The Most Expensive Markets Seen Serious Jumps In Inventory
A report from CNN. “If you’re a real estate agent, odds are you haven’t been closing as many deals lately. ‘We’re hearing things from our real estate agents that we haven’t heard in three years about homebuyers stepping back from high prices,’ said Redfin CEO Glenn Kelman on the real estate firm’s second quarter earnings call.”
“Foreclosures plagued the housing market during the financial crisis as borrowers struggled with loans they couldn’t afford and homes prices plunged. These days, borrowers are in much better shape, but there are signs that foreclosures are on the rise again. The housing analytics firm Attom Data Solutions found that foreclosure starts are increasing again for the first time since 2015. The trend is particularly visible in hurricane-hit cities like Houston, but also increasingly expensive places like Los Angeles.”
“The loans having the most trouble are those that the Federal Housing Administration-insured in 2014, when the agency was backing off on the very tight standards it had imposed during the great recession. ‘We’re seeing enough in these bellwether markets that I think it’s an inflection point,’ says Daren Blomquist, senior vice president for communications at Attom.”
The Boca Raton Observer in Florida. “Risky Business? Distressed sales, foreclosures and short sales in Miami are down, with the Miami Herald reporting that ‘only 9.9 percent of the sales in January involved properties in trouble, including bank-owned and short sale properties. Those kinds of properties accounted for 12.7 percent of the sales last year.’”
“But they’re baaack! Borrowers and investors are hot on the trail of so-called ‘nonprime’ mortgages, according to CNBC. These are basically the same subprime mortgages, only supposedly better underwritten, for people with poor credit scores, the self-employed and others who are unlikely to qualify for a prime mortgage.”
From The Mortgage Report. “According to a new analysis from Realtor.com, some of the nation’s most expensive markets have seen serious jumps in housing inventory. The biggest increase? That was in San Jose, California, where listings rose 44 percent over the year. Seattle — another pricey Western housing market — took second, with a 29 percent spike in listings year over year.”
“Other areas that also saw big jumps in housing inventory include Providence, Rhode Island; Portland, Oregon; San Diego, Sacramento, Riverside and San Francisco, California; Dallas; and Jacksonville, Florida. ‘July inventory growth is in high-priced, competitive markets, and often at the pricier end of these markets,’ according to Danielle Hale, Realtor.com’s chief economist. ‘It’s not just California markets that have seen an increase in inventory, markets on both coasts and in the South reported inventory increases in July.’”
From Geek Wire on Washington. “Seattle’s 21-month run as the nation’s hottest housing market is over. Las Vegas topped the Case Shiller U.S. National Home Price Index this month. Buyers in cities dealing with the positives and negatives of tech booms, such as Seattle and San Francisco, are sitting out, said Glenn Kelman, CEO of Redfin.”
“‘In Seattle, Portland and San Jose where prices have increased the most, the percentage of homes selling in the first two weeks on the market declined in June from 61 percent to 52 percent,’ Kelman said. ‘As U.S. home prices have increased faster than wages for 70 straight months, buyers in markets like these have finally had enough, at least for now.’”
“The purported slowdown, as well as Seattle abdication of the title of the nation’s hottest housing market comes as the city’s biggest employer has somewhat slowed its dizzying pace of growth. Amazon reported its first decline in headcount in nine years during the first quarter of this year, when its overall figure dropped by 2,900 employees.”
From NBC Bay Area in California. “A recent report from the San Francisco Chronicle revealed a hair-raising fact: thousands of homes that got a green light to be built are idling on untouched land. Experts NBC Bay Area talked to said it cannot all be explained by higher costs and a lack of labor. A look at the sun-kissed skyscrapers in San Francisco’s South of Market area and you may think new housing projects are popping up all over the city. Don’t be fooled.”
“‘Why are we only seeing ultra-luxury projects get built? Because those are the only things that developers currently can make any money on,’ said Todd David, executive director for the San Francisco Housing Action Coalition.”