Real Estate Headlines - 20 - Worthy of Attention...

Shadow Inventory Declines

source: mortgagedailynews.com

According to CoreLogic, the shadow inventory of financially distressed homes is still shrinking. As of October there was 2.29 million properties or a 7.2 month supply. This is a 12% decrease from October 2011. The so called shadow inventory represents properties that are delinquent on payments or in some stage of foreclosure, or foreclosed the last stage. Nationwide there are only 354,000 properties that are bank owned or about a 1 month supply.

Multiple Offers, Quick Sales, Hampered by Appraisal and Credit Issues

source: mortgagenewsdaily.com

The National Association of REALTORS conducts a monthly survey of REALTORS and produces an index called the REALTORS Confidence Index (RCI.) The survey monitors buyer/seller traffic, homes prices, and areas of concern.

Through 2012 the RCI showed dramatic improvement with the last few months of the year, the index leveled-out for the most part hovering above "moderate expectation" for single-family homes and just below for townhouses and condos.

Even with a strong sales year in 2012, sales could have been better. Unreasonably tight credit conditions and appraisals not keeping pace with the rising market are cited as contributing factors.

Homes Prices set for Growth in 2013

source: blogs.wsj.com

Home listing prices in December were up 5.1% on a year-over-year basis according to data released last Thursday by Trulia. 82% of the major metro markets monitored showed year-over-year gains. This is compared to December 2011 where the same report indicated a 4.3% drop.

Rents also increased 5.2% in 17 of the 25 largest rental markets.

Homes Sales and Prices are Up

source: money.cnn.com

Reporting data from the National Association of REALTORS (NAR), sales of existing homes rose 5.9% to a rate of 5.04 million in November 2012. This is the highest level noted since 2009 when sales peaked at 5.44 million. The November sales exceeded a panel of industry experts predicting 4.9 million.

NAR also reported a 10.6% increase in the median price of homes in November - $180,600 compared to the previous November.

The south leads the way with 7.9% sales increase.