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CoreLogic keeps reporting what appears to be good news about the housing market. September saw the biggest yearly price gain since 2006. The five states that lead the way are all in the West - Arizona was tops at 18.7%, followed by Idaho(13.1%), Nevada(11%), Hawaii(8.9%), and Utah(8.7%).
Also, CoreLogic reports that home prices have risen for the seventh consecutive month by 5%, including distressed sales, nationwide. And foreclosures are down as well, 57,000 completed in the United States in September 2012 compared to 83,000 in September 2011. The five states with the highest number of completed foreclosures for this 12 month period were led by my home state of California with 108,000, followed by Florida (92,000), Texas (59,000), Georgia (55,000), and Michigan (51,000). These 5 states account for 47.7% of all completed foreclosures nationally. Wow !
Mark Fleming, chief economist for CoreLogic, reports that "homes lost to foreclosure in September 2012 are down 50% since the peak month in September 2010 and 22% less than the beginning of the year." Short sales are up 27% over last year, and continue to gain popularity.
Feel better? Let me sober you up. Corey Curwick Dutton of Private Money Utah had a recent post on the Real Estate Networking Group. He talked about new banking standards called Basel III, which will be phased in over the next few years till 2019. Mr. Dutton says these standards will require banks to hold more capital, deleverage their balance sheets, and revamp their operational standards. The rules apply to all banks, large and small. Mr.Dutton claims these new rules will force banks to make less loans, and tighten even more the current tight lending standards. This is bad news for consumers and businesses who depend on local and community banks for badly needed credit. Community banks are fighting this, of course, feeling they are being punished for the sins of the big, bad boys.
With the election over and the stock market tanking today, stay tuned to see how our elected officials get together to solve the nation's economic problems.
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All fairy tales do not begin with "Once Upon a Time," many begin with, "If elected, I promise ..." Tidbits.
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If Mr. Dutton's fears come true, private money and seller carryback will fill some of the void. Advanced Seller Data Services reports that the number of notes created by sellers is up 31.7% from 2011 to 2012, and up 57.7% from 2009 to 2012. Advanced indicates that 90% of all seller carryback notes are now created by sellers who CREATE ONLY ONE NOTE. Amazing! My experience confirms this fact. Plus, many sellers make mistakes in structuring their note that does not protect them and hurts them when they decide to sell.
So, forward this Newsletter to anyone you know who may create a note. Ask them to go thru the Archives and get educated. Better yet, ask them to call me BEFORE they create their note.
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Getting political again. The tallest President we have had was Abraham Lincoln, at 6' 4". The shortest was James Madison at only 5' 4". Madison weighed 100 pounds. Tidbits.
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Zillow.com has many fans - and critics. Their latest move will inspire both parties.
Zillow has launched a free feature that allows anyone searching for a home to view those homes that are in distress. I went to the site, registered, entered a zip code and a map popped up showing me all the homes in distress. When I clicked on a particular home, I could scan the details of when the home went into default, how much the owner owes, whether the lender has taken the property back, date of foreclosure auction, etc.
Yikes ! I had mixed feelings. Am I snooping on my neighbor? Is this information the public has a right to know? I have no idea. I'm sure the fight will begin and time will tell how this will play out. In the interim, if you are looking for a home, check it out and decide for yourself.
Happy Thanksgiving.
Sincerely,
Denny Stanz
CA Broker # 01915404
760-245-5366
760-245-5367 fax
dennystanz@verizon.net
www.CaliforniaNoteBuyerLLC.com
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