|
|
-
Thousands of Tampa Bay area residents have lost property after falling behind on their mortgages and even homeowners association dues.
But there’s a third way people are losing homes and land: delinquent property taxes.
In the first nine months of this year, the owners of more than 200 properties in Hillsborough County have lost them in “tax deed sales,” where the county clerk’s office sells off properties that are at least two years behind on their tax bills. That number has nearly doubled in the past three years.
Who’s buying them? Often, it’s financial heavy hitters such as a JPMorgan Chase subsidiary and a former Massachusetts hedge-fund manager.
Many of the properties are dilapidated homes or vacant land in blighted areas. Some are more valuable.
In June, the Hillsborough County clerk’s office sold 1.8 acres of industrial land in Ruskin containing five warehouses and mobile homes for just $40,000. Although it is not a high-end property, the county property appraiser still valued it at $230,000.
Ken Knox, who runs a Ruskin aluminum business, had wanted to buy the property for 15 years but couldn’t make a deal. He marveled at the price an investor group paid for it at the Hillsborough County Courthouse.
“I offered (the owners) a quarter-million dollars just before it went to tax sale,” Knox said.
Investors for years have paid the back taxes for delinquent property owners. In return, investors receive a “tax certificate,” and the property owners must pay back the investor with interest of up to 18 percent if they want to keep their home.
What’s new is the number of property owners losing their homes and land.
An investor essentially can foreclose on the property if the delinquent taxpayer hasn’t paid him back within 22 months. Already this year, the owners of 233 properties have lost them in tax deed sales at the county courthouse. That’s up from the 170 properties during all of last year, and 110 properties in all of 2009, data from the Clerk of the Circuit Court show.
Court Clerk Pat Frank said she foresaw the trend a few years ago. Property taxes have stayed fairly high, although so many properties have sunk in value. Some property owners now seem willing to let their homes and land go for the amount of back taxes, Frank said.
|
-
Commercial real estate vacancy rates are flat, and projections for improvement have been moderated because economic growth and job creation have been weaker than expected, but modest improvements are expected over the coming year, according to the National Association of Realtors®.
Lawrence Yun, NAR chief economist, said the weakening economy will slow the growth in demand for space. “Disappointing economic growth in recent months means a slower recovery for most of the commercial real estate sectors, although multifamily housing continues to benefit from pent-up demand resulting from an abnormal slowdown in household formation in recent years,” he said. “Many young people, who normally would have struck out on their own from 2008 to 2010, had been doubling up with roommates or moving back into their parents’ homes. However, they’ve been entering the rental market as new households in stronger numbers this year. As a result, apartment vacancy rates are declining and rents are rising at faster rates.”
Growth in the gross domestic product slowed to 0.4 percent in the first quarter and 1.3 percent in the second quarter, much lower than the 4 to 5 percent expansion needed after a recession.
|
-
 Florida’s existing home and existing condo sales experienced an upswing in the second quarter of 2011 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. Existing home sales rose 1 percent in 2Q 2011 with a total of 52,421 homes sold statewide; during the same period the year before, a total of 51,973 homes changed hands according to Florida Realtors. Statewide sales of existing condos in the second quarter rose 14 percent compared to the year-ago sales figure. Statewide home and condo sales in the second quarter also increased over 1Q 2011’s sales figures, Florida Realtors’ records show. For 2Q 2011, statewide sales of existing homes rose 17.7 percent over the previous quarter’s activity; statewide existing condo sales increased 8.1 percent over the 1Q 2011 level. The statewide existing-home median sales price was $134,600 for the three-month period; in 2Q 2010, it was $141,500 for a decrease of 5 percent. However, the 2Q 2011 statewide existing-home median sales price was 8.9 percent higher than the 1Q 2011 figure. The median is a typical market price where half the homes sold for more, half for less. 
|
-
Free counseling can help struggling homeowners try to find ways to keep their homes: The U.S. Department of Housing and Urban Development (HUD) provides a list of government-approved counselors on its website, .
The counselors often know of special programs that lenders don’t, said Kevin Maher, director of community education for the nonprofit Consumer Credit Management Services in Delray Beach, Fla.
