Frannie & Freddie Backing More Mortgages of Those Deeply in Debt

BY  ON JUNE 11, 2019

A recent article by the Wall Street Journal (reposted on Realtor.com) says that Fannie & Freddie are increasingly backing loans to borrowers who have heavy debt loads, bringing up concerns about mortgage risk as to policy makers debate ways to make changes to the system.  According to the WSJ, nearly 30% of loans packaged into bonds last year by Fannie Mae and Freddie Mac were from home buyers whose total debt payments amounted to more than 43% of their income.

“The backing of these loans opens up a debate about the government’s role in the housing market. Some say cheap, federally backed financing has made credit available for millions of borrowers who otherwise might not have had a shot at homeownership. Others say that more-indebted borrowers are riskier, and that their purchases may be accentuating a rise in home prices that in many areas has outstripped median incomes.

WSJ.com

Click here to read the full story on Realtor.com.

Click here to read the full story at the Wall Street Journal.

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Florida City Forecloses on Retiree for not Mowing Lawn

BY  ON JUNE 10, 2019

If you own rentals you may have received at some point a ticket from your city about high weeds or grass.  More often than not, the tenant that was supposed to mow the lawn failed to do so, but since you’re the property owner you get the ticket.  That being said, Realtor.com is reporting that a Florida retiree has racked up nearly $30k in fines for not keeping his home’s lawn under 10 inches.  The fines, going back to 2007, have also been compounded by a $500/day penalty!  He was classified as a repeat offender (and wasn’t given any time to correct the offense by mowing his grass) and now the city has begun foreclosure proceedings on his home, which by the way is worth about $142,800.

“A $30,000 fine and the loss of your home is not proportional to the offense of having tall grass,” says Ficken’s attorney, Ari Bargil. His nonprofit law firm, the Institute for Justice, agreed to take on the case at no cost to Ficken.

Click here to read the full story on Realtor.com.

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Flood Insurance Program Extended Through September

BY  ON JUNE 13, 2019

The National Flood Insurance Program (NFIP) recently received another “kick-down-the-road,” so to speak, as part of the $19 billion disaster relief bill that was passed by Congress and signed by the President the first week of June.  The measure, tacked into the disaster relief bill, extended the National Flood Insurance Program until the end of September, 2019.

Click here to read the full release at FEMA.gov.

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Flipping Rates Reaches Nine-Year High in Q1

BY  ON JUNE 10, 2019

In their latest U.S. Home Flipping Report, ATTOM Data is reporting that 49,059 homes were flipped in the first quarter of 2019 representing 7.2% of all home sales – which is the highest home flipping rate since Q1 of 2010. Homes during Q1 2019 sold at an average gross profit of $60k, which translates into an average 38.7% return on investment compared to the original acquisition price.  Flipped homes took an average of 180 days to complete in Q1.

“…While the home flipping rate is increasing, gross profits and ROI are starting to weaken and the number of investors that are flipping is down 11 percent from last year. Therefore, if investors are seeing profit margins drop, they may be acting now and selling before price increases drop even more.”  Said Todd Teta, chief product officer at ATTOM Data Solutions.

Click here to read the full report at ATTOM.

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Less than Half of Buyers Said Tax Reform Affected Their Home Search

BY  ON JUNE 6, 2019

A recent survey by Redfin revealed that less than half of home buyers said 2017’s Tax Reform affected their home searches.  The survey was conducted in March of over 2k U.S. residents who planned to buy or sell a primary residence in the next year.

“Last year more homebuyers were worried that tax reform would hurt their homebuying budgets, but it turns out tax reform wasn’t all bad or all good for homebuyers,” said Redfin chief economist Daryl Fairweather. “Some homebuyers, especially in low-tax states, are now paying less in taxes overall, which has left them with more cash for a more expensive home. For others, not being able to deduct as much of their property taxes or mortgage interest from their taxable income was the other shoe that needed to drop to make them pick up and move to a more affordable area.

Click here to read the full report at Redfin.com.

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For Sale Inventory's Shift to the Rental Market over the Past Decade

BY  ON JUNE 6, 2019

A recent report from CoreLogic shows that, over the past 10 years, there’s been a shift in homes that normally would be for sale, into the rental market. They suggest this shift has resulted in an actual “under supply” of available housing for sale.  They point out that as recent as March, inventory has been at an historical low.  Indeed…

“During the Great Recession and 2006-2011 home-price drop, many homes were foreclosed upon or traded as short sales and ended up being purchased by investors, with a number of these houses eventually becoming rental properties.”

Click here to read the full report on CoreLogic.com.

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Zumper's National Rent Report for June

BY  ON JUNE 5, 2019

Rental information site Zumper recently released their National Rent Report for June showing that the median national rent for 1-bedroom apartment was $1,216 and the median two-bedroom rent was $1,471.  Year to date, one bedroom prices are up 1.5% and two bedroom prices are up 2.4%.  Zumper analyzes rental data from over 1 million active listings across the United States. Data is aggregated on a monthly basis to calculate median asking rents for the top 100 metro areas by population, providing a comprehensive view of the current state of the market. The report is based on all data available in the month prior to publication…..be sure to check out their entire list of 100 cities.

Click here to read the full report on Zumper.com.

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The Best Places to Park Your Money

BY  ON JUNE 5, 2019

“I don’t want to make more money — said no one, ever”...That’s the gist of a recent Realtor.com article that took a close look at eight common investments (three are related to housing) and how well they’ve been doing over the last five years.  They zeroed-in on the highest and lowest one-year, three-year, and five-year returns to provide a snapshot of how various money-making opportunities are performing.

The eight common investments are:

  • Home Price Appreciation
  • REITs
  • Bitcoin
  • Stocks
  • Mutual Funds
  • Bonds
  • Home Flipping
  • Single-Family Rentals

                                                                                                                               Charles Tassell

“Make sure you have reserves for repairs beyond what you plan and expect for,” says Charles Tassell, a Cincinnati-based landlord, flipper, and chief operating officer of the National Real Estate Investors Association. “You never know what you’re going to find when you open up a wall.”

Click here to read the full story at Realtor.com.

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U.S. Construction Spending Holds Firm in April

BY  ON JUNE 4, 2019

The U.S. government is reporting that total construction spending in April was estimated at a seasonally adjusted annual rate of $1,298.5 billion, which was nearly the same as March’s revised rate.  Residential construction was at a seasonally adjusted annual rate of $499.3 billion in April, 0.6% below March’s revised estimate.

 

Click here to read the full report at Census.gov.

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ABODO: Rents Are Movin' on Up!

BY  ON JUNE 4, 2019

National apartment listing site ABODO recently reported that the median nationwide rent price for one-bedroom units in June was $1,087 with two-bedroom units coming in at $1,354.  ABODO uses over 1 million listings across the United States to calculate the median 1-bedroom rent price by city, state, and nation and then track the month-over-month percentage change. To avoid small sample sizes, they restrict their analysis to cities meeting minimum population and property count thresholds.  Be sure to check out their extensive city list.

“Both one and two-bedroom units are movin’ on up with two-bedroom units rising by over 2 percent in June. Let’s get into it and discuss this accelerating nationwide trend.”

Click here to read the full report at Abodo.com.

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