From the WSJ:
Housing Rebound Grows as Prices Climb Sharply
Home prices in metropolitan areas saw their biggest year-over-year gains in more than seven years in the first quarter, evidence that the housing recovery is spreading across the nation.
The National Association of Realtors said Thursday that the national median closing price for an existing single-family house was $176,600 in the first quarter, up 11.3% from the first quarter of 2012. That was the largest year-over-year gain since the end of 2005. Of the 150 metro areas tracked by the NAR, sale prices rose in 133 and declined in 17.
“The supply/demand balance is clearly tilted toward sellers in a good portion of the country,” said NAR chief economist Lawrence Yun.
The biggest gain was in Akron, Ohio, where the median sale price rose 32.7% to $108,300. Following Akron, prices were up 32.6% in the San Francisco-Oakland-Fremont area; 32.1% in Reno-Sparks, Nev.; 31.7% in the Silicon Valley area surrounding San Jose; 31.1% in Atlanta; and 30.1% in Phoenix.
Prices are still falling in Kankakee-Bradley, Ill., where they were down 18.8%. Prices declined 8.6% in Edison, N.J.; 8.3% in Allentown-Bethlehem-Easton, Pa.; 5.5% in Champaign-Urbana, Ill.; and 5.0% in Erie, Pa.
From CNBC:
Mortgage Lending Loosens…But Far From Loose
Mortgage applications are rising as rates are falling, and credit availability may finally be easing. Sounds like the perfect storm, in a good way. The question is: How long can it last? The tailwinds of this storm could easily turn.
The surge in mortgage applications is a sign that more mortgage-dependent buyers are coming back to the housing market, which for a while had been fueled by all-cash investors. Rising home values and cheap credit are just the incentives these buyers needed. Applications to buy a home are up 11.5 percent in the past year, to a three year high—although they are still well off their pre-crash levels.
Rates have been trending lower of late due to trouble overseas and the weak U.S. employment picture. That uncertainty continues to send investors to the safety of the 10-year Treasury, pushing yields lower. Mortgage rates loosely follow those yields. But that turned pretty quickly on last week’s positive jobs report, and Tuesday the Dow Jones Industrial Average closed above the 15,000 mark for the first time in history.
“I think the higher stock market and low rates is a function of the Fed [Federal Reserve] just pumping liquidity into the system,” said Paul Miller of FBR. “What you see, I believe, is some of that liquidity is leaking into the stock market, which is resulting in higher valuations for stocks. But the bond market is still flush with liquidity, and that is keeping mortgage rates low.”
Should the Fed start winding down its asset purchases later this year, mortgage rates will rise. That would make home buying more expensive in an already rising price environment. But is that enough to stop housing’s momentum? Perhaps not.
“For mortgage payments to return to their long-term average of 22 percent of disposable income, 30-year fixed rates would have to rise all the way to 9 percent,” noted Paul Diggle of Capital Economics. “Accordingly, we’re optimistic that the nascent improvement in mortgage applications will be sustained.”
From HousingWire:
Lower credit scores disappear from housing market: Fed governor
Originations for borrowers with credit scores below 620 mostly disappeared in recent years, eliminating low credit scores from the housing market, Elizabeth Duke, member of the Board of Governors for the Federal Reserve System, said while speaking at the Housing Policy Executive Council.
Previously, Duke said, “Borrowers with lower credit scores have typically represented a significant segment of first-time homebuyers.”
Between 2007 and 2012, originations for borrowers with a credit score between 620 and 680 tumbled nearly 90%, compared to a 30% drop for borrowers with a score greater than 780.
Meanwhile, the median credit score skyrocketed from 730 in 2007 to a whopping 770 in 2013.
The Obama administration’s Home Affordable Refinance Program is at last helping legions of American homeowners with upside-down mortgages.
Nearly 1.1 million homeowners with little or no equity were able to refinance last year under HARP, which assists borrowers who are current on their monthly payments. That’s nearly as many as in the three previous years combined, and the latest figures show that early this year, the pace of these refinances abated only slightly.
The program has become a success story after a stumbling start with slack lender participation. Banks were initially reluctant to participate in a program they viewed as risky – refinancing borrowers who owed more than their homes were worth.
