Driven largely by the surge in foreclosures and an unsettled housing market, Americans are renting apartments and houses at the highest level since President Bush started a campaign to expand homeownership in 2002.
The figures, while seemingly modest, reflect a significant shift in national housing trends, housing analysts say, with the notable gains in homeownership achieved under Mr. Bush all but vanishing over the last two years.
Many of the new renters, meanwhile, are struggling to get into decent apartments as vacancies decline, rents rise and other renters increasingly stay put. Some renters who want to buy homes are unable to get mortgages as banks impose stricter standards. Others remain reluctant to buy, anxious that housing prices will continue to fall.
The number of homes under contract to be sold rose unexpectedly in April as buyers went bargain hunting, according to a report released Monday.
The Pending Home Sales Index from the National Association of Realtors (NAR) rose to 88.2 in April, up 6.3% from March's reading of 83 and the highest level since October. The increase defied the consensus estimate of economists polled by Briefing.com, which forecast pending sales to fall by 1%.
Despite the increase, April's reading remains down 13.1% from the same period last year, and off 29% from the index's peak in April 2005.
While residential real estate prices are declining as a whole on a national basis, new research from Forsythe Appraisals, an independent appraisal company, indicates that the national trends also show pockets of stability, and some with marginal increases in home values rising in some U.S. submarkets.
From Seattle to San Antonio, Milwaukee to Tampa, Connecticut to California, select neighborhoods in major markets have seen price increases of 5 to 19 percent from first quarter 2007 to first quarter 2008, according to the St. Paul-based appraisal company, which has 37 offices across the country. RISMEDIA, June 2, 2008
The Department of Justice's Antitrust Division and the National Association of Realtors have settled a 3-year-old civil suit that bolsters the position of online real estate firms such as Redfin, Trulia and Zillow.
As part of the settlement, NAR will not be able to exclude online brokerage firms from joining Multiple Listing Services. Nor will it be able to withhold listings from those brokerage firms that do business over the Internet. John Cook, Seattlepi.com
Sales of previously owned homes, which make up the bulk of the housing market, dipped 1 percent in April, to an annual rate of 4.89 million, the second consecutive month that sales have declined. That figure represents another record low, although the report, put out by the private National Association of Realtors, dates only to 1999.
The home sales report on Friday topped off a dreary week. The median value of a previously owned home was $202,300 in April, down 8 percent from a year ago, the realty group said on Friday.
Homeowners have watched their property values plunge for months, although the slump comes after several years of a remarkable run-up in home prices. Still, economists say they believe the declines have discouraged purchases, as would-be buyers hold out for prices to fall further. New York Times
More than 155,000 families have lost their homes to foreclosure this year; one out of every 194 U.S. households received a foreclosure filing.
Foreclosure filings in the first three months of 2008 rose more than 112% over last year, according to a study released Tuesday.
Real estate information firm RealtyTrac reported that nearly 650,000 foreclosure filings - which include notices of default, auction sales and bank repossessions - were issued in the first quarter. That represents 1 of every 194 households and marks a 23% increase from the last quarter of 2007.
CNNMoney.com
The bill, which is expected to go to the Senate floor on Thursday, includes a new standard property tax deduction of $1,000 for couples and $500 for individuals that will benefit 28.3 million tax filers who do not itemize deductions on their annual returns.
The bill also includes $10 billion in tax-exempt bonds for local housing agencies to refinance subprime loans and provide new mortgages for first-time home buyers, $4 billion in grants for local governments to buy foreclosed properties and $100 million to expand counseling for homeowners at risk of defaulting on their loans.
In addition, it would give a $7,000 tax credit to purchasers of foreclosed homes and would provide a new tax break for struggling home builders, allowing them to claim current losses against taxes paid in earlier, more profitable years. Officials said the proposals would cost taxpayers $15 billion to $20 billion, with details still being worked out. New York Times 4/3/08
Now that the Federal Reserve has pledged billions of dollars to rescue Wall Street bankers from possible default, lawmakers and regulators are turning their attention to helping average citizens -- from homeowners in danger of foreclosure to people who want to buy a home.
But unlike the Fed's rapid moves last week to stabilize financial markets, the consumer benefits are likely to progress slowly as they face resistance from the Bush administration on some broad issues and from special interests on some narrow ones. The Washington Post Published March 20, 2008
A total of 2,203,295 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 1,285,873 properties nationwide during 2007, up 75 percent from 2006, according to the RealtyTrac U.S. Foreclosure Market Report. The report also shows that more than 1 percent of all U.S. households were in some stage of foreclosure during the year, up from 0.58 percent in 2006.
A total of 215,749 foreclosure filings were reported in December, up 97 percent from December 2006 and bringing the fourth-quarter total to 642,150 filings on 527,740 properties — up 1 percent from the previous quarter and up 86 percent from the fourth quarter of 2006. 3/10/08
2/22/08 Real Estate News
Did you know more than 80% of today's home buyers begin their search online? Searching online lowers the time and energy you must devote to your search. Narrowing your search through virtual tours and slide shows can reduce the number of open houses and showings needed to find your gem. However, nothing ever beats a little hands on look-see. It's hard to open a kitchen cabinet on-line. On to the tips...
Shop for mortgage rates and terms
A difference of even half a percentage point can mean a considerable savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600.
Prequalify for a loan
Also early on, you’ll want to get prequalified for a mortgage loan, which determines how much you can afford. It allows you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and can afford to buy the property.
