Sticks in the Ground

TEXAS FORECLOSURES UP 22 PERCENT

 

HOUSTON (Houston Business Journal) – Foreclosures in Texas last month were up 22 percent over January 2010, according to a report released yesterday by RealtyTrac.

Texas had a total of 14,897 foreclosure filings last month. That was about 33.5 percent more than in December 2010 and represented about one in every 653 homes.

Harris County had the bulk of filings — about 3,875.

At the national level, foreclosure filings increased 17 percent year-over-year in January to about 261,333, or about one in every 497 housing units.

.....blogging from Kingwood, TX

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Houston Housing Cools

An anticipated property sales slowdown hit the Houston real estate market in July following the expiration of the federal homebuyer tax credit. The credit had propelled local home sales for four straight months; however home sales suffered a double-digit decline in July. Despite the drop, the average price of a single-family home still managed to climb to a two-year high.

According to the latest monthly data compiled by the Houston Association of REALTORS® (HAR), July sales of single-family homes throughout the Houston area fell 25.1 percent compared to July 2009. Sales volume faltered in all single-family home pricing segments except for the segment of properties priced under $80,000, which was flat.

The average price of a single-family home rose 2.7 percent from July 2009 to $224,764, the highest price since June 2008. The July single-family home median price—the figure at which half of the homes sold for more and half sold for less—dipped 0.7 percent from one year earlier to $160,880.

The number of available properties, or active listings, at the end of July rose 18.6 percent from July 2009 to 55,247. That represents 1,313 more active listings than one month earlier, in June 2010, and reflects additional housing inventory that is remaining on the market as a result of reduced consumer interest following the expiration of the homebuyer tax credit.

Month-end pending sales for July totaled 3,267, down 16.4 percent from last year, suggesting that sales will be down again in August. The month’s inventory of single-family homes for June extended to 7.7 months compared to 6.5 months one year earlier, but remains healthier than the national month’s inventory of single-family homes of 8.9 months, as reported by the National Association of REALTORS®.

.....blogging from Kingwood, TX

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TEXAS ONE, RECESSION ZERO

TEXAS (The Atlantic) – Even in the middle of the Great Recession, Texas is faring well compared with the rest of the nation, racking up an ever-growing list of accomplishments.

In addition to ranking fourth in the country with the least amount of state debt, Texas has four cities in the Milken Institute’s Top Five Best Performing Cities Index, four among Forbes' list of top ten “Cities Where the Recession is Easing,” and four in last year’s Top Ten in Homebuilding.

Texas is home to three of the top five most resilient major metro areas for employment, with McAllen first, Austin third, San Antonio fifth and El Paso and Houston not far behind in the top 15.

The Lone Star State also claims 64 Fortune 500 companies — more than any other state — in addition to being dubbed Top State for Business for the second time in three years by CNBC.

The Atlantic says these accomplishments are because Texas’ major cities have chosen comparatively stable industries — Houston is the nation’s energy hub, Austin leads in education and technology, and San Antonio dominates the health care and education sector in addition to military spending.

“Our research shows that the more tax incentives and less regulation you have, and the less likely businesses are to get sued, the more likely it is they’ll want to come and prosper in your state,” said Brooke Rollins, president of the Texas Public Policy Foundation.

These factors support Texas’ position as a global economic leader, having the 15th largest economy in the world

.....blogging from Kingwood, TX

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New Rules Improve Mortgage Info for Home Buyers

Two federal agencies have adopted rules that change what information lenders, mortgage brokers, and closing agents provide to borrowers regarding mortgage loans. The intent is to improve the information provided in order to help a home buyer make a more informed decision. With the new rules comes potential closing delays. Here's a brief overview of the changes.

The Fed’s 3 day Rule – “Early Disclosure”
The Federal Reserve Board now requires Lenders to provide a good faith estimates (GFE) of loan costs within three business days of a borrower's loan application. The new rules also prohibit the closing from taking place until seven days after the borrower receives this so-called “early disclosure”. The rules prohibit a lender from collecting fees from the borrower before the borrower receives the early disclosure, other than a reasonable fee for obtaining a credit report. If the interest rate of the proposed loan increases by .0125%, a new disclosure must be provided and 3 days are added to the closing cycle. This rule applies to the purchase of primary and secondary residences. Along with refinance transactions and home equity loans. Investment properties are exempt.

Standardized GFE & Coordinated HUD-1
As of Jan. 1, 2010, The US Department of Housing and Urban Development will requires a new good faith estimates (GFE) form and a new HUD-1 settlement statement. The new good faith estimates form is intended to better disclose key loan terms and costs. Its terminology will match the items presented on the new HUD-1 statement, facilitating easy comparison. Besides clearly comparing consumers' estimated and actual costs, the new HUD-1 statement will highlight the mortgage as FIXED or VARIABLE and will specifically state any PREPAYMENT PENALTIES or BALOON PAYMENTS included in the mortgage agreement.

.....blogging from Kingwood, TX

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MORTGAGE APPLICATIONS RISE

                                                 NEW YORK (CNNMoney) –  U. S. mortgage applications rose last week along with the demand for home purchase loans, according to data from the Mortgage Bankers Association (MBA).

The group’s seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ending April 3 increased 4.7 percent to 1,250.6.

Demand for home purchase loans, an indicator of home sales, far outweighed demand for refinancing. The MBA's seasonally adjusted purchase index of loans to buy homes rose 11.1 percent to 297.7.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.73 percent, up 0.12 percentage points from the record low reached the previous week.