HARP is now regarded as a high point in Obama’s mixed record on foreclosure prevention.
http://www.philly.com/philly/classifieds/real_estate/Refinance_program_for_underwater_homeowners_hits_its_stride.html
WASHINGTON – A survey shows U.S. home prices rose 10.5 percent in March compared with a year ago, the biggest gain since March 2006.
Core Logic, a real estate data provider, said Tuesday that annual home prices have now increased for 13 straight months. Prices are rising in part because more buyers are bidding on a limited supply of homes for sale.
Prices increased in 46 states over the past year , 11 of them posting double-digit gains. And when excluding distressed sales, which include foreclosures and short sales, prices rose in every state. A short sale is when a home sells for less than what is owed on the mortgage.
Nevada led all states with a 22.2 percent annual gain. It was followed by California (17.2 percent), Arizona (16.8 percent), Idaho (14.5 percent) and Oregon (14.3 percent).
http://www.philly.com/philly/classifieds/real_estate/20130507_ap_surveyushomepricesup105pctinpastyear.html
Speaking of HARP Refi – From the FHFA just a few days ago:
http://www.fhfa.gov/webfiles/25164/Feb13RefiReportFinal.pdf
In other news, the laws of gravity have been repealed.
When the time comes, who will refi the FHFA?
It’s all a giant financial garbage can, loaded with dirty bombs and trip-wired to blow sky high at any moment.
7 – Why? Market is now primed to move the trash off the books. Here you go folks, Freddie Mac’s first subprime securitization, no guarantees. 7% yield. Takers?
From Bloomberg:
Freddie Mac Plans to Begin Sales of Non-Agency Home-Loan Bonds
Freddie Mac plans to begin selling home-loan bonds without U.S. backing from its holdings as rising property prices help boost their value.
The government-controlled mortgage financier that’s returned to profitability after requiring a taxpayer-funded rescue during the credit crisis is offering $1 billion of non-agency securities from its $121.5 billion portfolio this month, said Tom Fitzgerald, a spokesman. McLean, Virginia-based Freddie Mac expects to sell another $1 billion in June and may offer as much as $5 billion in all this year, he said. Any sales after next month would depend on further appreciation in the securities.
“We’re planning the sales to take advantage of the strong improvement in bond prices” and to meet a regulatory goal of reducing holdings of illiquid assets, Fitzgerald said yesterday in a telephone interview.
If you only read one of these on your way into work this morning – read this one, from the NYT:
Challenge to Dogma on Owning a Home
Homeownership is a good thing, for the individual and for society. Or so American governments, whether Republican or Democrat, have long believed. The benefits have been cited repeatedly in justifying the existence and expansion of the tax breaks given to home buyers.
But maybe it isn’t nearly as good as had been thought.
A new study by two economists concludes that rising levels of homeownership in a state “are a precursor to eventual sharp rises in unemployment in that state.” As more homes are owned, in other words, fewer people have jobs.
The study, by David G. Blanchflower of Dartmouth and Andrew J. Oswald of the University of Warwick in England, does not argue that homeowners are more likely to lose jobs than are renters. But it does argue that areas with high and rising levels of homeownership are more likely to be inhospitable to innovation and job creation and to have less labor mobility and longer commutes to work.
“We find that a high rate of homeownership slowly decimates the labor market,” Professor Oswald said.
…
If the correlation is real, what could be the cause? The professors say they believe that high homeownership in an area leads to people staying put and commuting farther and farther to jobs, creating cost and congestion for companies and other workers. They speculate that the role of zoning may be important, as communities dominated by homeowners resort to “not in my backyard” efforts that block new businesses that could create jobs. Perhaps the energy sector would be less freewheeling in North Dakota if there were more homeowners.
Homeownership, in economists’ jargon, creates “negative externalities” for the labor market.
Prices declined 8.6% in Edison, N.J.
3.5% 30 yr. and no inventory and prices declined? Hmm….
New York-Wayne-White Plains up 5.1%
NY: Edison down 8.3%
NY: Nassau-Suffolk up 3.0%
NY: Newark-Union up 2.6%
Nice graphic.
http://www.huffingtonpost.com/2013/05/09/video-half-second-high-frequency-trading_n_3245999.html
Cybercriminals ‘drained ATMs’ in $45m world bank heist
http://www.bbc.co.uk/news/world-us-canada-22470299
grim (8)-
This is the definition of picking up nickels (and two pennies) in front of a steamroller.