His counseling agency was among those giving free help recently to hundreds who stood in line at a Help for Homeowners Community Event in Hollywood, Fla. The event brought out an overflowing crowd: 1,333 homeowners when organizers had only expected about 1,000.
Counselors know about HUD, Fannie Mae and Freddie Mac programs, Maher said. They also keep up-to-date on what local agencies are offering.
If people are in foreclosure, the courts offer free mediation, added Diane Stephenson, foreclosure prevention services manager at Maher’s Consumer Credit agency. “It’s in the best interests of the people to take advantage of the mediation,” she said.
There are also programs to help the unemployed or underemployed, Maher said.
The Obama Administration has a new program, starting Aug. 1, that will give unemployed homeowners with FHA loans a break on part or all of their mortgage payments for up to 12 months.
To qualify, the unemployed will have to be 90-days delinquent on their loans, said Brian Sullivan, a U.S. Housing and Urban Development spokesman.
Those mortgage companies participating in the Making Home Affordable Program will also be required to give the year-long reprieve “whenever possible,” according to a HUD statement.
|
-
Within the next decade, 16 million new housing units will be needed to meet population growth and shifting demands, according to Harvard University’s Joint Center for Housing Studies in its latest annual “State of the Nation’s Housing” report.
That means household growth, which has dropped drastically in recent years, will need to greatly reverse its trend to meet the forecasted spike in demand. From 2007-2010, household growth averaged about 500,000 per year – less than half the 1.2 million annual pace averaged prior from 2000-2007.
To absorb the current rate of foreclosed and distressed homes plaguing most markets, a more normal rate of household formation is critical, according to the report. However, household growth partially has stalled as young adults have delayed homeownership and immigration has slowed.
As such, in recent years, builders have drastically cut production of new homes.
“With inventories of new homes at historic lows, a turnaround in demand could quickly result in tighter markets,” the report notes. “Over the longer term, the number of younger households is set to rise sharply, supporting growth in the population that fuels growth in both new renters and first-time buyers. The path of the economy and evolution of the mortgage market will determine when and if this increased demand materializes.”
The report predicts a need for greater housing units for several reasons. For example, the report projects demand for 1 million new homes a year is needed to meet population growth in the coming decade. The report also predicts a surge in smaller homes, estimating that 3.8 million baby boomers will be looking to downsize their homes within the next decade. Also immigration growth, the need to replace existing homes, and demand for second homes will contribute to rising demand for housing units, the report notes. Therefore, researchers conclude at least 16 million new housing units will be needed over the next decade.
|
-
 More than 300 National Association of Realtors member organizations, including several local Realtor associations in Florida, and a number of foreign affiliates took part in a global open house event over the weekend of June 4-5.
NAR President Ron Phipps said real estate agents challenged with moving homes in a tough market environment had a chance to reach out to prospective buyers and discuss housing issues that are most prevalent in their areas during the Realtor® Nationwide Open House.
The trade group also has been pressing U.S. legislators on those same issues. It launched a lobbying tour this spring to convince watchdogs and major lenders to relax underwriting criteria on new loans as well as those for mortgages under a pending risk-retention rule.
|
-
Did you know? Nearly half of all homebuyers visit open houses during their home search. This weekend, those numbers may swell as buyers across the country take advantage of the .
“Realtors bring value to homebuyers and sellers, and this weekend, Realtors are bringing them together through the Nationwide Open House,” said National Association of Realtors® (NAR) President Ron Phipps. “The event will give consumers the chance to find out more about homeownership, allow buyers to pursue their dream of owning a home, and give Realtors an opportunity to connect with consumers about the housing issues that matter most in their area.”
During the weekend of June 4-5, Realtors will hold open houses in local neighborhoods throughout the country, as well as across the globe. Several local Realtor boards and associations in Florida are among the 300 Realtor organizations participating in the event, along with NAR global partners in Canada, Denmark, France, Israel, Mexico, Norway, Peru, Philippines, Romania, Sweden and the United Kingdom.
According to a recent nationwide Pew Research Center survey, eight in 10 adults agree that buying a home is the best long-term investment a person can make. In addition, a strong majority of renters – 81 percent – said they would prefer to one day buy a home, demonstrating the value Americans continue to place on homeownership.
