Category Archives: National Housing Market

Fannie Mae Announces New Incentives for Homebuyers

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To help move the record number of foreclosed homes, new incentives are being offered  for homebuyers and real estate agents. Fannie Mae, a government-sponsored​ enterprise, adds liquidity to the mortgage market by buying certain home loans. By buying up loans, Fannie Mae puts money back into the mortgage market so banks can lend more money to homebuyers.

  • Homebuyers. Through Oct. 31, Fannie Mae is offering homebuyers up to 3.5% of the final sales price to put toward closing costs. This incentive applies only to buyers who plan to live in the home. Investors do not qualify.
  • Agents. Fannie Mae is offering a $1,200 bonus to real estate agents who represent the owner-occupant buyer. (Again, sales to investors do not qualify.)

You can find all the terms and conditions that must be met at HomePath.com

Clear Capital Sees Signs of Market Stability

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DSnews.com reports, “Clear Capital: Stability Ahead as Distressed Property Prices Rise.”

Clear Capital, a provider of data for real estate assest valuation, sees signs of market stability moving into the summer months.

According to their report, the median price paid for distressed properties has started to rise, a sign that the REO market is seeing increasing activity.

The “uptick is distressed sale prices, combined with the upcoming summer buying season, could stabilize home prices,” according to the Clear Capital report.

This report comes one month after the realization of an official double-dip in nationwide home prices. Clear Capital says, “quarter-over-quarter home prices are showing signs of improvement as the deep winter lows were replaced by more stable spring prices… prices are stabilizing as the typically stronger summer buying season approaches.”

To read more on the Clear Capital report, visit www.dsnews.com.

If you are looking for more information about the REO market on the Outer Banks or in Northeast North Carolina, contact one of our agents at www.coldwellbankerobx.com.

Major Changes Likely to QRM Proposal

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“No hardwired mortgage down payment requirements for well-qualified homebuyers. Not 20 percent. Not 10 percent. Not 5 percent.”- Inman News

An alliance of dozens of civil rights, real estate, labor, mortgage and consumer advocacy groups, along with a substantial percentage of the members of Congress have been addressing six federal agencies for the past two weeks to convince officials to change their minds about the controversial “QRM” (qualified residential mortgage) proposal that would mandate 20 percent down payments and strict debt-to-income rules.

While the regulatory agencies cannot discuss the proposal, industry sources say the rule writers are getting the message and are believe to back down in their final QRM plan.

“If they don’t back down enough, however, say sources on Capitol Hill, Democrats and Republicans in the Senate and House are prepared to force them to do so with corrective legislation.”

Bipartisan groups of 160-plus members of the House and 40 members of the Senate wrote to the six agencies last week, urging them to focus on sound underwriting, safe loan products, and borrowers’ ability to repay, plus full documentation… not down payments. The six agencies include, the FDIC, SEC, HUD, the Office of the Comptroller of the Currency, the Federal Housing Finance Agency and the Federal Reserve.

Americans Say Home Ownership is Still a Great Investment

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In an article recently posted to REALTORMag, 75% of Americans say that “owning a home is the best long-term investment they can make and is worth the risk of ups and downs in the housing market,” according to a survey conducted by the National Association of Home Builders.

Regardless of their current housing situation, the survey conducted suggests many Americans are still hopeful about home ownership.

“Eighty-one percent of those who own their homes outright, 76 percent with mortgages, 67 percent of renters, and 65 percent who have underwater mortgages cited home ownership as the ‘best long-term investment.’”

With such negative news surrounding the current real estate market, it is encouraging to know that 73% of those surveyed who do not own a home said that it is their goal to eventually by one.

Whether underwater on the home or even renting, Americans still realize home ownership as the “American Dream”.

For more information about the real estate market on the Outer Banks and Northeast North Carolina, contact one of our agents at www.coldwellbankerobx.com.

