Source: RealtyTrac.com
In June, the number of properties that received a foreclosure filing in Chatham County, GA was 9% lower than the previous month and 24% lower than the same time last year.
Home sales for May 2013 were down 8% compared with the previous month, and up 462% compared with a year ago. The median sales price of a non-distressed home was $168,000. The median sales price of a foreclosure home was $68,000, or 60% lower than non-distressed home sales.
Showing posts with label foreclosure rates. Show all posts
Showing posts with label foreclosure rates. Show all posts
Friday, August 9, 2013
Tuesday, May 7, 2013
More Housing Investment Trend News
From CNBC, Diana Olick reports latest real estate investment trends. I am a Certified Investor Agent Specialist (CIAS) and can provide you with the tools and information whether you are looking to avoid foreclosure, or investing in the housing market. Foreclosure sales are on the rise and investors are waiting to pounce on the opportunity. Contact me for more information.
New Housing Barons Widen Their Sights and Bets
Published: Thursday, 2 May 2013 | 10:16 AM ET
By: Diana Olick
CNBC Real Estate Reporter
Hedge Funds As Landlords
Thursday, 2 May 2013 | 11:25 AM
ET
Hedge fund managers are shifting strategies to make more
money on foreclosures, reports CNBC's Diana Olick.
As home prices rise, there are fewer bargains in single family homes, but not
fewer investors. Their ranks and property portfolios continue to grow. Last
month Five Ten Capital, a Piedmont, California-based asset manager, inked a one
hundred million dollar deal with Deutsche Bank to open a
new fund to buy and manage single family rental homes, expanding Five Ten's
range to Texas and Missouri.
"Obviously, home prices are up, so did you miss an opportunity? Yes, you'd have been better off buying a year ago than today, but we think for the most part we are in the third inning of this housing recovery," said Rob Bloemker, Five Ten's CEO.
"Obviously, home prices are up, so did you miss an opportunity? Yes, you'd have been better off buying a year ago than today, but we think for the most part we are in the third inning of this housing recovery," said Rob Bloemker, Five Ten's CEO.
Unlike the "flippers" of the last decade, today's investors in single family
homes have a longer-term strategy. They buy largely with cash and seem intent on
growing their portfolios, rather than recycling them. While some credit these
bulk buyers with saving the housing market, they seem uneasy with that
characterization.
(Read More: Map: Tracking the US Real Estate Recovery)
"I think investor activity has accelerated the recovery, but I don't think investor activity is responsible for the recovery," said Rick Sharga of Carrington Mortgage Holdings, a Connecticut-based group that invests in distressed homes and distressed mortgages. "If all 10 billion dollars of investor-announced funding had been spent last year, what percentage of the $1.7 trillion in mortgages written would that have accounted for? It's a rounding error really."
But these investors did help to clean up much of the distress created by the housing crash, especially in the hardest-hit markets, like Phoenix, Las Vegas and parts of California. Investors still accounted for 53 percent of home purchases in Las Vegas in March, according to DataQuick. Multi-home buyers bought 647 homes in the Las Vegas area in March, which amounts to 14.4 percent of all homes sold—a 20 percent increase from March of 2012.
There had been concern that as home prices rose, these investors would dump their homes back onto the market, and reverse the recovery. That is not the strategy, at least not yet.
"Investors aren't going to dump a lot of properties into a market and run the risk of losing money or devaluating the rest of their portfolios," noted Sharga.
They may not be selling, but some are changing their strategies, as they search for higher yields.
"We're not buying a lot [of homes] right now. We think the market is a little bit too frothy. We're very, very particular about our model and what we will buy," Sharga said. "We've been very active in the non-performing loan market. We'll look at other trades that don't have same kind of high-volume competition that artificially drives up some of those prices."
(Read More: Map: Tracking the US Real Estate Recovery)
"I think investor activity has accelerated the recovery, but I don't think investor activity is responsible for the recovery," said Rick Sharga of Carrington Mortgage Holdings, a Connecticut-based group that invests in distressed homes and distressed mortgages. "If all 10 billion dollars of investor-announced funding had been spent last year, what percentage of the $1.7 trillion in mortgages written would that have accounted for? It's a rounding error really."
