I hope you had a great 4th of July weekend. With the first half of 2010 is behind us now, it's time to look ahead and make the best of what lies ahead. With an estimated 200,000 people at risk of losing out on up to $8,000 in first time buyer tax credits, the House and Senate have passed a bill that would extend the deadline to September 30th to close on existing contracts that were signed by the April 30th deadline. The bill now awaits President Obama's signature.
AVERAGE RESIDENTIAL SALES PRICE
The May 2010 average residential sales price as reported by GTAR of $180,244 seems to add further support to the idea that we've found a bottom in our local market. Since January of 2009, we have been hoovering around an average residential sales price of $177,316. Although we've come close, we have not broken through the low hit in January 2009. After about 18 months of finding news lows almost every month, we have spent the last 16 months supporting this low.
The Average Residential Sales Price represents the average sales price of closed residential sale transactions as reported through the MLS for single family homes, townhomes, condominiums, and villas. As noted on the GTAR website, these figures do not represent private sales or new construction sales unless entered into MLS. This is only one of many available indicators, but taken consistently over time, provides a good view of residential market activity.
The reality of what we've been through - The May 2010 average residential sales price represents a 22.64% decrease from 2 years ago, a 36.33% decrease from 3 years ago, and a 42.30% decrease from the high of $312,356 hit in July 2006. It is encouraging to see what appears to be tremendous support at this average sales price.
TOTAL RESIDENTIAL SALES
In May 2010, GTAR reports 1,550 residential sales. This is down 4.56% from last month, up 21.86% over last quarter (3 months ago), and up 18.32% over May 2009.
This May figure is also down 49.49% from the high reached in June 2005 when 3,069 residential sales were reported, but up 119.24% from the recent low reached in January 2008 when only 707 residential sales were reported.
Total Residential Sales represents the number of closed sale transactions as reported through the MLS for single family homes, townhomes, condominiums, and villas. As noted on the GTAR website, these figures do not represent private sales or new construction sales unless entered into MLS. This is only one of many available indicators, but taken consistently over time, provides a good view of residential market activity.
Please click the link below to access a pdf file with the data and graphs.
May 2010 Market Activity Data and Graphs
Monthly Foreclosure Activity
The first public notice of a foreclosure is the recording of a legal document called the Lis Pendens. This typically happens after the homeowner has missed about 3 mortgage payments. The Final Judgment of Foreclosure is recorded next, detailing the amount owed including principal, past due interest, fees, etc., Finally the foreclosure sale is held. The winning bidder at the foreclosure sale, or the foreclosing lender if no one bids, acquires title via the next recorded document, the Certificate of Title. This process takes about 8 months, barring any delays. Because lenders are not really in the business of owning real estate, they will now attempt to sell this REO (Real Estate Owned) property and move it off their books, often times at deeply discounted prices.
In June 2010, there were 1,396 Lis Pendens filed in Hillsborough County alone. Keep in mind that there were on average 398 Lis Pendens filed in Hillsborough County during the 24 month period from August 2004 to July 2006. From November 2008 through August 2009, this indicator was averaging about 2,000 per month, but now appears to be on a downward trend. From January to June 2010, we have seen a 37.62% decrease in the number of Lis Pendens filed in Hillsborough County. This is great news and hopefully a leading indicator of a recovering real estate market.
Please click the link below to access a pdf file with the data and graphs.
June 2010 Foreclosure Activity in Hillsborough County
Odds and Ends
HUD has updated their lengthy FAQ document, which is a great resource document for all real estate professionals. Here you can look up frequently asked questions about the new GFE and HUD Settlement Statements by GFE number or by HUD line number section. Click here to access the April 2, 2010 version of the New RESPA Rule FAQ.
The new Home Affordable Foreclosure Alternatives (HAFA) Program has started and we should see the short sale process speed up a bit. As I understand the program,
- lenders will now determine a value up front.
- They will give the listing agent 120 days to sell the property.
- They must accept any offer at or above the listing price.
- And they will give the sellers $3,000 in relocation expenses.
Click here to read more about the New HAFA Program.
I'll bet all of us know someone who is in trouble financially and at risk of losing their home. The Borrower FAQ addresses everything from modification options to short sale programs. Pass this along to someone who needs help.