“There’s a reason owning a home is called the American Dream,” said Phipps. “Home ownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy. We hope that everyone who aspires to become a homeowner will come out this weekend, not only to learn about the homes for sale in their local market, but also to find out more about how current and future public policies may affect their ability to achieve and sustain homeownership, now and in the future.”
To find open houses in your area, visit and search for open houses in the Realtor® Nationwide Open House Weekend box on the home page. This special search function for the event is now available.
|
-
Consumer confidence among Floridians remained at 68 in May, ending three consecutive months of decline, according to a new University of Florida (UF) survey.
“While the overall consumer confidence index has declined steadily over the last several months and remained flat this month, there has been some uncharacteristic volatility in the individual components,” said Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research. “Of particular interest are the changes in perceptions of personal finances. This month, there was a decline in perceptions of personal finances now compared to a year ago, while expectations of personal finances increased from a record low in the release last month. We attribute most of these changes to fallout from the Florida budget.”
Three of the five index components increased or remained the same. Perceptions of respondents’ personal financial situation expected a year from now experienced the largest increase, rising three points to 76. Perceptions of U.S. economic conditions over the next year (66) and perceptions of U.S. economic conditions over the next five years (72) remained the same.
Confidence in purchasing big-ticket items such as cars and appliances fell one point to 74, and perceptions of personal financial situation now compared with a year ago fell four points to 52.
Although April brought some positive signs of recovery, McCarty said the economic environment is still mixed. Unemployment dropped to 10.8 percent – the lowest in Florida since 2009 – but the rate is still one of the highest in the country. Median housing prices rose to $132,700, but McCarty said prices could decline as a backlog of foreclosures moves through the courts. Gas prices have declined the past two weeks, but should rise again with the summer travel season approaching.
“Looking ahead, Florida is once again at a crossroads,” McCarty said. “It is critical that the job situation in Florida continues to improve. Although there have been gains associated with a recovery in tourism, there are several thousand layoffs looming in the public sector and associated industries. These will likely show up in the unemployment rate for July or August. This will likely keep consumer confidence at relatively low levels in the upper 60s.”
The research center, a part of the Warrington College of Business Administration, conducts the Florida Consumer Attitude Survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for May was collected from 403 responses.
The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2; the highest possible is 150.
Consumer confidence among Floridians remained at 68 in May, ending three consecutive months of decline, according to a new University of Florida (UF) survey.
“While the overall consumer confidence index has declined steadily over the last several months and remained flat this month, there has been some uncharacteristic volatility in the individual components,” said Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research. “Of particular interest are the changes in perceptions of personal finances. This month, there was a decline in perceptions of personal finances now compared to a year ago, while expectations of personal finances increased from a record low in the release last month. We attribute most of these changes to fallout from the Florida budget.”
Three of the five index components increased or remained the same. Perceptions of respondents’ personal financial situation expected a year from now experienced the largest increase, rising three points to 76. Perceptions of U.S. economic conditions over the next year (66) and perceptions of U.S. economic conditions over the next five years (72) remained the same.
Confidence in purchasing big-ticket items such as cars and appliances fell one point to 74, and perceptions of personal financial situation now compared with a year ago fell four points to 52.
Although April brought some positive signs of recovery, McCarty said the economic environment is still mixed. Unemployment dropped to 10.8 percent – the lowest in Florida since 2009 – but the rate is still one of the highest in the country. Median housing prices rose to $132,700, but McCarty said prices could decline as a backlog of foreclosures moves through the courts. Gas prices have declined the past two weeks, but should rise again with the summer travel season approaching.
“Looking ahead, Florida is once again at a crossroads,” McCarty said. “It is critical that the job situation in Florida continues to improve. Although there have been gains associated with a recovery in tourism, there are several thousand layoffs looming in the public sector and associated industries. These will likely show up in the unemployment rate for July or August. This will likely keep consumer confidence at relatively low levels in the upper 60s.”
The research center, a part of the Warrington College of Business Administration, conducts the Florida Consumer Attitude Survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for May was collected from 403 responses.