Affordability Index Reaches Record High

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It is no secret that the economic downturn has had negative effects on the national real estate market, but a recent article by the National Association of Home Builders (NAHB) is reporting that the affordability index is at a record high.

According to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI),nationwide affordability during the first quarter of 2011 was the highest in more than 20 years.

HOI indicated that 74.6 percent of all new and existing homes sold in the first quarter were affordable to families earning the national median income of $64,400. This surpassed the previous high of 73.9 percent in the last quarter of 2010 and was the ninth consecutive quarter that the index has been over 70 percent.

“With interest rates remaining at historically low levels, today’s report indicates that homeownership is within reach of more households than it has been for more than two decades,” said Bob Nielsen, chairman of the National Association of Home Builders (NAHB).

While the percentages from this article are on a national scale, the affordability on the Outer Banks has also greatly improved in recent months.

Please visit www.nahb.org/hoi for tables, historic data and details. You can find more information about Outer Banks real estate at www.ColdwellBankerOBX.com.

Visa Spending Report Suggests Large Increase in Travel Spending

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In another sign that global tourism is rebounding from the recession, a report released Monday shows a sharp increase in travel spending by Visa card holders. Last year Visa card holders traveling abroad spent 6% more than last year at $31 billion dollars. Interestingly foreign card holders traveling to the USA increased spending 18% from $29 billion last year.

“Despite economic uncertainties, the United States continues to be a major contributor to the global tourism economy, both as a destination of choice and as a critical source of tourism for many countries,” says William Sheedy, Visa’s group president for the Americas.

U.S card holders spent $3.5 billion for Canada travel, making it the most popular foreign    destination for Americans, followed by Mexico and Britain. Looks like Canadians returned the favor spending $9.2 billion for travel in the U.S- a larger amount than card holders of any other country.

The most popular U.S. destinations for foreign Visa card holders were Florida, New York, California, Texas and Nevada. Spending by them increased more than 15% in each state.

Foreign Visa card holders spent more last year in 48 of 50 states. States with the biggest percentage growth last year were North Dakota, 39%; Tennessee, 33%; Utah, 27%; and Wisconsin, 26%.

We hope to continue to see increases in the United States tourism industry especially here in our home state. With recent reports of 9% increases in visitor spending in North Carolina we are confident that a real estate market recovery is also beginning making it a perfect time to buy a vacation home here on the Outer Banks.

Are Sunnier Skies on the Way for Real Estate?

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OBX Sunrise

OBX Sunrise

It’s exciting to see all the news of better market conditions. Are sunnier skies on the horizon? A recent article on Realtor.org attempted to answer this burning question.

With home ownership rates at a sustainable 66 percent and a projected growth rate of 340 million by 2020, real estate’s long-term prospects remain bright.

Manufacturing output has been rising. The stock market has recovered nicely. Many companies are flush with cash. Consumer confidence has rebounded from very low levels, and jobs are being created.

Against this improving picture, we can expect to see some release of the demand that’s been building up for the last three years. Rising rental costs will also likely tip more renters into home ownership.

Putting these and other factors together, existing-home sales are projected to rise 8 percent to nearly 5.3 million units nationwide this year and possibly to 5.5 million in 2012.

At this level, home ownership is solid, and it’s also sustainable given our level of population growth.

Skies seem to be brightening.

Increased Confidence in a Real Estate Market Recovery-Where do we go from here?

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The economy has always been, and will always be, cyclical. What goes up must come down, and visa versa. This goes for the real estate market as well. Recent reports have continued to show gains in existing and new home sales, increasing investor activity and an overall improvement in the market. These growth may not be substantial, but we continue to be moving in the right direction for restoring confidence among consumers and industry experts.

What’s Ahead

As the busy time in the real estate cycle approaches, RIS Media is predicting that we can expect 2011 to be better than 2010, with healthier trends compared to the abnormal boom times we saw in the early 2000’s. The market ahead will be driven by hopeful buyers who are regaining their financial footing and building their savings, as well as a generational wave of consumers just reaching their prime home-buying years.

