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By Manu Kapoor | Broker in Queens, NY
  • 4 million residential properties returned to positive equity in 2013

    Posted Under: Home Buying in Nassau County, Home Selling in Nassau County, Investment Properties in Nassau County  |  March 8, 2014 3:27 PM  |  388 views  |  No comments

    4 million residential properties returned to positive equity in 2013

     CoreLogic today released new analysis showing 4 million homes returned to positive equity in 2013, bringing the total number of mortgaged residential properties with equity to 42.7 million.

    The CoreLogic analysis indicates that nearly 6.5 million homes, or 13.3 % of all residential properties with a mortgage, were still  in negative equity at the end of 2013.

    Due to a small slowdown in the quarterly growth rate of the Home Price Index, the negative equity share was virtually unchanged from the end of the third quarter of 2013.

    Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.

    For the homes in negative equity status, the national aggregate value of negative equity was $398.4 billion for fourth quarter 2013, compared to $401.3 billion for third quarter 2013, a decrease of $2.9 billion.  Of the 42.7 million residential properties with positive equity, 10 million have less than 20 % equity.

    Borrowers with less than 20 % equity, referred to as “under-equitied,” may have a more difficult time obtaining new financing for their homes due to underwriting constraints. Under-equitied mortgages accounted for 21.1 % of all residential properties with a mortgage nationwide in 2013, with more than 1.6 million residential properties at less than 5 % equity, referred to as near-negative equity.

    Properties that are near-negative equity are considered at risk if home prices fall.

    admin@freelistmyhouse.com

  • 4 million residential properties returned to positive equity in 2013

    Posted Under: Home Buying in Queens, Home Selling in Queens, Investment Properties in Queens  |  March 8, 2014 3:22 PM  |  405 views  |  No comments

    4 million residential properties returned to positive equity in 2013

     CoreLogic today released new analysis showing 4 million homes returned to positive equity in 2013, bringing the total number of mortgaged residential properties with equity to 42.7 million.

    The CoreLogic analysis indicates that nearly 6.5 million homes, or 13.3 % of all residential properties with a mortgage, were still  in negative equity at the end of 2013.

    Due to a small slowdown in the quarterly growth rate of the Home Price Index, the negative equity share was virtually unchanged from the end of the third quarter of 2013.

    Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.

    For the homes in negative equity status, the national aggregate value of negative equity was $398.4 billion for fourth quarter 2013, compared to $401.3 billion for third quarter 2013, a decrease of $2.9 billion.  Of the 42.7 million residential properties with positive equity, 10 million have less than 20 % equity.

    Borrowers with less than 20 % equity, referred to as “under-equitied,” may have a more difficult time obtaining new financing for their homes due to underwriting constraints. Under-equitied mortgages accounted for 21.1 % of all residential properties with a mortgage nationwide in 2013, with more than 1.6 million residential properties at less than 5 % equity, referred to as near-negative equity.

    Properties that are near-negative equity are considered at risk if home prices fall.

    admin@freelistmyhouse.com

  • Zillow - launching massive survey tracker

    Posted Under: Home Buying in Nassau County, Home Selling in Nassau County, Investment Properties in Nassau County  |  March 8, 2014 3:07 PM  |  233 views  |  No comments

    Zillow - launching massive survey tracker

    In a move that could further cement Zillow’s status as an authority in real estate analysis, the search portal is partnering with research and consulting firm Pulsenomics LLC to publish survey-based consumer confidence indices the companies say will offer insights into attitudes that drive home prices and sales at the national and local market level.

    The Zillow Housing Confidence Indices, to be published twice a year beginning March 13, will be based on telephone interviews with more than 10,000 consumers nationwide. Results will be tallied not only for the U.S. as a whole, but broken down for 20 local metropolitan areas, gauging consumer sentiment and expectations for the future performance of real estate and rental markets.

    By comparison, the Fannie Mae National Housing Survey, which gauges consumer housing sentiment at the national level, polls 1,000 consumers.

    The ZHCIs were developed by Pulsenomics, with Robert Shiller and Karl Case — the fathers of the widely followed S&P/Case-Shiller Home Price Indices — serving as “honorary advisers.”

    Shiller, who won the 2013 Nobel Prize in economics, said the new survey-based indices will “add immeasurably to our understanding of housing markets, with unprecedented detailed information through time and across geographical areas.”

    admin@freelistmyhouse.com

  • Zillow - launching massive survey tracker

    Posted Under: Home Buying in Queens, Home Selling in Queens, Investment Properties in Queens  |  March 8, 2014 3:06 PM  |  260 views  |  No comments

    Zillow - launching massive survey tracker

    In a move that could further cement Zillow’s status as an authority in real estate analysis, the search portal is partnering with research and consulting firm Pulsenomics LLC to publish survey-based consumer confidence indices the companies say will offer insights into attitudes that drive home prices and sales at the national and local market level.

    The Zillow Housing Confidence Indices, to be published twice a year beginning March 13, will be based on telephone interviews with more than 10,000 consumers nationwide. Results will be tallied not only for the U.S. as a whole, but broken down for 20 local metropolitan areas, gauging consumer sentiment and expectations for the future performance of real estate and rental markets.

    By comparison, the Fannie Mae National Housing Survey, which gauges consumer housing sentiment at the national level, polls 1,000 consumers.

    The ZHCIs were developed by Pulsenomics, with Robert Shiller and Karl Case — the fathers of the widely followed S&P/Case-Shiller Home Price Indices — serving as “honorary advisers.”

