Monday, October 29, 2012

September Las Vegas Home Sale Press Release

Las Vegas Region September Home Sales


Las Vegas-area home sales fell compared with a year earlier for the fourth consecutive month in September amid an ongoing decline in low-end activity and a five-year low for foreclosure resales. Price measures pointed higher again as housing demand remained strong and a greater share of all sales occurred in mid- to high-cost move-up markets, a real estate information service reported.

In September, 4,090 new and resale houses and condos closed escrow in the Las Vegas-Paradise metro area (Clark County). That was down 15.0 percent from the month before and down 12.8 percent from a year earlier, according to San Diego-based DataQuick. The firm tracks real estate trends nationally via public property records.

Sales typically fall between August and September. On average, sales have declined 8.1 percent between those two months since 1994, when DataQuick’s complete Las Vegas region statistics begin. However, the decline this year was exacerbated by the relatively low number of business days in September, which began and ended with a weekend. The average number of home sales recorded daily this September was slightly higher than the average for August and about 4 percent lower than in September 2011.

This September's sales were 13.0 percent below the average number of homes sold during all months of September since 1994, and were the lowest for that month since September 2007, when 3,054 homes sold.

Though up 34 percent from a year earlier, September's new-home sales remained extraordinarily weak – about 56 percent below average for the month of September. Resale activity was 9.8 percent above average for a September, though it fell month-to-month and year-over-year. The number of houses and condos that resold in September fell 17.3 percent from the prior month and fell 18.9 percent from September 2011.

In the overall market in September, sales of mid- to higher-cost homes rose on a year-over-year basis while low-end sales continued to decline. The total number of homes that sold for less than $100,000 fell 37.4 percent in September compared with a year earlier. Transactions below $200,000 declined 20.4 percent year-over-year, while the number of homes that sold above $300,000 rose 3.8 percent. The number of $500,000-plus sales rose 19.4 percent year-over-year. (The over-$500,000 market only accounts for about 2 percent of total sales).

Affordability-driven demand has been robust in the lower-priced markets, with first-time buyers, investors and some vacation-home buyers whittling down the available supply, thereby restricting the sales volume. So why aren't more people listing their homes for sale? Many who would like to sell can’t because they still owe more than their homes are worth. Other potential sellers are holding off on a move-up purchase because of uncertainty over jobs or the economy, or because they’re waiting for higher prices.

The median price paid for all new and resale houses and condos sold in the Las Vegas metro area in September was $137,000 – the highest since the median was $139,000 in June 2010. September’s median rose 3.0 percent from the prior month and rose 19.1 percent from a year earlier.

September was the eighth consecutive month to post a month-to-month gain in the median, and it was the sixth in a row with a year-over-year increase. September’s 19.1 percent annual rise in the median was at least in part a reflection of the substantial drop in the share of all resales that were foreclosed properties, which tend to carry significant discounts and be concentrated in lower-cost areas. The rise in mid-to high-end deals also helps push up the overall median. Included in the latter trend is the jump in sales of newly built homes, which on average are more expensive than resale homes. In September, new homes accounted for 17.6 percent of all sales, up from 11.5 percent a year earlier.

The September median sale price remained 56.1 percent below the November 2006 peak of $312,000. The median has been rising off a cyclical low point of $110,000 this January – the lowest level since the median was also $110,000 in April 1994.

An alternative home-price gauge – the median paid per square foot for resale single-family detached houses – held steady at $73 in September. That was the same as in August and up 9.0 percent from a year earlier, marking the fourth consecutive month with a year-over-year gain. (This January’s $64 median per square foot was the lowest since at least 1994.) The September figure was 61.6 percent lower than the peak $190 paid per square foot in May and June 2006.

The role of foreclosure resales continued to wane in September, while short sales claimed a larger share of the resale market.

Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 19.2 percent of Las Vegas resale activity in September – the lowest level since September 2007. September's figure was down from 21.8 percent the month before and 56.3 percent a year earlier. Foreclosure resales peaked at 73.7 percent of the resale market in April 2009.

Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 42.6 percent of the Las Vegas-area resale market in September. That compares with an estimated 38.3 percent the prior month and 25.0 percent a year earlier. The estimated short sale level has exceeded the foreclosure resale level for the past three months.

In the wake of a 2011 Nevada law that creates additional requirements for lenders trying to foreclose on properties, the number of notices of default (“NODs”) filed in Clark County has plummeted. In September, lenders filed 1,278 NODs, down 36.9 percent from the prior month and down 71.7 percent from a year earlier. Between January and September this year lenders filed 12,343 NODs, down 69.8 percent from the same period last year. The notice of default is the first step in the formal foreclosure process.

Lenders foreclosed on 668 homes in the Las Vegas region in September, down 15.8 percent from the month before and down 67.0 percent from a year earlier. Between January and September this year, lenders foreclosed on 10,689 single-family house and condo units, down 60.6 percent from the same period last year.

Many distressed properties are snapped up by investors, whose activity remains near record levels.

