Good news! The rate of the price decline in the housing crash has finally begun to ease.
Bad news! Prices are still falling 18% year over year.
Specifically, in April, according to the Case Shiller index, the rate of decline in nationwide house prices eased slightly in April–to 18% from 19% in March. The rate of decline has hovered around 19%-20% for the last several months. And prices have now declined a staggering 33%-34% from the peak. Read on>>
Like fighting a battle with mail order bullets; its tough to win the war. As a borrowing buyer there really isn’t much defense one has against the cash buyer on a short or foreclosure sale. It has happened to me with my buyers countless times. Just as ever, CASH IS KING! Tougher yet, cash buyers pay much less for the properties than borrowing buyers. To the Seller (a bank) its a clean easy transaction; as apposed to potentially lengthy approvals, appraisals and inspections. All I can tell you is that, you must be completely qualified and ready to close as quickly as your lender can get you closed (ie. use a qualified and proactive lending agent) To you cash buyers, Enjoy your cake and ice cream -and call me. Read the article >>
Whether a Realtor or a resident in Lee county, I think we all knew it wouldn’t be too long before someone actually “really” stood up to the tax appraiser’s value judgements. After all, values have gone way up and now, have gone way down. Appraised values must accurately follow suit. They haven’t. read the article >>
All stats are now telling of another level of homeowners are on the brink of foreclosure. I don’t expect that this will bring a new bottom to the lower tiers of our local market; though the upper tiers may feel some falling values from a burgeoning onset of yet more foreclosures. Whether great news or awful, I’m going to bring it to you. It’s not an article to enjoy, but if you’re an investor, word on the street is, ‘you’ll soon have more to choose from.’ Let me see the article >>
Straight from the FHA’s latest Mortgagee Letter 2009-19 that was issued on June 12th. In this latest Mortgagee Letter FHA is announcing MAJOR change to their Condo Approval Process.
“In accordance with the passage of the Housing and Economic Recovery Act (HERA) of 2008, the Federal Housing Administration (FHA) is implementing a new approval process for Condominium Projects to insure mortgages on individual units under Section 203(b) of the National Housing Act. FHA will now allow lenders to determine project eligibility, review project documentation, and certify to compliance of Section 203(b) of the NHA and 24 CFR 203 of HUD’s regulations. HUD will continue to maintain a list of Approved Condominium Projects. The requirements of this Mortgagee Letter are effective for all case numbers assigned on or after October 1, 2009 except as noted.”
This is a MAJOR change to the present Condo Approval Procedure, and while it reduces the documentation and requirements for Full Condo Approval, it will place a lot more work and responsibility on Lenders. The new approval process states “The lender will have two condominium project approval processing options. The applicable documentation requirements will be the same for each option:
HUD Review and Approval Process (HRAP).
Direct Endorsement Lender Review and Approval Process (DELRAP), outlined in this Mortgagee Letter. This option is only available to lenders who have unconditional Direct Endorsement authority and staff with knowledge and expertise in reviewing and approving condominium projects”
Once an unconditional Direct Endorsement Lender approves a Condo Complex it will be added to the FHA Approved Condo List, and other Lenders will not have to repeat the process. The new approval process will do away with the need to do an Environmental Study in most cases, and the “Right of First Refusal” will no longer be a reason for declining approval of a Condo Complex.
The other MAJOR, MAJOR change, and this will present a huge problem in my opinion, is that this new approval process will do away with the present “Spot Approval”.
“The Spot Loan Approval process as defined in Mortgage Letter 1996-41 is eliminated with issuance of this guidance. The DELRAP and HRAP processes have been streamlined to allow for uncomplicated condominium project approvals eliminating the need to approve units on a “spot loan” basis”
So now it will become an all or nothing, and a simple two page questionnaire will be replaced by a stack of paper work that is over an inch thick (I saw one the the application packets today). This new approval process will also add significant time to the approving a Condo Complex, as oppose to the quick “Spot Approval” that is now available. Granted that the new approval process once done will not have to be done again, as oppose to the “Spot Approval” which had to be done ever time a loan was done on a Condo in a Condo Complex which was not on the FHA Approved Condo List, but the amount of time and work far out weighs the benefit in my opinion.
Hopefully FHA will re-consider the removal of the now “Spot Approval” option before October 1st and let it continue.
There is mounting evidence that, at long last, the worst is over for large segments of the Lee County housing market. Inventories are shrinking.
Multiple bidders — sometimes as many as 20 — are competing in short sales, when proceeds from the sale fall short of the balance owed on a loan secured by the property sold. Read on>>
A relevant national sign of the times article:
In another sign that house prices are finally slouching their way toward a bottom, another measure of housing “affordability” has now hit a level not seen since the 1960s. Too bad no one has any money to buy them with.
In this case, unfortunately, housing affordability is likely overrated as a price indicator, because so many would-be buyers are underwater on their own houses. (It doesn’t matter if you can buy your neighbor’s house for cheap if you would lose your shirt raising the money you need to buy it with.) But the increasing affordability is nonetheless a positive. Read on>>
A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Get more info>>
There are an absolutely amazing amount of sales happening! Over the course of the last two years, the number of properties for sale is down by an amazing 44 percent (second chart from left). I’m sure there are plenty of fence sitting sellers and incoming foreclosures to bring this number up in the coming months, but it sure it terrific to see SO much property selling.
The odd chart in this mix (much like that of the Ft.Myers charts) is the average selling price. It is down, down big! A full 61% percent over the course of the last two years (bottom chart on the right). Mind you this is not the mean value of property in the area, but it is the average price of what IS selling in the area. Bigger, more expensive properties are not moving as readily. In coming articles I will show you the numbers to verify this statement. What does it mean? It means that bigger, more expensive properties are not moving as readily. In short, If higher ticket property owners want out badly enough, they will likely be more open to previously “way too low” offers.
BONITA SPRINGS — Bonita Springs-based luxury builder WCI Communities Inc. has filed a plan of reorganization with the U.S. Bankruptcy Court in Delaware. Read on>>
robseibert
