Tuesday, July 30, 2013

June Las Vegas Home Sale Press Release

Las Vegas Region June Home Sales


Las Vegas-area home sales fell in June compared with May but remained higher than a year earlier as the share of homes purchased with cash climbed to a record 60.1 percent of all homes sold. The median price paid for a home rose above a year earlier for the 15th consecutive month, the result of demand outweighing supply, a sharp drop in foreclosure resales and a big increase in mid- to high-end activity, a real estate information service reported.

In June, 4,739 new and resale houses and condos closed escrow in the Las Vegas-Paradise metro area (Clark County). That was down 4.7 percent from the month before and up 5.5 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 between May and June have increased 8.0 percent since 1994, when DataQuick's complete Las Vegas-area statistics begin. Total home sales have increased year-over-year for the past three months, following 10 consecutive months of year-over-year sales declines.

Total June sales in the Las Vegas region were 9.9 percent below the average number of homes sold during all months of June since 1994. However, resales of houses and condos combined were 15.0 percent higher than average for the month of June, while sales of newly built homes were 60.8 percent below average for a June.

The number of mid- to high-end home sales continued to shoot up from year-ago levels, while the number of lower-cost deals plunged again.

Sales of homes priced below $100,000 dropped 45.2 percent in June compared with a year earlier, while the number of transactions below $200,000 fell 17.5 percent year-over-year. Sales above $200,000 surged 86.1 percent year-over-year, pushed up by the combination of home price appreciation and strong demand in mid- to high-end markets. June sales of homes priced from $200,000 to $500,000 – a range that would include many move-up purchases – jumped 83.8 percent from a year earlier, while the number sold over $500,000 more than doubled, rising 109.1 percent.

The median price paid for all new and resale houses and condos sold across the Las Vegas region (Clark County) in June was $169,100, which is the highest for any month since the median was $175,000 in December 2008. Last month's median rose 3.7 percent from the prior month and increased 35.3 percent from a year earlier. The median has risen year-over-year for 15 consecutive months, with those gains ranging from 1.7 percent to 35.3 percent. These year-over-year gains have been double-digit for the last 12 consecutive months.

Recent sharp increases in the median sale price reflect price appreciation triggered by strong demand meeting a relatively low supply of homes for sale, as well as changes in market mix. Fewer of the homes re-selling now are low-cost foreclosed properties, and more are move-up homes in mid- to high-priced neighborhoods.

Despite the median’s year-over-year surge in June, it was still 45.8 percent below its November 2006 peak of $312,000. The median has been rising off a cyclical low point of $110,000 in January 2012, which was the lowest level since the median was also $110,000 in April 1994.

To see additional highlights and the home breakout chart, visit the press release here.

Media calls: Andrew LePage (916) 456-7157


Copyright 2013 DataQuick. All rights reserved.



Tuesday, July 23, 2013

2Q2013 California Home Foreclosures Press Release

California Foreclosure Starts Up From First Quarter


July 23, 2013

While up from the first quarter, the number of California homeowners entering the foreclosure process was at its second-lowest level in seven years last quarter, largely the result of a steep rise in home values, a real estate information service reported.

Lenders filed 25,747 Notices of Default (NoDs) during the April-to-June period. That was up 38.7 percent from 18,568 for the previous quarter, and down 52.9 percent from 54,615 for second-quarter 2012, according to San Diego-based DataQuick.

The 18,568 NoDs filed in the first quarter of this year marked the lowest quarterly total since fourth-quarter 2005, when 15,337 NoDs were recorded. In addition to less distress in the housing market pipeline, this year's remarkably low first-quarter number mainly reflected policy and regulatory changes.

NoD filings plummeted early this year as a package of new state foreclosure laws - the "Homeowner Bill of Rights" - took effect on January 1. In California and other states in recent years foreclosure activity has sometimes plunged temporarily after a new law kicks in and the industry takes time to adjust.

Setting aside this year's first quarter, last quarter's NoD tally was the lowest since second-quarter 2006, when 20,909 NoDs were recorded. California NoDs peaked in first-quarter 2009 at 135,431. DataQuick's NoD statistics go back to 1992.

"At this point in the cycle, it's fairly straightforward to see what's going on. Just do the math - it's not calculus, it's 4th grade arithmetic. A foreclosure only makes sense when the home is worth less than what is owed on it. As home values rise, fewer homeowners owe more on their homes than the homes are worth," said John Walsh, DataQuick president.

The median price paid for a California home was $344,000 during the second quarter, up 14.7 percent from $300,000 for the prior quarter and up 27.4 percent from $270,000 in second-quarter 2012. The median peaked in second-quarter 2007 at $485,500 and hit bottom at $235,000 in second-quarter 2009, DataQuick reported.

