June home prices rose for the third consecutive month, ending the month with the largest seasonal gain year to date.

However, recent encouraging uptrends are likely driven by seasonal upswings in home-buying activities, rather than a reflection of more fundamental improvement in underlying housing conditions, according to the latest data on non-distressed home sales.

FNC’s Residential Price Index (RPI) indicates that single-family home prices were up in June at a seasonally unadjusted rate of 0.9 percent. As a gauge of underlying home value, the RPI excludes sales of foreclosed homes, which are often sold with large price discounts due to poor property conditions. FNC’s RPI is the industry’s first hedonic price index built on a comprehensive database blending public records with real-time appraisals of property and neighborhood attributes.

All three RPI composites (the National, 30-MSA, and 10-MSA indices) showed month-over-month increases in the last three months, rising more rapidly in June at 0.9 percent, 0.7 percent and 1.5 percent respectively. The seasonal upswings have brought a total of 2.1 percent improvement in home prices nationwide since March.

The indices’ year-over-year trends also showed modest improvement since May, declining less rapidly in June at 5.1 percent (National composite), 5.9 percent (30-MSA composite), and 4.9 percent (10-MSA composite).

Among the metro areas tracked by the 30-MSA composite, there is a 50-50 split in June between markets experiencing month-over-month increases and those experiencing month-over-month declines. Boston, Chicago, Cleveland, Denver, Detroit, and Nashville are among those that posted higher prices in each of the April, May, and June months that averaged 3.5 percent, 1.0 percent, 1.6 percent, 0.6 percent, 2.2 percent, and 2.2 percent per month. Boston in particular, has enjoyed extended rebound with prices going up 9.1 percent in the first half of 2011. Other cities including Cincinnati, Columbus, Minneapolis, Nashville, and San Francisco also showed robust year-to-date price trends, rising between 4-5 percent since January.

Las Vegas and Orlando, on the other hand, lead the nation in home price declines during 2011, down 5.9% and 4.1% respectively since January. The worst year-over-year trends in home prices are seen in Orlando, Las Vegas, Atlanta, Sacramento, Tampa, Baltimore, and Phoenix, down 15.8 percent, 12.6 percent, 12.5 percent, 10.9 percent, 10.6 percent, 9.4 percent, and 9.2 percent respectively from a year ago. Detroit and Boston are the only cities where home prices today are higher than a year ago by 4.0 percent and 3.6 percent, respectively.

Why would you continue to rent when you can buy?   

Attention Renters.  If you are paying as little as $850.00 a month in rent you are throwing away over $51,000 every 5 years paying off someone else mortgage and that does not even take into account the amount of interest deduction you give to the IRS. You landlord does not want you to know this because you are building their wealth not your own.

All the negative headlines about the drop in home value over the last 5 years has skewed our thinking about homeownership. Home is a place to build memories, provide security, and save thousands of dollars with the combination of equity building and interest deductions. It would not matter if property value continued to decline as long as you are paying towards principal reduction. A buyer in todays market of say 30 years old with a 15 year mortgage will own their home free and clear by the time they are 45. Imagine no house payments 20 or more years before you even qualify for social security.

Interest rates are on the rise but they are still at an all time low and you may actually qualify to buy a home for less than your current rent.

Call  today for a complimentary home consultation and referral for a pre qualification to see exactly how much home you can buy I think you will be pleasantly surprised.

By Dan Levy - Aug 24, 2011 9:01 PM PT

U.S. homes nearing foreclosure accounted for 12 percent of total sales in the second quarter as banks agreed to more transactions at prices below the outstanding mortgage balance, RealtyTrac Inc. said.

The proportion of sales of homes in default or scheduled for auction rose from 10 percent a year earlier and was little changed from the first quarter, the Irvine, California-based information company said today in a report. Most of those were short sales, or transactions for less than the mortgage debt, according to RealtyTrac.

An increase in short sales, along with a shorter average time to sell such homes and bigger discounts relative to normal deals, indicate the market is clearing distressed properties more efficiently, Chief Executive Officer James J. Saccacio said in the statement. Total pre-foreclosure deals rose 19 percent from the first quarter, while slipping 12 percent from a year earlier, when a federal tax credit pumped up demand.

“This is a glimmer of HOPE that lenders are getting more realistic,” Rick Sharga, senior vice president of RealtyTrac, said in a telephone interview. “It’s a win for borrowers who avoid foreclosure, buyers who get a house in better condition and banks that lose less money, which is also a win for taxpayers.”

245 Days

Pre-foreclosure homes took an average of 245 days to sell after receiving the initial foreclosure notice, down from 256 days in the first quarter.

The average sale price was $192,129, a discount of 21 percent relative to non-distressed homes. Discounts averaged 17 percent in the first quarter and 14 percent a year earlier, according to RealtyTrac.

Sales of distressed properties, which also include homes seized by banks, totaled 265,087, down 11 percent from the second quarter of 2010 and up 6 percent from the previous three months.

The average price of all distressed homes sold in the second quarter was $164,217, down less than 1 percent from the previous period and almost 5 percent from a year earlier. Such properties sold at an average 32 percent discount, compared with a 27 percent discount in the first quarter.

RealtyTrac sells default data from more than 2,200 counties representing 90 percent of the U.S. population. 

Short Sales in Ventura County

The amount of time it would take for the housing market to move through properties lingering in the foreclosure system is finally improving.

