The Real Estate Market in August 2012
Real Estate Market in August 2012
There can be both negative reports and positive reports regarding the real estate market. For companies such as Regency Property Appraisers keeping up with the fluctuations of the market is essential. Previously, there were reports that the housing market was in decline. Many have reported that there was a “shadow inventory” in existence and that it would be the real estate market’s demise. But earlier in August of 2012 FMCC or Freddie Mac stated that the outlook was not nearly as foreboding as it had been thought. And actually many of the measures used to determine the state of the housing market indicate that it is in a mode of slow recovery. This is confirmed by the Freddie Mac House Price Index, the Federal Housing Finance Agency and the CoreLogic Home Price Index.
Freddie Mac provides lenders with mortgage capital. It was founded in 1970 by the Congress in order to provide stability, affordability and liquidity to the mortgage market in the United States. They have a financial influence on about one out of four home buyers in the United States and they are one of the primary resources for families who desire to financing for housing.
It seems that the market is slowly coming out of the previous slump. According to the Freddie Mac House Price Index the market actually showed a 4.8% gain in between the reports issued in March and June 2012. This is the greatest quarterly increase that has occurred in the last 8 years. In the last year from June 2011 to June 2012 the rates of rental vacancies fell to 8.6%. This is the lowest it has been since 2002. And the for-sale vacancies also dropped to just 2.1% which is the lowest since 2006. All indications are that the for-rent market is relatively balanced and these rental vacancies have leveled out, as of the reports issued in August 2012.
While there still remains a shadow inventory, it is slowly going away. The difference in August 2012 from years gone by is that there is not as large of an excess in vacant housing available. This is an indicator to real estate professionals such as Abbe Edelman that the housing market is at least in the first stages of recovery. Most economist also state that even if there is the typical dip that we usually experience in the autumn and winter seasons the decline will likely not be enough to touch the good reports of the second quarter.
Freddie Mac described the “shadow inventory” as the number of loans made for single family dwellings that are already in foreclosure or are at least 90 days overdue. Usually these homes are discounted and put back on the market just to offset. According to the Mortgage Bankers Association there are about 3.6 million properties which are in the “shadows.” This is down from the 2009 totals of around 5 million.
Freddie Mac officials state that the extra amount of vacant rentals is lower than they have been in almost 10 years. This is an indication that there the homes for sale are not having to compete with the huge amount of vacant inventory in the housing market. Since there are fewer vacancies it makes ROE homes more attractive to first time buyers and real estate investors. Freddie Mac’s chief economist and vice president, Frank Nothaft stated, “while the shadow inventory persists, there is an important difference in today’s market compared with those of recent years and that’s the substantially reduced amount of excess vacant housing. The housing recovery may finally be coming out from the shadows.” By all indications, the real estate market in August 2012 seems to be in a state of steady improvement.
Freddie Mac provides lenders with mortgage capital. It was founded in 1970 by the Congress in order to provide stability, affordability and liquidity to the mortgage market in the United States. They have a financial influence on about one out of four home buyers in the United States and they are one of the primary resources for families who desire to financing for housing.
It seems that the market is slowly coming out of the previous slump. According to the Freddie Mac House Price Index the market actually showed a 4.8% gain in between the reports issued in March and June 2012. This is the greatest quarterly increase that has occurred in the last 8 years. In the last year from June 2011 to June 2012 the rates of rental vacancies fell to 8.6%. This is the lowest it has been since 2002. And the for-sale vacancies also dropped to just 2.1% which is the lowest since 2006. All indications are that the for-rent market is relatively balanced and these rental vacancies have leveled out, as of the reports issued in August 2012.
While there still remains a shadow inventory, it is slowly going away. The difference in August 2012 from years gone by is that there is not as large of an excess in vacant housing available. This is an indicator to real estate professionals such as Abbe Edelman that the housing market is at least in the first stages of recovery. Most economist also state that even if there is the typical dip that we usually experience in the autumn and winter seasons the decline will likely not be enough to touch the good reports of the second quarter.
Freddie Mac described the “shadow inventory” as the number of loans made for single family dwellings that are already in foreclosure or are at least 90 days overdue. Usually these homes are discounted and put back on the market just to offset. According to the Mortgage Bankers Association there are about 3.6 million properties which are in the “shadows.” This is down from the 2009 totals of around 5 million.
Freddie Mac officials state that the extra amount of vacant rentals is lower than they have been in almost 10 years. This is an indication that there the homes for sale are not having to compete with the huge amount of vacant inventory in the housing market. Since there are fewer vacancies it makes ROE homes more attractive to first time buyers and real estate investors. Freddie Mac’s chief economist and vice president, Frank Nothaft stated, “while the shadow inventory persists, there is an important difference in today’s market compared with those of recent years and that’s the substantially reduced amount of excess vacant housing. The housing recovery may finally be coming out from the shadows.” By all indications, the real estate market in August 2012 seems to be in a state of steady improvement.