Mortgage defaults remained far more concentrated in the state's most affordable neighborhoods. Zip codes with second-quarter 2013 median sale prices below $200,000 collectively saw 4.2 NoDs filed for every 1,000 homes in those zip codes. The ratio was 2.8 NoDs per 1,000 homes for zip codes with $200,000-to-$800,000 medians, while there were 1.1 NoDs filed per 1,000 homes for the group of zips with medians above $800,000.

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

On primary mortgages, California homeowners were a median 7.6 months behind on their payments when the lender filed the Notice of Default. The borrowers owed a median $16,155 on a median $312,000 mortgage.

On home equity loans and lines of credit in default, borrowers owed a median $5,307 on a median $68,332 credit line. The amount of the credit line that was actually in use cannot be determined from public records.

The most active "beneficiaries" in the formal foreclosure process last quarter were Wells Fargo (3,969), JP Morgan Chase (3,801) and Nationstar (2,565).

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

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 25,747 default notices were filed last quarter, they involved 24,999 homes because some borrowers were in default on multiple loans (e.g. a primary mortgage and a line of credit).

Among the state's larger counties, loans were least likely to go into default last quarter in San Francisco, Santa Clara and San Mateo counties. The probability was highest in Solano, Fresno and Riverside counties.

Trustees Deeds recorded (TDs), or the finalized loss of a home to the formal foreclosure process, totaled 9,840 last quarter, down 27.6 percent from 13,592 the prior quarter and down 55.0 percent from 21,851 in second-quarter 2012. Last quarter marked the first time there were fewer than 10,000 foreclosures in a quarter since fourth-quarter 2006, when there were 6,078. The all-time peak was 79,511 foreclosures in third-quarter 2008. The state's all-time low was 637 in second-quarter 2005, DataQuick reported.

Foreclosures remained most concentrated in the state's most affordable communities. Zip codes with second-quarter 2013 median sale prices below $200,000 collectively saw 2.2 homes foreclosed on for every 1,000 homes in existence. That compares with 1.0 foreclosures per 1,000 homes for zips with medians from $200,000 to $800,000, and 0.3 foreclosures per 1,000 homes in the group of zips with medians over $800,000.

On average, homes foreclosed on last quarter took 9.1 months to wind their way through the formal foreclosure process, beginning with an NoD. That's up from an average of 8.1 months the prior quarter and up from 7.7 months a year earlier.

At formal foreclosure auctions held statewide last quarter, an estimated 54.2 percent of the foreclosed properties were bought by investors or others that don't appear to be lender or government entities. That was up from an estimated 47.4 percent the previous quarter and up from 39.2 percent a year earlier, DataQuick reported.

Foreclosure resales - properties foreclosed on in the prior 12 months - accounted for 11.6 percent of all California resale activity last quarter. That was down from a revised 17.1 percent the prior quarter and down from 27.8 percent a year ago. Foreclosure resales peaked at 57.8 percent in first-quarter 2009. Among the state's larger counties last quarter, foreclosure resales varied from 2.8 percent in San Francisco County to 28.2 percent in Madera County.

Short sales - transactions where the sale price fell short of what was owed on the property - made up an estimated 16.6 percent of the state's resale market last quarter. That was down from an estimated 21.4 percent the prior quarter and 24.0 percent a year earlier.

To view the county-by-county foreclosure and default charts, visit DQNews.com.

Source: DataQuick; DQNews.com

Media calls: Andrew LePage (916) 456-7157

Copyright 2013 DataQuick. All rights reserved.

Thursday, July 18, 2013

June California Home Sales Press Release

California June Home Sales


June 18, 2013

An estimated 41,027 new and resale houses and condos sold statewide last month. That was down 6.9 percent from a revised 44,087 in May, and down 3.5 percent from 42,513 sales in June 2012, according to San Diego-based DataQuick.

California June sales have varied from a low of 35,202 in 2008 to a high of 76,669 in 2004. California June sales have varied from a low of 35,202 in 2008 to a high of 76,669 in 2004. Last month's sales were 16.8 percent below the average of 49,301 sales for all the months of June since 1988, when DataQuick's statistics begin.

The median price paid for a home in California last month was $352,000, up 3.5 percent from $340,000 in May and up a record 28.5 percent from $274,000 in June 2012. June was the 16th consecutive month in which the state's median sale price rose year-over-year. In March/April/May 2007 the median peaked at $484,000. The post-peak trough was $221,000 in April 2009.

