Improved Housing Markets Expanding by Jim Woodard on Creators.com

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Improved Housing Markets Expanding

The number of metro areas showing substantial improvement in its housing market is growing dramatically. Those areas showing improvement, expanded by 29 metros in February to include a total of 98 entries.

This was determined by a study undertaken for the National Association of Home Builders and First American Improving Markets Index. Thirty-six states are now represented by at least one market on the list.

"The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. The February index adds some metropolitan areas that have been particularly weak," the study report noted.

This is because the study measures improvement from a bottom, and some of the hardest hit markets are now showing signs of coming off extreme lows. The most notable new entrants to the list in February include: Miami, Fla.; Boston; Detroit; Kansas City, Mo.; Portland, Ore.; Memphis, Tenn.; and Salt Lake City.

"The number of improving housing markets has risen for six consecutive months, and 36 states now have at least one metropolitan area on the list," said NAHB Chairman Bob Nielsen. "This indicates that despite the many challenges that continue to be a drag on housing, improving conditions are slowly but surely spreading from one housing market to the next."

"While many of the markets in February are far from fully recovered, the index points out where employment, home prices and housing production are no longer retreating and have held above their lowest recession troughs for six months or more," said NAHB Chief Economist David Crowe.

"This is a sign that a large cross section of the country is starting to turn the corner as local economic conditions stabilize."

Q: Are Real Estate Owned properties available via online offers?

A: Fannie Mae recently expanded its online system to accept purchase offers for all its REOs (properties owned by Fannie) listed for sale. Real estate agents will now submit offers online on behalf of clients, receive receipt confirmation and track the status of submitted offers through the HomePath.com website.

In November 2010, Fannie Mae launched the HomePath Online Offers pilot in several key markets.

Now, the online service is available for all Fannie Mae-owned properties across the nation.

Q: Is the number of homes in foreclosure decreasing?

A: Yes, the number of homes in foreclosure is decreasing nationwide, according to a recent report from CoreLogic. Completed foreclosures for 2011 totaled 830,000, compared to 1.1 million in 2010.

The December 2011 completed foreclosures figure was also down to 55,000, compared to 67,000 in December 2010, according to the report. It also revealed that in December of last year, servicers increased the rate at which they were able to process distressed assets, also known as the distressed clearing ratio.

Q: Is the number of vacant houses growing?

A: The percentage of single-family homes sitting empty fell to 2.3 percent in the fourth quarter of 2011, according to data released by the U.S. Census Bureau. That's down from 2.7 percent at the beginning of last year and the lowest homeowner vacancy rate since early 2006.

Analysts say it's a sign that excess inventory — at least the visible inventory — is slowly but surely beginning to clear. The Census Bureau also reported that the nation's homeownership rate dropped to 66.0 percent — its lowest level in nearly 14 years.

Q: What's the prognosis for housing at this point?

A: Here's the view of Raphael Bostic, assistant secretary of the Department of Housing and Urban Development:

"While we should be encouraged by the positive trends on inventories and foreclosure starts, the mixed overall outlook means that we must remain diligent to improve conditions in the nation's housing market.

"Responsible homeowners shouldn't have to sit and wait for the housing market to hit bottom to get some relief. That's why the administration's recent proposals are critical to promoting healing in the market. Our efforts to ramp up economic development in fragile neighborhoods and to expand homeowner access to low-interest refinance options reflect our commitment to turning these markets towards growth."

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.