1 in 3 Home Owners with Negative Equity according to Zillow
March 1, 2008
Zillow revised their 4th Quarter report late Thursday the 28th of February that according to Zillow ?MORE EXPLICITLY DESCRIBES THE RATES OF NEGATIVE EQUITY FOR ALL HOMEOWNERS IN THE U.S. IN EACH OF THE YEARS 2003, 2006 AND 2007.? The original report had been released on February 12th as reported on PRNewswire.
In that report the key news was with regards to Condos where Zillows stated that Condos had posted the largest Year-over-Year value declines; down 7.4% compared to single family housing that was down by 5.5%.
This is the 3rd News Release by Zillow for the month of February. I strongly believe, that the main reason for this clarification was the confusion and somewhat dissolution by most home owners at the report posted on February 7th, where Zillow reported the findings of a survey that revealed, that Home Owners were in Denial or Inattention to what was happening in their markets with many indicating that other houses had lost value but not theirs. Actually I think Zillow was spot on here.
The new report does add some clarification to the 3rd Paragraph as detailed below:
?The continued decline in home values means many U.S. homeowners saw equity slip away while more homeowners were pushed into negative equity situations, meaning they owe more on their mortgage than the home is currently worth. Nationwide, those at most risk of being underwater on their mortgage are those who bought in the last two years when most markets peaked. Of those who bought in 2006, 39 percent now have negative home equity as do 30 percent of those who purchased in 2007. By comparison, only 3 percent of those who purchased five years ago, in 2003, and less than one percent of all homes in the U.S., in each of the years 2003, 2006 and 2007, have negative equity.?
What really puts this into perspective are the graphic images from Zillows Zindex Home Value Estimator
Hers is the link for the full size US Map version below:
I have also compiled a quick look at the Greater Tampa Bay Real Estate scene including Sarasota so you can gain a good perspective of the shape that we are in locally in Florida.
Click on the thumbnail picture (below) to pull up a larger view:
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Florida’s indifferent real estate market in Tampa…huh ?
February 9, 2008
ep, it?s that time again. The NAR Real Estate forecast report was released on Thursday February 7th. As is usual with NAR?s chief economist, Lawrence Yun, he mixes it up to the point you just have to say ?huh ?
The title of the report itself really sets it up. ?Existing-Home Sales to Hold in Narrow Range, then Begin Upward Trend??huh ?
This is the summary of the report by NAR: Soft market conditions are forecast to continue for existing-home sales in the months ahead, with improvement expected by the second half of this year if loan limits are increased?.. huh ?
Current housing conditions vary widely? huh ?
You can review the report your self from the link above but from all accounts they are saying the market is so, so?.which according to the dictionary I checked means it?s an indifferent market?huh ?
Well now that I have dispensed with the things that make you go huh ?
The real meat and potatoes came out about (2) days earlier from a local source that I find a bit more reliable or credible, however you like to portray the data, NAR does not really have a great track record of getting to the issue at heart without um..making you say huh ? OK I promise no more. Anyhow, the source of the data is an economic and financial consulting firm based here in Florida called FISHKIND and associates. At least as it pertains to Florida?s economic forecast they have the data to back up what they talk about. Dr. Hank Fishkind is often referred to in the Florida media as ?Florida’s best known economist ?. Dr. Fishkind presented his report to the Bay Area Real Estate Council on February 5th, 2008
Since our business is all about Florida?s Tampa Bay Area, hence Greater Tampa Bay Area Real Estate, we were really pleased to see that the reporting data shows that a good portion of the Tampa markets may have hit bottom and are ready for the turnaround to begin.
A few of the highlights of Hank Fishkinds February 5 meeting are:
1. HOME SALES: Pasco and Hernando counties’ housing markets have hit bottom and are most likely to start the the turn around ?.this will be seen later in the year. Hillsborough County is close to the bottom, but Pinellas County has a few more months in this downturn before home sales and prices will stabilize.
2. FORECLOSURES: While bad in certain neighborhoods, Dr. Fishkind thinks foreclosures have received way more press than they deserve. Measured against the total housing market here, they’re a “thimble in the ocean.”
3. AMENDMENT 1 PROPERTY TAX CUTS: Don’t expect any noticeable stimulus from tax cuts this year. We won’t get a tax break until next year. Plus people are still having difficulty selling their houses, making the portability issue a moot point.
4. CONDO CRISIS: Dr. Fishkind was not too high on condos in Pinellas and Hillsborough counties. He said oversupply, combined with limited sales, “makes me nervous.” He sees no bottom yet here.
5. MORTGAGE RATES: Good news here. Dr. Fishkind expects home loan rates for credit worthy borrowers to continue to drop to below 5 percent this year. If you have equity left in your home , it will be a good time to refinance.
You can down-load a copy of Dr. Hank Fishkinds Power Point report in PDF format entitled **Economic Outlook U.S. and Tampa Bay/Bay Area Real Estate Council.
** Be sure to check out pages 28 to 63 of the PDF for Tampa Counties (158 to 197 as listed on the lower right corner of the presentation).
Dr. Fishkind also spoke on local Orlando Radio station with regards to the Amendment 1 Property Tax cuts. You can access the audio by clicking in this link >> Click here to listen to story.. (You don?t need an ipod to listen. If you have a PC with Windows Media Player installed ?..no problem.)
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How to stop foreclosure – 101
January 30, 2008
According to a New Report published yesterday by Realty Trac US Foreclosure activity increased 75% in 2007 over 2006 figures.
Nevada hit # 1 with Florida #2 followed by Michigan to round out the top 3.
The states with the highest household foreclosure rate were
1. Nevada (3.38 percent)
2. Florida (2 percent)
3. Michigan (1.95 percent)
4. California (1.92 percent)
5. Colorado (1.92 percent)
6. Ohio (1.8 percent)
7. Georgia (1.57 percent)
8. Arizona (1.52 percent)
9. Illinois (1.25 percent)
10.Indiana (1.03 percent)The U.S. average was 1.03 percent.
Following fresh on the report release was an interesting piece from the Today Show Wednesday, entitled Foreclosure 101 -
This interview is with Barbara Corcoran a so called business baroness. She is listed as one of the most powerful brokers in the U.S. Barbara is legendary for being the most well-known name in New York real estate and for having personally sold only three apartments. She is a Real Estate contributor on the payroll of MSNBC, who produces the Today Show.
In this news segment they break down exactly how a foreclosure process works.
Some of the not so pretty points:
- Foreclosures up 75% in the last year
- 1 out of every 100 homes are in Foreclosures
- 40% of Las Vegas Homes are in Foreclosure
- Most People don?t return calls to the bank
- Foreclosure starts after missing 3 payments
- Filing Bankruptcy doubles the time you can stay in your house
- Takes 3?18 Months before you lose your home
- Bankruptcy stall foreclosure
- It takes 6 years to restore your credit after foreclosure
- Bank Loses Average of $59,000 for each foreclosure
How to Stop a Foreclosure:
- Short Sale
- Apply for FHA Loan
- Ask for a reduced Payment
- Return the Deed
The take away from this according to Barbara, ?People don?t realize they have more muscle than they think when they are in financial trouble?.
I invite you to comment on this after viewing the video.
What are your thoughts ?
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