Absentee buyers – mainly investors and vacation-home buyers – purchased 48.5 percent of all homes sold in the Las Vegas area in September. That was down a hair from 48.6 percent the month before and up from 45.2 percent a year earlier. The peak was 51.2 percent this March. Absentee buyers paid a median $112,500 in September, up from $110,000 the prior month and up 24.7 percent from $90,000 a year earlier. Absentee buyers are those who indicated at the time of sale that the property tax bill will go to a different address.

In September, nearly 27 percent of all absentee buyers were based outside of Clark County, according to public records. Of those based outside of the Las Vegas area, about 98 percent were from states other than Nevada. California-based absentee buyers accounted for just over half of all homes bought by out-of-region absentee buyers in September, and represented 13.4 percent of all homes sold in the Las Vegas area. Topping the list of states where out-of-state investors and vacation-home buyers came from were California, which accounted for 50.1 percent of all homes sold to absentee buyers based outside of Clark County, Arizona (6.7 percent), Hawaii (4.1 percent), New York (3.5 percent) and Texas (3.3 percent).

Cash buyers purchased 52.4 percent of the Las Vegas-area homes that sold in September. That was up from a cash-buyer share of 50.9 percent of total sales the month before and up from 51.2 percent a year earlier. The peak was 56.7 percent in February 2011. Cash purchases are where there is no sign of a corresponding purchase mortgage in the public record. Cash buyers paid a median $106,500 in September, up from $105,000 the prior month and up 28.3 percent from $83,000 a year earlier.

Home flipping has been on the rise and has returned to levels not seen since the housing boom. In September, 7.2 percent of all homes sold on the open market had previously sold within a six-month period. That's up from a flipping rate of 6.4 percent the month before and 3.6 percent a year earlier. The September flipping rate was the highest for any month since it was 7.8 percent in November 2004.

A form of low-down-payment financing that’s popular with first-time home buyers – government-insured FHA loans – accounted for 35.2 percent of all home purchase loans in September. That was up slightly from 34.9 percent the prior month and down from 43.2 percent a year earlier. In recent months the FHA share has hovered a bit above or below 35 percent of purchase loans, which is the lowest level since early 2008. The current housing cycle’s peak for FHA use was 55.1 percent of all purchase loans in September 2008.

View the Las Vegas chart at DQNews.com.

Media calls: Andrew LePage (916) 456-7157


Copyright 2012 DataQuick. All rights reserved.

Thursday, October 25, 2012

September Phoenix Home Sale Press Release

Phoenix Area September Home Sales


Phoenix region home sales fell in September amid a continuing decline in foreclosure resales and sub-$200,000 transactions. The median sale price inched up from August and approached a four-year high, the result of affordability driven demand meeting a tight supply of homes for sale, as well as a sharp rise in mid- to high-end deals, a real estate information service reported.

In September, buyers paid a median $155,000 for all new and resale houses and condos sold in the combined Maricopa-Pinal counties metro area – the highest level since the median was $162,984 in November 2008. The September median rose 0.6 percent from August and rose 24.1 percent from September 2011. It was the tenth consecutive month with a year-over-year gain, according to San Diego-based DataQuick, which tracks real estate trends nationally via public property records.

The September median was 41.3 percent below the Phoenix area's all-time peak of $264,100 in June 2006, but it was 31.0 percent higher than the median’s post-peak trough of $118,347 in August 2011.

The region’s relatively large year-over-year gains in the median sale price in recent months – ranging from 13.8 percent to 30.2 percent – reflect several trends. Prices have risen as greater demand has met a relatively low supply of homes for sale. But the median has also been pushed higher by a big shift in the types of homes selling this year compared with last. More are higher-cost move-up homes and fewer are lower-cost foreclosed properties.

If lenders eventually move more aggressively to clear their backlogs of distressed properties, then the inventory of homes on the market would rise, putting downward pressure on home prices. Regardless, if demand remains high and prices continue to rise, the market will eventually respond with a larger supply of homes for sale, which would tame price appreciation. More would-be sellers who've so far been reluctant to put their homes on the market will try to sell. Fewer people will owe more on their mortgages than their homes are worth, enabling them to sell. There will be more sales of newly built homes, which in September rose 11.2 percent from a year earlier, to the highest level for a September since 2009.

The continuing decline in the number of lender-owned properties on the market this year helps explain the region’s thin inventory of homes for sale. Foreclosure resales, defined as homes that were foreclosed on in the prior 12 months, dipped to 19.0 percent of all homes that resold last month. That was the lowest for any month since January 2008, when foreclosure resales were 18.6 percent of the resale market. September’s foreclosure resale level fell from 19.2 percent the month before and 44.4 percent a year earlier. At their peak in March 2009, foreclosure resales represented 66.2 percent of the Phoenix area's resale market.

Last month a total of 7,840 new and resale houses and condos closed escrow in the two-county Phoenix region, down 14.6 percent from the month before and down 9.5 percent from a year earlier.

A dip in sales between August and September is normal for the season, but this year’s decline was exacerbated by the relatively low number of business days in September. The month started and ended with a weekend, reducing the number of days on which sales could be recorded. The average number of sales recorded daily this September was about even with September 2011, and up slightly from this August, which had four more business days than September. On average, September home sales have fallen 7.1 percent from August since 1994, when DataQuick’s complete Phoenix region statistics begin.

