Tag Archives: Home Values

U.S. home prices continued to increase in August as the Case Shiller 20-city Home Price Index rose 0.9 percent to its highest level since September 2010. The index is up 2.0 percent in the last year, showing improvement in 19 of the 20 cities surveyed. The 10-city also rose 0.9 percent in August, increasing 1.3 percent ahead of August 2011 and reaching its highest level since October 2010. The monthly gain in each index was slower than in July, when the 10-city index went up 1.5 percent and the 20-city index improved 1.6 percent.

Foreclosures have drained nearly $2 trillion in home equity from neighborhoods across the United States, according to a report from the Center for Responsible Lending. In a report titled "Collateral Damage: The Spillover Costs of Foreclosures," researchers Debbie Bocian, Wei Li, and Peter Smith conclude that, based on loans that entered foreclosure between 2007 and 2011, approximately $1.95 trillion in property value has been or will be lost by residents who live close to foreclosed properties.

In a US Housing Market Update released by the firm, analyst and property economist Paul Diggle notes that while "a substantial overhang of properties still in the shadow inventory" will keep distressed sellers in the market, the peak in distressed supply appears to be well behind us, giving homebuilders more room to grow with less competition from discounted homes. In addition, short sales--typically sold at a smaller discount--have been gaining traction as foreclosure sales drop, creating "less of a depressing influence on the new-build market."

Home values in the United States rose 1.3 percent in the third quarter, marking the fourth straight quarter of increases.

According to FNC's Residential Price Index, home prices rose in August for the sixth consecutive month, increasing at a seasonally unadjusted rate of 0.3 percent from July. While August's month-to-month increase is modest compared to the months prior, it still represents a peak since early 2011. FNC said the increase is "consistent with signs of strengthening market conditions that are led by rising existing-home sales and declining foreclosure activities."

In a September National Association of Realtors (NAR) survey related to home appraisals over the past three months, 11 percent of Realtors said a contract was cancelled because a home was appraised at a value below the negotiated price. Another 9 percent said a contract was delayed, and 15 percent said a contract was renegotiated to a lower sale price. One reason for the low values, according to the NAR, is because some appraisers are not taking into account the difference between distressed and non-distressed homes when making comparisons.

The nation's economy generally expanded modestly from mid-August until the end of September, the Federal Reserve said in its periodic Beige Book report issued Wednesday. The report, the last Beige Book to be issued prior to Election Day, painted a mixed regional picture, with a leveling off of economic activity in New York and a slowing in the pace of growth in Kansas City. Meanwhile, the remaining 10 federal reserve districts reported that "growth continued at a modest pace."

Home equity installment balances rose 0.3 percent in August--the first monthly increase since November 2007, according to Equifax. After plummeting 49 percent over the past four years to just $143 billion, the company contends August's uptick could signal "a possible turning point in mortgage demand." Equifax says amid signs the contraction in mortgage debt is slowing and delinquencies are trending down, it looks like positive growth may finally be taking hold in the mortgage market.

Rising home values in September brought homeowner equity to its highest level since the third quarter of 2008, according to the Obama administration's latest Housing Scorecard. According to the report, homeowner equity increased $406 billion, or 5.9 percent, to $7.3 trillion in the second quarter of 2012. After experiencing a turnaround into growth in the year's first quarter, total equity has grown $863 billion, or 13.5 percent, since the end of 2011.

U.S. home prices continued to increase in July, according to Case Shiller. On Tuesday it revealed that its 20-city index up 1.6 percent from June and the 10-city index up 1.5 percent. The 10-city index rose to its highest level since November 2010 and the 20-city index to the highest level since October 2010. Prices rose in all of the 20 cities. Year-over-year, the 10-city index was up 0.6 percent and the 20-city index rose 1.2 percent. Economists surveyed by Bloomberg had expected the 20-city index to increase 1.7 percent from June.