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Foreclosure rates rise in most major metro areas

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The 2010 Year-End Metropolitan Foreclosure Market Report by RealtyTrac.com has revealed that foreclosures posted in 2010 are up from 2009 in 72% of cities with populations over 200,000. In an interesting turn, however, the areas with the top ten highest foreclosure rates are actually down from 2009 and 60% of those have decreased since 2008.

So, the most hard hit areas are slowing down foreclosure rates while the more traditionally resilient areas have actually seen an increase with Houston, Atlanta and Seattle experiencing the largest increases of the 20 largest metros. It is no surprise to anyone that Vegas continues to top the foreclosure charts.

Top 20 metros charted:

Full press release from RealtyTrac:

IRVINE, Calif. – Jan. 27, 2011 – RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its 2010 Year-End Metropolitan Foreclosure Market Report, which shows that while foreclosure activity increased from 2009 in 149 of the nation’s 206 metropolitan areas with a population of 200,000 or more, the metro areas with the 10 highest foreclosure rates all posted decreasing foreclosure activity from 2009 and six of the top 10 also posted decreasing foreclosure activity from 2008.

California, Florida, Nevada and Arizona cities accounted for 19 of the top 20 metro foreclosure rates, with Boise City-Nampa, Idaho the lone exception at No. 20. Boise also was one of only three metros in the top 20 where foreclosure activity increased from 2009, along with the Florida metro areas of Deltona-Daytona Beach-Ormond Beach at No. 13 and Tampa-St. Petersburg-Clearwater at No. 17.

“Foreclosure floodwaters receded somewhat in 2010 in the nation’s hardest-hit housing markets,” said James J. Saccacio, chief executive officer of RealtyTrac. “Even so, foreclosure levels remained five to 10 times higher than historic norms in most of those hard-hit markets, where deep faultlines of risk remain and could potentially trigger more waves of foreclosure activity in 2011 and beyond. Meanwhile foreclosures became more widespread in 2010 as high unemployment drove activity up in 72 percent of the nation’s metro areas — many of which were relatively insulated from the initial foreclosure tsunami.”

Top 10 metro foreclosure rates
Las Vegas-Paradise continued to post the nation’s highest metro foreclosure rate, with one in every 9 housing units (10.88 percent) receiving a foreclosure filing in 2010 — nearly five times the national average. A total of 88,198 Las Vegas-area properties received a foreclosure filing in 2010, a decrease of 7 percent from 2009 but still up 31 percent from 2008.

Despite decreasing foreclosure activity from both 2009 and 2008, Cape Coral-Fort Myers, Fla., documented the nation’s second highest metro foreclosure rate, with one in every 12 housing units (8.40 percent) receiving a foreclosure filing in 2010. A total of 30,660 properties in the metro area received a foreclosure filing in 2010, down 28 percent from 2009 and down 25 percent from 2008.

Modesto, Calif., also reported a decrease in foreclosure activity from 2009 and 2008, but the metro area still posted the nation’s third highest metro foreclosure rate with one in every 14 housing units (7.34 percent) receiving a foreclosure filing in 2010.

Along with Cape Coral-Fort Myers and Modesto, four other metro areas with foreclosure rates in the top 10 also reported two-year decreases in foreclosure activity: No. 6 Riverside-San Bernardino-Ontario, Calif., where foreclosure activity was down nearly 20 percent from 2009 and nearly 10 percent from 2008; No. 7 Stockton, Calif., where foreclosure activity was down nearly 19 percent from 2009 and nearly 25 percent from 2008; No. 8 Merced, Calif., where foreclosure activity was down nearly 31 percent from 2009 and 30 percent from 2008; and No. 10 Vallejo-Fairfield, Calif., where foreclosure activity was down 12 percent from 2009 and 3 percent from 2008.

Other metro areas with foreclosure rates in the top 10 were Phoenix-Mesa-Scottsdale at No. 4 (7.27 percent); Miami-Fort Lauderdale-Pompano Beach at No. 5 (7.08 percent); and Orlando-Kissimmee at No. 9 (6.86 percent).

Trends in 20 largest metro areas
Foreclosure activity trends were evenly split in the nation’s 20 largest metro areas, with 10 of those metro areas showing decreasing foreclosure activity from 2009, and 10 showing increasing foreclosure activity from 2009. Foreclosure activity increased 26 percent from 2009 in Houston-Sugar Land-Baytown, Texas, the biggest increase among the 20 largest metro areas, followed by Seattle-Tacoma-Bellvue, Wash., with a nearly 23 percent increase, and Atlanta-Sandy Springs-Marietta, Ga., with a nearly 21 percent increase.

The Washington, D.C., metro area posted the biggest decrease in foreclosure activity from 2009 among the nation’s 20 largest metro areas, down 22 percent, followed by three Southern California metro areas: Riverside-San Bernardino-Ontario, with a 20 percent decrease; San Diego-Carlsbad-San Marcos, with a 17 percent decrease; and Los Angeles-Long Beach-Santa Ana, with a 16 percent decrease.

Metros with most bank repossessions
The Phoenix-Mesa-Scottsdale metro area reported 55,372 bank repossessions (REO) in 2010, the most of any metro area and up 17 percent from 2009. The Chicago-Naperville-Joliet metro area reported 45,555 REOs in 2010, the second most of any metro area and an increase of nearly 20 percent from 2009, and the Detroit-Warren-Livonia metro area reported 43,541 REOs in 2010, the third most of any metro area and up 19 percent from 2009,

Other metros in the top five for most REOs in 2010 were Miami-Fort Lauderdale-Pompano Beach, with 42,630 bank repossessions, and Atlanta-Sandy Springs-Marietta, with 38,535. All five metro areas in the top five posted increasing REO activity from 2009.

Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the year for metropolitan statistical areas with a population of 200,000 or more based on Census bureau estimates. Some foreclosure filings entered into the database during a year may have been recorded in previous time periods. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is received for a property during the year, only the most recent filing is counted in the report. If the same type of foreclosure document was filed against a property previous to the year but within the estimated foreclosure timeframe for the state where the property is located, the report does not count the property in the year.

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Austin

Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?

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Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.

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aging housing inventory

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

Click here to continue reading this story…

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.

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Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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