Last month's total sales were 15.6 percent below average for the month of September. Resales of houses and condos combined were 2.4 percent lower than the historical average for September, while sales of newly built homes were 57.3 percent below average for a September.

Sales continued to fall sharply in the Phoenix-area’s lowest price ranges, while the middle and upper price categories saw gains. The number of new and resale homes sold in September for less than $100,000 dropped 44.8 percent from a year earlier, while sub-$150,000 sales fell 28.1 percent. Deals between $200,000 and $400,000 rose 20.6 percent year-over-year, while sales above $500,000 rose 22.0 percent. Sales over $800,000 rose 12.0 percent from a year earlier.

Other Phoenix region September highlights:

•A key price gauge analysts watch, the median price paid per square foot for existing single-family detached houses, rose to $87 in September, up from $85 in August and up 29.9 percent from a year earlier. The September figure was the highest since it was $92 in October 2008. The median paid per square foot has risen year-over-year for ten consecutive months, but in September it remained 49.1 percent below the $171 peak in May and June of 2006.
•At the county level in September, the median price paid per square foot for resale single-family detached houses in Maricopa County was $91, up 3.4 percent from the prior month and up 30.0 percent from a year earlier. It was the tenth consecutive month with a year-over-year gain. The Pinal County median paid per square foot was $63 last month, the same as the prior month and up 34.0 percent from a year earlier, marking the 12th consecutive month with a year-over-year gain.
•Buyers with a foreign mailing address in the public record accounted for 2.4 percent of total Phoenix-area home sales in September, and 5.6 percent of condo resales. (Note: Not all foreign buyers use a foreign mailing address).
•Last month 14.1 percent of all homes sold in the Phoenix area were purchased by buyers based outside of the region, while 13.1 percent were bought by buyers based in other states. Buyers from California bought about 4 percent of all homes sold in September and represented about 27 percent of the buyers based outside of the Phoenix metro area. The other most common home states for out-of-region buyers were Washington, representing 9.4 percent of purchases by out-of-region buyers; Arizona (outside of the Phoenix area) with 6.9 percent; Colorado, with 6.5 percent; Illinois, with 5.0 percent; and Oregon and Texas, which each represented 3.3 percent of the out-of-region buyers.
•Lenders foreclosed on 2,112 Phoenix-area houses and condo units last month, down 31.0 percent from the month before and down 33.0 percent from a year earlier. The number of homes lost to foreclosure between January and September this year totaled 22,112, down 48.3 percent from the same period last year.
•Absentee buyers, who are mainly investors and vacation-home buyers, bought 38.6 percent of all Phoenix-area homes sold last month, down from 39.7 percent the month before and down from 42.6 percent a year earlier. The peak was 47.1 percent in March 2011. September’s absentee buyers paid a median $120,000, up from $119,000 the month before and up 20.0 percent from $100,000 a year earlier.
•Buyers paying cash bought 39.6 percent of all homes sold last month. That was down from 40.2 percent the prior month and up from 39.0 percent a year earlier. The record for cash buying was 48.0 percent in February 2011. September’s cash buyers paid a median $120,000, up from $119,000 the month before and up 37.9 percent from $87,000 a year earlier.
•Home flipping in the Phoenix area has risen sharply this year. Homes that had sold twice on the open market within a six-month period represented 7.5 percent of all sales in September. That was down slightly from a flipping rate of 7.7 percent in August and up from 4.4 percent a year earlier.
•The market share for government-insured FHA home loans, a popular choice among first-time buyers, fell to 24.7 percent of all home purchase loans in September – the lowest level since February 2008, when it was 20.7 percent. September’s FHA share of purchase loans was down from 27.0 percent the month before and down from 34.2 percent a year earlier.

To view the home sale chart, visit DQNews.com.

Media calls: Andrew LePage (916)456-7157 or alepage@dqnews.com

Copyright 2012 DataQuick. All rights reserved.

Wednesday, October 17, 2012

3Q2012 California Foreclosure Press Releasse

California Foreclosure Activity Lowest Since Early 2007


October 17, 2012

La Jolla, CA.--Three and a half years after peaking, the number of California homes entering the foreclosure process fell last quarter to the lowest level since the early stages of the housing bust. Mortgage default filings hit their lowest point since first-quarter 2007, due in large part to a stronger economy and housing market and more short sales, a real estate information service reported.

A total of 49,026 Notices of Default (NoD) were recorded on residential properties during the third quarter. That was down 10.2 percent from 54,615 for the prior three months, and down 31.2 percent from 71,275 in third-quarter 2011, according to San Diego-based DataQuick.

Last quarter's number was the lowest since 46,760 NoDs were recorded in first-quarter 2007. NoDs peaked in first-quarter 2009 at 135,431. DataQuick's NoD statistics go back to 1992.

"A foreclosure happens when a homeowner owes more on the property than the property's worth. Otherwise it could be sold and the mortgage paid off. So foreclosures go up when home values go down. Prices in most areas today are up significantly from their low point in early 2009," said John Walsh, DataQuick president.

"Additionally, during the past year, we've seen short sales overtake the foreclosure process as the procedure of choice to deal with homeowner distress. That may change after New Year's because the temporary 'debt forgiveness'' feature in the tax code is set to expire as part of the so-called 'fiscal cliff'," he said.

