National and California Market Data for May 29, 2013
In California, 2,000,000 homeowners are underwater.
500,000 are delinquent
Source: ForeclosureRadar.com. Now: PropertyRadar.com
Because so many people cannot sell their homes without taking losses, the number of family houses on the market remains far below pre-crash levels.
At the height of the housing boom, in July 2007, 3.4 million single family homes were for sale, according to the NAR. In April 2013, just 1.9 million such homes are on the market.
Conventional homebuyers are also being muscled out by big investors who have been buying distressed properties in bulk and converting them to rentals.
In the Inland Empire, an area of 4.3 million people and one million homes, 52% of foreclosed homes purchased in Q1 of 2013 were bought by investors, according to John Husing, a regional economist.
These homes never hit the open market.
“So over half the market was not even seen by realtors and normal buyers,” Husing said. “This is not a natural recovery. A lot of what is driving demand has nothing to do with a normal housing market. It’s an anomaly caused by huge investment firms. This has kept families out of the housing market.”
Sean O’Toole, ForeclosureRadar’s chief executive, said a real housing recovery should be based on people living in homes in which they have a healthy equity stake, and a mortgage lending market not underwritten by the federal government in the form of loose monetary policy.
ForeclosureRadar.com also uses another metric – sales activity – to determine the health of the housing market. According to the firm, the number of homes actually sold is at the lowest number since 2008.
“We have artificially low interest rates, and low supply,” O’Toole said. “You do get an increase in prices, but I don’t think you have a real recovery.”
Source: Money News.
States with most foreclosures in past 12 months:
Source: Core Logic
Average 30 yr fixed this week 3.9% based on applications taken. Highest since May 2012.
52,000 Americans lost their homes to foreclosure in April 2013.
1.1 million are in foreclosure as of April 2013. This is down 24% from April 2012 when there were 1.5 million in active foreclosure.
CA saw a 50% drop in homes in active foreclosure.
Source: Core Logic
Modification redefaults after 24 months;