Jun 10
15
The good news is that property values (nationwide) are stable! The bad news is that mortgage debt is falling. Why is that bad news? It’s not that we are paying down our mortgages, but rather because banks are taking losses when they accept short sales, principal reductions, and when they foreclose.
Some experts say we may have a bottom (again, nationwide) this fall, but there won’t be a real recovery in housing until 2013, when demand is expected to finally catch up with supply. One thing to be careful of in this report: the expert in question says Zillow knows of 7,300,000 homes that are either delinquent or in foreclosure that aren’t on the market, and says that if these homes were counted there would be 45% more available homes. My experience leads me to believe that most “shadow inventory” estimates are over-stated.
An FHA “Reform” bill has passed the House of Representatives. If the Senate also passes it and it gets a Presidential signature, it will raise the premium on FHA mortgage insurance. If you are considering an FHA loan, please discuss this with your mortgage professional to see how it might effect you.
The average size of new homes is shrinking, down to 2438 square feet. There is also a trend towards single story homes. I’ve already noticed a sharp price per square foot premium on single story homes here in the Las Vegas Valley, and I expect the trend to remain in place as Baby Boomers get older and start to require homes that can be made disability friendly.
Finally, check out my ActiveRain (and ShortWoman) article on Senator Harry Reid’s proposal to extend the closing deadline on the home buyer’s tax credit. Don’t think this means you can still get in on the action — you had to have a signed contract by April 30! — but if your loan is slow to close or that short sale approval is taking too long, there is hope from Harry.
See you back here for Friday Figures!
