Lowest priced homes not sharing in the recovery

From HousingWire:

Black Knight: Affordable homes lagging behind in home price recovery

In the 10 states where prices are still furthest from their pre-crisis peaks, homes in the bottom 20% value tier are lagging – sometimes considerably – in recovery as compared to the highest valued properties, according to Black Knight’s November Mortgage Monitor.

In California, for example, properties in the top 20% price tier are now just over 3% behind their pre-crisis peaks; the lowest 20% are still 32% off those peaks.

In many cases, these disparities boil down to the fact that during the bubble, lower-tier properties appreciated at much higher rates than higher-valued properties, then fell harder and further when the bubble broke.

According to Trey Barnes, Black Knight’s senior vice president of Loan Data Products, home price recovery for the lowest 20% of property values has lagged behind those at the top in America’s hardest hit states.

“We looked at HPI appreciation from pre-crisis peaks to today in the 10 states currently trailing the furthest behind their pre-crisis housing maximums,” said Barnes. “The data showed a clear difference in the levels of recovery among home price tiers. The Black Knight HPI separates home values for every geographical division into five equal tiers; those in the lowest 20% of home values have been lagging behind their higher-valued counterparts in recovery to pre-crisis peaks, sometimes considerably.

“For example, in Nevada – overall, still more than 39% off its pre-crisis peak – properties in the lowest tier are nearly 47% off their peaks, as compared to 36% for those in the highest tier. In California, an even starker contrast emerges: properties in the highest tier have now come within just over 3% of their pre-crisis peak, while those in the lowest 20% are still almost 32% down. In many cases, these disparities between price tiers can be attributed to the fact that during the bubble, lower-tier properties appreciated at much higher rates than higher-valued properties and likewise fell harder and further when the bubble broke.”

This entry was posted in Housing Recovery, National Real Estate. Bookmark the permalink.

71 Responses to Lowest priced homes not sharing in the recovery

  1. Comrade Nom Deplume, Guardian of the Realm says:
  2. [1] I think the key phrases in that story are:

    single-vehicle accident

    and

    There may be a personal element to this case, as the individual involved in the accident was reportedly another detective in the prosecutor’s office.

    Texting while driving, maybe?

  3. Comrade Nom Deplume, sea level again says:

    [3] expat,

    Yeah, those caught my eye as well. But I didn’t assume texting because you don’t have to get that far in to find the issue here. Also, there are no end of imaginative reasons; could have been drinking, getting some skull and losing control, etc.

  4. anon (the good one) says:

    @guardiannews:
    Fox News expert ridiculed over Birmingham is ‘totally Muslim city’ claims #foxnewsfacts

  5. anon (the good one) says:

    @TheMichaelMoran: As funny as #foxnewsfacts is, it’s tragic that the news media of one of the most admirable nations on earth is infiltrated by dimwits

  6. anon (the good one) says:

    @msalimkassam: After much lobbying from jihadists, band Duran Duran is to change their name to Quran Quran #FoxNewsFacts

  7. Toxic Crayons says:

    Anon, any thoughts on the United States lack of representation at the Paris anti-terror rally?

  8. Comrade Nom Deplume, Guardian of the Realm says:

    [5] anon

    But Birmingham IS heavily Muslim. So was the error the fact that totally=100% and wasn’t hyperbolic in the view of the twit you quoted?

  9. Comrade Nom Deplume, Guardian of the Realm says:

    And to be clear, I meant the other twit.

  10. 30 year realtor says:

    Lowest Priced Homes Not Sharing In The Recovery…same story in our area. Urban areas and less desirable suburbs will continue to be behind until the foreclosure backlog moves through the system. That is where the bulk of the REO is and will continue to be.

  11. grim says:

    Calling these properties “affordable” is a little bit silly…

  12. grim says:

    Are the holiday foreclosure moratorium over?

  13. A Home Buyer says:

    9 – Comrade

    Although I might be mistaken, the city is ~20% Muslim and that number is double the 10% that existed 10 years ago. While perhaps exaggerating, its a big leap to jump from the largest minority (only slightly above atheists in the city) to “totally” or “all”.

    However, I imagine the real complaint with his story is about how “Muslims beat down” anyone in the city who doesn’t ware traditional Islamic garb when in their presence.

