Federal Reserve Calling For More Action To Improve Housing

(The Hill) The Federal Reserve is turning its attention to reviving the ailing housing market, calling on policymakers to provide a boost to the sector and lift the broader economy.

The Fed on Wednesday sent a 26-page white paper to Congress, providing a framework — including several steps that are already in the works within the Obama administration — designed to provide greater stability for the sector and the overall economy.

(read the article here)

Foreclosures Down 14% Over This Period Last Year

November Foreclosures Down 14 Percent from 2010

By Steve Cook

RISMEDIA, Tuesday, December 20, 2011— Foreclosure filings decreased 3 percent from October, and 14 percent from November 2010.

Default notices were filed for the first time on a total of 71,730 U.S. properties in November, an 8 percent decrease from the previous month, and down 9 percent from November 2010.

Foreclosure auctions were scheduled on 96,540 U.S. properties in November, up 13 percent from October, but still down 17 percent from November 2010.

Scheduled foreclosure auctions increased more than 35 percent on a monthly basis in several states, including California (up 63 percent), Washington (up 56 percent), Ohio (up 53 percent), New Jersey (up 44 percent), and New York (up 38 percent).

Lenders repossessed (REO) a total of 56,124 U.S. properties in November, a 17 percent decrease from October and also a 17 percent decrease from November 2010. REO activity in November was at its lowest level since March 2008, a 44-month low.

Nevada posted the nation’s highest foreclosure rate for the 59th straight month in November despite artificially low foreclosure activity caused by a new state law that took effect in October (AB 284) that alters the foreclosure process in the state. A total of 6,512 Nevada properties received a foreclosure filing in November, up 3 percent from a 45-month low in October, but still down 43 percent from November 2010. One in every 175 Nevada housing units had a foreclosure filing in November, more than three times the national average.

Scheduled trustee’s sales in California hit a 10-month high in November, helping the state maintain the nation’s second highest foreclosure rate: one in every 211 properties with a foreclosure filing during the month. A total of 26,509 trustee’s sales were scheduled in California in November, up 14 percent from November 2010—the first year-over-year increase in scheduled foreclosure auctions in California since March 2010.

Arizona foreclosure activity increased on a year-over-year basis in November for the first time since October 2010, and the state posted the nation’s third highest foreclosure rate for the fifth month in a row. One in every 256 Arizona properties had a foreclosure filing in November, more than twice the national average.

Substantial monthly increases in foreclosure activity in Utah and Georgia lifted those states’ foreclosure rates into the nation’s top five in November. Utah’s foreclosure rate of one in every 290 housing units with a foreclosure filing ranked No. 4 thanks to a 74 percent monthly increase in foreclosure activity, and Georgia’s foreclosure rate of one in every 330 housing units with a foreclosure filing ranked No. 5 thanks to a 23 percent monthly increase in foreclosure activity.

Other states with foreclosure rates ranking among the top 10 were Michigan, Florida, Illinois, Ohio and South Carolina. There were a total of 63,689 California properties with foreclosure filings in November, the most of any state and 28 percent of the national total. Florida foreclosure activity in November decreased 25 percent from a 13-month high in October, but the state still had 24,739 properties with foreclosure filings during the month—the nation’s second highest total. There were a total of 13,777 Michigan properties with foreclosure filings in November, the nation’s third highest state total despite a 14 percent decrease from October. Illinois documented the fourth highest state foreclosure activity total in November, 12,398 properties with foreclosure filings, and Georgia documented the fifth highest state foreclosure activity total, 12,327 properties with foreclosure filings during the month.

California cities account for nine of top 10 metro foreclosure rates. Nine out of the nation’s 10 highest foreclosure rates among metropolitan areas with a population of 200,000 or more were in California. The only exception was Las Vegas, which ranked No. 6 with one in every 150 housing units with a foreclosure filing in November. With one in every 120 housing units with a foreclosure filing during the month, Stockton, Calif., posted the nation’s highest metro foreclosure rate for the second month in a row.

There were a total of 1,913 Stockton properties with a foreclosure filing in November, up 20 percent from the previous month and up 9 percent from November 2010. The increase in Stockton was driven largely by a 65 percent month-over-month increase in scheduled foreclosure auctions. The eight other California cities with foreclosure rates ranking among the top 10 all posted double-digit percentage increases in scheduled foreclosure auctions in November, ranging from a 37 percent month-over-month increase in Modesto to a 100 percent month-over-month increase in Fresno.

U.S. Will Remain a Nation of Homeowners

(RIS Media) The U.S. will not become a nation of renters; there are just too many benefits, both financial and otherwise, to own versus rent. That’s according to the combined findings of several recent studies presented during the “Buyer or Renter Nation?” session held at the 2011 REALTORS® Conference & Expo last week.

An analysis over a 31-year period across 23 metropolitan areas compared the ownership benefits in terms of appreciation and interest deductibility and the costs homeowners incur with down payment, taxes, insurance and maintenance. When it was assumed that renters reinvested any savings in rent (versus a higher monthly mortgage payment), maintenance and down payment, renters had a greater portfolio than buyers in 91 percent of the areas examined. However, when the model allowed renters to spend any savings rather than reinvest those savings, 84 percent of buyers came out ahead.

(read the rest here)

Homeownership Rate Rises After Two Years of Decline

From DSNews.com: After falling to a 13-year low during the second quarter, the homeownership rate posted a highly unexpected rise in the third quarter, according to a Census Bureau report released Wednesday.

With foreclosures forcing homeowners out of their homes and buyers waiting on the sidelines as home values declined, the homeownership rate has been on the decline for quite some time. In fact, according to Bloomberg, the third quarter rise is the first in two years. 

Read the entire article here.

Property Taxes on the Rise

RISMEDIA, Friday, November 04, 2011— Get ready for record property tax rate increases next year, as cities and counties across the nation cut their budgets and scramble for every tax dollar they can find.

The huge 20 or 30 percent declines in property values that took place in 2006 and 2007 took a long time to make an impact on homeowners’ bills because of the way local governments assess properties. But those big drops are finally being felt, and local governments are complaining.

It stands to reason that those local governments that can raise property taxes are quietly preparing boosts in their tax rates to make up some of the difference. Many cities are precluded from raising rates by local and state laws like California’s Prop 13 that make it difficult to increase property tax rates.

However, this year 20 percent of cities increased their property taxes, according to a National League of Cities survey, which will be felt in next year’s tax bills. Next year the outlook is that another 20 percent will raise tax rates

According to the survey released last month by the National League of Cities, city revenues are continuing to fall 2.3 percent by the end of this year, making 2011 the fifth straight year of declines in revenue with probable further declines in 2012. The revenue decline is mainly due to the fall off in property tax revenues, which are expected to decline by 3.7 percent with further declines likely in 2012 and 2013.

Cities are responding by cutting personnel (72 percent), delaying infrastructure projects (60 percent) and increasing service fees (41 percent). One in three (36 percent) cities report modifications to employee health care benefits.

“The cuts in personnel and the delaying of infrastructure projects are prudent and responsible actions by local officials,” said Donald J. Borut, Executive Director of NLC. He continues, “City officials are a making difficult decisions and are working hard to find innovative solutions to reenergize their communities. But without more resources and more cooperation, the outlook will continue to be challenging.”

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Joke of the Day

Two blondes were sipping their Starbucks when a truck went past loaded up with rolls of sod. "I'm going to do that when I win the lottery," announced Blonde #1.

"Do what?" asked Blonde #2.

"Send my lawn out to be mowed."