Home Demand Up, Foreclosures to Keep Prices Down
Home Demand Up, Foreclosures to Keep Prices Down
Home Demand Up, Foreclosures to Keep Prices Down
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February 13, 2012 (Shirley Allen)

Despite solid gains in home sales towards the end of 2011, the best showing since the homebuyer tax credit induced sales in the first half of 2010, home prices and appraisals are still expected to be affected by the downward pressure brought on by the sale of lower priced distressed properties.

Campbell/Inside Mortgage Finance reports that through the end of November, distressed properties accounted for 46.1 percent of home purchases using a three-month rolling average. It was the 23rd consecutive month that distressed property sales had accounted for over 40 percent of all sales.

Shorts sales accounted for 17.6 percent of the home purchases during that period followed by move-in ready REO properties at 15.2 percent with damaged REO properties taking a 13.3 percent share of total home purchases.

REO median prices varied vastly depending on whether the property was move-in ready or damaged. The median price for move-in ready REO properties was $189,700, while the median price for damaged REO properties was far less at $98,600. The median price of a short sale was $209,200 and non-distressed properties sold for a median price of $258,900.

On average, damaged REO properties sold in just 9 weeks while move-in ready REO’s sold for in 10.1 weeks, both 15 month lows.

Appraisals that included distressed property sales in their calculations continued to be a source of contention with real estate agents as the impact of the lower prices was making it difficult to get non-distressed homes to appraise, keeping the market from making a comeback in some areas.

An agent in Maryland reported, “The foreclosure/short sale markets are making it difficult to get non-distressed homes to appraise. This is holding off a market comeback in my area,” while another agent in Florida said, “We could sell the homes for more but the appraisals are an issue since they are using short sales and foreclosures as comps.”

With almost four million homes in foreclosure and in the shadow inventory, their impact on overall market prices should be expected to be felt for some time to come.

Tags: distressed properties, REO, move-in ready, damaged, foreclosure, short sales

Source
Campbell/Inside Mortgage Finance

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February 13, 2012 (Shirley Allen)

Despite solid gains in home sales towards the end of 2011, the best showing since the homebuyer tax credit induced sales in the first half of 2010, home prices and appraisals are still expected to be affected by the downward pressure brought on by the sale of lower priced distressed properties.

Campbell/Inside Mortgage Finance reports that through the end of November, distressed properties accounted for 46.1 percent of home purchases using a three-month rolling average. It was the 23rd consecutive month that distressed property sales had accounted for over 40 percent of all sales.

Shorts sales accounted for 17.6 percent of the home purchases during that period followed by move-in ready REO properties at 15.2 percent with damaged REO properties taking a 13.3 percent share of total home purchases.

REO median prices varied vastly depending on whether the property was move-in ready or damaged. The median price for move-in ready REO properties was $189,700, while the median price for damaged REO properties was far less at $98,600. The median price of a short sale was $209,200 and non-distressed properties sold for a median price of $258,900.

On average, damaged REO properties sold in just 9 weeks while move-in ready REO’s sold for in 10.1 weeks, both 15 month lows.

Appraisals that included distressed property sales in their calculations continued to be a source of contention with real estate agents as the impact of the lower prices was making it difficult to get non-distressed homes to appraise, keeping the market from making a comeback in some areas.

An agent in Maryland reported, “The foreclosure/short sale markets are making it difficult to get non-distressed homes to appraise. This is holding off a market comeback in my area,” while another agent in Florida said, “We could sell the homes for more but the appraisals are an issue since they are using short sales and foreclosures as comps.”

With almost four million homes in foreclosure and in the shadow inventory, their impact on overall market prices should be expected to be felt for some time to come.

Tags: distressed properties, REO, move-in ready, damaged, foreclosure, short sales

Source
Campbell/Inside Mortgage Finance

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
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LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
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February 13, 2012 (Shirley Allen)

Despite solid gains in home sales towards the end of 2011, the best showing since the homebuyer tax credit induced sales in the first half of 2010, home prices and appraisals are still expected to be affected by the downward pressure brought on by the sale of lower priced distressed properties.

Campbell/Inside Mortgage Finance reports that through the end of November, distressed properties accounted for 46.1 percent of home purchases using a three-month rolling average. It was the 23rd consecutive month that distressed property sales had accounted for over 40 percent of all sales.

Shorts sales accounted for 17.6 percent of the home purchases during that period followed by move-in ready REO properties at 15.2 percent with damaged REO properties taking a 13.3 percent share of total home purchases.

REO median prices varied vastly depending on whether the property was move-in ready or damaged. The median price for move-in ready REO properties was $189,700, while the median price for damaged REO properties was far less at $98,600. The median price of a short sale was $209,200 and non-distressed properties sold for a median price of $258,900.

On average, damaged REO properties sold in just 9 weeks while move-in ready REO’s sold for in 10.1 weeks, both 15 month lows.

Appraisals that included distressed property sales in their calculations continued to be a source of contention with real estate agents as the impact of the lower prices was making it difficult to get non-distressed homes to appraise, keeping the market from making a comeback in some areas.

An agent in Maryland reported, “The foreclosure/short sale markets are making it difficult to get non-distressed homes to appraise. This is holding off a market comeback in my area,” while another agent in Florida said, “We could sell the homes for more but the appraisals are an issue since they are using short sales and foreclosures as comps.”

With almost four million homes in foreclosure and in the shadow inventory, their impact on overall market prices should be expected to be felt for some time to come.

Tags: distressed properties, REO, move-in ready, damaged, foreclosure, short sales

Source
Campbell/Inside Mortgage Finance

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.