The year 2012 was a big year for certain markets as prices grew by leaps and bounds after seeing declines in 2011.
On Thursday, Trulia a report revealing changes in asking prices in 2011 and 2012 among the 100 largest metros. After measuring improvements over the two years, Trulia ranked Las Vegas as the top turnaround market based on its recovery in asking prices.
Over a one-year period ending in December 2011, Las Vegas saw an 11.2 percent decrease, but ended 2012 with a 16.3 percent year-over-year increase in asking prices in December 2012, making the metro’s improvement the most dramatic.
Trulia also found nine out of the top 10 turnaround markets were located West and Southwest, and the top six saw double digit increases.
The metro that ranked second for its recovery in asking prices was Seattle, where prices rose by 10.2 percent in 2012 compared to a 13.8 percent decline in 2011.
Phoenix took the No. 3 spot even though it saw the biggest surge in asking prices in 2012. In Phoenix, prices improved by 26 percent compared to a 4.2 percent increase in 2011.
Whether you’re staging homes or giving past clients advice, here are several design trends to keep in mind next year.
The design choices of 2013 will be shaped by uncertainty over how long current home owners will stay and what future buyers’ tastes may be. So, home owners’ needs and style preferences are more influential in today’s designs than what buyers want.
Here is a baker’s dozen of changes that design pros and manufacturers say are emerging and will make greater inroads:
The National Association of Realtors says its pending home sales index, which measures contracts to buy homes, increased last month to its highest level in two and a half years.
It's the latest sign of improvement in the battered housing market.
The NAR said its seasonally adjusted index rose 1.7% in November from October to 106.4. That's the highest since April 2010, when a homebuyer tax credit caused a spike in sales. And excluding those months when the tax credit was available, it's the best reading since February 2007.
The increase points to higher sales of previously occupied homes in the coming months. There's generally a one- to two-month lag between a signed contract and a completed sale.
Signed contracts to buy homes rose in the Northeast and West, and ticked up slightly in the Midwest. They were unchanged in the South.
Home prices will increase by 3.1 percent in 2013 and top off 2012 with a 4.6 percent gain, according to Zillow’sDecember Home Price Expectations Survey.
The survey, which was conducted by Pulsenomics LLC, was based on responses from 105 economists and industry experts.
In September, survey panelists projected more modest gains and predicted prices would rise by 2.4 percent in 2013 and increase overall by 2.3 percent in 2012.
As of October 2012, 2.3 million housing units still remain in shadow inventory, CoreLogic reported Wednesday.
The total translates into a supply of 7 months and sits 12.3 percent lower than the 2.6 million units in October 2011, according to the data provider. From September 2012, shadow inventory shrunk by about 1 percent.
In dollar terms, shadow inventory stood at $376 billion, down from $399 billion in October 2011.
“The size of the shadow inventory continues to shrink from peak levels in terms of numbers of units and the dollars they represent,” said Anand Nallathambi, president andCEO of CoreLogic. “We expect a gradual and progressive contraction in the shadow inventory in 2013 as investors continue to snap up foreclosed and REO properties and the broader recovery in housing market fundamentals takes hold.”
The new year is expected to bring about a brighter housing market, thanks to an improving job market and record-breaking mortgage rates.
"Hopefully, we'll look back at 2012 as a transition year," says Steve Storti, a senior vice president of marketing at Prudential Fox & Roach REALTORS®. "Just as you can only declare a recession after the fact, maybe we'll be able to say this is when it changed over."
Home values are moving up across the country. For example, Phoenix has seen home prices soar 21.7 percent this year. The National Association of REALTORS® reported last week that previously owned home sales increased 5.9 percent in November compared with October and sales were up 14.5 percent year-over-year.
Helping to contribute to the rise in home prices is the decline in for-sale inventories. Inventories in November were at the lowest level since December 2001 at 4.8 months of supply.
