Top News Of The Week | Real Estate Today Radio

- People Still Want To Invest In Homes
- IMF Sees Housing Improving
- Watchdog Investigates Insurers
- Housing On The Mend
- Bargain Stigmatized Properties
- Fewer Move-up Buyers
- Empty Homes Cause Problems
- Freddie Mac Posts Profit
- More Metro Areas On Improving Markets List
- Starter Home For Gen Y Buyers

People Still Want To Invest In Homes

A newly released Fannie Mae national housing survey says that 85 percent of Americans prefer home ownership over renting. The study also finds that the housing and financial crisis have not been a major factor in Americans? choice of buying over renting.

Steve Deggendorf, one of the authors of the Fannie Mae study said that the nonfinancial benefits that people derive from home ownership mitigate any negative financial experiences that many home owners may have had.

Instead, only 25 percent of those surveyed cited financial attitudes as having an impact on their next housing decision and more renters than ever want their own piece of the American Dream.

IMF Sees Housing Improving

The International Monetary Fund, in its August 2nd, Survey Magazine also found that the U.S. economy is improving and housing along with it, though there?s still room for more growth.

The IMF believes that the Housing market in the U.S. has turned a corner and projects steady long-term growth in home values over the next four to five years.

Watchdog Investigates Insurers

Federal regulator, the Consumer Financial Protection Bureau, or CFPB, is stepping up its investigation of mortgage insurance industry practices.

A corporate filing from New Jersey based PHH Corp. disclosed back in January that it was the target of a probe but now the CFPB is looking into whether firms such as American International Group, MGIC Investment Corp., and Genworth Financial violated real estate laws.

Several mortgage insurance companies face class-action lawsuits challenging the legality of some of their business arrangements. The Wall Street Journal reports that some in the industry paid banks to have business steered in their direction, a practice that may violate the Real Estate Settlement Procedures Act.

Genworth Financial stated that they intend to cooperate with the CFPB but it will vigorously defend sits actions. Naturally, we?ll have more on this story for you as we get it.

Housing On The Mend

While some people are still a bit nervous about the continued recovery of the housing market, the Wall Street Journal recently published an article that pointed out more signs that housing is on the mend, which should put some of those fears to rest.

Here?s just a few of those reasons. Prices are on the rise, foreclosures have slowed down, inventory continues to decrease, mortgage rates are ultra-low, housing starts and home building stocks are up and Home affordability is at record highs for the median income family. In fact, it is cheaper to buy a home than rent in almost every major city in the U.S.

The article concludes that if you take into account all the positive signs we?ve seen, housing presents an attractive long-term investment that should hold steady or even have upside surprise in the short term.

Bargain Stigmatized Properties

According to a recent article from AOL Real Estate, foreclosures and short sales aren?t the only places you can pick up bargains. Real estate consultant Randall Bell of Bell Anderson & Saunders told AOL that buyers might expect to pay 10 percent to 25 percent off the regular market home price for a stigmatized home, that?s a home where a crime, murder or suicide might have taken place.

But for some buyers, the crime that happened may be too much to handle. Some buyers worry about the resale value and what others will think too. Also, homes where crimes took place tend to linger on the market longer, according to Bell.

However, some say they are willing to overlook a home?s shady past. Chris Butler, purchased a split-level ranch in a forest in Akron, Ohio, that once belonged to serial killer Jeffrey Dahmer. He told AOL that it may have a terrible history, but he bought it anyway.

Fewer Move-up Buyers

Inventory continues to remain at extremely low levels. But why? A recent article from CNBC points to the possibility of immobile move-up buyers, which could have an effect on the speed of the continued recovery.

Many of these home owners are taking a sit-and-wait approach until prices pick up further. Only then will they seriously consider moving on.

Mortgage analyst Mark Hanson told CNBC that home owners probably need about 20 percent of equity in their current home in order to move up and buy another home, but many borrowers don?t have that much due to being underwater on their homes, although the numbers have been improving. In the last 3 months, fewer home owners had negative equity than at the beginning of the year. Also, prices have been on the rise.

Empty Homes Cause Problems

Empty homes still plague a lot of cities across the country.. CNBC reports that according to Census Bureau data, vacant properties, defined as unoccupied rental and for sale inventory, have risen considerably since the year 2000.

One of the problems with vacant inventory is that it can affect the value of nearby homes. A study by the Cleveland Federal Reserve earlier this year found that a vacant home has the potential to decrease the value of nearby homes by around 1.3 percent, often because of poor maintenance, and because the empty buildings can make a neighborhood appear less desirable. In higher income neighborhoods, the impact can be even more drastic, possibly lowering nearby home prices by four and one half percent.

Freddie Mac Posts Profit

The Los Angeles Times reports that mortgage giant Freddie Mac reported a three billion dollar second quarter profit recently.

And there were a few added bonuses to go along with those profits.

Along with the fact that Freddie said that it would not need any federal support for the second quarter, the mortgage giant also revealed that it added only one hundred fifty five million dollars to reserves to cover future loan losses. Now why might that be good news? Well, that?s the least it has added quarterly to reserves in nearly six years, making a very clear signal that they believe the real estate market recovery is well underway.

More Metro Areas On Improving Markets List

Eighty U.S. metro areas now hold a spot in this month?s Improving Markets Index, which spotlights housing markets showing gains over at least six consecutive months.

The National Association of Home Builders and First American?s August index shows that 75 metro areas kept their spot on this month?s list, plus the addition of five new ones.

The five metros added to this month?s improving index are Miami, Florida; Palm Bay, Florida; Hinesville, Georgia; Terre Haute, Indiana; and Lubbock, Texas.

Barry Rutenberg, NAHB chairman says that the list of improving housing markets in August includes metros across every region of the country, however continued tight lending continues to drag on their positive momentum.

Starter Home For Gen Y Buyers

National homebuilder Centex Homes is rolling out a new plan to turn Generation Y renters into homeowners with back-to-basics homes that offer all of the advantages of home ownership on a comfortable budget.

Fred Ehle, vice president of marketing for PulteGroup, Centex?s parent company, told the Chicago Tribune that they?re marketing these homes, not with an advertised sales price, but with the monthly cost of that home because many people don?t think they could afford it or they don?t think they could qualify for a loan. Centex offers to connect each buyer to a mortgage adviser before they sign up to buy.
Centex plans to roll out test markets in Chicago, San Antonio, and St. Louis.

Source: http://retradio.com/?p=6029

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