A fantastic article that anyone concerned abot real estate and the housing markets should read. - Tim Ballering
From 2009-2012, the top 1% of Americans captured 95% of income gains. Now, as the housing market rebounds, billions of dollars in recovered housing wealth are flowing straight to Wall Street instead of to families and communities. Since spring 2012, just at the time when Blackstone began buying foreclosed homes in bulk, an estimated $88 billion of housing wealth accumulation has gone straight to banks or institutional investors as a result of their residential property holdings, according to an analysis by Tom Dispatch. And it’s a number that’s likely to just keep growing.
via naked capitalism.
National home values fell in October from September, according to the October Zillow Real Estate Market Reports, the second month in a row of falling home values and the first consecutive monthly declines since the market hit bottom in October 2011
via Zillow Blog.
Mike Score is quoted as saying
“I can assure you we have a business plan and we don’t have any anxiety about achieving our goals. We’re entrepreneurs, and that’s really our problem to wrestle with. The purpose of the investment is to make the neighborhood more livable and then recover our investment over time, and we’re very confident we can do that.”
via The Atlantic Cities.
The surge in values, combined with higher mortgage rates, is reducing affordability while also encouraging more sellers to list their properties, indicating that price growth will slow after the biggest increases since 2006.
FNC said rising home sales accompanied by a relatively low share of foreclosure re-sales are the key drivers of continued increases in home prices. As of September, foreclosure sales nationwide accounted for 13.4% of total home sales, up slightly from Augusts 12.7% but down from 16.6% a year ago.
When home prices were heading downward banks would sometimes send default notices to homeowners but allow them to stay in the home without making payments if the homeowner would maintain the home and keep it in good condition. Now that the economy is improving and home prices are rising, banks are willing to complete the foreclosure process if homeowners dont start making their payments again.”
All four measures of distress in the housing market dropped to post-crash lows during the third quarter of 2013 the Mortgage Bankers Association (MBA) said today. The national delinquency rate, serious delinquencies, loans in foreclosure, and foreclosure starts all registered significant declines during the quarter.
Persons or institutions who have purchased 10 or more residential properties in the last 12 months accounted for 14 percent of all residential sales in September, up 3 percentage points from August and from September 2012. This was the highest level of such institutional investment since RealtyTrac started tracking those purchases in January 2011.