Laura Feghali's Blog

Home prices are inching up and foreclosures are falling; but the recovery still remains “fragile,” according to the Obama administration’s April Housing Scorecard. Foreclosure starts are reducing in number, mortgage delinquency numbers are falling, but a drop in inventory of homes for sale overall is keeping sales figures lower than expected.

Check out the article below for further details:

“The Obama Administration’s efforts to speed the housing recovery are showing continued progress as the April scorecard indicators highlight ongoing improvements throughout the housing market,” says Kurt Usowski, HUD deputy assistant secretary for economic affairs. “The annual increase in home prices is the highest in nearly seven years and sales of existing and new homes are both up over 10 percent from one year ago. But with so many households still struggling to make ends meet, we have important work ahead.”

Existing-home sales fell to 410,000 in March from 412,500 in February, mostly attributed to a large drop in inventory of for-sale homes nationwide, according to the National Association of REALTORS®.

The administration’s housing scorecard also notes progress in chipping away at foreclosures. Foreclosure starts fell in April to 70,100 from March’s 73,100, according to RealtyTrac data. Mortgage delinquency rates fell from 3.8 percent to 3.6 percent, according to reports by Lender Processing Services.

Meanwhile, home owners continue to take advantage of low mortgage rates and government programs to lower their monthly mortgage payments. The report notes that nearly 1.6 million home owners have taken part in the Making Home Affordable Program, including more than 1.1 million permanent loan modifications through its Home Affordable Modification Program or HAMP. Home owners who have taken part in the HAMP’s permanent loan modification have saved about $546 on mortgage payments each month. 

Source: realtormag.realtor.org

Mill River Park in the downtown area of Stamford is celebrating it's grand opening beginning this Friday, May 3rd, with "Spielberg at Sunset".  Enjoy a live DJ at 6:30 and free movies in the park at sunset beginning with Raiders of the Lost Ark on the grand steps. 
 
Saturday's activities include bird and nature tours, a fun morning performance at 10:30am of Hip Hop Dimensions followed by a kid's parade.  At 3:00 pm, watch a circus show by Arm of the Sea Theatre and at 7:00pm experience Sunset Chill Yoga by Exhale Harbor Point.  There will be food kiosks available and something for everyone all weekend long.

For more information visit: www.millriverpark.com

The first quarter of 2013 looks very strong for home sales in the state of Connecticut when compared to the same time frame last year.  Pending sales of single family homes rose 17.1% and deposits on condominiums also rose by 29% which represents the highest number of new deposits in three years.

Single-family closed sales were up 8.8% over last year and condominium sales (which have been sluggish the past few years) jumped 12% indicating that the market demand is back.

Please, copy and paste into your browser the link below to view all the market statistics for the first quarter of 2013 by county and by town:


http://www.prudentialct.com/downloads/market-report/Q1-2013.pdf

The Wall Street Journal reports that some housing analysts are concerned that the sudden rise in home prices could make homes more unaffordable again if the price increases outpace income growth. They say that lower mortgage rates are offsetting the higher prices currently but if interest rates increase it could make homes look overpriced.

Check out the article below for more details:

Average housing costs for home buyers who took out a mortgage were around 22.5 percent of average incomes, according to John Burns Real Estate Consulting. That is down from 38.5 percent in 2006, the peak of the housing bubble. The historical average is about 33 percent. 

But with home prices rising in many markets and, in some, rising at a faster pace than income levels, will more people soon be priced out of the market?  

Housing analysts say that, for now at least, lower mortgage rates are offsetting the higher prices of homes. 

Borrowers have seen their purchasing power rise by around 33 percent over the past four years due to the low interest rates, The Wall Street Journal reports. For example, a borrower can make a $1,000 monthly mortgage payment and qualify for a $222,000 mortgage at today’s low interest rates, compared to 2008 when they’d likely qualify for $165,000 when mortgage rates were around 6.1 percent -- nearly double what they are today.

Borrowers are able to withstand home-price increases because of the low rates, not because household incomes are growing, The Wall Street Journal reports. If mortgage rates tick back up to the 6 percent or 8 percent range, homes may look overpriced relative to incomes, according to housing analysts. 

Source: realtormag.realtor.org

According to a survey by Redfin; seller confidence is surging. The number of home sellers who say now is a good time to sell doubled in the second quarter.  In the first quarter of 2013, 22% surveyed said it was a good time to sell compared to 45% in the second quarter. However; home buyer confidence dropped 10% in the same time frame (45% from 54% in the first quarter) most likely due to a lack of inventory. 

Check out the article below for further details:

"More folks who bought before the bubble burst are now above water and listing their homes," says Chad Dierickx, a real estate practitioner with Redfin. "When sellers see their neighbors' homes selling quickly and for prices they never would have imagined a couple of years ago, they can't help but be optimistic about the market."

Nearly 32 percent of home owners surveyed said they have no concerns about selling right now. Eighty-five percent of sellers say they believe home prices will rise in their area for the next year — up from 81 percent in the first quarter, according to the survey.

Source: realtormag.realtor.org

There is going to be another public informational meeting regarding the proposed improvements to Stamford's downtown train station.  Once the project is approved, construction will begin in the spring of 2014.

The meeting will be held on April 4th, 2013 (Thursday) at 7:00pm in the Stamford Government Center’s fourth floor cafeteria at 888 Washington Boulevard, Stamford, Connecticut, 06901.

Check out this link from the Connecticut Department of Transportation for further details: 

http://www.ct.gov/dot/cwp/view.asp?A=2135&Q=521474