The four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was up 13.3 percent.

.....blogging from Kingwood, TX

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Technorati Tags: Housing,Mortgage

GOING GREEN

COLLEGE STATION (Real Estate Center) – Last week, the entire world went “green”, and the Real Estate Center was no exception. Two articles in the latest edition of the Center’s quarterly journal, Tierra Grande, take a look at the green movement’s impact on the building industry.

You may be willing to pay extra for having environmentally friendly systems and amenities installed in your new home. But how will those green components affect the value of the property. Read “Green House Values” to find out.

“What’s in YOUR Building” discusses how more and more cities are requiring commercial buildings to be built to LEED standards, and how the trend may make it more difficult for existing buildings to maintain Class-A status.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

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NEW HOME SALES PLUNGE

WASHINGTON (Associated Press) – Sales of new homes dropped by 8.5 percent in March 2008 to a seasonally adjusted annual rate of 526,000 units, the slowest sales pace since October 1991, the Commerce Department reported late last week.

The median price of a home sold in March dropped by 13.3 percent compared with March 2007, the biggest year-over-year price decline since a 14.6 percent plunge in July 1970.

Sales were down in all regions of the country, dropping the most in the Northeast, a decline of 19.4 percent. Sales fell by 12.9 percent in the West, 12.5 percent in the Midwest and 4.6 percent in the South.

The National Association of Realtors reported that sales of existing homes also fell in March, dropping by 2 percent, with prices declining on a year-over-year basis by 7.7 percent.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

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Houston Property Sales Continue to Slide in February

Sixth consecutive monthly decline is tempered by notable increases in average and median single-family home prices

HOUSTON —
Total property sales for February 2008 registered 5,266, which represents a 10.2 percent drop compared to February 2007; it’s an improvement over last month’s 17.2 percent fall. Properties sold during the month totaled just over $1 billion compared to $1.1 billion in sales one year earlier, a 7.9 percent decline. The average price of a single-family home (existing and new construction) rose 5.6 percent last month, representing the biggest increase since last August. The median price of a single-family home increased 3.1 percent. The number of available homes (active listings) at the end of February was 51,308 properties, a 12.8 percent increase over February 2007. The figure was up 599 properties from January 2008, reflecting the continuing sales slowdown.

Single-Family Homes Update
The average sales price for single-family homes (existing and new construction) was $206,140 in February, up 5.6 percent versus the same period last year when it was $195,148. The overall median price of single-family homes in February was $151,430 compared to the national single-family median price of $201,100, according to statistics released by the National Association of REALTORS®.

Additionally, total sales of single-family homes in Houston in February came in at 4,431, which was 10.2 percent lower than February 2007 but a slight improvement over last month’s 12 percent decline.

Improved year-over-year sales activity continued to be observed in Houston’s low- and high-end single-family home markets, with increases of 11.1 percent among homes priced below $80,000 and 11.0 percent among homes priced above $500,000.

In February 2008, existing single-family home sales totaled 3,646, which was a 10.0 percent drop from February 2007. At $141,500, the median sales price for existing homes in the Houston area was up 1.8 percent compared to the same period last year. The average sales price of $190,553 for the month represented an increase of 5.0 percent from last year’s level

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

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Big Changes in Mortgage Insurance Requirements

According to sources in the mortgage brokerage business, I have learned that effective immediately, Mortgage Insurance providers such as Mortgage Guaranty Insurance Corporation and AIG United Guaranty (two of the largest in the industry) will no longer offer mortgage insurance (PMI) for borrowers seeking 100% financing. This is a huge change. Without the mortgage insurance (PMI) the 100% financing product will no longer be available to borrowers. Most 2nd lenders have pulled out of the 80/20 loan business too. This means that borrowers are going to have to be prepared to make a down payment when doing a purchase contract. 

These Mortgage Insurance providers have also increased their requirements for borrowers doing 97% financing (3% down payment); if the borrower does not have at least a 680 mid credit score they will not qualify for mortgage insurance. For borrowers whose mid credit score is below 620 there will be no mortgage insurance available, no matter if they put 10% or 15% down.

These changes pertain to Fannie Mae/Freddie Mac loans, not FHA.

Mortgage backed securities continue to have problems on Wall Street. Mortgages on clients with less than 20% equity in their property are some of the “least attractive” in the market. For that reason Lenders & Mortgage Insurers continue to increase the guidelines on these types of loans to make them more “attractive” to investors.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

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HOUSING HIGHS AND LOWS

WASHINGTON (Associated Press) – News from Washington, D.C., yesterday had its highs and lows, and, no matter how you looked at it, it spelled bad news for the national housing market.

Foreclosures Hit Record High
The Mortgage Bankers Association said the proportion of all mortgages nationwide that fell into foreclosure shot up to a record 0.83 percent in fourth quarter 2007. That surpassed the previous high of 0.78 percent set in the previous quarter.

Record Low for Home Equity
The Federal Reserve reported that homeowner equity actually slipped below 50 percent in second quarter 2007 and fell to just below 48 percent in the fourth quarter. This marks the first time since the Fed started tracking the data in 1945 that the amount of debt tied up in American homes has exceeded the equity homeowners have built.

Economy.com estimates that 8.8 million homeowners — about 10 percent of homes — will have zero or negative equity by the end of March. About 13.8 million households will be "upside down" if prices fall 20 percent from their peak.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

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