“Here you go folks, Freddie Mac’s first subprime securitization, no guarantees. 7% yield.”
In a ZIRP environment, toxic sludge tastes like foie gras.
What will happen to interest rates- and the necronomy in general- when the big platter of financial coc@ine is taken away?
Even the mention of such a thing sends markets into a tailspin. The reality should be several degrees more unpleasant.
Most unpleasant would be if the vigilantes end up being the ones to cut off the coc@ine.
The punch-bowl has giveth artificially low interest rates, pumped up the stock market, and cheap dollars. This is what is propping up housing. What happens when the punch-bowl is taken away?
RE 9: Key phrase – “If the correlation is real…” You could also argue that home ownership ought to improve the job market as owners have more to lose if they become unemployed, which might explain why two working parents share 3-4 jobs between them and commute crazy distances to work. Another explaination might be that there is a mean number of owners in any economy and if an area exceeeds the mean, it might be because folks who ought not to be owners got loans they should not have been granted. When they stretched too far it only took a small event to start the ecomonic downturn.
You would be a fool not to buy this, like a new condo you price phase one low so buyer make a big profit, then you price phase two slightly higher etc till around phase four buyers are over paying.
Freddie has a ton of non GSA trash on books, they need first offering to be a home run. This is free money folks.
grim says:
May 10, 2013 at 7:24 am
7 – Why? Market is now primed to move the trash off the books. Here you go folks, Freddie Mac’s first subprime securitization, no guarantees. 7% yield. Takers?
New York-Wayne-White Plains up 5.1%
Translation: the victim is brain dead kept alive through a respirator. The only question is when to pull the plug. As Scrapple so accurately states, take away the blow and you’ll see a volatile, unpredictable event about to unfold.
[18] DL,
Post hoc ergo propter hoc?
This Trenton troll wants the Div of Revenue in your car. Have to read down for it.
http://www.cnn.com/2013/05/09/tech/innovation/electric-vehicle-taxes/index.html?hpt=hp_bn1
The trial balloons continue to be floated. The proponents are continuing Sunstein’s nudge.
http://money.cnn.com/2013/05/09/pf/college/student-loan-debt/index.html?hpt=hp_t5
Other explanations:
* People in big cities are more likely to work and also to rent
* People who are motivated and move anywhere to work are more likely to rent at least to start with.
* Wealthy middle aged people in their 50s who are Retired or Semi-Retired are likely to own and not work
Did the study look at income? I suspect there is an income component as well.
Is a higher number of jobs at a lower income preferable to fewer jobs at higher incomes?
Eliminate the gas tax and create a mileage tax that applies to all driven vehicles. Tax rate should rise based on vehicle weight, as weight is the major driver of road and infrastructure wear.
foie gras tastes like toxic sludge
Scrapple n’Ricin says:
May 10, 2013 at 8:07 am
In a ZIRP environment, toxic sludge tastes like foie gras.
IF?
grim says:
May 10, 2013 at 7:30 am
If you only read one of these on your way into work this morning – read this one, from the NYT:
Foie grass is processed toxic sludge
Bernanke rewriting history. “Nobody predicted the crisis”
Need the contact info for the “uber inspector” if anyone has it avaialble. Thanks!
Not always, the larger the car/truck the less it is driven. A big car does more damage to the road than an SUV on a per mile basis.
For instance when I drove to work long distance I used to take a Camry. Now I drive a Caddie. Difference is the Camry went 10,000 miles a year, my Caddie goes 1,000 miles a years. I drove the Camry 10x the miles.
Miles driven should be main factor. For instance most prius owners save no fuel in first year as they drive more since they get better MPG. Meanwhile my wifes old monster truck after Katrina she started walking to corner store, 7/11, school with kids and only weekly supermarket trip is when truck was driven. 1 mile a week. Yep it got 9.5 miles per gallon. But a gallon of fuel was two months of driving. Idiots in the sticks with small cars drive like 1,500 miles a month yet snub their noses at SUVs driving 500 1,500 miles a year
grim says:
May 10, 2013 at 9:12 am
Eliminate the gas tax and create a mileage tax that applies to all driven vehicles. Tax rate should rise based on vehicle weight, as weight is the major driver of road and infrastructure wear.
