May Foreclosures Down 3% from April

U.S. foreclosure filings continued to level off in May, decreasing by 3%
compared to the previous month, according to industry tracker
RealtyTrac. The filings, which include default notices, scheduled auctions
and bank repossessions increased less than one percent compared to May
2009, after the first decrease in four years last month over the same
period a year before.

The tracker also found that 10 U.S. states accounted for over 70% of the
national total. California alone accounted for more than 22% of the total
nationwide.

“The numbers in May continued and confirmed the trends we noticed in
April: overall foreclosure activity leveling off while lenders work through
the backlog of distressed properties that have built up over the past 20
months,” said James Saccacio, RealtyTrac chief executive officer.

See full story here: U.S. Foreclosure Activity Decreases in May posted at AFP.

Freddie Mac: Mortgage Rates Drop Near Historic Lows

Bond yields fell and mortgage rates followed, allowing the 30-year fixed-rate mortgage to hover
near its record low set late last year, Freddie Mac’s chief economist said.
The 30-year fixed-rate mortgage averaged 4.72% for the week ending June 10, down from
4.79% last week and 5.59% a year ago, according to Freddie Mac’s weekly survey of
conforming mortgage rates.

The 15-year fixed-rate mortgage set a record low for the fourth week in a row, averaging
4.17% this week, down from 4.20% last week and 5.06% a year ago.

“The Federal Reserve reported in its June 9 regional economic review that the economy
strengthened in all 12 of its Districts over April and May,” said Frank Nothaft, Freddie Mac vice
president and chief economist.

See full story here: Mortgage Rates Drop by Amy Hoak, MarketWatch.

The latest Northwest Multiple Listing Service press release reported tapering home sales in May after the April surge brought on by the tax credit deadline.

“Leading up to its expiration, the tax credit caused a surge of home sales, but a surge can only be sustained for so long,” Lennox Scott reports. “What we’re seeing now is a natural adjustment. As consumer confidence continues to improve in the coming months, we expect to see the buyer pool replenish itself which should be followed by an increase in home sales.”

Listing activity also sagged after strong upticks in March and April during the buildup before the lapse of incentives. Brokers added 9.385 new listings to inventory last month, down nearly 17 percent from year-ago totals. The additions included 8,122 single family homes and 1,263 condominiums.

NWMLS director Dick Beeson notes the “extremely low interest rate phenomenon” is expected to last through the summer and into fall, which he believes will help give a nudge to buyers that “no longer can look to the tax credit for incentive.”

On a more optimistic note, Frank Wilson, another MLS director and the managing broker at John L. Scott, Inc. Poulsbo, agreed the slowdown during May was due in part to the end of the incentive program, but noted overall activity so far this year is stronger than a year ago.

Download the full news release for more in depth information and statistical summary charts for May 2010 market activity.

“While the tax credit has gone away, the buyers haven’t,” observed Northwest Multiple Listing Service board member OB Jacobi.

Jacobi believes the recently expired tax incentives accelerated the recovery, but feels the rising consumer confidence is what’s driving the rise now.

9,438 pending sales were reported by Northwest MLS brokers during April, a more than 36% increase from the same month a year ago. 7,368 of these were in the four county Puget Sound region, the highest volume in this area since August 2006. Two counties, Grant and Pacific, reported a 200% increase in the number of units sold last month versus a year ago.

Read Full News Release

According to this Fannie Mae Survey, nearly two-thirds of Americans think the time is right to buy a house, with a majority believing prices will be the same or higher over the next year, according to a Fannie Mae survey released April 6. The 64% that said it is a good time to buy is just shy of the 66% that said the same thing in 2003 as the U.S. housing market was racing higher, according to the survey. Click here for full survey results.

In addition, according to a Fannie Mae survey released on Tuesday, nearly two-thirds of Americans think the time is right to buy a house, with a majority believing prices will be the same or higher over the next year. More positive data is realized in these poll results – by Al Yoon, Reuters. Click here for full article.

According to the attached Northwest MLS News Release, Washington State home sales sharply increased last month, with brokers reporting activity levels “we haven’t seen in a while,” according to the owner of a Seattle real estate brokerage. Members of the Northwest Multiple Listing Service reported 8,605 pending sales during March, a 51% increase the same month last year.

Entry-level home sales have been driving the market but the strongest activity occurred at the upper price ranges. Last month 91 homes (76 of them in King County) sold for $1 million or more. In contrast, twelve months ago only 40 homes and condos fetched $1 million or more.

Pending sales yet-to-close in the four-county Puget Sound region rose 60% from twelve months ago, Snohomish County leading with the number of transactions jumping more than 77%.

NWMLS director Diedre Haines said her network of three offices broke a nine-year old record for the most transactions in a single month. She attributes the gains to several factors, including tax incentives and the return of jumbo loan financing, but also noted an uptick in activity for parcels of land.

“We are once again representing buyers in the purchase of both raw undeveloped land and platted lots,” Haines remarked. “This is the first time we have seen land purchases in over two years.” Of the buyers, she said some intend to start building now and others are buying for investment.

Brokers also reported year-over-year increases in the number of new listings added to inventory and in the volume of closed sales. Members added 12,994 new listings to the system last month, up 26.7% from the year-ago total of 10,252 new listings.

Download Full 3-Page News Release

Northwest Multiple Listing Service members tallied more than 52,000 single family home and condominium sales in 2009, about 3.7% fewer than 2008, for a combined sales value of more than $17 billion. This report reflects activity of members in 19 counties encompassing nearly eighty percent of the state’s population.

Although the number of sales nearly matched 2008 levels, the dollar volume of the sales fell by 14.6%. Brokers attribute the drop to lower selling prices and higher volume of short sales and foreclosures.

Among the 19 counties included in this report, San Juan claimed the highest median sales price for single family homes at $443,500. King County followed at $380,000. System-wide the median price last year was $280,000.

For condos the median selling price was $235,000, down 7.3% from 2008. King County accounted for 6 out of every 10 condo sales, selling for a median price of $254,000.

Other highlights in the Annual MLS Summary:

• More than 8 out of 10 transactions was a “co-op” sale; listed by one office and sold by another.
• Single family homes accounted for 87% of total sales.
• 802 sales of single family homes fetched $1 million or more. The MLS map area for Bellevue/west of I-405 had the highest volume of million-dollar plus sales (120 closed sales). The highest priced home sale in the MLS system for 2009 was $15,560,000 for a home on Mercer Island.
• Reported 66 sales of condos sold for $1 million or more, 392 condos sold for $500,000 or more. Highest priced condo sold last year was in downtown Seattle for $9,750,000.

According to the latest reports from Northwest Multiple Listing Service, 4,399 buyers purchase offers were accepted during September 2009, the best on record since December 2006.

With affordability benefiting buyers, and smaller inventory than a year ago benefiting sellers, we are looking forward to continued  movement in a positive direction.

Click here for complete information from the Northwest Multiple Listing Service.

It seems that everywhere we look, the US economy has been at the forefront of every news article, press release, and lead story that we encounter. It’s not just a national issue, either; the two month Boeing layoff cost our region dearly, WAMU’s demise closed the local corporate office, and both Starbucks and Costco have suffered significant 3rd Qtr losses. (more…)