But these investors did help to clean up much of the distress created by the housing crash, especially in the hardest-hit markets, like Phoenix, Las Vegas and parts of California. Investors still accounted for 53 percent of home purchases in Las Vegas in March, according to DataQuick. Multi-home buyers bought 647 homes in the Las Vegas area in March, which amounts to 14.4 percent of all homes sold—a 20 percent increase from March of 2012.
There had been concern that as home prices rose, these investors would dump their homes back onto the market, and reverse the recovery. That is not the strategy, at least not yet.
"Investors aren't going to dump a lot of properties into a market and run the risk of losing money or devaluating the rest of their portfolios," noted Sharga.
They may not be selling, but some are changing their strategies, as they search for higher yields.
"We're not buying a lot [of homes] right now. We think the market is a little bit too frothy. We're very, very particular about our model and what we will buy," Sharga said. "We've been very active in the non-performing loan market. We'll look at other trades that don't have same kind of high-volume competition that artificially drives up some of those prices."
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Los Angeles-based Colony Capital, which boasts approximately ten thousand
single-family rental homes in its portfolio, had centered its investments
largely in the Southwest and West, but is now shifting to other markets.
(Read More: US Pending Home Sales Tick Upward in March)
"In terms of our mix, less is going to Arizona and California today," said Justin Chang a principal at Colony. "Our mix is increasing on east coast, Georgia, Florida, we're active in Texas. I think over time some of the early markets will become a smaller part of our overall portfolio."
Some investors are also starting to look at new construction, as home builders start to ramp up production again. The key is to find new product that is cheaper than replacement costs, which still is not that easy. So far investment has mostly gone only as far as distressed new homes, but as prices rise, that may change.
"On home building, there's a lot of chatter about that. We are in some conversations with builders," explained Chang, who admits the economics have not been compelling yet. "Over time you'll see more and more of these transactions, and we may do one as well."
Another potential strategy going forward is a consolidation, as investors turn away from distressed properties and focus on so-called "Mom and Pop" landlords, who may buy just one or two properties. There are an estimated 14 million single family rental homes owned by this cohort.
"If you think about all of the major institutions maybe owning 70,000 total homes compared to the market size of 14 million homes, the long term potential is enormous. Institutions are literally a fly on an elephant," said Aaron Edelheit, CEO of The American Home, an Atlanta-based company that owns and manages about 2,500 homes. "We may look back and realize that the REO [real estate owned] to rental space was only the foundation for an exponentially larger industry with institutions owning hundreds of thousands, if not millions, of homes."
(Read More: Next Boom? 'Spec' Homes Are Back)
There are 7.2 million more renters today than there were in 2004, and just 400,000 more homeowners, according to the U.S. Census.
Despite the recovery in home sales, the homeownership rate continues to fall, from an all-time high of 69.2 percent to 65 percent in the first quarter of 2013. As home prices rise and the employment picture improves, more people will come back to home ownership, and some of the new rental homes will inevitably be sold, but certainly not all of them.
"If you buy homes in areas with below-median income, I think the mortgage market is going to have harder time providing credit to these people, and it's going to take longer for that to recover," said Bloemker. "We think that these homes are more likely to be long term rentals, and those are likely to end up in the hands of institutional investors."
—By CNBC's Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC—CNBC's Stephanie Dhue contributed to this story
Questions? Comments? RealtyCheck@cnbc.com
(Read More: US Pending Home Sales Tick Upward in March)
"In terms of our mix, less is going to Arizona and California today," said Justin Chang a principal at Colony. "Our mix is increasing on east coast, Georgia, Florida, we're active in Texas. I think over time some of the early markets will become a smaller part of our overall portfolio."
Some investors are also starting to look at new construction, as home builders start to ramp up production again. The key is to find new product that is cheaper than replacement costs, which still is not that easy. So far investment has mostly gone only as far as distressed new homes, but as prices rise, that may change.
"On home building, there's a lot of chatter about that. We are in some conversations with builders," explained Chang, who admits the economics have not been compelling yet. "Over time you'll see more and more of these transactions, and we may do one as well."
Another potential strategy going forward is a consolidation, as investors turn away from distressed properties and focus on so-called "Mom and Pop" landlords, who may buy just one or two properties. There are an estimated 14 million single family rental homes owned by this cohort.