Of the existing homes sold last month, 10.0 percent were properties that had been foreclosed on during the past year – the lowest level since foreclosure resales were 9.4 percent of the resale market in August 2007. Last month’s figure was down from a revised 11.3 percent in May and 24.9 percent a year earlier. Foreclosure resales peaked at 58.8 percent in February 2009.

Short sales - transactions where the sale price fell short of what was owed on the property - made up an estimated 16.0 percent of the homes that resold last month. That was down from an estimated 16.8 percent the month before and 24.3 percent a year earlier.

The typical mortgage payment that home buyers committed themselves to paying last month was $1,356. That was up from $1,227 in May and up from $1,006 a year earlier. Adjusted for inflation, last month's typical payment was 41.2 percent below the 1989 peak of the prior real estate cycle, and 52.4 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 decline. Foreclosure activity remains well below year-ago and peak levels reached several years ago. Financing with multiple mortgages is low, while down payment sizes are stable, DataQuick reported.

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

Source: DataQuick; DQNews.com

Copyright DataQuick. All rights reserved.

June Bay Area Home Sales Press Release

Record Annual Gain for Bay Area Median Home Sale Price; Sales Dip Again


July 18, 2013

La Jolla, CA.--The median price paid for a Bay Area home rose at its fastest pace on record in June, the result of disappearing distress sales, an improving economy, and mortgage rates that, while up off bottom, remain very low. The number of transactions fell as a slow-growing supply of homes for sale continued to fall short of demand and purchases by cash and investor buyers eased, a real estate information service reported.

The median price paid for a home in the nine-county Bay Area last month was $555,000, the highest since it was $587,500 in December 2007. Last month’s median was up 6.9 percent from $519,000 in May, and up 33.1 percent from $417,000 in June 2012, according to San Diego-based DataQuick.

The Bay Area median peaked at $665,000 in June and July 2007, then dropped to $290,000 in March 2009. From October 2008 to April 2009 the year-over-year drop for each month exceeded 40 percent. Much of the median's ups and downs can be attributed to shifts in the types of homes sold. When adjusting for these shifts, it appears that three fourths of June’s 33.1 percent year-over-year rise reflects an increase in home values, while the rest is the result of a change in market mix.

In a sign of continued market confidence, Bay Area home buyers continue to put near record amounts of their own money into residential real estate. In June they paid a total of $2.3 billion out of their own pockets in the form of down payments or cash purchases. That was down from May's all-time high of $2.6 billion, and up from $2.2 billion a year ago.

“It’s easier for a market to regain lost ground than to push into new territory. We’re still bouncing off the bottom. This next part of the cycle should be fairly self-adjusting. As prices go up, more homes will come on the market. Price pressures will ease. The only element we don’t know much about right now is how much pent-up demand there really is out there,” said John Walsh, DataQuick president.

A total of 7,897 new and resale houses and condos were sold in the Bay Area in June. That was down 7.5 percent from 8,541 the month before, and down 9.4 percent from 8,721 for June a year ago. A May-to-June decline is atypical for the season. Sales usually increase between those two months – by 4.1 percent, on average. Since 1988, when DataQuick’s statistics begin, June sales have varied from 7,118 in 1993 to 15,735 in 2004. Last month’s sales were 20.9 percent below the June average of 9,993 sales.

The number of homes that sold for less than $500,000 dropped 30.1 percent year-over-year, while the number that sold for more increased 20.1 percent, DataQuick reported.

Last month distressed property sales – the combination of foreclosure resales and “short sales” – made up about 18.0 percent of the resale market. That was down from 19.5 percent in May and down from 40.5 percent a year ago.

Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 6.0 percent of resales in June, down from a revised 6.5 percent in May, and down from 17.8 percent a year ago. Last month was the lowest since 4.4 percent in August 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 12.1 percent of Bay Area resales last month. That was down from an estimated 13.0 percent in May and down from 22.7 percent a year earlier.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 51.8 percent of last month’s purchase lending, up from a revised 49.9 percent in May, and up from 38.4 percent a year ago. Last month marked the first time that jumbos accounted for more than half of all purchase loans since August 2007, when it was 58.6 percent. Jumbo usage dropped as low as 17.1 percent in January 2009.

Adjustable-rate mortgages (ARMs), an important indicator of mortgage availability, accounted for 17.3 percent of the Bay Area’s home purchase loans in June. That was up from a revised 14.1 percent in May, and up from 14.2 percent in June last year. Since 2000, ARMs have accounted for 47.9 percent of all purchase loans. ARMs hit a low of 3.0 percent of loans in January 2009.