What is the point of the uber inspector? I hired my own uber inspector. When housing was weak in 1999 he helped me beat up buyer with his huge report. When he did his usual thing a few weeks ago it turned off the seller and realtor as if I was playing games and not serious and looking to dick them around with this big report. I got nothing off from report. Only thing it was good for it gives me a list of what to fix when I buy. That report would have been a lot more usefull April 2009 than it was April 2013.
Adavs says:
May 10, 2013 at 9:52 am
Need the contact info for the “uber inspector” if anyone has it avaialble. Thanks!
#33 Appreciate the comments, but I want to be informed about what I’m getting into, as well as have some leverage with a Seller if there are glaring issues.
Uber is http://www.afullhouseinspection.com
Fairway is selling PRIME boneless Shell Steaks this week for $8.99 per pound. Whole food sells the same steak for $17 (and I’m not sure it’s even Prime). Thank me later.
Screw the NJ Divison of taxation I won’t use their roads if they want to tax me by the mile.
http://whatsnext.blogs.cnn.com/2013/05/09/is-this-finally-our-flying-car/?hpt=hp_c3
Neighbor’s house just went up “FOR RENT” (west coast relo involved). They bought in ’06 with 20% down — if you believe Zillow they could probably net enough from the sale to pay off the mortgage and pay their realtor; they may be out of pocket to pay the transfer tax. All that equity vanished. I’m not sure what they think about being a long-distance landlord, but I think they’d rather pickle the place, pay the property tax and ride the inflation tsunami coming than sell now.
OTOH, my in-laws close this month — silly and needless.
Scrapple [15];
In a ZIRP environment, toxic sludge tastes like foie gras.
That encapsulates what I’ve seen as the administration’s economic plan: By crushing the rate of return on ‘safe’ investments, all that money on the sidelines will have to go out an chase yield. As the Far Side comic said, “Step 2: Then A Miracle Happens”, leading to the predicted step 3 of economic growth. Its working so well for the ‘green’ economy, what could possibly go wrong?
Grim [9];
Not at all shocking. High rates of home ownership impede labor mobility. People who get laid off sit in a place where they can’t get a replacement job because they have a home there and are collecting their 99 weeks.
I’m not sure I buy the study’s conclusion, however. They may have established that ‘too much’ home ownership can be a drag on a geographically dynamic economy; it does not mean that the benefits of home ownership at some optimal level are not real. The problem is that, when it comes to ownership, politicians (like Barney Fife… uh, Frank, and GWB) all talk like Mae West: “Too much of a good thing is wonderful.”
You don’t know if they lost the 20% unless you know what they were invested in. I know a few folks who in 2006/2007 had most money in stocks and cashed out to get a down payment on RE, even some folks at AIG/Lehman who sold to buy a house.
On other hand I know some who were in cash in 2007 did not buy a house and went into junk or stocks in 2009 and now have doubled their money. In their case they would have lost 40% putting 20% down on a house.
Every purchase decision is a Binary decision. You have to sell/cash out one thing to buy another and ever sell decision is also binary, when you sell the money has to go somewhere.
In binary investing a very good investor is right twice in a row often you are right only 50% of time. So why is it a suprise that everyone who sold a house in 2006/2007 as they thought it was overpriced that the buyers got crushed. If RE kept going up the sellers would have got screwed. Someone is right Someone is wrong in most investments
Anon E. Moose says:
May 10, 2013 at 10:28 am
Neighbor’s house just went up “FOR RENT” (west coast relo involved). They bought in ’06 with 20% down — if you believe Zillow they could probably net enough from the sale to pay off the mortgage and pay their realtor; they may be out of pocket to pay the transfer tax. All that equity vanished. I’m not sure what they think about being a long-distance landlord, but I think they’d rather pickle the place, pay the property tax and ride the inflation tsunami coming than sell now.
High rates of home ownership impede labor mobility.
Having kids in school does as well, and also employed spouses. These would apply to rental cases as well.
There are tons of buy and hold folks in housing who have moved into a second home without selling the first home. Just like the banks they won’t write down their losses by selling. Losing a few hundred a month on a rental is a trickle compared to losing 100k in a short sale.
Re 21: Post hoc ergo propter hoc?
This is what you get when English majors dip their toes in economics.