"If you think about all of the major institutions maybe owning 70,000 total homes compared to the market size of 14 million homes, the long term potential is enormous. Institutions are literally a fly on an elephant," said Aaron Edelheit, CEO of The American Home, an Atlanta-based company that owns and manages about 2,500 homes. "We may look back and realize that the REO [real estate owned] to rental space was only the foundation for an exponentially larger industry with institutions owning hundreds of thousands, if not millions, of homes."
(Read More: Next Boom? 'Spec' Homes Are Back)
There are 7.2 million more renters today than there were in 2004, and just 400,000 more homeowners, according to the U.S. Census.
Despite the recovery in home sales, the homeownership rate continues to fall, from an all-time high of 69.2 percent to 65 percent in the first quarter of 2013. As home prices rise and the employment picture improves, more people will come back to home ownership, and some of the new rental homes will inevitably be sold, but certainly not all of them.
"If you buy homes in areas with below-median income, I think the mortgage market is going to have harder time providing credit to these people, and it's going to take longer for that to recover," said Bloemker. "We think that these homes are more likely to be long term rentals, and those are likely to end up in the hands of institutional investors."
—By CNBC's Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC—CNBC's Stephanie Dhue contributed to this story
Questions? Comments? RealtyCheck@cnbc.com
Friday, May 3, 2013
Latest Real Estate Trend: Hedge Funds Buying Forecloures
Check out these headlines from around the real estate world.
"The Next Big Thing on Wall Street"
"The business of buying foreclosed homes, renovating and renting them out is morphing from a largely mom-and-pop business into the next big thing on Wall Street.Blackstone Group LP has become the biggest U.S. investor in single-family rental homes by spending more than $1 billion since the start of 2012 to acquire more than 6,500 foreclosed homes ... fresh evidence that the purchase of foreclosed homes, which began as a mom-and-pop pursuit, is gaining legitimacy among the biggest private-equity firms."
"A Land Grab Unlike Anything We’ve Ever Seen"
"The Blackstone shopping spree, and those of half a dozen other big investment firms and hedge funds, could radically change the local home landscape, as big-money brokers compete with first-time buyers and mom-and-pop landlords over homes in tight supply.'It's a land grab unlike anything we've ever seen," said Peter Murphy, CEO of Home Encounter, the largest manager of rental homes in Tampa Bay. "You're going to drive through parts of town and all of it is going to be institutionally owned.'"
"Wall Street’s Hottest Investment Idea:
Single Family Homes"
"Large real estate investment trusts and private equity funds have generally focused on commercial real estate. That appears to be changing, and fast. Wall Street's hottest investment idea is now single family homes.""Faster Than Anyone Imagined"
"Legendary investor Warren Buffett seemed to fire a starter pistol last February when he said he would buy 'a couple hundred thousand' homes nationwide. It's hard now to find a private equity firm on the planet that doesn't have a strategy in this space. The market is growing faster than anyone imagined.""Investors Raise $8 Billion for Acquisitions"
"Larger Wall Street investors rushing into the market have raised between $6 billion and $8 billion, with the intent to acquire between 40,000 and 80,000 foreclosed homes in the months ahead."Friday, February 15, 2013
Georgia's Foreclosure Rollercoaster Not Over Yet
Georgia foreclosures have been on a rollercoaster ride over the past two years says Daren Blomquist, Realty Trac Vice President. Recently he presented his analysis supporting this statement at the 2013 Inaugural Meeting of the Georgia Association of Realtors.
He was approached by two realtors from Walton County, which has the highest foreclosure rate in the state. Both told him his analysis was exactly what they had been experiencing.
Below is his presentation outlining Georgia's situation.
Georgia is among the non-judicial foreclosure states — most of which have been less susceptible to being tossed to and fro by the storm waves generated by the robo-signing settlement, however, it has most definitley seen it's "ebbs and flows" directly correlated with the major highlights of the robo-signing settlement case.
Blomquist's Slide 7 above most clearly demonstrates this. After trending higher through most of 2010 and during early months of 2011, Georgia foreclosure activity decreased on an annual basis for 13 straight months starting in March 2011. This trend began just a few months after the robo-signing controversy came to light in October 2011 and after the 49 state attorneys general investigation into foreclosure practices by the nation’s five leading lenders had gotten into full swing.