    Common sense and recent history indicates they would at least decapitate them if anything.

  14. Grim says:

    Whaaa? That wasn’t me

  15. A Home Buyer says:

    14 – That was actually me. The name changed after posting?

    Grim, can you adjust that?

  16. Grim says:

    Yeah it’s funny because some times when I post – your name pops up.

  17. A Home Buyer says:

    That sometimes happen with your name. I normally check that before I post just to make sure, and I am 90% positive I checked this time as well.

    (I’m assuming you are not mocking me right?)

  18. A Home Buyer says:

    For whats its worth, I only have a single Cookie in my web browser for the comment_author_ad# and the content value shows the correct handle.

    Something in the webpage script must be forcing it…

  19. grim says:

    We use the same dummy email address

  20. Comrade Nom Deplume, Guardian of the Realm says:

    [14] buyer

    I knewBirmingham was heavily Muslim, just not the percentage. 20% is pretty substantial. I have to believe it affects governance on some levels. But I have no dog in that fight. It was more about challenging Twitless

  21. Fast Eddie says:

    Where’s the inventory?

  22. jj says:

    Ten year treasury like 1.9%. Homes would be actually selling if there was any inventory. Folks are not buying overpriced shoeboxes even at 0 percent

  23. joyce says:

    Comrade,

    “Ocean County prosecutor Joseph Coronato told NBC 10: “It would be my opinion that we’ll probably be dismissing the charge.” ”

    Do you think Mr. Coronato will be pressing charges against the officers?

  24. chicagofinance says:

    Kyle Smith is a movie reviewer for the NY Post. But he is such a strong writer, that they have him compose opinion pieces.

    Marilyn says:
    January 12, 2015 at 3:05 am
    47 That was brillant. Did you write that yourself?

  25. chicagofinance says:

    The city’s business elite may finally be waking up to the fact that Mayor Bill de Blasio’s policies are as bad for the local economy as they are for everything else in Gotham.
    This normally timid group is frantic over the toxic state of relations between the mayor and the police.
    They’re freaked by the specter of a paralyzed police force, afraid to enforce the law because to do so risks the wrath of the mayor, violent protesters and deranged cop-haters.
    These folks are old enough to know this could plunge us back into the chaos of the late 1960s and early 1970s, when New York’s economy imploded and the city nearly went bankrupt.

    Sure, Comrade Bill can point to statistics that show crime’s still down, even after a year of his efforts to curb what he terms abusive police tactics.
    And the city economy, at least for now, is fairly healthy — because crime is so low, people feel safe to shop, go to Broadway shows, etc.
    The fear is that all this merely reflects the overhang of assertive policing from the Giuliani-Bloomberg years. What if de Blasio’s attacks on the police, which began nearly the minute he started running for mayor, are eating away at that progress?
    The business elite point to the near-riots that erupted after the non-indictment in the death of Eric Garner, along with the assassination of two police officers by a maniac looking to kill cops for revenge, as ominous signs.
    They worry that the recent slowdown in arrests will soon manifest into something more serious — because cops know the mayor doesn’t have their back.
    These folks admire Police Commissioner Bill Bratton (after all, he got the whole crime-drop ball rolling under Rudy Giuliani), but believe he’s no match for his committed leftist boss — who either doesn’t care or is utterly clueless about the fact that high crime rates cripple economies.
    One key moment was a Dec. 18 meeting between Bratton and the leaders of the Partnership for New York City — a lobby group comprising the city’s business elite.