The median price paid for a California home last quarter was $300,000, which was 32.2 percent off the $227,000 bottom in first-quarter 2009, DataQuick reported.

Short sales - transactions where the sale price fell short of what was owed on the property - made up an estimated 26.0 percent of statewide resale activity last quarter. That was up from an estimated 24.0 percent the prior quarter and up from 22.9 percent of all resales a year earlier. The estimated number of short sales last quarter rose 19.0 percent from a year earlier.

Foreclosure resales accounted for 20.0 percent of all California resale activity last quarter, down from a revised 27.8 percent the prior quarter and 34.2 percent a year ago. The figure peaked at 57.8 percent in the first quarter of 2009. The level of foreclosure resales - homes foreclosed on in the prior 12 months - varied significantly by county last quarter, from 5.5 percent in San Francisco County to 35.5 percent in Sutter County.

NoD filings fell last quarter across all home price categories. But mortgage defaults remained far more concentrated in California's most affordable neighborhoods. Zip codes with third-quarter 2012 median sale prices below $200,000 collectively saw about 8 NoDs filed for every 1,000 homes in those zip codes, while the ratio was about 5 NoDs filed per 1,000 homes for zip codes with $200,000 to $800,000 medians. For the group of zip codes with median sale prices above $800,000, there were just under 2 NoDs filed per 1,000 homes.

Most of the loans going into default are still from the 2005-2007 period: the median origination quarter for defaulted loans is still third-quarter 2006. That has been the case for three years, indicating that weak underwriting standards peaked then.

The most active "beneficiaries" in the formal foreclosure process last quarter were Bank of America (8,061), JP Morgan Chase(6,713) and Wells Fargo (5,780).

The trustees who pursued the highest number of defaults last quarter were ReconTrust Co (mostly for Bank of America and Bank of New York), Quality Loan Service Corp (Bank of America) and NDEx West (Wells Fargo).

On primary mortgages, California homeowners were a median eight months behind on their payments when the lender filed the Notice of Default. The borrowers owed a median $16,414 on a median $315,000 mortgage.

On home equity loans and lines of credit in default, borrowers owed a median $4,779 on a median $78,804 credit line. The amount of the credit line that was actually in use cannot be determined from public records.

San Diego-based DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Notices of Default are recorded at county recorders offices and mark the first step of the formal foreclosure process.

Although 49,026 default notices were filed last quarter, they involved 48,257 homes because some borrowers were in default on multiple loans (e.g. a primary mortgage and a line of credit).

Of the state's larger counties, mortgages were least likely to go into default in San Francisco, San Mateo and Santa Clara counties. The probability was highest in Madera, Riverside and Yuba counties.

On average, homes foreclosed on last quarter took 7.9 months to wind their way through the formal foreclosure process, beginning with an NoD. That's up a tad from an average of 7.7 months the prior quarter and down from 9.9 months a year earlier.

Trustees Deeds recorded (TDs), or the finalized loss of a home to the formal foreclosure process, totaled 22,949 during the third quarter. That was up 5.0 percent from 21,851 for the prior quarter, and down 41.0 percent from 38,895 for third-quarter 2011. The all-time peak was 79,511 in third-quarter 2008. The stateĆ¢€™s all-time low was 637 in the second quarter of 2005, DataQuick reported.

Just as with mortgage default filings, foreclosures remained far more concentrated in the state's most affordable neighborhoods. Zip codes with third-quarter 2012 median sale prices below $200,000 collectively saw 4.8 homes foreclosed on for every 1,000 homes in existence. That compares with 2.0 foreclosures per 1,000 homes for zip codes with medians from $200,000 to $800,000, and less than one foreclosure per 2,000 homes in the group of zip codes with over-$800,000 medians.

While 1.48 million of California's roughly 8.71 million houses and condos have been involved in a foreclosure proceeding the past five years, 847,067 have gone through the whole foreclosure process. The other 633,000 were either sold, or the payments were brought current.

At formal foreclosure auctions held statewide last quarter, an estimated 39.4 percent of the foreclosed properties were bought by investors or others who don't appear to be lender or government entities. That was up from an estimated 39.2 percent the previous quarter and up from 31.0 percent a year earlier, DataQuick reported.

To view the county-by-county Default and Foreclosure counts, see DQNews.com.

Source: DataQuick; DQNews.com

Media calls: Andrew LePage (916) 456-7157

Copyright 2012 DataQuick. All rights reserved.

Monday, October 15, 2012

September California Home Sale Press Release

California September Home Sales


October 15, 2012

An estimated 34,453 new and resale houses and condos sold statewide last month, down 16.5 percent from 41,280 in August, and down 2.7 percent from 35,404 sales in September 2011, according to San Diego-based DataQuick.

A drop in sales between August and September is normal for the season, although last month’s decline was exaggerated because the month started and ended with a weekend and had fewer business days. September sales in California have varied from a low of 24,460 in 2007 to a high of 69,304 in 2003. Last month’s sales were 21.9 percent below the average of 43,559 sales for all months of September since 1988, when DataQuick's statistics begin.