The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2; the highest possible is 150.
|
-
Real estate investors, by three to one, will be more active in their local markets compared to typical homebuyers in the next 24 months; and 69 percent of investors say it’ll be easier to find properties in the near future, according to a survey of real estate investors released by Move, Inc., the management company overseeing Realtor.com.
The Move Investor survey suggests that local markets will be heating up with renewed investor interest and activity. Compared to a year ago, 62 percent of investors are paying more attention to home values in their local markets – only 43.5 percent say it will be harder to find bargains and 41.5 percent expect it to be easier to sell their properties in the next six months.
Meanwhile, 22 percent of investors are bullish and expect prices to rise in the next six to 12 months, and 53.5 percent expect prices to remain relatively the same. Twenty-three percent expect prices to fall in the next six to 12 months.
The Move Investor survey also found that investors are prepared to compete vigorously with traditional first-time homebuyers for hot deals. Two-thirds of investors (65.5 percent) said they expect that first-time buyers’ problems getting a mortgage will make it easier for investors to compete for properties. One in five investors (18.5 percent) say they’ll be cash-only buyers, a strategy that’s out of reach for most first-time buyers. Eight out of 10 (80.5 percent) expect cash discounts from sellers.
Today’s investors – not stereotypical, deal-driven flippers
Contrary to the tactics used by “flippers,” 50 percent of today’s real estate investors plan to hold their properties for five-plus years. Only 11 percent expect to sell within 12 months of purchase. Two-thirds (67.5 percent) say they’re investing for the long term.
Fifty-nine percent (59 percent) told Move they’re new to real estate investing, with 33.5 percent considering their first investment purchase and 8.5 percent in the process of buying and selling their first investment property. Another 17 percent said they just completed their first transaction and plan to make more. Only 36.5 percent have experience in more than one property transaction.
When it comes to repairs and maintenance, 56.5 percent of investors say the repair and maintenance of investment property has not been difficult. Moving forward, 42 percent plan to invest their own time and energy to improve, repair and maintain their properties. The rest said they’d hire a contractor for repairs (29.5 percent) or purchase move-in-ready properties (28 percent). The majority (65.7 percent), don’t expect repair costs to exceed 20 percent of the property’s purchase price.
“This data suggests today’s climate is hot for investing and is attracting a lot of new people that don’t fit the stereotypical deal-driven flippers that buy and sell properties quickly,” said Move, Inc. Chief Executive Officer Steve Berkowitz.
Investors combine cash and credit to snap up properties
While cash is king in many circles, 75.5 percent plan to combine cash and credit to purchase properties as they build their real estate portfolio. In fact, 59.5 percent plan to put less than half down on their next property purchase and they’ll finance the rest. Those planning to use more than 50 percent cash and finance the remainder account for 16 percent of today’s investors. Investors told Move the second most difficult challenge has been finding financing (57 percent).
“The fact that most real estate investors plan on combing cash and credit for their purchases goes against the conventional wisdom that investor transactions today are mostly cash-only sales,” says Berkowitz. “We were surprised to learn that 75 percent of investors are financing portions of their purchases. This suggests they’re seeing tremendous or once in a lifetime opportunities and may be tapping into credit or taking out second trusts on existing properties. The data also shows they’re expecting high returns to match the level of investment they’re making in an arena that is new to many investors.”
High risk leads to high ROI expectations
Based on the investments they’re making in today’s environment, real estate investors clearly expect high yield returns. Nearly half (48 percent) expect a profit of 20 percent or more from their property investments, a 4 percent annual rate of return over five years. Another 40 percent expect a profit of 10 percent, and only 6.5 percent expect a 5 percent or less return on investment. Half (50 percent) of today’s real estate investors plan to hold their properties for five-plus years.
Property investments gateway to homeownership for many
While the survey shows investors will outnumber traditional homebuyers three to one, nearly half (49 percent) plan to live in their investment property until it’s sold or turned into a rental property. Slightly more than half (56.5 percent) will put their investments to work as rental properties, and 28 percent plan to purchase vacation property that they’ll eventually sell. The Move Investor survey also found 30 percent of real estate investors are interested in buying retirement property as an investment.
