HUD Home Listings
Seem to be on the Rise
HUD Home listings appear to be trending a rise. I think this is due to the lack of FHA lending between 2002-2006. FHA started to gain some steam when the conventional 100% stated income loan started it's demise in 2007. In the last several years we have cycled through refi's and purchases between 2002-2005. The defaults we are seeing now are newer defaults - ones that were bought or refinanced in 2007 or 2008.
Trustee Sale Flips
Infiltrating the Market
Trustee sale flips are slowly gaining their ground and have been for months. I expect to see a larger percentage of these types of investor resales as the FHA anti-flipping ban has been relaxed for a year. Banks seem to be eager to want these things off their books for good and allow all cash investors the opportunity to take over the risk of rekey, evictions, listing and possible declining markets.
The Resale Market
Remains Stable
Pricing within the Las Vegas Area resale market remains stable and has been fairly stable since May 2009. Prices are not going up nor are they declining - overall in the Valley. Much inventory is coming online and the buyers are continuing to absorb that inventory with buyer interest still at very high levels. I am seeing pockets of increased inventory in newer subdivisions which provides excellent opportunity for financed buyers that are not yet able to secure a contract. This may cause declines in certain subdivisions.
I don't believe we will
see quick appreciation
in the near future!
The reason why I don't believe this is because of HVCC (newer appraisal guidelines)+lender overlays. We are also seeing some changes in one of our most popular current lending products (FHA) - mostly due to risk and loss of funding from foreclosures as I mentioned in my first paragraph of this post.
We are not seeing a decline in new REO inventory and I don't believe we will any time soon. We are also seeing high buyer interest swoop that inventory up. Any changes in inventory or buyer activity could swing our market back into a stable or declining market quickly as REO doesn't have problem slashing prices to dump inventory.
We are currently a very strong seller's market and have been since late spring - without appreciating prices.
How do I know this?
Not only do I spend a little time by pulling statistics to add monthly market reports to my blog but I actively work with buyers and sellers in my market.
I also perform 100+ BPOs a month. BPOs are "Broker Price Opinions" which basically help the banks & investors for pricing on their "assets" (homes.) I think this is the perfect way to gain market insight.
I currently carry five real estate designations/certifications (ABR, AHWD, RSPS, SRES & SRS) and I am seeking 4 more by the end of 2010. You may view definitions for those designations right here on my profile!
With the spring buying and selling season upon us, it is essential to start interviewing your potential Realtor to see if they have the current market insight and knowledge necessary to bring to your transaction.
;)
;)
;)
Renee - Your informative blogs have never failed to impress and educate me. I like this one so much that I'm going to tweet it!