The median price paid for a home in California last month was $287,000, up 2.1 percent from $281,000 in August and up 15.3 percent from $249,000 in September 2011. Last month’s median was the highest since August 2008, when it was $301,000. September marked the seventh consecutive month in which the state's median sale price rose year-over-year. For the current cycle, the median hit bottom at $221,000 in April 2009, while it peaked at $484,000 in early 2007.

Of the existing homes sold in September, 17.7 percent were properties that had been foreclosed on during the past year. That was down from a revised 20.0 percent in August and down from 33.8 percent a year earlier. Last month's figure was the lowest for any month since foreclosure resales made up 16.0 percent of the resale market in October 2007. Foreclosure resales peaked at 58.5 percent in February 2009.

Short sales - transactions where the sale price fell short of what was owed on the property - made up an estimated 27.0 percent of the homes that resold last month. That was up from an estimated 25.9 percent the month before and up from 23.8 percent a year earlier.

The typical mortgage payment that home buyers committed themselves to paying last month was $1,027. That was up from $1,022 in August and up from $964 a year earlier. Adjusted for inflation, last month's typical payment was 54.9 percent below the 1989 peak of the prior real estate cycle, and 63.9 percent below the 2006 peak of the current cycle.

DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but has been trending downward and is well below peak levels. Financing with multiple mortgages is low, down payment sizes are stable, and cash and non-owner-occupied buying remains at a high, DataQuick reported.

Media calls: Andrew LePage (916)456-7157 or alepage@dqnews.com

Source: DataQuick; DQNews.com

Copyright DataQuick. All rights reserved.

September Bay Area Home Sale Press Release

Bay Area Median Highest in Four Years


October 15, 2012

La Jolla, CA.--The median price paid for a Bay Area home rose to its highest level in more than four years in September, the result of a slowly improving economy, low mortgage interest rates and shifts in market mix, a real estate information service reported.

The median price paid for new and resale homes in the nine-county Bay Area rose to $429,000 last month. That was up 4.6 percent from $410,000 in August and up 17.5 percent from $365,000 in September a year ago. It was the highest since August 2008 when it was $447,000, according to San Diego-based DataQuick.

The low point of the current real estate cycle was $290,000 in March 2009, while the peak was $665,000 in June/July 2007. About half of the median’s peak-to-trough drop, as well as the median’s 17.5 percent increase over the last year, can be attributed to a shift in the sales mix. For example, foreclosure resales are at half the level of a year ago. And the number of homes that sold last month for less than $500,000 fell by 12.4 percent year-over-year, while sales above that threshold increased 20.7 percent.

“It’s obvious that a lot of fence-sitters are getting active. We’re probably past that most attractive of mathematical sweet spots, the one that combines low interest rates and low prices. In other words, price increases the past few months outweigh mortgage rate declines. Potential buyers are also encountering fewer homes for sale. Additionally, going through today’s qualification process for a mortgage is still a real grind,” said John Walsh, DataQuick president.

A total of 6,850 new and resale homes were sold in the Bay Area last month. That was down 20.2 percent from 8,579 in August, and up 1.5 percent from 6,749 for September 2011.

An August-to-September sales decline is normal for the season, although last month’s drop was exaggerated because the month started and ended with a weekend and had fewer business days. Sales for the month of September have varied from 5,014 in 2007 to 13,343 in 2003, while the average for all months of September since 1988, when DataQuick’s statistics start, is 8,572.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 37.1 percent of last month’s purchase lending, down from a revised 38.8 percent in August, and up from 32.1 percent a year ago. Jumbo usage dropped to 17.1 percent in January 2009. Before the credit crunch struck in August 2007, jumbos accounted for nearly 60 percent of the Bay Area purchase loan market.

Adjustable-rate mortgages (ARMs), an important indicator of mortgage availability, accounted for 11.7 percent of the Bay Area’s home purchase loans. That was up from a revised 11.5 percent in August, and down from 12.8 percent in September last year. Since 2000, ARMs have accounted for 49.2 percent of all purchase loans. ARMs hit a low of 3.0 percent of purchase loans in January 2009.

Government-insured FHA home purchase loans, a popular choice among first-time buyers, made up 15.9 percent of all Bay Area purchase mortgages in September, up from 15.1 percent in August and down from 21.7 percent a year earlier.

The most active lenders to Bay Area home buyers last month were Wells Fargo with 14.7 percent of the market, RPM Mortgage with 3.7 percent and Bank of America with 3.4 percent.

Last month foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 13.9 percent of the resale market, down from a revised 14.5 percent in August, and down from 25.4 percent a year ago. Last month was the lowest since foreclosure resales were 10.1 percent in November 2007. Foreclosure resales peaked at 52.0 percent in February 2009. The monthly average for foreclosure resales over the past 17 years is about 10 percent.

Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 23.5 percent of Bay Area resales last month. That was up from an estimated 23.0 percent in August and down from 24.4 percent a year earlier.

Last month absentee buyers – mostly investors – purchased a near-record 24.1 percent of all Bay Area homes, up from 22.8 percent in August, and up from 21.9 percent a year ago. Absentee buyers paid a median $285,000 in September, up from $280,000 in August and up 16.5 percent from $245,000 a year ago.