In April 2012 the settlement was finalized and Georgia foreclosure spiked for three straight months in April, May and June 2012. Starting in July 2012 there have now been six straight months of annual decreases in Georgia foreclosures, which would correlate direclty with a Georgia Court of Appeals ruling in July 2012 that held lenders to a higher standard in providing information about the entity that actually owns the mortgage to homeowners on foreclosure notices.
Blomquist believes this rollercoaster ride over the past two years in Georgia isn't over yet. He states that it actually foreshadows more bumps in the state’s foreclosure trends before its housing market can return to smooth sailing.
The three-month surge in foreclosure notices in mid-2012 — not to mention the 32 percent of Georgia homeowners who are seriously underwater (see slide 16) — indicates there are still many homeowners in danger of foreclosure in the state.
2013 is expected to be an important year in which these idle foreclosures will push through the pipeline, along with the huge foreclosure inventory that already exists in the state (see slide 11) ensures that the lingering foreclosure problem will continue burden Georgia home prices. Georgia's saturated market provides inventory for Realtors to sell and buyers and investors to buy.
Source: David Blomquist, RealtyTrac.com February 14, 2013
He was approached by two realtors from Walton County, which has the highest foreclosure rate in the state. Both told him his analysis was exactly what they had been experiencing.
Below is his presentation outlining Georgia's situation.
Georgia is among the non-judicial foreclosure states — most of which have been less susceptible to being tossed to and fro by the storm waves generated by the robo-signing settlement, however, it has most definitley seen it's "ebbs and flows" directly correlated with the major highlights of the robo-signing settlement case.
Blomquist's Slide 7 above most clearly demonstrates this. After trending higher through most of 2010 and during early months of 2011, Georgia foreclosure activity decreased on an annual basis for 13 straight months starting in March 2011. This trend began just a few months after the robo-signing controversy came to light in October 2011 and after the 49 state attorneys general investigation into foreclosure practices by the nation’s five leading lenders had gotten into full swing.
In April 2012 the settlement was finalized and Georgia foreclosure spiked for three straight months in April, May and June 2012. Starting in July 2012 there have now been six straight months of annual decreases in Georgia foreclosures, which would correlate direclty with a Georgia Court of Appeals ruling in July 2012 that held lenders to a higher standard in providing information about the entity that actually owns the mortgage to homeowners on foreclosure notices.
Blomquist believes this rollercoaster ride over the past two years in Georgia isn't over yet. He states that it actually foreshadows more bumps in the state’s foreclosure trends before its housing market can return to smooth sailing.
The three-month surge in foreclosure notices in mid-2012 — not to mention the 32 percent of Georgia homeowners who are seriously underwater (see slide 16) — indicates there are still many homeowners in danger of foreclosure in the state.
2013 is expected to be an important year in which these idle foreclosures will push through the pipeline, along with the huge foreclosure inventory that already exists in the state (see slide 11) ensures that the lingering foreclosure problem will continue burden Georgia home prices. Georgia's saturated market provides inventory for Realtors to sell and buyers and investors to buy.
Source: David Blomquist, RealtyTrac.com February 14, 2013
Wednesday, January 30, 2013
Savannah Foreclosure Statistics for December 2012
RealtyTrac, a leading marketplace for foreclosures properties including plentiful data for trending statistics used by real estate professionals and economists, has released figures for December 2012.
The latest trends indicate that 1 in 810 housing units in the U.S. received a foreclosure filing during December 2012. The chart below shows National statistics.
In the Savannah area alone, 1 in 1,718 homes received a foreclosure filing during the last month of 2012. Fifty-six new foreclosures were filed in the following zip codes: 31419/31410/31406/31405/31407/31401/31408. Chatham County reports 82 foreclosures in November 2012, and 73 in December.
Broken down by Savannah zip codes, the below chart shows the number of foreclosures in December 2012:
The average sales price of homes in Savannah area December 2012, accoridng to RealtyTrac,is $234,348.00 and the average price of sold foreclosures was about $150,000 in November 2012, and is projected to remain so for December 2012 as sales decline typically during the holiday season.
The latest trends indicate that 1 in 810 housing units in the U.S. received a foreclosure filing during December 2012. The chart below shows National statistics.
In the Savannah area alone, 1 in 1,718 homes received a foreclosure filing during the last month of 2012. Fifty-six new foreclosures were filed in the following zip codes: 31419/31410/31406/31405/31407/31401/31408. Chatham County reports 82 foreclosures in November 2012, and 73 in December.
