Home Resales, Home Prices and Home Foreclosures

Home Resales Rise in June
July 23, 2009

This week’s eagerly anticipated NAR report for June showed an increase (as expected) at a 3.6% clip. Median prices on those homes, though, dipped 15%. The year-over-year number was off slightly, dropping 0.2%, and the overall inventory remains high. The tug of war between federal programs and foreclosures likely will drag on throughout 2009, and experts will continue to debate whether the market is bottoming out.

Kentucky Takeaway: It would be to everyone’s benefit if the housing market is stabilizing for the long term. Positive numbers are always a good sign, especially when they have been so hard to come by in recent months.
http://www.bloomberg.com/apps/news?pid=20601087&sid=atDcwF9fS0ws


Home Price Decline Shrinking
July 22, 2009

Home prices fell only 5.6% in May, the least in ten months. Prices also beat predictions by economists by gaining 0.9% instead of dropping, as forecast. Still, with unemployment increasing, all U.S. regions are now seeing lower prices instead of just a select few bubble states. With more current homeowners falling behind in payments, federal efforts to reduce rates and keep credit flowing may not be enough to prevent more negative numbers in 2009.

Kentucky Takeaway: With more foreclosures tied to unemployment than bad loans, Kentucky is now seeing what the recession will do to its home prices.
http://www.bloomberg.com/apps/news?pid=20601087&sid=akYQTO67sF2A


Mortgage Mods Face Challenges
July 22, 2009

While it may be nice to imagine lenders and homeowners all getting together and working out deals that keep people in their homes, this article points out the inherent challenges to such outcomes. Banks are faced with agreeing to take less money, finding ways to afford taking less money, and often processing approval documents from securities investors.

Kentucky Takeaway: The same implications apply to Kentuckians as to everyone else in the country. While there is increased pressure from all sides for banks to modify failing home loans, the process is neither quick nor simple. Patience, persistence and organization are key.
http://nationalmortgageprofessional.com/news12937/critical-considerations-mortgage-modification-programs


Foreclosures Becoming Ho-Hum
July 22, 2009

This Forbes article delves into the social aspect of the foreclosure crisis. Heretofore, people who allowed themselves to lose their houses to foreclosure were cast as irresponsible and imprudent. Now that so many friendly faces have been attached to the crisis, that stigma is going away, as is the homeowner’s general moral commitment to mortgage loans. Buyers are walking away from lenders who leveraged ignorance into high-risk profit schemes.

Kentucky Takeaway: Chances are, most Kentuckians now know someone whose home has been foreclosed, and, furthermore, it fails to be surprising, much less shocking.
http://www.forbes.com/2009/07/22/homeonwer-loan-subprime-mortgage-opinions-contributors-foreclosure.html


Minnesota Market Data Improves, Shows Distinctions
July 22, 2009

New data being collected in Minnesota shows that while short sales remain difficult to close, bank-owned properties are moving quickly. The reasons are obvious, but the fact that the data is being collected now allows tracking, which could prove vital in the future. If foreclosure inventory truly dwindles, it may provide an opportunity for traditional sellers to unload to first-time home borrowers between now and November 30th.

Kentucky Takeaway: For those who own a home that may be in the range of the typical first-time homebuyer, it may be a good time to sell. For those who are attempting to purchase a short sale, the path is as finicky as ever.
http://www.finance-commerce.com/article.cfm/2009/07/23/Bankowned-homes-going-fast-but-short-sales-moving-slowly