Helen Oliveri's Weblog

Grinding to a halt “Loss of a credit collapses the market”

helenoliveri — Fri, 03 Sep 2010 21:37:11 +0000

THERE was always some concern that the Obama administration’s attempts to prop up the housing market with a generous housing-tax credit could end badly. Opponents of the policy—worth up to $8,000 for first-time buyers—argued that it would merely move sales around, from after the deadline to before, and could produce a slump when the deadline passed. Such fears helped clear the way for an extension of the programme from its first 2009 deadline to April of this year.

Despite some effort, Congress in the end decided against a second extension. With the support of the credit gone, a period of housing-market weakness was inevitable, but the actual decline has been distressingly bad.

On August 24th the National Association of Realtors reported that sales of existing houses for the month of July—the first in which most sales were started after the deadline—fell 27% from the previous month. Single-family houses sold at the slowest rate since 1995.

Those grim figures may not be a one-month fluke. New home sales are counted when contracts are signed, which means that July was the third month of data after the credit had expired. It was also the worst on record (the previous low came in 1981). Sales of new houses were down 32% year-on-year and down 80% from July 2005.

These rock-bottom sales figures indicate that housing markets in some cities have all but ground to a halt—despite extraordinarily low mortgage-interest rates. They may also presage a new period of declining prices. Falling prices could drive more homeowners into foreclosure, which is the last thing most markets need. At current low sales rates, it may take a decade to clear the backlog of houses owned by the banks.

If there is a bright side, it is that these numbers may force policymakers to reconsider a housing-policy approach that has clearly come up short. In the meantime, any hope that housing construction and employment may begin contributing to growth has been soundly squashed.

www.economist.com

Pending home sales rise 5.2 percent in July

helenoliveri — Thu, 02 Sep 2010 20:11:59 +0000

WASHINGTON (Reuters) – Pending sales of previously owned U.S. homes rose unexpectedly in July, an industry group said on Thursday, suggesting a tax credit-related housing market decline was close to bottoming.

The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in July, increased 5.2 percent to 79.4 from June. June contracts were revised to show a slightly bigger 2.8 percent decline instead of the previously reported 2.6 percent fall.

Compared to the July last year, pending home sales fell 19.1 percent. Economists polled by Reuters forecast the index, which leads existing home sales by a month or two, falling 1.0 percent in July.

Home sales and building activity have dropped sharply following the end in April of a popular tax credit for home buyers.

“Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” said Lawrence Yun, NAR chief economist.

news.yahoo.com

Lovely 2 Bedroom Condo 2710 W Lunt #406 Chicago, IL

helenoliveri — Wed, 01 Sep 2010 21:54:25 +0000

2 Bedroom, 1Bathroom lovely condo w/ new kitchen, hardwood flooring and parking. Come see this wonderful unit today! Buyer responsible for any/all compliances, taxes, room count, escrows, etc if required. All inspections/systems tests are at buyers expense. Offers require pre-approval & EM due in certified funds at acceptance. Addendum required after seller accepts offer. Cash deals require proof of funds. Seller addendum required before submitting offer. Cash deals require proof of funds. View the many pictures we have to offer at www.illinoisforeclosuredeals.com and call today to schedule a viewing of this property at 847-967-0022. This property is exclusively represented by The Helen Oliveri Team of Keller Williams Realty.

Housing Supply and Demand Won’t Balance until 2012: Moody’s

helenoliveri — Tue, 31 Aug 2010 21:27:55 +0000

Moody’s Investors Service says it expects home price appreciation to be “soft” for the next couple of years. The company says there were 1.8 million more vacant homes sitting on the market than what is considered the norm

at the end of the second quarter. According to Moody’s, this imbalance of supply-and-demand, particularly in light of the steep falloff in home sales post-tax credit, means the home price correction is not yet over.

The credit ratings agency explained that the increase in excess housing supply reflects the rise in homes that lenders are repossessing now that many of the distressed borrowers who failed to qualify for the Home Affordable Modification Program (HAMP) or an alternate modification are going through the foreclosure process.

Repossessions by banks hit a record high in the first half of this year, according to data from RealtyTrac. Many of these homes are ending up in the tally of excess housing stock, and Moody’s says as lenders push these units off their balance sheets, house prices will fall.

“The increase in excess supply indicates that the market still has a substantial number of unwanted homes to work

through…. Indeed, it will not be until 2012 that demand and supply conditions are balanced enough to drive price appreciation that matches the pace of inflation,” Moody’s said in a research note released Monday.

Based on Moody’s estimates of Census data, the share of vacant homes averaged 6 percent of total housing stock over the past 20 years. The number of empty homes reached a record 7.7 percent reached in the second quarter, which implies the 1.8 million unit excess, the ratings agency explained.

That’s up from the first quarter’s 1.7 million estimated excess. According to Celia Chen, senior director for Moody’s Economy.com, the increase is “small, but disturbing and suggests that the market still has much healing to do.”