    The sitdown was at the offices of Viacom, whose CEO, Philippe Dauman, chairs the Partnership.
    Shocking many of the 300 in attendance, Bratton said that the mayor has his back in cracking down on quality-of-life crimes. Despite de Blasio’s anti-cop rhetoric and opposition to “stop and frisk,” he’s a proponent of the “broken windows” theory of law enforcement, Bratton claimed.
    That is, he believes that cracking down on smaller quality-of-life crimes makes the city safer and more economically vibrant because it helps get the really bad guys off the street.
    Bratton argued, according to people present, that de Blasio is closer to Giuliani and Bloomberg on this front than most people think.
    The business crowd warmed to Bratton’s assurances that de Blasio understands the importance of having a safe city — until the next shoes dropped.
    In the days that followed, de Blasio never backed off his criticism of the police — making a mockery out of what Bratton told the Partnership.
    Protests were turning more violent, with officers attacked and crowds chanting, “What do we want? Dead cops!” Next came the assassinations of Officers Wenjian Liu and Rafael Ramos.
    The latest terror attack in Paris also hasn’t gone unnoticed by the business elite, I’m told. They have no doubt today’s NYPD could handle a similar situation — but they wonder how a mayor who all but incited the recent riots might respond.
    Now the business leaders are plotting their next move. The New York City Partnership is weighing how to address de Blasio and his policies, and when they should do so. Its president, Kathryn Wylde, is walking a tightrope: I’m told she is discussing with her members and leaders how to respond to the rift between the police and the mayor.
    But for all their worries about crime and Comrade Bill, many of her members don’t want to cross City Hall, which hands them so much largesse in the form of tax breaks and (in the case of financial firms like Larry Fink’s Blackrock) the opportunity to manage city pension money.
    In other words, the last thing these folks want to do is bite the leftist hand that feeds them.
    But other business leaders think the short-term gain from staying in the mayor’s good graces will lead to a lot of pain as de Blasio’s relationship with the police remains toxic and crime increases.
    They are plotting to launch a new group, fearing that the Partnership and its members have too many business ties to City Hall to do anything dramatic to counter de Blasio’s lunacy.
    The rumbling is that hedge-fund manager Dan Loeb, who has already taken on de Blasio by funding charter schools, may soon jump into the fray. Stay tuned.
    Here’s hoping Loeb or someone else does something quick. As long as relations between the mayor and the police remain toxic, the 1970s are closer than you think.

  26. jj says:

    So when are the shale companies just going to realize the best course of action is to declare BK, whip out common shareholders and perf shareholders, renegoiate oil rig/hedges/vendor contracts while in bankruptcy and then pay bondholders 20-40 cents on dollar or give them shares in new company.

    Goodrich, Sandridge Walters, all can do this.

    And Coal and Gas producers too.

  27. Toxic Crayons says:

    I have a friend who works in manufacturing plastics for medical applications. He’s worked for many firms over the years….and has helped move production from the US to China…and from the US to Mexico. He’s most recently found work helping a new small business (based completely in the US) grow their company.

    He said to me that it’s funny…because even the people on the production line in Mexico complain that the Chinese are stealing their jobs…

    Comrade Nom Deplume, Guardian of the Realm says:
    January 12, 2015 at 9:44 am
    Rut roh

    http://www.itif.org/publications/myth-america-s-manufacturing-renaissance-real-state-us-manufacturing

  28. Fast Eddie says:

    Ten year treasury like 1.9%. Homes would be actually selling if there was any inventory. Folks are not buying overpriced shoeboxes even at 0 percent.

    Absolutely. The only thing for sale are the “unwanted step child” houses. Everyone else is unqualified to sell. It’s getting worse, not better. I really wonder how any of these agents make a living.

  29. grim says:

    $46 oil? Holy crap.

  30. His policies aren’t too good for groundhogs either.

    The city’s business elite may finally be waking up to the fact that Mayor Bill de Blasio’s policies are as bad for the local economy as they are for everything else in Gotham.

  31. FKA 2010 Buyer says:

    Saw “American Sniper” over the weekend. Damn good movie. Chris Kyle was a true American hero in my book.

    There is a scene near the beginning of the movie where his Dad is talking to him and his brother about the parable of the Sheep, Wolf, and the Sheep Dog. “I only raise sheep dogs! You are not sheep and you damn well better not be a wolf.” Great teaching moment for them.

    Really touches on some of the moral challenges he had to face when he had a kid in his sights. Also very briefly touched on how the soldiers have to deal with PTSD.

  32. Marilyn says:

    Chicago Finance, I thought your Denmark Essay was brillant!! I just wanted to let you know. Did you write this yourself??

  33. FKA 2010 Buyer says:

    It’s that time of the year where George Zimmerman gets is back in the news by getting arrested. At least he is consistent in beating his wife and every girlfriend he has had. Either he loves the jail environment or loves to flaunt his privileged life.