Buyers who appear to have paid all cash – meaning no evidence of a corresponding purchase loan was found in the public record – accounted for 28.4 percent of sales in September. That was up from a revised 27.9 percent in August, and up from 27.5 percent a year ago. The monthly average going back to 1988 is 12.6 percent. Cash buyers paid a median $300,000 in September, up from $295,000 in August and up 20.0 percent from $250,000 a year earlier.

Home flipping has picked up this year. The number of Bay Area homes that sold twice on the open market within a six-month period rose to 3.9 percent of all homes sold in September. That was up from a flipping rate of 3.6 percent in August and up from 2.7 percent a year earlier.

San Diego-based DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Because of late data availability, sales were estimated in Alameda and San Mateo counties.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying last month was $1,535, the highest in two years. That was up from $1,492 in August, and up from $1,413 a year ago. Adjusted for inflation, last month’s payment was 45.3 percent below the typical payment in spring 1989, the peak of the prior real estate cycle. It was 59.6 percent below the current cycle's peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but has been trending downward and is well below peak levels reached over the last few years. Financing with multiple mortgages is low, down payment sizes are stable, DataQuick reported.

To view the county chart, visit DQNews.com.

Source: DataQuick, www.DQNews.com

Media calls: Andrew LePage (916) 456-7157
Copyright 2012 DataQuick. All rights reserved.

Friday, October 12, 2012

September SoCal Home Sale Press Release

Southland Median Home Sale Price Climbs to 49-Month High; Sales Fall


October 12, 2012

La Jolla, CA---The median price paid for a Southern California home rose again in September to a more-than-four-year high, the result of affordability-driven demand meeting a modest supply of homes for sale, and a big change in market mix. For the first time in nine months sales declined compared with a year earlier as low-end deals fell and foreclosure resales hit a nearly five-year low, a real estate information service reported.

The median price paid for a home in the six-county Southland climbed to $315,000 last month. That was up 1.9 percent from $309,000 in August and up 12.5 percent from $280,000 in September 2011, according to San Diego-based DataQuick.

Last month’s median price was the highest since the median was $330,000 in August 2008. The Southland median has risen month-to-month for eight consecutive months and has increased year-over-year for the past six months.

The median sale price has risen mainly for two reasons. First, higher demand, triggered largely by ultra-low mortgage rates, has coincided with a dwindling supply of homes for sale. Second, there’s been a big change in the types of homes selling this year. Far fewer are heavily discounted foreclosures, and many more are mid- to high-end move-up properties.

It appears that not quite half of the 12.5 percent year-over-year gain in last month’s median sale price can be attributed to a shift in the types of homes selling. In September, price levels for the lowest-cost third of Southern California's housing stock rose 13.2 percent year-over-year, while they rose 7.7 percent in the middle and 3.5 percent in the top third.

In September, a total of 17,859 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was down 20.4 percent from 22,438 sales in August, and down 1.6 percent from 18,149 sales in September 2011.

The steep August-to-September sales decline stems at least partially from the relatively high number of business days (23) on which home sales could be recorded in August and the relatively low number (19) in September. September 2011 had 21 business days. When measured by the average number of sales to close escrow daily, this September’s sales fell 6.3 percent from August and rose 8.1 percent from September last year.

Last month’s sales were 25.7 percent lower than the average sales tally of 24,052 for all the months of September since 1988, when DataQuick’s statistics begin. The low for September sales was 12,455 in 2007, while the high was 37,771 in 2003.

“The latest stats suggest unbelievably low mortgage rates and modestly higher consumer confidence continue to put pressure on a supply-starved housing market. We can’t stress enough, though, that the median sale price and other price measures reflect more than just rising home values. There’s been a major change in market mix, meaning fewer low-priced sales, fewer foreclosures re-selling, and more sales in middle and upscale markets,” said John Walsh, DataQuick president.

“Assuming this year’s modest upward trend in pricing holds,” he said, “we’ll eventually see the market begin to re-balance with more supply, though that could take many months. More and more potential move-up buyers who do have equity will be thinking about timing their next purchase to maximize the advantage of super-low rates and relatively low prices. As more potential sellers get off the fence, or no longer owe more than their homes are worth, we’ll see the inventory of homes for sale rise. That’s going to limit price appreciation.”

Many lower-cost neighborhoods have seen the number of homes for sale drop sharply this year, mainly for two reasons: Foreclosure activity is way down, meaning fewer foreclosed homes are listed for sale, and many who live in these areas owe more than the homes are worth and therefore cannot afford to sell their homes and move.

This restraint on the supply of homes for sale helps explain the 24.3 percent year-over-year drop in the number of Southland homes that sold last month for less than $200,000. Sales below $300,000 fell 11.5 percent.

Meanwhile, sales have picked up in many mid- to-higher-cost markets this year. The number of homes that sold for between $300,000 and $800,000 – a range that would include many move-up buyers – increased 11.5 percent year-over-year. Sales over $500,000 rose 9.6 percent year-over-year, while sales over $800,000 rose 5.2 percent compared with September 2011.

Last month 23.5 percent of all Southland sales were for $500,000 or more – the highest in four years. That was up from 23.3 percent the month before and 20.4 percent a year earlier.

