According to the Minneapolis Area Association of Realtors home sales in the Twin Cities during the first six months of 2012 area rose by 17.4 percent over the same period last year and climbed 13.8 percent in June. The trend is fueled by the low mortgage rates, low inventory and decline in foreclosures on the market. The median sale price for Twin Cities homes rose 10.7 percent last month, reaching $179,500. New home construction is also on an upswing with 45 percent more home starts than the first 6 months of last year.
Reducing the number of foreclosures is a big step toward recovery in the housing market. With fewer foreclosures and more-stable home prices, the number of homeowners who owe more than their house is worth has begun to recede slightly. CoreLogic reported that 19.2 percent, or 97,681, of all residential properties with a mortgage in the Twin Cities were in negative equity territory during the first quarter of the year, a slight decline from 21.7 percent during the previous quarter.
Fannie Mae and Freddie Mac will require mortgage servicers to make decisions on short sales under new short sale timelines beginning this June. This is great news for buyers and sellers! Bank of America also announced this week that they will be streamlining their short sale process using the equator system.
According to the Housingwire, servicers must review and respond to a borrower within 30 days of receiving all documentation. According to guidance released Tuesday, the servicer can take up to 60 days on a decision if negotiations with mortgage insurers or other stakeholders linger. (more…)
Newly released data shows foreclosures holding steady in all 50 states. In February there were 65,000 foreclosures which is just under the 66,000 last February. Since the buyers appear to be out in full force this spring, the inventory could actually decline. About 3-4% of all homes with mortgages were in foreclosure in February amounting to roughly 1.4 million which is down from 1.5 million last February. The percentage of people 90+ days delinquent on their mortgage payment also declined in February 2012 to 7.3%, down from 7.8% last February.
CA, FL, MI, AZ and TX accounted for 49.4% of all foreclosures nationally. For more information click here.
Join me and the Realife Cooperative of Burnsville on Wednesday, March 21 at 11:30 for a 2012 Housing Market Update Seminar. Get information on what has been selling, what effect short sales and foreclosures are having on the market, how to get the most for your home and much more. Space is limited so call early to reserve your spot! Click here for all the details and I hope to see you there!