Moody’s cautions that it will take some time to work through the excess housing – a weak job recovery and tight underwriting standards, combined with the large number of households with impaired credit, will constrain the demand for owning a home. Nonetheless, the company’s analysts say the imbalance will self-correct.

“Under our baseline outlook of an economy that recovers weakly over the next several quarters, the demand for homeownership will increase as more jobs help more people move into their own homes. Concurrently, the homebuilding industry will continue to put up homes at a below trend pace, constrained by financing difficulties. These forces will help soak up excess housing units by the end of 2012,” Moody’s said.

In the meantime, the ratings agency says the lingering excess supply will weigh on house price appreciation until supply and demand conditions are better balanced. Moody’s expects the national house price index to bottom early next year, but price appreciation to remain weak for the next couple of years.

www.dsnews.com

For Sale 3 Bedroom Solid Brick Home 3052 N Mason Chicago, IL

helenoliveri — Mon, 30 Aug 2010 19:28:42 +0000

2 story solid brick home w/ brick garage. Home features hardwd flooring & large rooms. Lots of space. Come and see today! Buyer responsible for any/all compliances, taxes, room count, escrows, etc if required. All inspections/systems tests are at buyers expense. Offers require pre-approval & EM due in certified funds at acceptance. Addendum required after seller accepts offer. Cash deals require proof of funds. Seller addendum required before submitting offer. Cash deals require proof of funds. View the many pictures we have to offer at www.illinoisforeclosuredeals.com and call today to schedule a viewing of this property at 847-967-0022. This property is exclusively represented by The Helen Oliveri Team of Keller Williams Realty.

For Sale 1 Bedroom Condo 2545 W Fitch #305 Chicago, IL

helenoliveri — Fri, 27 Aug 2010 22:20:08 +0000

1 bedroom, 1 bathroom in brick condo building. Unit features carpeting, closets, and ready for you to move in and enjoy. Buyer responsible for any/all compliances, taxes, room count, escrows, etc if required. All inspections/systems tests are at buyers expense. Offers require pre-approval & EM due in certified funds at acceptance. Addendum required after seller accepts offer. Cash deals require proof of funds. Seller addendum required before submitting offer. Cash deals require proof of funds. View the many pictures we have to offer at www.illinoisforeclosuredeals.com and call today to schedule a viewing of this property at 847-967-0022. This property is exclusively represented by The Helen Oliveri Team of Keller Williams Realty.

1 Bedroom Condo 2545 W FITCH Avenue Unit 405, Chicago, IL

helenoliveri — Thu, 26 Aug 2010 20:12:24 +0000

Updated 2 BR Condo 2131 Howard #2 Chicago, IL

helenoliveri — Wed, 25 Aug 2010 19:55:39 +0000

Updated 2 bed, 1 bath condo with hardwood floors throughout and updated kitchen & bathroom. Move right in. Come & see today! Buyer responsible for any/all compliances, taxes, room count, escrows, etc if required. All inspections/systems tests are at buyers expense. Offers require pre-approval & EM due in certified funds at acceptance. Addendum required after seller accepts offer. Cash deals require proof of funds. Seller addendum required before submitting offer. Cash deals require proof of funds. View the many pictures we have to offer at www.illinoisforeclosuredeals.com and call today to schedule a viewing of this property at 847-967-0022. This property is exclusively represented by The Helen Oliveri Team of Keller Williams Realty.

Lovely 1 Bedroom Condo 8852 N Leslie #2D Des Plaines, IL

helenoliveri — Tue, 24 Aug 2010 22:11:03 +0000

Lovely 1 bedroom 1 bathroom condo w full kitchen, eat in area, hardwood floors, & in move in condition. Come and see today! Buyer responsible for any/all compliances, taxes, room count, escrows, etc if required. All inspections/systems tests are at buyers expense. Offers require pre-approval & EM due in certified funds at acceptance. Addendum required after seller accepts offer. Cash deals require proof of funds. Seller addendum required before submitting offer. Cash deals require proof of funds. View the many pictures we have to offer at www.illinoisforeclosuredeals.com and call today to schedule a viewing of this property at 847-967-0022. This property is exclusively represented by The Helen Oliveri Team of Keller Williams Realty.

4 Bedroom Home Ready to Move In! 4311 W School Chicago, IL

helenoliveri — Mon, 23 Aug 2010 20:56:45 +0000

New Carpet, freshly painted home w/3 levels of living space. Many repairs done & ready to move in condition. Come see today! Buyer responsible for any/all compliances, taxes, room count, escrows, etc if required. All inspections/systems tests are at buyers expense. Offers require pre-approval & EM due in certified funds at acceptance. Addendum required after seller accepts offer. Cash deals require proof of funds. Seller addendum required before submitting offer. Cash deals require proof of funds. View the many pictures we have to offer at www.illinoisforeclosuredeals.com and call today to schedule a viewing of this property at 847-967-0022. This property is exclusively represented by The Helen Oliveri Team of Keller Williams Realty.