Real Estate News & More

Lower Credit Scores on Loans

May 18th, 2012 \\ Finance, Market Statistics \\ Tagged: , , , ,

Credit-Score

The numbers show that there were lower credit scores on loans that closed in April 2012 which means that underwriting is loosening up.  Ellie Mae data showed that the average FICO score on closed loans in April was 745, down from 749 in March and 750 in February.  The highest credit scores were found in October 2011 and February 2012.  The loan-to-value ratio on closed loans reached a nine-month high of 80 in April, compared to 77 in March and 76 in February and January. Of those loans that closed last month, 56% were refinancings, down from 61% in March. Purchase applications, on the other hand, represented 44% of mortgage origination activity, up from 39% in March.

 

 

 

Market Statistics

May 17th, 2012 \\ Housing Market, Market Statistics \\ Tagged: , ,

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According to the Minneapolis Association of Realtors market statistics, prices are bottoming out and starting to rise. Buyer activity is showing year-over-year gains. Homes are selling faster and closer to list price. Multiple offers are becoming commonplace. Inventory levels are leaning toward the seller. Continue Reading

Shadow Inventory

May 16th, 2012 \\ Housing Market \\ Tagged: , , , ,

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What is shadow inventory?  Shadow inventory is real estate properties that are either in foreclosure and have not yet been sold or homes that sellers are holding back on selling until the market improves.  If all the shadow inventory were released at once the market would be flooded with homes and drive the market way down.  According to Standard and Poor’s, it will take about 46 months to clear the current shadow inventory.  Once the majority of these homes have been released the market can really begin to stabilize.  Shadow inventory is always coming onto the market but for the first time since 2007, the rate has slowed in the first quarter of 2012.

Home Ownership

May 14th, 2012 \\ Housing Market \\ Tagged: , , , ,

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The percentage of home ownership is at its lowest point in the last 20 years resulting in the strongest rental market in the past 20 years!   About 71 percent of Minnesotans owned their home last year, the lowest annual rate since 1993 when the rate stood at 68.9 percent, according to census numbers. Home ownership fell again during the first quarter of 2012 to about 70 percent. During the height of the housing bubble, the home ownership rate in Minnesota was one of the highest in the nation, hitting 79 percent in early 2005. Continue Reading