Foreclosure resales – properties foreclosed on in the prior 12 months – accounted for 16.4 percent of the Southland resale market last month. Last month’s figure was down from 19.2 percent the month before and 32.3 percent a year earlier. September’s level was the lowest since foreclosure resales were 16.0 percent in October 2007. In the current cycle, the figure hit a high of 56.7 percent in February 2009.

Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 26.5 percent of Southland resales last month. That was up slightly from an estimated 26.2 percent the month before and up from 23.8 percent a year earlier.

In September there were still no signs of a major easing of credit conditions, though the share of purchase loans that were “jumbo” inched up.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 21.1 percent of last month’s purchase lending, up from 20.3 percent the prior month and 17.8 percent a year earlier. In recent months the jumbo share has been the highest since December 2007, when jumbos made up 21.7 percent of the purchase loan market. In the months leading up to the credit crunch that struck in August 2007, jumbos made up close to 40 percent of the market.

The use of adjustable-rate mortgages (ARMs) held steady last month at 5.9 percent of Southland home purchase loans, the same as in August and down from 7.3 percent a year earlier. Since 2000, a monthly average of about 33.5 percent of Southland purchase loans were ARMs.

The most active lenders to Southland home buyers last month were Wells Fargo with 9.0 percent of the market, Prospect Mortgage with 2.8 percent and Bank of America with 2.8 percent.

Absentee buyers – mostly investors and some second-home purchasers – bought 27.3 percent of the Southland homes sold last month. That was up a hair from 27.2 percent the prior month and up from 24.6 percent from a year earlier. The record was 29.9 percent in February this year, while the monthly average since 2000 is 17.5 percent. Last month’s absentee buyers paid a median $235,000, up 14.6 percent from a year earlier.

Buyers paying with cash accounted for 31.5 percent of September home sales, down from 32.3 percent the month before and up from 29.2 percent a year earlier. Cash purchases peaked at 33.7 percent of all sales this February, and since 2000 the monthly average is 15.2 percent. Cash buyers paid a median $245,000 last month, up 16.7 percent from a year ago.

Home flipping has picked up this year. The number of Southland homes that sold twice on the open market within a six-month period rose to 5.5 percent of all homes sold in September. That was up from a flipping rate of 5.2 percent in August and up from 3.3 percent a year earlier.

Government-insured FHA loans, a popular low-down-payment choice among first-time buyers, accounted for 25.2 percent of all purchase mortgages last month. September’s FHA level was down from 26.9 percent the month before and 32.4 percent a year earlier. The September FHA share was the lowest since July 2008, when it was 24.4 percent.

DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The typical monthly mortgage payment Southland buyers committed themselves to paying last month was $1,127, up from $1,124 the month before and $1,084 a year earlier. Adjusted for inflation, last month’s typical payment was 52.3 percent below the typical payment in the spring of 1989, the peak of the prior real estate cycle. It was 60.9 percent below the current cycle’s peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity, while above long-term averages, continues to trend downward and is far below peak levels. Financing with multiple mortgages is very low, and down payment sizes are stable, DataQuick reported.

See the county-by-county chart at DQNews.com.

Source: DQNews.com Media calls: Andrew LePage (916) 456-7157

Copyright 2012 DataQuick. All rights reserved.

Friday, October 5, 2012

August Las Vegas Home Sale Press Release

Las Vegas Region August Home Sales


Las Vegas-area August home sales fell year-over-year for the third consecutive month in August as sub-$200,000 transactions declined 20 percent and the foreclosure resale level dropped to a nearly five-year low. In- and out-of-state absentee buyers continued to snap up nearly half of all homes sold, while the median sale price edged up to a 17-month high amid strong demand and a continuing shift toward fewer low-cost distressed sales and more mid- to high-end activity, a real estate information service reported.

In August, 4,795 new and resale houses and condos closed escrow in the Las Vegas-Paradise metro area (Clark County). That was up 11.6 percent from the month before and down 11.4 percent from a year earlier, according to San Diego-based DataQuick. The firm tracks real estate trends nationally via public property records.

On average, sales have risen 6.6 percent between July and August since 1994, when DataQuick’s complete Las Vegas region statistics begin. This August’s sales were 6.3 percent below the average number of homes sold during all months of August since 1994, and were the lowest for that month since August 2010, when 4,283 homes sold.

August’s sales tally was below average because new-home sales remained extraordinarily weak – about 57 percent below average for the month of August. Resale activity was 19.7 percent above average for an August. The number of houses and condos that resold in August rose 8.9 percent from the prior month and fell 16.9 percent from a year earlier. Though low in an historical context, sales of newly built homes in August rose 39.2 percent on a year-over-year basis.

In the overall market in August, the higher price categories continued to post the largest year-over-year sales gains, while activity declined sharply in the lower price segments. The total number of homes that sold for less than $100,000 fell 34.5 percent in August compared with a year earlier. The number of homes that sold for less than $200,000 declined 19.9 percent year-over-year, while the number that sold above $300,000 rose 44.1 percent. The number of sales above $500,000 rose 56.3 percent compared with a year earlier. (The over-$500,000 market only accounts for about 2 percent of total sales).