Government-insured FHA home purchase loans, a popular choice among first-time buyers, accounted for 8.5 percent of all Bay Area home purchase mortgages in June, down from a revised 9.9 percent in May and down from 16.0 percent a year earlier. In recent months the FHA level has been the lowest since the first half of 2008, reflecting both tougher qualifying standards and the difficulties first-time buyers have competing with investors and other cash buyers.

The most active lenders to Bay Area home buyers last month were Wells Fargo with 16.3 percent of the market, RPM Mortgage with 4.3 percent, and Bank of America with 3.9 percent.

Last month absentee buyers – mostly investors – purchased 23.7 percent of all Bay Area homes. That was down from a revised 25.0 percent in May, and up from 20.4 percent a year ago. Absentee buyers paid a median $405,000 in June, up 42.1 percent from a year earlier.

Buyers who appear to have paid all cash – meaning no sign of a corresponding purchase loan was found in the public record – accounted for 25.6 percent of sales in June. That was down from a revised 27.5 percent the month before and down from 27.3 percent a year earlier. The monthly average going back to 1988 is 13.1 percent. Cash buyers paid a median $411,500 in June, up 37.6 percent from 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, San Francisco and San Mateo counties.

The typical monthly mortgage payment that Bay Area buyers committed themselves to paying last month was $2,138. That was the first time it was more than $2,000 since it was $2,056 in September 2008. Back then the median was $400,000 and a 30-year fixed rate mortgage was 6.04 percent. Adjusted for inflation, last month’s payment was 24.8 percent below the typical payment in spring 1989, the peak of the prior real estate cycle. It was 44.5 percent below the current cycle's peak in July 2007.

Indicators of market distress continue to decline. Foreclosure activity is well below year-ago and peak levels reached in recent years. Financing with multiple mortgages is low, down payment sizes are stable, DataQuick reported.

To view the county-by-county chart, visit DQNews.com.

Source: DataQuick, www.DQNews.com

Media calls: Andrew LePage (916) 456-7157
Copyright 2013 DataQuick. All rights reserved

Wednesday, July 17, 2013

June Southland Home Sales Press Release

Southland Home Sales Drop; Record Yr/Yr Gain for Median Sale Price


July 17, 2013

Southern California home sales fell in June amid a still-tight supply of homes for sale, rising mortgage rates and a letup in investor buying. The median sale price rose at a record year-over-year pace to the highest level – $385,000 – in more than five years, a real estate information service reported.

A total of 21,608 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 6.2 percent from 23,034 sales in May, and down 2.1 percent from 22,075 sales in June 2012, according to San Diego-based DataQuick.

Last month’s year-over-year sales decline was the first for any month since last September. June sales were 20.9 percent below the June average of 27,315 sales since 1988, when DataQuick’s statistics begin. Over the past seven years Southland sales have been below average for any particular month.

The median price paid for all new and resale houses and condos sold in the six-county region was $385,000 last month, up 4.6 percent from $368,000 in May and up 28.3 percent from $300,000 in June 2012. Last month's median was the highest for any month since April 2008, when it was also $385,000, and the year-over-year increase was the highest for any month in DataQuick’s records back to January 1989.

The median price has risen on a year-over-year basis for 15 consecutive months, with those annual gains ranging between 10.8 percent and 28.3 percent over the past 11 months. June's median remained 23.8 percent below the peak $505,000 median in spring/summer 2007. The median fell by $256,000 from that peak to its $249,000 trough in April 2009, and it has now regained just over half – 51.8 percent – of that peak-to-trough loss.

In a sign of continued market confidence, Southern California home buyers continue to put near-record amounts of their own money into residential real estate. In June they paid a total of $4.7 billion out of their own pockets in the form of down payments or cash purchases. That was down from May's all-time high of $5.5 billion, and up from $4.1 billion a year ago.

“This market’s getting really interesting. Rates have shot up enough to put a dent in housing affordability. Investor and cash buyers are starting to back off a bit, while there’s evidence the supply of homes on the market, while still thin by historical standards, has risen meaningfully. We saw an amazing pop in home prices over the last year. Now we see signs suggesting that blistering pace won’t persist. We continue to believe that a ‘supply response’ to the run-up in prices will gradually tame price appreciation. If mortgage interest rates shoot up again then that’s virtually a given,” said John Walsh, DataQuick president.

It appears that around three-quarters of last month’s record 28.3 percent year-over-year gain in the Southland median sale price reflects rising home prices, while roughly a quarter reflects a change in market mix.

In June, the lowest-cost third of the region's housing stock saw a 23.5 percent year-over-year rise in the median price paid per square foot for resale houses. The annual gain was 20.5 percent for the middle third of the market and 17.5 percent for the top, most-expensive third.