  34. Anon E. Moose says:

    Tool [6];

    I can agree, except for whomever you’re appropriating your thoughts from calling out one particular network. When we got down to details, I suspect your (their) fuzzy thinking would fade away and cause some dissent.

    re: [7], and so-called media ‘facts’, I give you: “46 Times Vox Totally F*cked Up A Story

  35. Toxic Crayons says:

    NYPD cops told no vacations until work slowdown ends
    By Shawn CohenJanuary 11, 2015 | 8:45am

    http://nypost.com/2015/01/11/no-time-off-for-nypd-until-cops-get-back-to-work/

    It’s a slowdown showdown.
    At precincts across the city, top brass are cracking the whip on summons activity and even barring many cops from taking vacation and sick days, The Post has learned.
    Throughout the city, precincts are being ordered to hand up to borough commanders “activity sheets” indicating the number of arrests and summonses per shift, sources told The Post.
    “Police officers around the city are now threatened with transfers, no vacation time and sick time unless they write summonses,” one union source said.
    “This is the same practice that caused officers to be labeled racist and abusers of power.”
    In at least one precinct, the brass backlash — which comes in the wake of Police Commissioner Bill Bratton ordering cops back on the job after The Post reported a 90 percent drop in ticket writing — is downright ­draconian.
    “Everyone here is under orders — no time off” during the summons catch-up blitz, said one cop at the 105th Precinct in Queens.
    “And the majority of [new] summonses written aren’t protecting the public in any way.
    Modal Trigger
    This announcement was posted inside an NYPD station house.
    “But now they’re realizing how much revenue the city is losing and they’re enforcing their will upon us,” he said.
    Bratton’s back-to-work edict was still ringing in commanding officers’ ears when the crackdown hit cops on the Thursday/Friday overnight shift at the 105th bordering Nassau County, the officer said.
    The lieutenant ordered sector cars from throughout the precinct to converge at Springfield Boulevard and Jamaica Avenue for a driver checkpoint, the officer said.
    No one was to return to the precinct or even take a meal break until two summonses were logged, the officer said.
    “To have all the manpower utilized for the sole purpose of writing summonses is a very dangerous way to utilize manpower,” he said. “This is not what we’re out here for.”
    Back at the station house, memos (above) were posted alerting cops that no new days off would be approved beyond already approved vacation days. And there were to be no sick days without a doctor’s note.

  36. FKA 2010 Buyer says:

    You have to show a certain level of financial acumen in order to trade options or invest in HFs. I would think that the main investment officer that is authorized to invest millions/billions would at least meet those standards, especially after the collapse of Orange Country.
    ——————————
    The U.S. Supreme Court dealt a blow to Royal Bank of Scotland Group and Nomura Holdings Inc., refusing to derail federal government lawsuits that seek billions of dollars over the sale of risky mortgage-backed securities.

    The justices today turned away an appeal by four banks, including units of RBS and Nomura, in a case stemming from the collapse of two credit unions that owned more than $1.7 billion in those securities.

    http://www.nationalmortgagenews.com/news/secondary/banks-rejected-by-us-high-court-on-mortgage-securities-suits-1043574-1.html

  37. FKA 2010 Buyer says:

    [22] Comrade Nom Deplume

    I had high hopes for Motorola. They have always built a quality phones and sometimes the exceeded the standards of other phones. The Moto X I thought was the beginning of their return and was great to see a quality American (think Midwest plant) made product but now they are moving manufacturing over to China.

  38. joyce says:

    (37)
    “And the majority of [new] summonses written aren’t protecting the public in any way.
    But now they’re realizing how much revenue the city is losing and they’re enforcing their will upon us,” he said.

    Similar to admitting there are quotas (performance standards), they are admitting what we already know and have known since day 1. We here about cops getting frustrated so they just do nothing (or the bare minimum) “only making arrests when absolutely necessary.” …. which to me sounds like what the policy should be, always.

  39. Libturd in Union says:

    “…Which to me sounds like what the policy should be, always.”

    Nah…gotta justify the overtime and the bloated numbers.

  40. grim says:

    Tickets should not be a revenue stream, period. This creates a perverse incentive.

    I would prefer the fines collected are paid out in cash and burned, donated to the poor, placed in some collective pool outside of the grasp of the local township. The same applies to seized property. I don’t care about quotas, but they shouldn’t result in operating revenue.

  41. joyce says:

    41
    Yup; the most recent numbers (federal) show over 80% of prison inmates are there for non-violent offenses.

    http://www.bop.gov/about/statistics/statistics_inmate_offenses.jsp

  42. joyce says:

    If anyone is interested in how many are there for “Banking and Insurance, Counterfeit, Embezzlement” … 0.4%.

  43. joyce says:

    grim,
    I wish you didn’t edit your original comment. It was hilarious and probably a more effective option. If the money is out there, it will be sought after by any means necessary.

    “I would prefer the fines collected are paid out in cash and burned.”

  44. joyce says:

    Sounds high to me.

    joyce says:
    January 12, 2015 at 12:50 pm
    If anyone is interested in how many are there for “Banking and Insurance, Counterfeit, Embezzlement” … 0.4%.

  45. FKA 2010 Buyer says:

    [41] Libturd

    All of this overtime and bloated numbers is “baked in” everywhere (or individuals, whatever entity, govt budgets, our taxes) and no way or across the board will to reset it.

  46. Toxic Crayons says:

    Police hopeful seeks Christie pardon after legally owned gun turns him into a convict

    http://www.nj.com/middlesex/index.ssf/2015/01/police_hopeful_seeks_christie_pardon_after_legally-owned_gun_turns_him_into_a_convict.html

    Steffon Josey-Davis legally owned a gun.

    But one day, two years ago, that gun completely changed his life — without a pull of the trigger.

    Josey-Davis owned a 9mm Smith and Wesson handgun and was working as an armored-car driver with hopes of being a cop, he said. Now he’s a convicted felon and, in some ways, a poster boy for gun-rights advocates.

    He can’t vote, is disqualified from most jobs, and his career goals are derailed indefinitely.

    What crime was Josey-Davis guilty of?

    Having his legally owned gun in the glove compartment of his car.

  47. 1987 Condo says:

    #42…my town’s cops did a job action 7-10 years ago, virtually stopped writing tickets, loss of revenue amounted to a several point increase in tax rate…more than making up for the raise they wanted..they were able to enforce their will…..got their raise next year, but ticket revenue really never recovered….

  48. Comrade Nom Deplume, who needs to stop screwing around and get back to work says:

    [25] joyce

    “Do you think Mr. Coronato will be pressing charges against the officers?”

    That’s a trick question, right?

  49. Comrade Nom Deplume, who needs to stop screwing around and get back to work says:

    [48] toxic

    More of these happen than you know. One of NJSP’s favorite tactics is to pull over out of state truckers from the west and south. Lots of them carry guns in their cabs, the cops know this, and it results in a lot of seizures. Most all of them are PTI’d

  50. Comrade Nom Deplume, who needs to stop screwing around and get back to work says:

    [35] buyer,

    Zimmerman, like OJ, is an idiot. Even though he was truly innocent (not just found not guilty like OJ), he had to know he was still a marked man. When you are a marked man, you to to ground, stay in circles where you are safe, and don’t do stupid shiite. Like OJ, he apparently forgot this.

  51. joyce says:

    Not a trick question; was going for rhetorical

  52. Toxic Crayons says:

    @STKnutsen: @ChuckCJohnson Breaking…US CentCom Twitter account has been hacked, US Soldiers being threatened by #ISIS @CENTCOM http://t.co/8DcQUVAROk

  53. Comrade Nom Deplume, who needs to stop screwing around and get back to work says:

    [53] joyce

    I know. I was going for the humorous.

  54. Ragnar says:

    There’s a company named “Black Knight” monitoring the price of low priced homes?
    http://www.bkfs.com/Data/DataReports/BKFS_MM_Nov2014_Report.pdf
    In that company’s report, there’s an interesting chart showing that 70% of proprietary FHA/VA loan modifications made in 2009 went on to default anyway. 51% of such loans that were modified in 2011 have re-defaulted.

    Also interesting is that NJ mortgages have the second highest % of non-current mortgages of all states. 12.4% of NJ mortgages non-current, just behind Mississippi. But NJ has the highest % of mortgages in foreclosure, 5.4%.
    Anybody heard of our nationally famous governor talking about trying to fix the FC situation in the state? Or his he to busy patting himself on the back for that one thing he did that one time.

  55. Anon E. Moose says:

    Rags [56];

    There’s a company named “Black Knight” monitoring the price of low priced homes?