NEW YORK (MarketWatch) — Bill Gross, manager of Pimco’s Total Return Fund PTTAX 0.00% , said via Twitter on Friday that “the secular 30-year market likely ended 4/29/2013.” His tweet mentioned that returns will more likely be around the 2% to 3% range in the future. Investment calls from Gross are highly watched by bond market participants. The benchmark 10-year Treasury note 10_YEAR +4.74% has been down all day, but lingered near its daily lows after the tweet. The 10-year was up nearly 9 basis points on the day at 1.901%.
Except by me, folks are not selling as they dont want the gain!!
Sounds funny but if you had a POS bungalow shoe box you bought in Long Beach at peak for 350k that you never renovated and was a hell hole rented out to drunkards and you got hit in Sandy Hard with no Flood insurance and you make 350K income. You could take a 350K casualty loss bring your taxes to zero get property tax knocked down and spend tax refunding renovating house and then rent it again by July for a higher price. But get this your basis in house is now zero. If you sell the the house you have to pay gains on 100% of sale at 23.0%.
These house will never be sold and passed to kids, my house my basis in is now peanuts. My basis is now 100K as a result of low purchase price and sandy.
Juice Box says:
May 10, 2013 at 11:11 am
There are tons of buy and hold folks in housing who have moved into a second home without selling the first home. Just like the banks they won’t write down their losses by selling. Losing a few hundred a month on a rental is a trickle compared to losing 100k in a short sale.
JJ – They called shorting the bond market in Japan the widow-maker trade.
I have been long since 1991 bonds, did sell 100K worth of junk in last three weeks.
Stuff like MBI bonds at 101 or Countrywide bonds at 127 make me want to puke.
I think housing may be next leg up. Also airlines and hotels. People are spending like crazy. I booked my summer vacation again and kids wanted to go to Beaches again and OMG. When I booked that trip in Feb 2010 great deals and rooms left now it is like jammed up, prices are 20% higher and nearly all rooms are sold out. From Feb 2010 till May 2013 it is a 180 turnaround.
Juice Box says:
May 10, 2013 at 11:29 am
JJ – They called shorting the bond market in Japan the widow-maker trade.
JJ – you should move to Japan.
http://www.economist.com/news/asia/21567419-family-firms-adopt-unusual-approach-remain-competitive-keeping-it-family
Edison is easy to figure out. H-1B short fall.
Not enough detail…..the bar has been set by the Elite 140…..please engineer these instructions to a greater degree……
Libtard in the City says:
May 10, 2013 at 10:10 am
Fairway is selling PRIME boneless Shell Steaks this week for $8.99 per pound. Whole food sells the same steak for $17 (and I’m not sure it’s even Prime). Thank me later.
Fast Eddie
MLS 1315986. Bank just put it on the market. Nice house, needs a bit of updating but seems like good bones.
#50 Chi
Don’t worry, you can just mix some Grey Poupon into your steak sauce and you’ll be fine. I think WholeFoods are having a Buy 3 Get 2 sale this week.
Fabius,
You said the key words, “Bank just put it on the market.” The Banks need to open up the valves. That house does look like a contender at that price. That should be the price tag for a lot more similar homes. Thanks for the tip.
Lot of ladies on this site today.
Fabius Maximus says:
May 10, 2013 at 1:47 pm
#50 Chi
Don’t worry, you can just mix some Grey Poupon into your steak sauce and you’ll be fine. I think WholeFoods are having a Buy 3 Get 2 sale this week.
My Realtor just told me another house where I am buying was on market for 4 hours and had 6 offers.
What kind of detail do you need? NY Strip for $8.99. Prime is the highest grade, though most feel ribeye and porterhouse are better. Personally, I like strip just as well. The last two porterhouses I purchased were easily the best quality steaks I’ve ever seen sold at a supermarket. Just some high quality olive oil fresh cracked pepper and coarse sea salt are all that I ever add prior to grilling.
Unfortunately, I don’t know of a Fairway down your way ChiFi.
I’m heading down to Marlboro on Sunday if you want me to pick you up a few. I’ll probably get them on Saturday.
And who the heck are the elite 140? Fab? I remember something about steel manufacturing a while back.
Like they say in a Fire Island nightclub once you find a firm bottom, it usually gets at least six offers in four hours.
Juice Box says:
May 10, 2013 at 2:12 pm
My Realtor just told me another house where I am buying was on market for 4 hours and had 6 offers.
