For the 1st time in history, the number of properties in Escrow exceeded the number of properties Listed. The shift suggests contracting activity is outpacing the number of new listings.
During the 2nd week of October, the number of listings reached 11,343, which represented a decrease of 194 homes from the preceding week and a dramatic 11,200-unit decline (-49.7%) from the same week of the prior year.
Listings Below 12,000 & Escrows Above 15,000
The past week, movement in the resale housing market followed its historical trend.
Compared to the same week of the prior year, inventory is down 10,008 units, or 45.6%.
Keep an eye on the Vegas market as there are multiple bids on most properties and most selling above listed price.
Even Appraisers are noting on their reports that Vegas is a stabilizing market.
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Short Sales and Bank-Owned Properties (distressed units) represent nearly 60% (7,273 units) of total inventory. Short sales comprised 39.8% of availability while bank-owned homes represented 19.8%.
Contracted units (Contingent and Pending) continued to increase during the first week of September 2009, reaching a combined total of 14,632 units, the highest in history and double the amount posted one year ago.
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Availability has declined 32 out of the last 35 weeks, with the latest posting another decline of 185 units.
Available inventory = 12,368 – which is down 43.6% or 9,573 units from the same time in 2008.
Short sale closings have risen. Note that 7,800 short sale units have sales contracts in place (contingent or pending), but have yet to close. Short Sales represent 54.6 percent of all escrows.
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The latest weekly performance in the resale market mirrored trends witnessed during nearly every week of 2009 – the number of units under contract rose, while the number of available listings declined.
During the past seven days, the number of available properties dipped by another 105 units, bringing total inventory to 12,553 homes. Compared to the same week of the prior year, inventory is down 43.2 %, or a decline of 9,543 units (from 22,096). Availability is at its lowest level since December 2005, a period when the median resale price was nearly $285,000; for comparison purposes, the latest median price is nearly $125,000.
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Note: Earlier this year credit companies made some changes to how your FICO score is calculated.
What the FICO Score Measures:
You can check your credit report for free at the three bureaus once per year. To generate a complete 3 bureau score report go to MYFICO.com.
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EEM, better known as Energy Efficient Mortgages.
This can take place with FHA loans, Conventional loans, and VA loans, but I am going to go over the particulars when using an FHA loan – the most popular loan type right now.
Eligibility Requirements
Example:
|
XXXXXXXXXXXXXXXXXXX |
New Home/Purchase Price |
Same home w/ energy cost of improvements |
|
Purchase Price |
$250,000.00 |
$250,000.00 |
|
Loan Amount |
$245,471.00 |
$253,471.00 |
|
Cost of Energy Improvements |
|
$8,000.00 |
|
Monthly P&I at 5.5% - 30 yr |
$1,393.76 |
$1,439.18 |
|
Monthly Payment for electric/gas/ etc, etc |
$375.00 |
$253.00 |
|
Total Monthly payment include (Mtg Payment & electric bill) |
$1,768.76 |
$1,692.18 |
|
Monthly Savings |
|
$76.58 |
As you can see, in year 1 you would save $918.96! Plus the cost of the energy improvements that were added into your mortgage now become a tax write-off!!
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Making your home more energy efficient can help reduce high energy bills while improving your level of comfort. As an added bonus, it's good for the environment we all share. NV Energy offers a number of programs and services designed to help our customers save electricity and money. These programs include cash rebates, load-control, weatherization, energy efficient lighting and educational programs.
Start saving now.
Old refrigerators or freezers in your garage can use three times as much energy as newer ones. But you can pick up $30 in cold cash just by recycling your older appliance with NV Energy. We pick it up for free and you get $30.
Cool Credit is now Cool Share. Earn incentives and save money on your bill -- while saving energy for us all -- with Cool Share, a program designed to help reduce electricity demand and keep prices low during the peak summer season. Customers already participating in Cool Credit should continue to call 702-402-1111 for maintenance, troubleshooting, or other questions about the program.
When you replace your old air conditioner with a more efficient system (14.5 SEER or higher), you may qualify for a cash incentive ranging from $140 to $ 1125 depending upon the size and efficiency of the air conditioning unit you choose.