Increased affordability thanks to super-low mortgage rates and years of price declines has spurred more demand in the mid- to higher-end markets this year. In the lower price ranges, demand among first-time buyers, investors and vacation-home buyers has been robust, reducing the supply of homes on the market to the point where it has hampered sales (i.e. if there were more homes listed then the sales volume would be higher). Why isn’t inventory rising to meet the demand? Many who would like to sell can’t because they owe more than their homes are worth. Other potential sellers are holding off on a move-up purchase because of uncertainty over the economy, or because they’re waiting for higher prices.

The median price paid for all new and resale houses and condos sold in the Las Vegas metro area in August was $133,000 – the highest since the median was $139,000 in June 2010. August’s median rose 3.1 percent from the prior month and rose 18.2 percent from a year earlier.

August was the seventh consecutive month to post a month-to-month gain in the median, and it was the fifth in a row with a year-over-year increase. Prior to this April, the median hadn’t risen year-over-year since June 2010. August’s 18.2 percent annual rise in the median was at least in part a reflection of the substantial drop in the share of all resales that were foreclosed properties, which tend to carry significant discounts and be concentrated in lower-cost areas. The pickup in mid-to high-end deals also helps push the median higher.

The August median sale price remained 57.4 percent below the November 2006 peak of $312,000. In recent months the median has been rising off a cyclical low point of $110,000 this January – the lowest level since the median was also $110,000 in April 1994.

An alternative home-price gauge – the median paid per square foot for resale single-family detached houses – rose again to $73 in August. That was up 2.1 percent from the month before and up 8.2 percent from a year earlier, marking the third consecutive month with a year-over-year gain. (This January’s $64 median per square foot was the lowest since at least 1994.) The August figure was 61.9 percent lower than the peak $190 paid per square foot in May and June 2006.

Sales of foreclosed properties continued to decline in August, while short sales increased.

Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 21.9 percent of Las Vegas resale activity in August – the lowest level since October 2007. August’s figure was down from 25.8 percent the month before and 57.2 percent a year earlier. Foreclosure resales peaked at 73.7 percent of the resale market in April 2009.

Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 38.2 percent of the resale market in August. That compares with an estimated 38.1 percent the prior month and 22.7 percent a year earlier. The estimated short sale level has exceeded the foreclosure resale level for the past two months.

Absentee buyers – mainly investors and vacation-home buyers – purchased 48.7 percent of all Las Vegas-area homes sold in August. That was down from 50.9 percent the month before and up from 47.1 percent a year earlier. The peak was 51.2 percent this March. Absentee buyers paid a median $110,000 in August, up from $108,000 the prior month and up 19.6 percent from $92,000 a year earlier. Absentee buyers are those who indicated at the time of sale that the property tax bill will go to a different address.

In August, 56.4 percent of all absentee buyers were based outside of Clark County, either in another part of Nevada or in another state, according to public records. About 44 percent of all absentee buyers in the Las Vegas region were from Nevada, while about 56 percent were based in other states. Topping the list of states where these out-of-state investors and second-home buyers came from were California (29.8 percent of all absentee buyers), Arizona (3.1 percent), Hawaii (2.1 percent), Utah (2.0 percent) and New York (1.6 percent). Absentee buyers from California accounted for nearly 14 percent of Clark County's total home sales in August.

Cash buyers purchased 50.9 percent of the Las Vegas-area homes that sold in August. That was down from a cash-buyer share of 53.4 percent of total sales the month before and down from 52.3 percent a year earlier. The peak was 56.7 percent in February 2011. Cash purchases are where there is no sign of a corresponding purchase mortgage in the public record. Cash buyers paid a median $105,000 in August, up from $104,900 the prior month and up 25.0 percent from $84,000 a year earlier.

Home flipping by investors has been on the rise and has returned to levels not seen since the housing boom. In August, 6.6 percent of all homes sold on the open market (excludes foreclosure auction sales) had previously sold within a six-month period. That's up from a flipping rate of 5.6 percent the month before and 4.2 percent a year earlier. The August flipping rate was the highest for any month since it was 7.1 percent in January 2005.

Meanwhile, foreclosure activity remains far below last year’s level.

In the wake of a 2011 Nevada law that creates additional requirements for lenders trying to foreclose on properties, the number of notices of default (“NODs”) filed in Clark County has plummeted. In August, lenders filed 2,025 NODs, up 25.1 percent from the prior month and down 62.3 percent from 5,368 a year earlier. The notice of default is the first step in the formal foreclosure process.

Lenders foreclosed on 793 homes in the Las Vegas region in August, down 8.2 percent from the month before and down 68.0 percent from a year earlier. Between January and August this year, lenders foreclosed on 10,021 single-family house and condo units, down 60.1 percent from the same period last year.

A form of low-down-payment financing that’s popular with first-time home buyers – government-insured FHA loans – accounted for 35.0 percent of all home purchase loans in August. That was down from 35.9 percent the prior month and down from 40.6 percent a year earlier. This June’s FHA level of 34.9 percent was the lowest since April 2008, when it was 31.9 percent. The current cycle’s peak for FHA use was 55.1 percent of all

View the Las Vegas Home Sale Chart at DQNews.com.

Media calls: Andrew LePage (916) 456-7157


Copyright 2012 DataQuick. All rights reserved.