On the property value tip, we should find out what both of our homes are worth on Monday. I’m dying to find out what our improvements on our GR home are valued at as well as how hot the Montclair market REALLY is.
JJ – no story to go with your trip to Fire Island?
In South Jersey, they sell horse meat and call it beef.
Too late Gary – per the agent:
MULTIPLE OFFERS, HIGHEST AND BEST FOR 5PM THURS WITH DOCS LISTED. THANKS
Didn’t make a whole 4 days on the market. Good chance it closes closer to 6.
JJ [40];
On paper, in real $$$, on this property, they are down over 30%. That doesn’t change whether they invested other money in stocks or tulips. Maybe it doesn’t hurt because they have other investments to cushion the blow. It doesn’t change the numbers of this deal.
re: [45];
If you will the property to your kids, they get a stepped-up basis.
What do you suppose the owners were thinking when they tried to get $799k for it in 2010? I bet they were ‘offended’ several times by offers ~$700k.
Only went there once for a day trip, bars were good but all I was told is dont miss last ferry out or you end up on island over night with a fairy
Juice Box says:
May 10, 2013 at 2:33 pm
JJ – no story to go with your trip to Fire Island?
JJ – http://www.calculatedriskblog.com/2013/05/report-advanced-bookings-suggest-strong.html?m=1
Long time lurker here (since 2006 right around when we flipping our townhouse and bought our first house (made the Lowball list here that fall!))… any recommendations for Roofing and Siding? I’m up in Montville in Morris cty (had to get outta Essex!)
Inflation adjusted they are really down 40%!
I had a buddy who sold his worthless internet stock at the peak and bought a house cash. The house fell a bit in value and he could care less. On the other hand if he had Apple Stock in March 2003 he sold to buy a house he would have shot himself
Anon E. Moose says:
May 10, 2013 at 2:45 pm
JJ [40];
On paper, in real $$$, on this property, they are down over 30%. That doesn’t change whether they invested other money in stocks or tulips. Maybe it doesn’t hurt because they have other investments to cushion the blow. It doesn’t change the numbers of this deal.
Beaches Turks and Caicos with airfare for a family of five has sold out all the 20K vacations in July. Amazing. Sold out every day in July on vacations that cost 20K for one week.
It is a bull market baby
grim says:
May 10, 2013 at 3:05 pm
JJ – http://www.calculatedriskblog.com/2013/05/report-advanced-bookings-suggest-strong.html?m=1
Speaking of firm bottoms, I think I nailed the best day to lock on my two mortgage refinances to the day. Though a week or two is probably too small of window to claim an actual bottom.
It is like the best time in history to be a borrower!!!
Libtard in the City says:
May 10, 2013 at 3:49 pm
Speaking of firm bottoms, I think I nailed the best day to lock on my two mortgage refinances to the day. Though a week or two is probably too small of window to claim an actual bottom.
Sidelined in Bedminster on way to New England. Figure I will hunker down rather than claw thru redonkulous traffic in Rockland and CT. Anyone up for a mini GTG in northern NJ?
Do Morristown.
grim,
We just put crown molding in the dining room, (last year, living room), through the hall and into the kitchen… painting it tomorrow. Also, had a new Central AC condensor and coil installed last week. With the current market, I’m curious to know percentage wise where my house stands as opposed to last year. 5% higher? 10% higher?
plume (71)-
I’d join you, but I’m at work.
Go to Ninety Acres and try to drink the left side of the wine list.
Morristown is up 7.1% since last years.
How does Crown moldings increase the value of your home. I put them up in my daughters room and it was like $100 bucks worth of wood, no cost to install as I did it myself. Maybe that is like$100 bucks tops per room. Not everyone likes it, and if not installed right it aint worth nothing.
Fast Eddie says:
May 10, 2013 at 4:16 pm
grim,
We just put crown molding in the dining room, (last year, living room), through the hall and into the kitchen… painting it tomorrow. Also, had a new Central AC condensor and coil installed last week. With the current market, I’m curious to know percentage wise where my house stands as opposed to last year. 5% higher? 10% higher?
My brother put in all oak moldings and oak interior doors in his first house – a ranch in Sayreville. That was a waste of money. But then, he has plenty of money to waste.
It’s not the actual return on investment that I’m questioning. When people see neat and clean with new furniture and a well-arranged house, the eyes perceive value. And the eyes and psychology go hand in hand. It’s the art of illusion and perception. I think you all get my point.
