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| / December 2013 |
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| Housing Market Shows Continued Resilience |
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| The housing market remained strong in October amid a seasonal easing of traffic, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. The sales-to-list price ratio for non-distressed properties was well above levels seen a year ago. The average sales-to-list price ratio for non-distressed properties was 97.2% in October, based on the three-month moving average, compared with 96% in October 2012 when mortgage interest rates were about 80 basis points lower. Average prices for non-distressed properties have remained firm, hitting $270,700 in October, based on the three-month moving average, about the same level seen the previous October. The average number of offers on non-distressed properties also remained high in October at 2.1, based on the three-month moving average. |
| Investor Participation Rebounds Even As Distressed Property Shares Declines |
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| Investors increased their share of home purchase activity for the second straight month in October, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. Investors accounted for 17.4% of home purchase transactions in October, based on the three-month moving average. The recent increases in investor participation follow six consecutive monthly declines in the investor share of home purchases. This year’s drop in investor activity occurred as the distressed property share of home sales declined significantly, from 36.3% in February to 24.1% in October. The increased investor participation in September and October in the face of a declining share of distressed properties suggests that investors still see some value in the housing market. |
| Chase Launches New Site for REALTORS® |
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| To further our commitment to provide you and your clients with a better and more efficient homebuying experience, we recently launched a new website specifically for REALTORS® . Whether you’re looking for short sale information or education for first-time homebuyers, the new site serves as a comprehensive resource. Visitors to the site can download the My New HomeSM app1, watch webinars and have direct access to the My New Home YouTube Channel. Check out the new site and add it to your list of favorites. |
| Why Housing Inventory is So Low |
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| The solid home price gains we’ve seen recently have been prompted by a lack of inventory combined with rising demand, according to J.P. Morgan Fixed Income research. Home sales rose back to 2007 levels even though inventory is 35% lower than it was in 2007—which has many wondering what’s causing this decrease in inventory. There are three primary reasons. First, much of the motivation to sell a home is closely tied to the business cycle—many people sell homes for job relocations, to accommodate larger families or for post-retirement. With fewer people relocating due to a still-struggling job market, the baseline level of inventory is significantly lower. Second, most homeowners are choosing not to sell when they have negative equity, and third, distressed inventory has declined rapidly. However, housing inventory is unlikely to remain this low for long, since improved home prices are bringing sellers back to the market. |
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on Wednesday, December 11th, 2013 at 1:59 pm and is filed under Foreclosures, Real Estate News.
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