With the damage caused by default payments and foreclosures subsiding, homeowners will be managing responsible mortgage terms, affordable payments and the ability to sell their home with equity.

Could this be the faint glow of the light at the end of the tunnel?

Light at the end of the tunnel?

Light at the end of the tunnel?

February Housing Scorecard Shows Increase in Existing Home Sales as Home Affordability Remains High

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Sold

Sold

Although the real estate market remains rocky, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury released the February 2011 edition of the Obama Administration’s Housing Scorecard. The newest figures show an increase in existing home sales as home affordability remains high.

In the face of the deepest economic recession and housing crisis since the Great Depression, these statistics show signs of a slow but favorable recovery. The Obama Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market.

With good news coming in, we must keep in mind that the market remains extremely fragile. HUD recognizes they cannot stop every foreclosure but is confident that responsible homeowners are still fighting to make ends meet, and with multiple government programs in place, they plan to put help in reach of those homeowners as early as possible.

Since April 2009, record low mortgage rates have helped more than 9.5 million homeowners to refinance, resulting in $18.1 billion in total borrower savings. These rates are also allowing potential homebuyers to finally be able to afford a new home. With mortgage delinquencies on a downward trend and confidence up, financing may be available to candidates who may not have qualified before.

Decent news for a housing market treading water right now.

Will Real Estate Turn Around in 2011?

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Is relief finally on the way in 2011? The Wall St. Journal recently published an article indicating that 2011 could be the year real estate turns around. It’s hard to be sure, but there may be some good news in 2011 about the nation’s struggling housing market…or at least, the bad news could come to an end.

Either way, it will be welcome relief for current homeowners as well as for potential real-estate investors. Reasons to be optimistic have been sadly lacking since the housing bubble burst.

Last week we learned from the widely watched S&P/Case-Shiller that the home-price index fell 1% in December; its fifth straight decline. But what’s new? In this case, what goes down must come up. If forecasters are correct it might make sense to jump into real estate. The trick is avoiding getting burned again, and it doesn’t necessarily mean owning a home.

Let’s recap a few economic signs that seem to support the belief that a bottom is close.

Houses Are a Good Deal

Housing is the most affordable it has been in decades – analysts consider not only home prices but average family incomes. Nationally, the cost of a house is the equivalent of about 19 months of total pay, the lowest level in 35 years.

“Pricing is down so much in some markets that when you analyze renting versus owning it makes much more sense to own,” says Michael Larson, a real-estate analyst at Weiss Research in Jupiter, Fla.

In the end, it will be affordability that will drive people to buy homes. But what about timing?

Consider this: In some markets, home prices have fallen by half or more since 2006. Even if prices fall another 5%, it’s a small margin in the grand scheme.

Investors Stepping Up

One of the best indicators that the market is nearing a bottom is when investors are buying up houses and condos, in some instances paying entirely in cash.

Take Miami again. Last year, more than half of all transactions were made entirely in cash, according to a recent report in The Wall Street Journal. That compares with 13% of deals in the last quarter of 2006, the height of the bubble. Similarly, in Phoenix 42% of sales in 2010 went to all-cash buyers, up threefold since 2008. It seems like these investors are betting on a rebound in the near future.

Plan to Stay Put

Buy and hold. While the good news is that the worst of the housing crash might be over, the bad news is that the fast gains of the glory days of 2005 and 2006 won’t be back any time soon. To avoid heavy losses and driving down neighborhood values, plan to own for the long-term…10+ years is a good bet.

Below is a graph from AOL Real Estate showing home prices in the Kitty Hawk, NC real estate market. With Kitty Hawk home prices being sold far above state and national averages, the OBX may be more fortunate than we assume.

The OBX – a strong real estate market getting stronger in 2011?! The magic 8-ball seems to be pointing to yes.

AOL Real Estate - Kitty Hawk - 3.2.11

AOL Real Estate - Kitty Hawk - 3.2.11