Home Inventory Dwindles Into The New Year
Existing Home Sales jumped another 6 percent in November, the report’s third month of improvement since bottoming in July.
According to the National Association of REALTORS®, a quarter-million more existing homes were sold during the annual period ending in November as compared to October. An “existing home” is a home that cannot be considered new construction.
Additionally, the national housing supply dropped by a full month. At the current pace of existing home sales, the complete stock of homes for sale will be exhausted in 9.5 months.
November’s strong housing data is yet another signal to buyers in Hiawassee and Ellijay that the housing market’s foundation has been rebuilt, and that a rebound is imminent. It’s helped that there are great “deals” on which for buyers to pounce.
In November, Short Sales and Foreclosures accounted for one-third of all existing homes sold, and carried an average price discount of 10 percent and 15 percent, respectively, as compared to non-distressed sales.
Repeat buyers continue to power the market, too, representing more than half of all home buyers.
- First-time buyers : 32% of all buyers
- Investors : 19% of all buyers
- Repeat buyers : 51% of all buyers
This breakdown suggests that housing has regained its footing. First-Time Home Buyers can’t support a market long-term like repeat buyers can and, as compared to 12 months ago, the percentage of repeat buyers is now up 14 points.
Home Buyers take note. Raw sales volume is rising and available inventory is dropping. Basic supply-and-demand tells us that this will lead home prices higher. Furthermore, mortgage rates are rising quickly, increasing the cost of home ownership.
If buying a home is a part of your plan for 2011, consider accelerating your purchase time frame. Existing homes account for more than 80% of homes sold nationwide. If the market keeps improving like this, your home affordability will worsen.
Foreclosure Activity Plunges But With An Asterisk
According to foreclosure-tracking firm RealtyTrac, the foreclosure filings fell 21 percent in November to 262,339 units nationwide. A Foreclosure filing is defined as default notice, scheduled auction, or bank repossession.
November marked the first time since February 2009 that the number of monthly filings failed to surpass 300,000 units.
There were other notable November statistics, too, included:
- November’s 21 percent month-to-month decrease was the largest in RealtyTrac’s recorded history
- November’s 14 percent year-to-year decrease was the largest in RealtyTrac’s recorded history
- Nevada led the nation in foreclosure activity for the 47th straight month
However, we can’t read into November’s RealtyTrac report too much; ultimately, history may treat it with an asterisk. Controversy surrounding the so-called robo-signers forced some of the biggest banks to institute a temporary halt to foreclosures in November. Foreclosure activity did fall last month, but the moratorium makes the figures look better for housing than if there had been no interference.
The halt in foreclosures is also why Utah leaped into the #2 state for foreclosures nationwide. Perennial foreclosure-leading states like California, Michigan and Arizona posted double-digit improvements in November whereas Utah did not.
Banks have since resumed foreclosure activity so December’s results may be a better gauge for how the market is truly performing.
Foreclosures tend to be sold at discount and low home prices can entice home buyers to make an offer. If you’re such a buyer in Blue Ridge, Blairsville, Hiawassee or Ellijay Georgia and want to look at Foreclosed Homes, give me a Call at 706.994.8686 first, or Contact Me to begin your search.
Although there’s a host of online search engines that specialize in foreclosures, I have access to broader inventory, plus the ability to negotiate it more effectively.
5 States Account For Half Of The Nation’s Foreclosures In October 2010
According to October data from foreclosure-tracking firm RealtyTrac, foreclosure filings topped 300,000 for the 20th straight month last month as 1 in every 389 U.S. homes received a foreclosure filing.
The generic term “foreclosure filing” is defined to include default notices, scheduled auctions, and bank repossessions. Versus the month prior, filings fell 4 percent, and as compared to October 2009, filings were essentially the same.
As usual, foreclosure density varied by region last month, with just 5 states accounting for close to half of the nation’s repossessed homes.
- California : 14.8 percent of all bank repossessions
- Florida : 14.4 percent of all bank repossessions
- Michigan : 7.3 percent of all bank repossessions
- Texas : 6.6 percent of all bank repossessions
- Arizona : 6.0 percent of all bank repossessions
The other 45 states accounted for the remaining half.
It reminds us that, like everything else in real estate, foreclosures are local.
For today’s Blue Ridge and Hiawassee Georgia home buyers, though, foreclosures represent an interesting opportunity.
Homes bought in various stages of foreclosure are often less expensive than other, non-foreclosure homes and it’s one of the reasons why distressed home sales now represent 35 percent of all home resales. But don’t confuse less expensive for less costly. Foreclosed homes may also be in various stages of disrepair. Getting them into living condition can be expensive.
Your best real estate “deal”, therefore, may be that non-distressed home that’s in sound, move-in ready condition.
If you’re buying foreclosures — or even just thinking about it — make sure you talk with a real estate agent first. Buying distressed property is different from the “typical” home purchase. You’ll want somebody experienced in your corner.
Blairsville Realty Fall 2010 Newsletter
Blairsville Realty Fall 2010 Newsletter
Bank Reposessions Top 100,000 In A Month For The First Time Ever
The number of foreclosure filings rose 3 percent in September, according to foreclosure-tracking firm RealtyTrac. The term “foreclosure filing” is a catch-all word for housing, comprising default notices, scheduled auctions, and bank repossessions.
September marked the 19th straight month that the number of filings topped 300,000, and the first month in which 100,000 repossessions were logged.
As usual, a small number of states dominated the national foreclosure figures, accounting for more than half of all repossessions.
- California : 17% of all repossessions
- Florida : 13% of all repossessions
- Michigan : 7% of all repossessions
- Arizona : 7% of all repossessions
- Texas : 5% of all repossessions
- Georgia : 5% of all repossessions
Thankfully for home sellers, mortgage servicers appear to be metering the pace at these newly bank-owned homes are made available to the public. RealtyTrac notes that, in doing so, servicers prevent “the further erosion of home prices”.
That said, distressed properties still sell at a steep discount.
In the second quarter of 2010, the average sale price of homes in the foreclosure process was 26 percent lower than the average sale price of homes not in the foreclosure process. It’s no surprise, therefore, that, based on RealtyTrac’s preliminary data, 31 percent of all homes sold in September were “distressed”.
There’s lot of good deals out there, in other words, but they come with certain risks.
Buying a foreclosed home is not the same as buying a non-foreclosed home. Specifically, you’re buying from a corporation and not from a “person”. Contracts may vary, and so may terms.
Therefore, North Georgia Mountain Home Buyers — even experienced ones — should talk with a real estate agent before making an offer. It’s important to understand the foreclosure-buying process.