The number of sales in the middle and upper price ranges continued to rocket above year-ago levels, while activity dropped sharply in many supply-starved affordable markets.

Home sales rose 22.7 percent year-over-year in the $300,000 to $800,000 price segment – a range that would include many move-up buyers. The number sold for $500,000 or more jumped 35.9 percent from one year earlier, while $800,000-plus sales rose 33.6 percent year-over-year.

In June, 33.0 percent of all Southland home sales were for $500,000 or more, up from 31.9 percent of sales in May and up from 23.1 percent a year earlier. Last month over-$500,000 sales were the highest since February 2008, when 34.2 percent of all sales crossed that price threshold.

Last month the number of Southland homes sold below $200,000 dropped 43.2 percent year-over-year, while sales below $300,000 fell 35.0 percent.

Weak demand isn’t the culprit. The main problems are a fussy mortgage market and an inadequate supply of homes for sale. Many owners can’t afford to sell their homes because they still owe more than they are worth, and lenders aren’t foreclosing on as many properties, further limiting supply.

In June foreclosure resales – homes foreclosed on in the prior 12 months – accounted for 9.1 percent of the Southland resale market. That was down from a revised 10.9 percent the month before and down from 24.4 percent a year earlier. Last month’s foreclosure resale rate was the lowest since it was 7.9 percent in July 2007. In the current cycle, foreclosure resales 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 16.2 percent of Southland resales last month, the lowest level in nearly four years. Last month’s figure was down from an estimated 17.3 percent the month before and down from 24.4 percent a year earlier.

Absentee buyers – mostly investors and some second-home purchasers – bought 28.7 percent of the Southland homes sold last month. That was down from 29.5 percent in May and up from 27.3 percent a year earlier. The record was 32.4 percent in January this year, while the monthly average since 2000, when the absentee data begin, is 18.2 percent. Last month’s absentee buyers paid a median $300,000, up 31.0 percent from a year earlier.

After hitting a peak earlier this year, the share of homes flipped has edged slightly lower but remains higher than last year. In June, 5.6 percent of all Southland homes sold on the open market had previously sold in the prior six months, down from a flipping rate of 5.8 percent in May and up from 4.4 percent a year ago. (The figures exclude homes resold after being purchased at public foreclosure auction sales on the courthouse steps).

Buyers paying with cash accounted for 30.2 percent of last month's home sales, down from 32.7 percent the month before and down from 32.3 percent a year earlier. The peak was 36.9 percent this February, and since 1988 the monthly average is 16.1 percent. Cash buyers paid a median $320,000 last month, up 34.5 percent from a year ago.

Credit conditions continued to show modest signs of improvement.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 28.5 percent of last month’s Southland purchase lending – the highest since August 2007, when jumbos made up 36.7 percent of the market. Last month’s figure was up from 27.8 percent the prior month and up from 20.0 percent a year earlier. In the months leading up to the credit crunch that struck in August 2007, jumbos accounted for around 40 percent of the home loan market.

Last month 9.2 percent of Southland home purchase loans were adjustable-rate mortgages (ARMs), up from 8.0 percent the prior month and 6.7 percent a year earlier. June's figure was the highest since ARMs were 10.5 percent of the purchase loan market in August 2008. Since 2000, a monthly average of about 32 percent of Southland purchase loans have been ARMs.

The most active lenders to Southern California home buyers last month were Wells Fargo with 8.7 percent of the purchase loan market, imortgage.com with 2.6 percent, and Bank of America with 2.6 percent.

All lenders combined provided $6.2 billion in mortgage money to Southern California home buyers in June, down from $6.4 billion in May and up from $5.2 billion in June last year.

Government-insured FHA loans, a popular low-down-payment choice among first-time buyers, accounted for 19.4 percent of all purchase mortgages last month. That was down from 20.6 percent the month before and 28.4 percent a year earlier. In recent months the FHA share has been the lowest since spring 2008. The decline reflects tighter FHA qualifying standards implemented in recent years as well as the difficulties first-time buyers are having competing with investors and cash buyers.

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 $1,483, up from $1,329 the month before and up from $1,102 a year earlier. Adjusted for inflation, last month’s typical payment was 38.1 percent below the typical payment in the spring of 1989, the peak of the prior real estate cycle. It was 49.3 percent below the current cycle’s peak in July 2007.

Indicators of market distress continue to decline. Foreclosure activity remains well below year-ago and far below peak levels. Financing with multiple mortgages is very low, and down payment sizes are stable, DataQuick reported.

To view the county-by-county chart, visit DQNews.com.

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

Copyright 2013 DataQuick. All rights reserved.