Meanwhile, sales of new homes posted at their highest pace in two years in November and median sales prices inched higher to $246,200 compared to $237,500 in October. However, IHS Global Insight is forecasting that new-home sales still have a long way to recover and likely will not return to normal sales levels until 2015.
GRAND RAPIDS, MI – After securing $21.5 million worth of loans for three commercial properties in recent months, mortgage broker Cathy Bronkema says out-of-state real estate investors are coming back to Michigan and West Michigan.
Bronkema, who opened a Grand Rapids office for Cohen Financial in January, said she recently arranged a $10 million loan with a regional bank to help Franklin Partners LLC of Chicago acquire the Comerica Building at 99 Monroe Ave. NW.
Franklin Partners is in the process of upgrading the 27-year-old 12-story building by remodeling its street level façade and adding a workout area and conference rooms to the second floor. The new owners also are upgrading the building’s mechanical facilities
As a partner and executive vice president of Cohen Financial, Bronkema said she also arranged a $5 million loan with a local bank that allowed a Fargo, N.D. group to acquire the Ramada Plaza Hotel at 3333 28th Street in Kentwood.
Bronkema said she also arranged a $6.5 million refinance with a life insurance company for a Home Depot ground lease in Midland.
All transactions closed in the current quarter and all clients were out-of-state borrowers, she said.
The Federal Housing Administration (FHA) is extending the temporary waiver of its property anti-flipping rule through the end of 2012.
FHA rules typically prohibit insuring a mortgage on a home owned by the seller for less than 90 days. In 2010, however, the agency waived this regulation, and later extended the waiver through 2011.
The new extension announced late last week will permit buyers to continue to use FHA-insured financing to purchase HUD-owned and bank-owned properties, no matter how long the homeowner has held the title, through December 31, 2012.
FHA says the waiver will allow homes to resell as quickly as possible, helping to stabilize real estate prices and revitalize communities experiencing high foreclosure activity.
“This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight,” said Carol Galante, FHA’s Acting Commissioner. “FHAremains a critical source of mortgage financing and stability and we must make every effort that to promote recovery in every responsible way we can.”
In its May foreclosure newsletter, RealtyTrac named the top 10 places to buy foreclosures in 2012. The selected locations were out of the 100 largest metropolitan statistical areas based on population. The list was further narrowed according to markets with at least 200 foreclosure-related sales transactions in January 2012. Then, it was whittled down again to only include metros with foreclosure sales prices at least 30 percent below the average price of a non-foreclosure property.
The number one metro to buy a foreclosure in 2012 is Kansas City, Missouri, where the average foreclosure sales price is $73,257 compared to $101,710 a year ago. The average discount for foreclosures is 51 percent. Overall, foreclosures make up 29 percent of all sales in this metro. Citing data from the Kansas City Regional Association of Realtors, the newsletter stated home sales in Kansas City rose 14 percent in March from a year ago, and prices increased 3 percent from a year ago.
Boston earned the number two spot with an average foreclosure sales price of $195,672 compared to $203,606. The average discount is 49 percent, and 18 percent of sales are foreclosures. Boston also had the lowest unemployment rate on the list at 5.9 percent.
To avoid losing homes to foreclosure due to long response times for short sale transactions, three senators introduced legislation to speed up the short sale process.
Senators Lisa Murkowski (R-Alaska), Scott Brown (R-Massachusetts), and Sherrod Brown (D-Ohio) proposed the bill addressing the issue of short sales timelines on February 17. A short sale is a real estate transaction where the homeowner sells the property for less than the unpaid balance with the lender’s approval.
“There are neighborhoods across the country full of empty homes and underwater owners that have legitimate offers, but unresponsive banks,” said Murkowski. “What we have here is a failure to communicate. Why don’t we make it easier for Americans trying to participate in the housing market, regardless of whether the answer is ‘yes,’ ‘no’ or ‘maybe?’”
The legislation, also known as the Prompt Notification of Short Sale Act, will require a written response from a lender no later than 75 days after receipt of the written request from the buyer.
The lender’s response to the buyer must specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached.