Short Sales Lose Favor With Lenders

Short Sales Lose Favor With Lenders

As home prices rise, lenders are showing less willingness to grant short sales, RealtyTrac reports.

The number of short sales has been gradually dropping the last few months. Short sales represented 5.3 percent of all sales in October, down from 6.3 percent the previous month and down from 11.2 percent last October, according to RealtyTrac data.

The National Association of REALTORS® recently reported in its October existing-home sales report that short sales tend to sell at an average discount of 14 percent below market value.

“After a surge in short sales in late 2011 and early 2012, the favored disposition method for distressed properties is shifting back toward the more traditional foreclosure auction sales and bank-owned sales,” says Daren Blomquist,vice president at RealtyTrac. “The combination of rapidly rising home prices — along with strong demand from institutional investors and other cash buyers able to buy at the public foreclosure auction or an as-is REO home — means short sales are becoming less favorable for lenders.”

Foreclosure auction sales to third parties accounted for 2.5 percent of all sales, nearly double what it was a year ago when at 1.3 percent, RealtyTrac reports. Sales of REO homes repossessed by banks made up 9.6 percent of sales in October, about the same percentage from a year ago.

In some states, short sales still remain a high proportion of sales. RealtyTrac notes that the states with the highest percentages of short sales in October were: Nevada (14.2%); Florida (13.6%); Maryland (8.2%); Michigan (6.7%) and Illinois (6.2%).

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please don’t hesitate to contact me by email at or text or phone call at 615 417-8182.


Source: REALTOR Magazine



Mortgage Interest Rates Remain Stable

The mortgage rates are remaining very stable as the real estate market continues to rebound.  Below are examples of rates as of Tuesday, November 19, 2013.


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Lenders Loosen Down Payment Requirements

Lender’s tight underwriting standards have been blamed for sidelining many potential home buyers the last few years; but lenders may be showing signs of loosening up a bit.

The average down payment on a 30-year, fixed-rate mortgage fell 2.74 percent from the second quarter to 15.73 percent of the home’s value in the third quarter, according to a new report from LendingTree.

“Lenders are putting more focus on purchase mortgages and are adjusting minimum requirements to attract borrowers,” says Doug Lebda, LendingTree founder and CEO. “With home values improving, the risk of borrowers defaulting on loans has decreased, giving lenders more confidence to lend with less cash down from qualified borrowers.”

It should also be noted that there are many options that require less than 5% down for the purchase of a home.

If you are thinking of buying or selling, talk to a REALTOR who can give you the answers you need to make an informed decision.

As always, if I can help with any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at


source: Daily Real Estate News |  Monday, November 18, 2013

Real Estate Market Continues to Improve

Real Estate Market Continues to Improve

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Everywhere you look, the real estate market shows continued signs of improvement.  The latest bit of good news is that foreclosures continue to decline and the number of homes in foreclosure or short sales on the market has reduced dramatically.

According to TransUnion Data, mortgage delinquency rates fell in the third quarter for the seventh consecutive quarter for such a decrease.  Year over year numbers show that there has been a 23 percent improvement in the number of foreclosures, which is great news for both home owners and the lenders.

Right now the biggest problem in the real estate market appears to be the lack of homes on the market.  With continued low mortgage interest rates, home buyers are looking long and hard to find a home.  Home sellers that list their home at the correct price will usually find a buyer in a relatively short period of time.

Advice to buyers:  If you are thinking of buying in the next year, I strongly encourage you to talk to a REALTOR who can help you start looking.  Also, it is very important to connect with a mortgage broker who can find the right mortgage for you.  Often times people have issues on their credit report that can be resolved, but it may take some time and that is why I encourage buyers to meet with a REALTOR and a mortgage broker that far out.  All too often, buyers wait until their lease is about to expire and then are faced with a timely matter that needs to be resolved before they can purchase a home.  Connect earlier, rather than later.

Advice to sellers: Selling your home is hard work.  Even with the help of a REALTOR there are the never-ending showings that pop up at the last minute and keeping your home looking pristine when you want to start packing is difficult.  My advice is to make sure your home is priced correctly.  Your agent should provide you with a CMA (Comparative Market Analysis) that will determine a range of what your home will most likely sell for.  Be realistic.  The seller may determine the listing price of a home, but it is the buyer who will determine the selling price.  In addition, as difficult and a pain that it is, be sure your home is presenting its best foot forward, both inside and out.  It is that first impression for buyers that needs to stick out.  Remember, the buyer that looked at your house may have also looked at several other houses.  What will still out in their mind: The nice appearance or the unmade beds from the rushed morning?

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at



Real Estate trends for 2014

Real Estate trends for 2014

If the real estate recovery is a baseball game, we’re in the fourth or fifth inning. So what will the rest of the game look like?

 A number of housing trends we can expect to see playing out over the next few years, based on surveys and interviews with real estate developers, investors, lenders, servicers and builders.

Millennials are moving the market, but not as homeowners

Though the so-called Millennial generation has been much-maligned in the media, real estate movers and shakers are increasingly interested in where this generation is headed — quite literally.

A number of the cities have seen increased economic activity in the real estate sector led by this generation, particularly Austin, Seattle, Portland and the Twin Cities in Minneapolis.
Minneapolis’ place as number nine on a list of the top 10 cities for developers came as a surprise to Andrew Warren, director of PwC, a research and advising firm that co-authored the report with ULI. 

“This is a city that’s attractive to younger generations,” he said, adding that its diverse economic base is helping to bring in a lot of college grads that don’t want to leave the Midwest.  However, this same group isn’t forming new households, and they’re not buying as many homes as their parents’ generation were at their age.

Second-tier cities will lead the recovery next year
Investors, developers and builders are losing some interest in the so-called 24-hour gateway cities — San Francisco and New York City — and have developed more interested in cities like Dallas and Portland, where there are more housing deals to be had.
For example, in 2011 only New York City and Washington, D.C. had good prospects for real estate investors and developers, according to the ULI report, but now Austin, Boston, Dallas, Houston, Miami, Orange County, Portland, San Francisco, San Jose and Seattle make that list — and D.C. actually dropped out.

Real estate recovery still hinges on job growth
The slow pace of job growth as well as income and wage growth is still holding back the real estate recovery and that’s not likely to change quickly.
Many cities in the Bay Area and in Texas have seen strong housing recoveries based on the strength of their economy, said Stephen Blank, ULI senior resident fellow for finance, so places with low unemployment can expect better recoveries next year, while places still haunted by economic issues won’t.

The “smile investing” philosophy is back
Real estate developers are interested once again in a so-called smile investment philosophy, Warren said. According to the philosophy, developers and investors start looking at cities in the Northeast and moving south to cities along the Sun Belt — Florida, Texas, Arizona — and then coming back up to the Northwest — Northern California, Oregon and Washington state. So expect to see more activity in those areas than in the Midwest.

Multi-family apartment building will wane
With rapidly rising demand for apartments during the recession — boosted by increased demand from homeowners-turned-renters — multi-family building surged. But that’s likely to quiet down in 2014, as supply and demand have swapped places — and there may actually have been too much multi-family building in 2013, Blank said.

Condo development is still on the back-burner
The recovery in the condo market hasn’t matched that of the single-family market, and developers aren’t willing to take the risk on putting up new condo buildings.
Instead, builders and developers are taking a dual-track option: They build a rental apartment building with an eye on switching it to condos in 12 to 16 months, depending on market conditions, Warren said.
High-end apartment buildings are also proving problematic for developers, as the interest from well-heeled potential renters simply hasn’t been consistently strong.

Inventory is coming back
The experts at ULI are predicting that 2014 will be the last year that low inventory will aid property prices. Distressed inventory is drying up and sellers are looking at better profits than they have in years.

The buyer’s market is long gone
Homes right now are priced to please sellers. “For buyers, they’re priced to disappoint,” Blank said.  Sellers now know they can squeeze buyers eager to buy before interest rates and home prices shoot up even further.

Shadow banking is emerging
There’s optimism among those surveyed by ULI that lending standards will loosen next year, but Blank isn’t as sure.
To fill the void, a concept called “shadow banking” has started to emerge and may take on a larger role in the lending market next year. Shadow banking is similar to traditional bank lending, but it’s done outside banks and can therefore get around bank regulations.
Borrowers going this route will find a hodge-podge of private funds, wealthy individuals, family offices, and refugees from other lending markets, according to the report.

The suburban is going urban
There’s not a lot of interest in developing suburban areas, Warren said. But where there is, it’s surrounding more urban-minded projects located in spots where amenities and public transportation are easily accessible.

If you are thinking of buying or selling , talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to email me at or text or call me at 615 417-8182.