May 2016

Found 28 blog entries for May 2016.

Rents have been on the rise for several months now as demand for rental housing has increased due to a short supply of homes for sale, particularly among starter homes, and high down payments. A recent survey showed that the pendulum may be swinging in the other direction, however.

According to a survey of 975 homebuyers conducted by Redfin in May among 36 states and Washington, D.C., one in four homebuyers reported that it was the high cost of rent that prompted them to go hunting for a house—a substantial increase from the share reported last summer. First time buyers drove the increase, with more than 50 percent of them citing high rents as the reason they were looking to buy a home—more than double the 25 percent reported in August.

The change

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The market share for single-family homes built for the purpose of renting them out (rather than selling to an owner-occupant) is down from its peak reached in 2013, but in the last few quarters it has been trending upward.

The April 2016 New Residential Construction report from HUD and the U.S. Census Bureau released this week, which measures quarterly housing starts and completions by purpose and design, found that single-family built-for-rent homes comprised 4.3 percent of all housing starts during the first quarter. That share is higher than the historical average of 2.8 percent but down from its peak of 5.8 percent which occurred in early 2013.

For the last four quarters, single-family homes built-for-rent have totaled about 32,000, according to

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While flipping activity overall is down considerably from its peak reached 11 years ago, the median gross profit per flipped property is up considerably and some markets in the country are providing ample opportunities for flippers, according to data released by CoreLogic on Tuesday.

According to CoreLogic’s May 2016 MarketPulse, Principal Economist Bin He examined the levels of flipping nationwide and confirmed that the ratio of flipped homes among all residential homes was 4.4 percent for Q1 2016, down from its peak value of 6.4 percent in Q1 2005. But due to much lower overall home sales figures in 2016 than in 2005, the actual number of flips in Q1 2016 was more than 70 percent lower than its peak reached in Q2 2005.

The median gross profit per

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Local municipalities in the areas hit hardest by the foreclosure crisis have made various attempts through legislation to combat the problem of “zombie properties,” or vacant and abandoned properties in the process of foreclosure.

While the number of zombie properties has been on the decline—the most recent data reported by RealtyTrac showed 1.4 million vacant properties nationwide, with about 19,000 of those properties in active foreclosure—the question of whose responsibility it is to maintain those properties has been a major sticking point between servicers and lawmakers. The longer the properties remain vacant, the more potential they have to become magnets for squatters, vandalism, and violent crime, bringing down property values and lowering the

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While nearly every metric related to defaults and foreclosures continued its six-year-long decline in April, a couple of stats jumped up during the month, according to Black Knight Financial Services' First Look at Mortgage Data for April 2016 released Tuesday.

April saw the number of 30-day residential mortgages shoot up to 84,000 after hitting a nine-year low in March, pushing the national delinquency rate up to 4.24 percent. The rise in 30-day delinquencies brought up the non-current inventory (properties 30-days or more past due or in foreclosure) up by 48,000, up to 2.74 million.

Even with the monthly increases, however, 30-day delinquencies were down by 10 percent over-the-year in April and non-current inventory was down by nearly half a

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With a greater share of agency first-time buyer home loans comes a greater share of risk involved in those loans.

The share of Agency first-time buyer loans surged by 18 percent in April up to 58.8 percent, meaning that 58.8 percent of primary owner-occupied home purchase mortgages with a government guarantee in April were first-time buyers, according to AEI’s International Center on Housing Risk. Meanwhile, the Agency First-Time Buyer Mortgage Risk Index (FBMRI) shot up to 15.8 percent in April, a series high and an increase of 0.6 percentage points over-the-year.

An Agency FBMRI value of 15.8 percent means that 15.8 percent of these loans would default under economic stress similar to what the country experienced in 2007-08, based on performance

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April marked the 44th straight month of tight supply in the existing-home sales space, according to the National Association of Realtors April 2016 Existing-Home Sales report released on Friday.

Corresponding with that tight supply has been a decline in distressed inventory (foreclosed homes and short sales, which typically sell at deep discounts). According to the NAR data, however, individual investors are still active in buying residential properties.

The share of existing residential homes sold in April that were distressed fell to 7 percent, down from 8 percent in March and from 10 percent over-the-year. Foreclosures and REO properties accounted for 5 percent of distressed sales in April, while short sales accounted for 2 percent.

“REO sales

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U.S. home buyers are putting down less to purchase homes anymore.

According to Ellie Mae, whose mortgage software handles more than 3.7 million applications annually, the average downpayment is shrinking as more first-time home buyers enter the market; and, as mortgage guidelines ease nationwide.

Low- and no-down payment loans, including FHA loans, HomeReady™ loans, and the Conventional 97 program, remain widely-available for borrowers of all credit-types.

Today's buyers also have access to USDA loans and VA loans -- both of which require no downpayment whatsoever -- and piggyback mortgages, which have made a comeback with buyers.

With mortgage rates still below 4% and home values rising in many U.S. markets, it's an excellent time to be a

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For months, housing industry analysts have talked about the low inventory of homes available for purchase. A recent survey by Redfin indicates that millennials, a demographic group often mentioned as a key to a healthy housing market in the future, may be to blame for the persistent shortage of housing supply.

The Redfin survey, which covered 2,200 homeowners across the country, identified five major differences between millennials and the older generation that may have major implications for the future of housing as more millennials become homeowners.

“For the lucky few millennials who can afford to buy in the current bull housing market, there’s a lot of upside to holding on to their starter homes,” said Redfin chief economist Nela Richardson.

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