IRVINE, CA-National home prices in October were 8.4% higher than a year earlier, while month-over-month prices inched up 0.4%, according to Redfin Real-Time Price Tracker, a monthly report on home prices, sales and inventory across 19 US markets. The Tracker also reports that home prices in October increased 8.4% year over year and were up 0.4% month over month.
As GlobeSt.com reported last week, home prices nationwide, including distressed sales, increased on a year-over-year basis by 5% in September compared to September 2011, according to a report by CoreLogic, a provider of information, analytics and business services here. The change represents the biggest increase since July 2006 and the 7th consecutive increase in home prices nationally on a year-over-year basis.
Meanwhile, RealtyTrac, an online marketplace for foreclosure properties, reports that foreclosure activity increased 3% in October from the previous month, although they are still down 19% from October 2011. “We continued to see vastly different foreclosure trends across the country in October, depending primarily on how each state’s foreclosing infrastructure was able to handle the high volume of delinquent loans during the worst of the foreclosure crisis in 2010,” said Daren Blomquist, VP of Realty Trac, in a prepared statement. “Unfortunately, the three states dealing with the biggest rebound in deferred foreclosure activity—New Jersey, New York and Connecticut—also had to deal with the devastation to homes inflicted by Superstorm Sandy.” Blomquist added that the foreclosure moratoriums being put into effect as a result of the storm will likely extend the already-lengthy time to foreclose in these states, further prolonging a fundamentally sound housing recovery.
In addition, CoreLogic has released its November MarketPulse report, which shows that a full housing recovery will not be seen for some time. Still, the single-family rental market remained very active this past summer, with increases in demand, tightening inventory and rising rents. And nationally, rental leasing volumes were up sequentially every month during the last two years.
Also, the multifamily sector is experiencing minimal foreclosures, particularly of Fannie Mae and Freddie Mac loans. Gerson Law Firm APC, which listened to reports in separate meetings recently by leadership of Fannie Mae and Freddie Mac, reports that in the first three quarter s of 2012, Fannie Mae provided more than $15 billion for acquisition of multifamily properties, and Freddie Mac has chalked similar numbers. Fannie Mae year-to-date delinquencies in multifamily are as low as .29 bps for DUS loans and .34 bps for small loans (in most markets defined as less than $3 million). Freddie Mac delinquency rates in multifamily are similar.
“Many people don’t know that Fannie Mae and Freddie Mac provide financing for multifamily, but the numbers on my website show they provide an enormous amount of financing for apartment acquisitions in acquisitions in the US,” Gordon Gerson, head of the firm, tells GlobeSt.com. “Defaults in Fannie Mae in the apartment sector are almost nonexistent, but barely negligible compared to the single-family sector.” Gerson adds that in California no more than 10 multifamily defaults have gone to foreclosure since the recession started in 2008. “It’s a very conservative underwriting model, much more conservative than the CMBS or other models out there.”
Fannie Mae owned the biggest percentage of REO single-family inventory of any lender in the counties impacted by Superstorm Sandy in all three states, according to RealtyTrac. Other lenders with large percentages of REO inventory in the impacted counties included Wells Fargo, US BankCorp and Deutsche Bank. *chart courtesy of RealtyTrac
After dipping sharply in September, home prices rose in October to a median of $63,301, which is 8.4% higher than a year earlier, according to Redfin. *chart courtesy of Redfin
Home prices correlate closely with consumer spending habits, according to CoreLogic. *chart courtesy of CoreLogic
For more information on RealtyTrac’s report, click here.
For more information on Redfin’s report, click here.
For more information on CoreLogic’s report, click here.