One of the simplest and most effective ways to reduce your energy bills is to replace your existing incandescent light bulbs with ENERGY STAR qualified compact fluorescent lights (CFLs). Right now, NV Energy is working with participating retailers to offer our customers discounts on energy-efficient CFLs. Savings are offered on the types of CFLs at participating retailers while supplies last.
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"The good news is that the declines are happening as consumer confidence is rising and housing sales and [building] starts seem to be bottoming out," said Jeannine Cataldi, senior economist for IHS in a statement accompanying the study.
The report claimed the most undervalued metro area in the nation is Vero Beach, Fla., where the median home price has fallen 29.7% since the first quarter of 2005 to $125,400. That is 42.5% below the expectation. Houma, La., prices, at a median of $113,500, are undervalued by 41.4%. Las Vegas prices have dropped more than 46% since 2005, and the city is now undervalued by 40.9%.
5 Most Undervalued
Home prices in these cities are well below normal:
1. Vero
Beach, Fla.
Median Home Price: $125.4K
Percent Overvalued: -42.5%
2. Houma,
La.
Median Home Price: $113.5K
Percent Overvalued: -41.4%
3. Las
Vegas, Nev.
Median Home Price: $140.0K
Percent Overvalued: -40.9%
4. Merced,
Calif.
Median Home Price: $106.0K
Percent Overvalued: -40.1%
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HERA/HOEPA - Background Information
In 2008, the Home Ownership and Equity Protection Act (HOEPA) and the Housing and Economic Recovery Act (HERA) were passed by Congress, and the Federal Reserve Board published the regulations under the Truth in Lending Act. These regulations were written to provide more transparent, level and fair regulation of the real estate industry; to add additional steps to help prevent deceptive lending practices; and to protect consumers by making them more informed - and therefore more confident- in their home financing choices.
HOEPA - Effective July 30, 2009
Amends the Truth in Lending Act (TIL), implemented through Regulation Z. Has a number of provisions including the Mortgage Disclosure Improvement Act, which changes the Truth in Lending Act requirements surrounding early and final disclosures to home buyers and addresses the timing of when fees can be charged.
Four key elements you need to know
1. If the home buyer is financing the property, these new regulatory and investor guidelines will impact-and could even dictate-the closing date.
Historically, home buyers and sellers would agree on a closing date, and then service providers - including lenders - would work as best they could toward meeting that date. Going forward, purchase contracts can still be written with a specific closing date in mind, but all parties need to take into account that the earliest any home purchase transaction can close is 7 business days after the home buyer is issued his or her initial mortgage disclosures from the lender. If the application is taken by phone - and everything went perfectly, the earliest closing date would be 7 business days after application. (Note: At Wells Fargo Home Mortgage, Saturdays, with the exception of federal holidays, do count as a business day for the purpose of disclosures only.)
2. Upfront fees cannot be collected by the lender (except for a credit report fee) until the initial disclosures are received. If the disclosures are overnighted, they are considered "received" the next business day-allowing the fees to be collected on the following business day.
Historically, upfront fees could be collected immediately. Starting July 30, 2009, upfront fees can be collected immediately when the application is taken in person and the home buyer receives his or her initial disclosures. The only exception is the credit report fee which can be collected at application.
3. The homebuyer must be provided with a copy of his or her appraisal a minimum of 3 business days prior to closing.
To help expedite the process, Wells Fargo Home Mortgage has elected to have a copy of the appraisal issued directly to the homebuyer - and the homebuyer must receive the appraisal at least 3 business days prior to the mortgage closing. This means the homebuyer may receive his or her appraisal before or simultaneous to the lender receiving their copy. If the homebuyer believes the 3-business-day required review period is not necessary for whatever reason, he or she has the right to waive that requirement.
4. An increase of more than .125% in the Annual Percentage Rate (APR) from the initial Truth in Lending Disclosure (TIL) requires the TIL disclosure to be revised and reissued to the homebuyer. The home buyer must receive a revised TIL disclosure at least 3 business days before closing, providing the homebuyer with the time required to determine if the homebuyer is comfortable with his or her loan choice. If mailed, the TIL disclosure is considered "received" 3 business days after mailing.
Considering that many things occur and may be changed or finalized throughout the course of the transaction, there are a number of things that can impact the homebuyer’s APR. Therefore it is critical on the front end to ensure that estimated fees are as accurate as possible.
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