    Shiller, who won the 2013 Nobel Prize in economics, said the new survey-based indices will “add immeasurably to our understanding of housing markets, with unprecedented detailed information through time and across geographical areas.”

    admin@freelistmyhouse.com

  • 12.2M Homeowners Underwater

    Posted Under: Home Buying in Nassau County, Foreclosure in Nassau County, Investment Properties in Nassau County  |  March 8, 2014 2:26 PM  |  232 views  |  No comments

    12.2M Homeowners Underwater

     The national negative equity rate continued to drop in the second quarter as home values marched upward.

    Zillow's most recent Negative Equity Report shows approximately 12.2 million homeowners owed more on their mortgage than their home is worth last quarter, down from 13 million in the first quarter and 15.3 million the same time last year.

    Those 12.2 million underwater homeowners represent approximately     23.8 % of all homeowners with a mortgage, Zillow said. The negative equity rate among all homeowners--including those without a mortgage--was    16.7 % at the end of the quarter. (Roughly one-third of homes are owned without a mortgage.)

    For the second quarter of 2014, Zillow predicts the negative equity rate will fall to 20.9 %, lifting an additional 1.9 million homeowners into positive equity.

    ""Widespread rising home values during the past year have helped chip away at negative equity nationwide, helping many homeowners who were only modestly underwater to come up for air,"" said Zillow chief economist Dr. Stan Humphries. ""For those homeowners who are deeply underwater, though, there is still a long row to hoe.""

    Out of those homeowners in negative equity, 57 % were underwater by      20 % or more, and roughly 13.4 percent owed more than twice their home's worth.

    If home values appreciated at an annual rate of 4.8 % per year (Zillow's forecast for the next year), it would take a homeowner underwater by 20 % nearly four years to reach positive equity.

    The frustratingly slow pace of negative equity declines in the face of such robust home value appreciation is a direct result of the fact that many people in the hardest-hit markets are underwater by an enormous amount & because of this, negative equity will be a factor in these markets for years to come, constraining the supply of homes for sale and keeping people out of the market who might otherwise get involved.

    Meanwhile, the effective negative equity rate--which includes homeowners with a mortgage who have 20 % or less equity in their homes--was 41.9 %  in Q2, a decline from 43.6 % in the prior quarter. Because of the expenses associated with listing a home and buying a new one, those owners with equity of less than 20 % are essentially locked into their homes, regardless of whether or not they're actually underwater.

    admin@freelistmyhouse.com

     

  • Home Price Growth Slows

    Posted Under: Home Buying in Nassau County, Foreclosure in Nassau County, Investment Properties in Nassau County  |  March 8, 2014 2:12 PM  |  227 views  |  No comments

    Home Price Growth Slows

     An early look at housing data in February shows a severe slowdown in home price growth as distressed sales activity grows stronger.

    Clear Capital released earlier this week its latest Home Data Index (HDI) Market Report, recording only a 1 % gain in home prices over the quarter ending last month. That figure is down from a 2.5 % pace of growth for the January quarter.

    While many price indicators have pointed to slowdowns over the last few months, the latest trend could be the start of something worse, says Dr. Alex Villacorta, VP of research and analytics at Clear Capital.

    “Our early data shows national quarterly price gains are falling at a rapid pace and suggest overall prices could dip into negative territory soon if current conditions continue,” he said.

    Three out of the 15 lowest performing metro markets in the latest HDI reported slight price declines over the quarter, while the remaining 12 were mostly flat. With winter not quite over yet, near-term price declines “are not out of the question,” according to Clear Capital.

    Adding to the problem is a 1.8 % point uptick in national REO saturation, which stood at 22.7 % as of the end of February—further threatening price trends.

    “Since the market fallout in 2006, home prices have dramatically declined during sustained periods of rising distressed sale activity,” Villacorta explained. “Over the last two years, however, rising distressed sales have been offset by investor demand, which is not guaranteed to be present in 2014.”

    admin@freelistmyhouse.com

  • Home Price Growth Slows

    Posted Under: Home Buying in Queens, Foreclosure in Queens, Investment Properties in Queens  |  March 8, 2014 2:10 PM  |  240 views  |  No comments

    Home Price Growth Slows

     An early look at housing data in February shows a severe slowdown in home price growth as distressed sales activity grows stronger.

    Clear Capital released earlier this week its latest Home Data Index (HDI) Market Report, recording only a 1 % gain in home prices over the quarter ending last month. That figure is down from a 2.5 % pace of growth for the January quarter.

    While many price indicators have pointed to slowdowns over the last few months, the latest trend could be the start of something worse, says Dr. Alex Villacorta, VP of research and analytics at Clear Capital.

    “Our early data shows national quarterly price gains are falling at a rapid pace and suggest overall prices could dip into negative territory soon if current conditions continue,” he said.

    Three out of the 15 lowest performing metro markets in the latest HDI reported slight price declines over the quarter, while the remaining 12 were mostly flat. With winter not quite over yet, near-term price declines “are not out of the question,” according to Clear Capital.

    Adding to the problem is a 1.8 % point uptick in national REO saturation, which stood at 22.7 % as of the end of February—further threatening price trends.

    “Since the market fallout in 2006, home prices have dramatically declined during sustained periods of rising distressed sale activity,” Villacorta explained. “Over the last two years, however, rising distressed sales have been offset by investor demand, which is not guaranteed to be present in 2014.”

    admin@freelistmyhouse.com

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