This Week in Real Estate
Good Morning!
According to ATTOM Data Solutions This Week in Real Estate
buyers who close on a home purchase in October historically realize the best
‘deal.’ Buyer’s counterparts, homeowners, continue to benefit from historically
strong price appreciation. The latest CoreLogic Home Price Index revealed the
highest 12-month gain in the U.S. index since it began in 1976. Below are a
few newsworthy events from the first week of October that influence
our business:
* October is Ripe
for Homebuyers. ATTOM, curator of the nation’s
premier property database, today released its annual analysis of the best time
of the year to buy a home, which shows that the month of October, as well as
the winter months, offer homebuyers the best deals - fetching lower premiums
than other months of the year. According to the analysis, buyers who close in
October will get the best deal compared to the spring buying season. While the
premium is still above market value, homebuyers are only dealing with a 2.9%
premium, as opposed to the month of May, when homebuyers are experiencing an
11.5% premium. This analysis of more than 33 million single family home and
condo sales over the past eight years is evidence of the continuation of a hot
sellers’ market.
* Expirations Reduce
Forbearance Participants by 11 Percent. The number of
mortgages in forbearance saw its largest reduction in 12 months last week.
Black Knight said 177,000 loans exited the program, many of them having reached
the end of the 18 months of reduced or suspended payments allowed for those
financially impacted by the COVID-19 pandemic. This is an 11 percent
reduction in program participants during the week ended October 5. The
company estimates about 180,000 additional plans with September 30 expirations
await quarterly reviews as servicers work through the processing of large
volumes of loans. Another 420,000 loans are scheduled for extension or removal
in October. Many of these half-million loans will be reaching the end of
allowable participation and will not be renewed. Black Knight estimates that
1.39 million homeowners remain in the program, 2.6 percent of the 53 million
with a mortgage. Last week's declines bring the total reductions over the past
month to 294,000 loans or 17 percent of forbearance volume. Black Knight says
this is the fastest rate of improvement since October 2020.
Full
Story…
http://www.mortgagenewsdaily.com/10082021_black_knight_forbearances.asp
* Homebuying Demand
Pressures Push U.S. Annual Home Price Gains to All-Time High in August. National home prices increased 18.1%
year over year in August 2021, according to the latest CoreLogic Home Price
Index (HPI) Report. The August 2021 HPI gain was up from the August 2020 gain
of 5.9% and was the highest 12-month growth in the U.S. index since the series
began in 1976. Home price growth accelerated for all four price tiers to the
highest rates since the inception of the CoreLogic HPI in 1976. The lowest price
tier increased 21.6% year over year in August 2021, compared with 20% for the
low- to middle-price tier, 19.9% for the middle- to moderate-price tier, and
18.9% for the high-price tier. While all states showed annual increases in HPI
in August, appreciation was strongest in the West. he surge in home price
appreciation was felt across the country, with all states showing higher
appreciation in August 2021 than in August 2020.
Have a productive week.
Jason
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