Broken down by Savannah zip codes, the below chart shows the number of foreclosures in December 2012:
The average sales price of homes in Savannah area December 2012, accoridng to RealtyTrac,is $234,348.00 and the average price of sold foreclosures was about $150,000 in November 2012, and is projected to remain so for December 2012 as sales decline typically during the holiday season.
Monday, October 8, 2012
Foreclosures Decline but Remain High and Prepayments Surge
A very insightful article by Krista Franks Brock of DSNEWS.COM on October 3, 2012
Foreclosure inventory continues to decline but remains more than eight times what it was in the decade prior to the housing crisis, according to the latest report from Lender Processing Services (LPS).
Noncurrent loans make up 10.9 percent of all loans as of August, demonstrating a year-over-year change of -7.6 percent, according to LPS.
As of August, the delinquency rate stands at 6.9 percent, and the foreclosure rate is 4.0 percent.
There remains a large gap in the foreclosure rate between judicial states and non-judicial states. In fact, in judicial states the rate remains near an all-time high of 6.49 percent, while the foreclosure rate in non-judicial states is 2.28 percent.
The amount of loans 90 or more days delinquent is near half of its January 2010 peak. The majority of these loans are more than nine months delinquent. About 43 percent are at least 12 months delinquent.
Foreclosure inventory continues to decline but remains more than eight times what it was in the decade prior to the housing crisis, according to the latest report from Lender Processing Services (LPS).
Noncurrent loans make up 10.9 percent of all loans as of August, demonstrating a year-over-year change of -7.6 percent, according to LPS.
As of August, the delinquency rate stands at 6.9 percent, and the foreclosure rate is 4.0 percent.
There remains a large gap in the foreclosure rate between judicial states and non-judicial states. In fact, in judicial states the rate remains near an all-time high of 6.49 percent, while the foreclosure rate in non-judicial states is 2.28 percent.
The amount of loans 90 or more days delinquent is near half of its January 2010 peak. The majority of these loans are more than nine months delinquent. About 43 percent are at least 12 months delinquent.
The overall delinquency rate declined 2.3 percent in August. States ranking highest for non-current loans include Florida, Mississippi, New Jersey, Nevada, and New York. States with the lowest percentages of non-current loans include Montana, Alaska, South Dakota, Wyoming, and North Dakota.
LPS noted prepayment activity was up “significantly” in August, nearing levels last reported in 2005.
The annualized prepayment rate at the end of August was almost 25 percent, according to LPS’ findings.
Prepayment was highest among loans with higher combined loan-to-value ratios (CLTVs). For example, among loans with more than 120 percent CLTV, prepayment increased more than 65 percent year to date.
According to LPS, this trend is significant because prepayments are an indicator of refinance activity.
In August, 2011 vintage loans experienced a 23 percent increase in prepayments over the month. Loans with vintages from 2007 and earlier experienced a prepayment increase of just 9 percent, which LPS interprets as signs of a “refi burn out.”
“[I]t is also becoming evident that loans originated in 2007 and earlier have diminished prospects for conventional refinancing opportunities,” stated Herb Blecher, SVP of applied analytics at LPS.
“Fewer than 30 percent of these vintages remain both active and current, and on average, they are marked by larger negative equity positions and lower credit scores,” Blecher explained.
LPS noted prepayment activity was up “significantly” in August, nearing levels last reported in 2005.
The annualized prepayment rate at the end of August was almost 25 percent, according to LPS’ findings.
Prepayment was highest among loans with higher combined loan-to-value ratios (CLTVs). For example, among loans with more than 120 percent CLTV, prepayment increased more than 65 percent year to date.
According to LPS, this trend is significant because prepayments are an indicator of refinance activity.
In August, 2011 vintage loans experienced a 23 percent increase in prepayments over the month. Loans with vintages from 2007 and earlier experienced a prepayment increase of just 9 percent, which LPS interprets as signs of a “refi burn out.”
“[I]t is also becoming evident that loans originated in 2007 and earlier have diminished prospects for conventional refinancing opportunities,” stated Herb Blecher, SVP of applied analytics at LPS.
“Fewer than 30 percent of these vintages remain both active and current, and on average, they are marked by larger negative equity positions and lower credit scores,” Blecher explained.
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