Standard & Poor's analysts estimate it would take 47 months for the housing market to work through the shadow inventory, according to their second quarter research note. They revised that down from 52 months in the first quarter, the first decline since the middle of 2009.

At the end of last year, S&P said the market would need 44 months to move through the inventory and at the end of September 2010, analysts estimated it at 40 months.

S&P analyzed loan-level private-label residential mortgage-backed securities data from CoreLogic (CLGX: 8.42 -6.34%) to calculate its estimates. It defines the shadow inventory as a collection of properties in 90-day delinquency or worse, foreclosure and REO.

The unpaid principal balance on these properties remains high at $405 billion, but it is a 6.4% drop from the previous quarter and represents less than one-third of the outstanding private-label RMBS market.

"In conjunction with stable liquidation rates, we believe these are positive signs that the amount of time it will take to clear this 'shadow inventory' should continue to decline over the next year," analysts said.

Of the top-20 U.S. markets, the shadow inventory looms largest over New York. There, S&P said it would take 144 months to work through the glut of properties, but still down from 146 months in the previous quarter.

S&P analysts said even as the market is finally making gains on the overhang, servicers are still working through documentation problems, new regulations and tighter scrutiny. RealtyTrac recently estimated the delays kicked more than 1 million foreclosures to next year.

"The shadow inventory will continue to jeopardize the housing market's recovery until servicers are able to improve liquidation times," S&P said. "However, if and when that happens, an influx of homes will likely enter the market, increasing supply and driving prices down further."

by Jon Prior

Facing Foreclosure?

Foreclosure filings dropped again in July, marking the 10th straight month for year-over-year declines and reaching their lowest level since November 2007, RealtyTrac reports. But analysts are still mostly attributing the drop to banks’ processing delays as they take more time to take action against delinquent home owners.

For July, about 212,764 homes received a foreclosure filing — which is a notice of default or auction sale or completed foreclosure — that’s down 4 percent compared to June. Filings were 35 percent lower than July 2010, according to RealtyTrac, and bank repossessions were down 33.6 percent from its peak in September 2010. Also, initial notices of default dropped 39 percent year-over-year to fewer than 60,000, which could be an indication that fewer borrowers are falling behind on their mortgage payments or that lenders are not filing notices as promptly in the past.

"The downward trend in foreclosure activity has now taken on a life of its own," says RealtyTrac CEO James Saccacio. "It appears that processing delays, combined with the smorgasbord of national and state-level foreclosure prevention efforts, may be allowing more distressed home owners to stave off foreclosure."

Las Vegas continued to have the highest rate of foreclosures in the country — a filing for every 99 homes. Overall, for states, Nevada had the highest foreclosure rate of any state (one filing for every 115 homes), followed by California (one in every 239 homes), and Arizona (one in every 273 homes).

Source: “Foreclosure Filings Fall for 10th Straight Month,” CNNMoney (Aug. 11, 2011)

The number of Americans who filed mortgage applications rose 4.1% last week, as homeowners continued to take advantage of low interest rates when refinancing, a leading trade group said Wednesday.

The mortgage Bankers Association's weekly mortgage applications survey for the week ending Aug. 12 noted its market composite index – a measure of mortgage loan applications – grew 4.1% on a seasonally adjusted basis, while the same index increased 3.6% on an unadjusted basis.

As interest rates remained low in the face of rocky economic data, the refinance index continued its upward tilt last week, rising 8%, but remaining 16.3% below year ago levels.

Meanwhile, the seasonally adjusted purchase index fell 9.1% as shaky economic data kept potential homebuyers on the sidelines.

"Unprecedented volatility in the stock market last week amid additional signs that the economy has slowed led to further drops in mortgage rates, with the 15-year rate reaching a new low for the MBA survey," said Mike Fratantoni, MBA vice president of research and economics. "Purchase application activity fell sharply over the previous week, likely the result of potential homebuyers hesitant to purchase in this highly volatile and uncertain environment."

The four-week moving average for the seasonally adjusted market index and the refinance index went up 6.9% and 10.1%, respectively, while the four-week moving average on the seasonally adjusted purchase index fell 2.2%.

Home refinancing dominated last week, representing 78.8% of all applications, up from 75.6% a week earlier.

The average contract interest rate for the 30-year, fixed-rate mortgage fell to 4.32%, down from 4.37% a week earlier, while the 15-year, FRM declined to 3.47% from 3.52%.

By Kerri Panchuk

Anna Nicole Smith's former home in Studio City, California has been listed at $1.75 million by Teri Pacitto, Aviara Real Estate, Westlake Village. The contemporary Mediterranean style property has five bedrooms, five bathrooms, gym, formal dining room, great room and a four-car garage.

The approximately 4,700 square foot home is being sold by her estate, reports TMZ. Anna Nicole Smith's  Estate are listed as property owners.

The home features expansive views of the canyon and city, which many may remember from Smith's reality show. "The Anna Nicole Show" highlighted her close, personal relationships (including one with her late son, Daniel Smith) and her interior design woes with Bobby Trendy. The former Guess model and television personality passed away in 2007. She is survived by her daughter.

Photos by Shawn Cordon Photography, courtesy of the official listing with Teri Pacitto Broker with Aviara Real Estate in Westlake Village.

Want to know real estate values in Los Angeles and Ventura County? 

Home Pries Rise Second Month in Row, Will Uptick Continue?

By Alejandro Lazo

Pending Home Sales Rise in June