Nom, if you are in the Montclair area, I’ll be on my old college radio station for alumni week from 8pm through 11pm. No music, just stupid antics with my three friends from that era. WMSC 90.3. It also streams online. Google that beyatch.
[78] libtard,
I am at a very cool tavern in Stamford.
Reminded me that I DJed briefly at UMass’ WZZZ, a low power station that came to you live from JQA, the protruding middle finger of Southwest.
Grim, since Blanchflowe is a welfare state Keynesian, he cannot conceive that welfare relates to unemployment.
#53#61 FE / Grim
Interesting to note that the bank is Hudson City. It would be interesting to see how this went down and how fast the bank is looking to clear the property off their books.
76 N Colonial Road
Purchased 10/7/2003 – $733,000
Mortgage – $586,400
DP – $146,600
Second mortgage taken out 5/8/2006 – $94,000
Refinance on 9/2/2008 – New mortgage amount, $650,000 (the second may be have been rolled in)
Listed for Sale 2/11/2010 – $799,000
Lis Pendens – 6/9/2010
Relisted for Sale – 8/31/2012 – Short sale – Approved at $610k around 10/9/2012 – UC on 10/15/2012 – Deal fell through
Again went UC on 2/18/2013 – Fell through again
Sheriff Sale – 3/11/2013
REO Listed – 5/6/2013 (10am) – $540,000 (Almost 3 full years from default to foreclosure listed for sale)
Multiple offers – Offer accepted – 5/9/2013 (5pm)
G Man – 32 Cottage in USR
Sold – $655k – All Cash
I understand there were about 20 properties sold at the Bergen County Sheriff Sale yesterday. Looks like the flood gates are beginning to open.
Hudson has certainly been banging them out lately. I guess M&T wants the sh*t cleaned off the books before the merger.
They had always made it seem that they had the cleanest loans around, but looking at their scheduled sales, really no different from anyone else (maybe a touch better than the chop shops).
grim,
32 Cottage: If they had 655K cash, why didn’t they go for something with a yard. No? With that kind of wood, I would think they could even go higher on a cash purchase. Anyway, there’s the new benchmark.
30 year [84],
What does Sheriff Sales mean? Is it anyone that wants to bid? Does it mean these 20 are now on the open market?
It means the property is auctioned on the courthouse steps.
However, the buyer is responsible for paying the remainder of the prior owner’s mortgage, plus any fees and penalties (the upset value), as well as any other liens on the property. You bring a check with you. If someone is still living there, your problem to evict.
The problem is, when the mortgage is higher than the house is worth, why the hell would you buy it on the steps?
Well, nobody does, probably 1 in 50 gets purchased, 49 out of 50 go back to a lender. There are a handful that get purchased by the second lien holder, hoping there is enough meat on the bone to pay off their loan if they sell.
http://salesweb.civilview.com/?id=00815
Yesterdays list shows about 15 or so for Bergen, but the online lists aren’t guaranteed. A bunch of those were showing that the sales were adjourned prior to Friday.
Couple interesting ones in there.
Generally, I think most newbies would get eaten alive trying to bid. Oh yeah, you don’t get to look at the house before hand. If you were lucky enough to see it on the market before it got to the steps, consider yourself lucky.
Take a day off, sometimes they are interesting to watch. Mostly lawyers in fancy suits with stacks of paper.
Here are some stats for BC, the 5/3 SS.
22 Scheduled
Cancelled due to bankruptcy – 3
Adjourned – 2
Settled – 1
17 Made it to Auction
OneWest Bank – Took back 5 properties
Purchased 3rd Party – 4
Wells – 3
Nationstar – 2
Aurora – 1
US Bank – 1
Cenlar – 1
80 trips to find the perfect house.
We knew the house was hot, and we made an audacious bid – $8,000 above the asking price. But we lost. Our Realtors said it was likely to a hedge fund, private investors scooping up homes.
http://www.philly.com/philly/classifieds/real_estate/80_trips_to_find_the_perfect_house.html
Sussex County has a nice overview of the process on their site:
General Information
Purchasing foreclosed properties is not for everyone and can be a risky proposition for buyers who lack experience. Unless you understand the process and have done your due diligence, you could potentially make a mistake that proves to be very costly.