“The survey suggests some first-time buyers may be looking at investing as a strategy to becoming homeowners,” Berkowitz said. “While today’s market is tough for some, it’s also motivating millions to take an unconventional approach and creatively search for new ways of entering the housing market.”
|
-
Pending home sales fell in April following increases in February and March, with unusual weather and economic softness adding to ongoing problems that are hobbling a recovery, according to the National Association of Realtors®.
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, dropped 11.6 percent to 81.9 in April from a downwardly revised 92.6 in March. The index is 26.5 percent below a cyclical peak of 111.5 in April 2010 when buyers were rushing to beat the contract deadline for the homebuyer tax credit.
The data reflects contracts but not closings, which normally occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, says the dip in contracts may be due to temporary factors. “The pullback in contract signings is disappointing and implies a slower than expected market recovery in upcoming months,” he says. “The economy hit a soft patch in April from sharply rising oil prices, widespread severe weather with the heaviest precipitation in 20 years, and a sudden rise in unemployment claims.”
Yun notes the growth in retail sales slowed measurably in April, while sales at furniture and home furnishing stores declined sharply. “Nonetheless, the magnitude of the fall in pending home sales is larger than can be implied by broad economic factors, so we need to see if it’s just a one-month aberration.
“No doubt the continuing excessively tight mortgage underwriting process is making the housing market recovery unnecessarily slow,” he says. “Lenders and bank regulators need to be mindful of the historically low default rates among mortgage borrowers of the past two years. A robust economic and housing market recovery cannot occur as long as banks continue to hold onto huge cash reserves. We simply have to get back to sound, common-sense lending standards to provide mortgages to creditworthy borrowers who are buying homes well within their means. Bank balance sheets show rising cash reserves and declining loan balances – it’s time to loosen the purse strings.”
The PHSI in the Northeast rose 1.7 percent to 64.5 in April but is 33.4 percent below a year ago. In the Midwest the index fell 10.4 percent to 74.1 and is 30.2 percent below April 2010. Pending home sales in the South dropped 17.2 percent to an index of 91.3 in April and are 27.0 percent below a year ago. In the West the index declined 8.9 percent to 89.1 and is 16.9 percent below April 2010.
“Even with very favorable affordability conditions, job growth and a pent-up demand from abnormally low household formation during the past three years, the recovery will continue to be uneven and sluggish given the ongoing credit constraints,” Yun says.
|
-
U.S. banks and money lenders now own 872,000
homes, a number that could more than double in the coming years, real estate
research firm RealtyTrac said.
The current number of properties owned by
banks and lenders is nearly double what they owned in 2007, before the housing
market began to collapse, The New York Times reported Monday.
Lenders
frequently sell homes at a substantial discount and economists expect it will
take three years for lenders to sell the properties they have taken
over.
That means for the next three years at least, the sale of so-called
distressed homes will continue to slow a recovery in the housing
market.
“It remains a heavy weight on the banking system. Housing prices
are falling, and they are going to fall some more,” said Mark Zandi, chief
economist of Moody’s Analytics.
Moody’s has predicted home values could
drop an average of 5 percent by the end of 2011 before making a slight comeback
in 2012.
A separate real estate research firm, Trepp, said lenders could
lose $40 billion by selling homes at discounted prices.
Lenders are also
aware that while they sell homes at discount prices, “We are contributing to the
downward spiral in market values,” said Eric Will, who manages distressed home
sales at the Federal Home Loan Mortgage Corp.
“We want to make sure we
are helping stabilize communities,” Will said.
|
-
Borrowers may soon have an easier time sorting
out all of those key details and expenses associated with their mortgage as well
as more easily compare loan terms when trying to shop around for a mortgage that
works best for them. The Consumer Financial Protection Bureau recently
unveiled its “Know Before You Owe” project and is seeking public feedback on two
“consumer-friendly” prototype mortgage disclosure forms that will replace the
current required disclosure forms by July 2012. The prototype forms
itemize key costs associated with the mortgage, including total closing costs,
monthly payments and projected monthly payments for future years. The forms also
provide more details about the mortgage’s terms than the current form does.
|
-
• More than half (54 percent) of U.S. adults believe recovery in the housing market will not happen until 2014 or later. In a previous survey conducted six months ago, 42 percent said they thought the market would turn around by 2012 or had already turned around. Now, only 23 percent continue to think this will happen.