    How appropriate — “‘Tis merely a flesh wound…”

  56. grim says:

    Yeah they used to be called LPS, I believe they were a mortgage data outfit, they were one of the more cited sources for delinquency data. The “First Look” reports were in the news every month.

  57. grim says:

    Hey that report is nice, the tiered pricing for NJ is surprising, top tier only down 13% from peak, vs 25% for the low tier?

    I think the number is even wider than that.

  58. Anon E. Moose says:

    Union Country ordered to pay $40k in legal fees after suing blogger for “Trademark Infringement” over (disfavored, nach) use of the county seal.

    Discussion: http://www.washingtonpost.com/news/volokh-conspiracy/wp/2015/01/09/the-government-as-trademark-troll-union-county-n-j-hit-with-40k-bill-in-first-amendment-case/

    Decision: http://ogtf.lpcnj.org/2014/2014241UM/FeeApplication.pdf

    For those unacquainted, a mention in Volokh’s blog is a fairly big deal in legal circles.

  59. The Great Pumpkin says:

    Couldn’t agree more.

    grim says:
    January 12, 2015 at 12:48 pm
    Tickets should not be a revenue stream, period. This creates a perverse incentive.

    I would prefer the fines collected are paid out in cash and burned, donated to the poor, placed in some collective pool outside of the grasp of the local township. The same applies to seized property. I don’t care about quotas, but they shouldn’t result in operating revenue.

  60. The Great Pumpkin says:

    No one answered, so I will ask again. This was in reference to the Mercedes issue. If raising the minimum wage results in raising prices, should not the lowering of wages/cutting of jobs result in lower prices? If so, why is wage inflation not inevitable?

    This is as simple as I can break down the problem with the world economy. Income inequality at these levels does much harm.

  61. The Great Pumpkin says:

    2009….not current, but gets my point across. Same crap different region.

    “John Perry
    Why you’re paying too much in property taxes
    6:09 a.m. Monday, Dec. 7, 2009 | Filed in: Local News
    
    Georgia’s property tax system imploded with last year’s historic real estate collapse. Across metro Atlanta, home values fell tens of thousands of dollars — sometimes hundreds of thousands — but tax appraisals did not follow them down.”

    http://www.ajc.com/news/news/local/why-youre-paying-too-much-in-property-taxes/nQZmR/#__federated=1

  62. Fabius Maximus says:

    A lot of the UK press are laughing at the Fox Wingnut view of Birmingham. It is good to see that they guy has walked his comments back with a big Mea Culpa.

    To put it in perspective. its like saying that Brooklyn (25% Tribe) is a no go area for Christians where you will be beaten by roving bands of hassidic’s if you are caught in the street without a hat and killed if you have a bacon sandwich.

  63. Anybody want to make money on low oil prices? Think outside the box. ROST

  64. Comrade Nom Deplume, Guardian of the Realm says:

    [65] Fabian

    A lot of us laugh at the UK. On a regular basis.

  65. chicagofinance says:

    I think the abridged version (in the author’s own implicit arguments) is essentially there is overwhelming evidence that this President is an abject failure who has the skill to not only accomplish nothing, but alienate the core insiders among his own political faction and the media. That said, why not just posit that history will judge him, because his contemporaries are obvious plebes and myopic mouthbreathers who don’t genuflect appropriately……in short…this guy has the ability to show no ability.

    Fabius Maximus says:
    January 12, 2015 at 7:22 pm
    Some raw meat for a few in here. Enjoy!
    http://nymag.com/daily/intelligencer/2015/01/obamas-legacy-chait.html

  66. Ragnar says:

    Of course historians will be kind to Oblamer. They like socialized industries, higher taxes, and bigger government. They revere failed businessman and huckster FDR despite him making the biggest unconstitutional and fascist power grabs in US presidential history. Because he did it in the service of expanding government.

  67. Ragnar says:

    Of course historians will be kind to Oblamer. They like socialized industries, higher taxes, and bigger government. They revere failed businessman and huckster FDR despite him making the biggest unconstitutional and fascist power grabs in US presidential history. Because he did it in the service of big government.

  68. Fabius Maximus says:

    #Rags

    I disagree with Hitchens on a lot of issues., but do you have any response to Greenspan as a RandHead?
    https://www.youtube.com/watch?v=4wYR6e9Z6es#t=12

Comments are closed.