Until a sale actually occurs, the property is considered private property and no one has a right to enter the premises without the owner’s permission. This means there will be no opportunity to inspect a property prior to bidding on it. A bidder wishing to approach an owner to see a property before a sale is advised that he is on his own.
The owner of a property may, at any time prior to the sale, try to save his home or property interest in several ways. He may try to reinstate the delinquent amount owed, pay the judgment in full, obtain another loan, etc. He may also try to sell the property in order to pay the judgment and at the same time profit from any proceeds.
The sheriff’s office does not know the conditions of the titles.
All sheriff’s sales are sold subject to a first mortgage, if any, and any municipal, state or federal liens. We strongly urge anyone who is not familiar with sheriff’s sale procedures to seek legal advice and to perform a title search on the property before bidding on it. The search may reveal outstanding liens, which the bidder would assume if he is the successful bidder.
The plaintiff’s attorney may adjourn as many times as is necessary for any reason. A homeowner may also request an adjournment at any time prior to the sale. By statute, the sheriff has the discretion to grant up to two 14-day adjournments. Unless otherwise provided for, these adjournments (if approved) will be given in one consecutive 28 day period.
How the Sales Work
Sheriff’s sales are held as an open auction (no sealed bids). Properties are purchased as is, with no warranties and all sales are buyer beware.
Bidding begins at $100.00 and subsequent bids must be in increments of $1,000.00. The property will be sold to the highest bidder.
Twenty percent of the total bid price (bid deposit) must be paid by the purchaser as soon as the property is sold to him. All deposits must be tendered in the form of cash, certified check or treasurer check.
If the successful bidder fails to pay the full bid deposit, the sheriff may, at his option, immediately put up the premises for sale again and the original purchaser will be held liable for any deficiency.
The balance of the sale price is due and payable no later than thirty days after the sale. The first ten days after the sale date are without interest; interest is charged on the balance due beginning on the eleventh day after the sale.
The defendant has a ten day redemption period after the sale during which time he may object to the sale through the courts or redeem the property. The successful bidder, in this case, would receive his 20 percent deposit back without interest.
If the balance is not paid on the thirtieth day, the sheriff will have the option of either re-advertising the property and selling it again or proceeding to compel the purchaser to complete his purchase. In the event of a resale, if the property should produce a lesser sum than the former bid, interest and expenses, the purchaser will be held liable for the difference. If it should produce a larger sum than the former bid, interest and expenses, the purchaser will not receive any benefit from the second sale.
The purchaser will receive a sheriff’s deed after payment of the balance of the bid. It is the responsibility of the purchaser to record the deed in the Sussex County Clerk’s Office.
If, after the sale and receipt of the sheriff’s deed, the property is owner-occupied, the purchaser must obtain a Writ of Possession to be served on the defendant with instructions to vacate the premises by a scheduled date. This is handled by the Civil Process Unit. If the defendant has not vacated by the stated date, the sheriff’s office will set a final date to make arrangements with the purchaser to have a moving van sent to the property and have the defendant’s personal belongings removed. The costs of the moving and storage is the responsibility of the purchaser.
If the property is tenant-occupied, the purchaser must go through Landlord-Tenant Court to perform an eviction.
I am looking at the midtown direct line and the situation in Montclair has gotten out of hand. Yesterday afternoon on a house we saw, there was line of buyers with agents and babies to check it out.
I keep a daily index (mostly ratio of inventory to total houses in my price range) and under this index Montclair is the worst market by far in terms of inventory.
Here’s a sample the higher the index the softer the market (westfield is not midtown direct I know for comparison purposes only
3/15 (when I started looking)
Montclair: 5.2
Chatham: 6.2
Westfield: 3.9
5/10 (yesterday)
Montclair: 5.2
Chatham: 9.7
Westfield: 6.4
That is the market in Montclair is twice as tight as the one in Chatham right now.
Hudson City has tons of FKs and REOs because they have refused DIL and short sales ever since the beginning of the collapse.
They won’t even negotiate when they hold the second. They force the senior lienholder to FK every time.
Got my appraisals back. Our multi in Montclair is within spitting distance of what we paid for it, an attest to the nutty Montclair market.
We did really well in Glen Ridge too. Our primary home is now valued almost $60k above where we bought it two years ago plus the cost of our improvements. We could probably flip it for a 100K profit, but then, where would we live? Plus we truly love the place.