Las Vegas real estate agent flying prospective buyers into the city via private jet. Luxury Homes of Las Vegas and JetSuite Air teamed to offer the complimentary trip for buyers flying from Los Angeles to view three foreclosed homes priced between $4.9 million and $6.1 million.

Agent Ken Lowman says he gave three tours over a one-week period and hopes to expand the offer to buyers from other West Coast cities.

There’s just too much competition, Lowman says. “It takes an innovative approach like this to get results.”

Copyright © 2010 USA TODAY, a division of Gannett Co. Inc., Joseph Pisani.

Steve Geving
Premiere Plus Realty Co
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Steve@nextgenerationrealtygroup.com
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Florida Existing Home Sales Rise In 1st Quarter Of 2010

Florida Existing Home Sales Up In 1^st Quarter Of 2010

ORLANDO, Fla. – May 11, 2010 — Salesof existing single-family homes in Florida rose 24 percent in first quarter 2010 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 38,846 existing homes sold statewide in 1Q 2010; during the same period the year before, a total of 31,410 existing homes sold. It marks the seventh consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.

Statewide sales of existing condominiums in the first quarter rose 67 percent compared to the same time the previous year. This marks the sixth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.

“The first quarter data release from the Florida Realtors paints a picture of a housing market continuing down the long road to recovery,” said Dr. Sean Snaith, director for the University of Central Florida’s Institute for Economic Competitiveness. “Transactions in the single family market have extended quarterly year-over-year gains for nearly two years, and condo sales have also risen sharply. Median prices in most areas of the state continue to fall; however, the rate at which they are falling has diminished significantly and this is indicative of a bottom approaching.

“How long prices stay at the bottom and when price appreciation will reappear will depend in a large part on the improving fundamentals in the economy and credit markets.”

The University of Florida’s Bergstrom Center for Real Estate Studies’ latest quarterly survey of real estate trends also notes positive signs of recovery in the state’s real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.

“Results indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types,” said Timothy Becker, the center’s director. Private capital – both foreign and domestic – continues to enter the state in search of quality investment deals, he added.

Seventeen of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in 1Q 2010 compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.

The statewide existing-home median sales price was $133,800 in 1Q 2010; a year earlier, it was $140,900 for a decrease of 5 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.

Inthe year-to-year quarterly comparison for condo sales, 16,897 units sold statewide for the quarter compared to 10,131 in 1Q 2009 for a 67 percent increase. The statewide existing-condo median sales price was $95,800 for the three-month period; in 1Q 2009, it was $110,000 for a decrease of 13 percent.

Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5 percent in 1Q 2010; one year earlier, it averaged 5.06 percent.

© 2010 Florida Realtors®

 Steve Geving
Premiere Plus Realty Co
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Steve@nextgenerationrealtygroup.com
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Number Of Mortgage Late Payments Drop

 Late payments on mortgages show surprising 1Q drop

NEW YORK – May 10, 2010 – The rate of late mortgage payments dropped in the first quarter for the first time since 2006, according to credit reporting agency TransUnion.

The 60-day delinquency rate slipped to 6.77 percent, from 6.89 percent in the fourth quarter of 2009. That was the first decline after 12 consecutive quarters of steady increases, TransUnion said.

The first-quarter figure still represents a substantial jump from a year ago, when delinquencies were at 5.22 percent. But F.J. Guarrera, vice president in TransUnion’s financial services business unit, said it’s still good news.

“To see it turn down is a very, very strong sign,” Guarrera said, adding that positive economic indicators like Friday’s increase in job creation make the outlook even better.

“We cannot characterize it as a trend yet, but we anticipate that things will continue to improve.” TransUnion expects another decrease for the current quarter, and then for the delinquency rate to stabilize for the rest of the year.

TransUnion measures the rate using mortgage payments that are 60 days late, or two skipped months. The figure is considered an important indicator of likely foreclosure, because of the difficulty someone in financial distress would have coming up with three payments to bring their mortgage current.

The company forecasts the delinquency rate will be about 6.3 percent by the end of the year.

In the first quarter of 2011, TransUnion expects late mortgage payments to start a significant decline. By the end of next year, the rate could be close to 5 percent, Guarrera said.

Historically, mortgage delinquencies hovered around 1.5 or 2 percent.

Delinquency rates remain the highest in the four states hit hardest by the housing market collapse: Nevada, at 15.98 percent, Florida, at 14.65 percent, Arizona, at 10.94 percent and California, at 10.68 percent.

TransUnion said the rate could top 18 percent in Florida by the end of the year. Nevada and Arizona will likely remain close to their current rates through 2011.

“I really do believe it will take longer in those states for improvement,” Guarrera said. These states were left with a bigger surplus of housing that remained unsold during the recession. The surplus will likely keep pressure on housing prices, and make it harder for homeowners to refinance or get out from under mortgages that exceed the value of their homes. That increases the temptation to walk away from a mortgage and let the house slip into foreclosure.

California could see a slight decline in delinquencies by the end of 2010.

Delinquency rates remain the lowest in North Dakota, at just 1.76 percent, and South Dakota, at 2.44 percent.

The figures are culled from about 27 million randomly sampled credit files in TransUnion’s database, representing about 10 percent of U.S. consumers who have active loans outstanding.

While the overall news is positive, Guarrera said it’s still difficult to predict what might happen in coming months. “There’s still a lot of uncertainty in the housing market,” he said. “There’s still a lot of delinquency out there, and home values have not started to improve.”

Copyright © 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed

Steve Geving
Premiere Plus Realty Co
239-573-1400
Steve@nextgenerationrealtygroup.com
www.nextgenerationrealtygroup.com

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