• 45 percent of American adults say the government is not doing enough to prevent foreclosures. Only 17 percent say too much is being done, while 16 percent say government is doing the right amount, and 22 percent say they aren’t sure.
• Almost one-third (30 percent) of homeowners say that they or an acquaintance has applied for a loan modification, stopped paying their mortgage, been foreclosed, walked away or short sold their home.
• More than half of U.S. renters (56 percent) and 47 percent of current homeowners are at least somewhat likely to purchase a foreclosed home. Along with having some concerns about hidden costs, a risky buying process and loss in home value, many potential buyers expect to save money if they buy a foreclosure versus a similar non-foreclosed home. In fact, American adults expect to pay 38 percent less for a foreclosed home than a similar home that was not in foreclosure – not too far above the average discount of 36 percent on sales of bank-owned homes (REO) compared to sales of homes not in foreclosure reported in the RealtyTrac 2010 Foreclosure Sales Report.
This April 2011 survey was conducted online within the United States by Harris Interactive on behalf of Trulia between April 15-19, 2011, among 2,018 U.S. adults aged 18 years and older. The sample included 1,257 homeowners, 906 of whom currently have a mortgage, and 704 renters. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online.
|
-
The National Association of Realtors® asks members to imagine what the real estate market would look like if every buyer needed a 20 percent downpayment to get a mortgage. How many potential buyers would miss out on the American Dream? And what would that do to a market already saturated with repossessed homes?
According to NAR, that 20 percent requirement is a very real possibility if the new regulations governing Qualified Residential Mortgages (QRM) take effect this year.
NAR says that Congress must understand the impact this rule will have on home sales, and it is asking all members to contact their personal senator and representative. The Call for Action email developed by NAR asks lawmakers to tell regulators that a 20 percent downpayment was not their legislative intent. Instead, regulators should implement a more reasonable Qualified Residential Mortgage (QRM) that will keep creditworthy buyers in the market and able to get a loan.
|
-
Florida’s existing home and existing condo sales rose in first quarter 2011 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. Existing home sales increased 13 percent in 1Q 2011 with a total of 44,531 homes sold statewide; during the same period the year before, a total of 39,406 homes changed hands according to Florida Realtors. Statewide sales of existing condos in the first quarter rose 29 percent compared to the year-ago sales figure.
The statewide existing-home median sales price was $123,600 for the three-month period; in 1Q 2010, it was $131,100 for a decrease of 6 percent. Seventeen of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in 1Q 2011 compared to the same three-month-period a year earlier, while 18 of the MSAs showed gains in condo sales, according to Florida Realtors.
Looking at Florida’s housing sector in the first quarter of 2011, Dr. Sean Snaith, director of the University of Central Florida’s Institute for Economic Competitiveness, pointed out that the recovery is gaining strength. “Florida Realtors’ first quarter report shows sales picking up significant momentum after decelerating in the fourth quarter of last year, though prices are continuing to slip,” Snaith said. “The labor market recovery is just starting to blossom – once it is in full bloom it will provide some needed curb appeal for Florida’s struggling housing market by creating a new pool of qualified buyers and preventing other homeowners from falling victim to foreclosure.
“Distressed properties are proving to be an ongoing complication in the healing process of Florida’s housing market,” he added. “The foreclosure moratorium and Florida’s overburdened court system have slowed the process of handling foreclosures. Until these properties can move through this process, complete recovery will be difficult to attain.”
In the year-to-year quarterly comparison for existing condo sales, 23,375 units sold statewide in the first quarter compared to 18,170 units in 1Q 2010 for a 29 percent increase. The statewide existing-condo median sales price was $80,700 in 1Q 2011; a year earlier, it was $96,100 for a decrease of 16 percent. Sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes, according to the National Association of Realtors® (NAR). The median is a typical market price where half the homes sold for more, half for less.
Low mortgage rates continued to be available during the first quarter of the year. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 4.85 percent in 1Q 2011; one year earlier, it averaged 5.0 percent.
|
|
|
|