Real Estate Housing Recovery:
Restoring the health of the housing market is a necessary part of a broader strategy for economic recovery. Home Destination: Real Estate, Jenna Thuening RE/MAX Results residential realtor, offers Federal Reserve Chairman Ben Bernanke's comments on forecasts for economic growth.
Minneapolis Housing Recovery
Multiple national economists have long been in agreement that 2013 would be the turning point for the housing recovery. If July is any indication, their predictions are dead-on. Twin Cities home buyers were out in force snapped up more homes in July than in any month since mid-2006, according to the Minneapolis Area Association of Realtors. There were 5,638 sales in the metro area, an 18 percent jump over July of last year, signaling a strong Minneapolis housing recovery.
Home prices also marched closer toward levels similar to pre-housing bubble days. A combination of pricier homes for sale, slowing foreclosure activity and bidding wars drove the median sales price to nearly $209,000 last month. The same housing market trend is across the country and proving that a real hosuing recovery is unfolding. The National Association of Realtors said home prices rose 87 percent of the 163 U.S. cities tracked by the group in August of 2013.
Minneapolis Real Estate Housing Recovery Due To Fewer Home Foreclosures
Fewer homeowners are finding themselves facing challenges of being thrown into the Minnesota foreclosure timeline. Statewide there were 6,795 foreclosure sales during the first half of 2013, a 29 percent yearly decrease and the least number of foreclosures since 2006, according to the Minnesota Homeownership Center. The report is encouraging due to its evidence of the strong correlation between job improvements and the Minneapolis real estate housing recovery. The Homeownership Center, which uses filing data collected across the entire state by HousingLink Minnesota, said the biggest declines in foreclosure rates were in the Twin Cities metro area. various housing sectors saw as much as a 33 percent drop from 2012. Home sales in the Twin Cities metro have risen at a double-digit pace for nearly two years in a row.
If you are in a pre-foreclosure stage or falling behind with your mortgage payment there is a way to get back on your feet without depleting your savings, canceling your insurance or living on an impossible budget. You are not alone. Take quick action before you find your self in such time constriants that you may be more prone to take desperate measures. Know your options.
"Modest improvements in Minnesota’s economy and increasing home prices, combined with improvements in how banks and lenders deal with struggling homeowners, are positively impacting the number of homes lost to foreclosure," ~ Ed Nelson, communications manager for the Minnesota Homeownership Center.
Loan Modifications And Home Mortgage Refinancing Lead Housing Recovery
HUD reports The US Treasury Department July 1 report says that more struggling homeowners sought help with loan modifications and underwater home mortgage refinancing in May. Although the main program introduced by the Obama administration to aid borrowers at risk of foreclosure remains below its initial expectations, we are seeing more homeowners taking action to benefit from loan modifications.
Home Affordable Refinance Program Extended
The FHFA, the organization responsible for the Home Affordable Refinance Program (HARP) recently announced that the HARP program will be extended another year and is now set to expire June 30, 2012 rather than that same date this year. Learn how homeowners can request a home loan modification, or learn how homeowners can refinance even if they hold an underwater mortgage.
Tim Massad, Treasury Assistant Secretary for Financial Stability, assures us that "The administration remains committed to reaching homeowners who are still struggling so that our country can fully recover from an unprecedented housing crisis,"
The Home Affordable Modification Program was created in the spring of 2009 as the centerpiece program to boost the weak housing sector. It aims to reach out to borrowers by making loan work-outs, extending the life of their loans. The number of borrowers who have received permanent loan modifications since HAMP's inception rose to 731,451 in May, compared with the administration's goal of reaching 3 million to 4 million home owners when the program was introduced. "The Housing Finance Reform lays out reforms to continue fixing the fundamental flaws in the mortgage market through stronger consumer protection, increased transparency for investors, improved underwriting standards, and other critical measures.
Mortgage Settlement Intends to Boost Minneapolis Housing Recovery
On March 7th, 2012 good news from the Federal Reserve about the real estate housing recovery: The $25-billion settlement involving the five biggest banks over foreclosure abuses that U.S. housing officials and 49 state attorneys general announced last month is coming into view. Some homeowners have already been contacted and are seeing first-had results to the stop foreclosure help for mortgage relief scams. On May 11, 2011 NAR President Ron Phipps Appears emphasized the importance of the MID to home owners, housing, and the overall economy, which adds strength to advocates for the local Minneapolis housing recovery.
Federal Reserve Summary by Ben Breakneck on Mortgage Credit Conditions Beginning 2012
The sluggish progress in the U.S. housing market and threatening global financial vulnerabilities continue to impede our economic recovery. House prices have fallen an average of about 33 percent from their 2006 peak, resulting in about $7 trillion in household wealth losses and an associated ratcheting down of aggregate consumption. At the same time, an unprecedented number of households have lost, or are on the verge of losing, their homes. The extraordinary problems plaguing the housing market reflect in part the effect of weak demand due to high unemployment and heightened uncertainty. But the problems also reflect three key forces originating from within the housing market itself: a persistent excess supply of vacant homes on the market, many of which stem from foreclosures; a marked and potentially long-term downshift in the supply of mortgage credit; and the costs that an often unwieldy and inefficient foreclosure process imposes on homeowners, lenders, and communities.
Tight Credit Conditions Constrict Housing Recovery
Unfortunately, exceptionally tight standards across the current real estate industry reflect barriers that limit or inhibit lending to creditworthy borrowers. Tight standards can take many form of:
stricter underwriting policies
higher fees and interest rates for poor credit
fewer mortgage options
more-stringent documentation requirements
larger down payments requires
stricter appraisal standards
U. S. Housing Recovery Program Successes & Progress: Looking at the Facts
A total 32,398 homeowners obtained permanent modifications in May under the HAMP program. That was up 12 percent from 28,867 in April.
The US Treasury Dept. said there were 633,459 active trial modifications underway in May 2011, up from 608,615 reported in April of this year. The U.S. Commerce Department said Wednesday, November 28th, 2012 that home sales were up 17 percent compared with November 2011. Home property values also increased, with the median sales price of newly constructed homes during October about 5.7 percent higher than in September. However, when adjusted for seasonal factors, home sales nationally had fallen 0.3 percent from September to October, something the Minneapolis housing market finds as a normal trend to seasonal buyers once frigid weather settles in.
Bank of America, JPMorgan Chase and Wells Fargo were the top three servicers participating in HAMP, with 160,211, 106,826 and 101,834 active trial modifications, respectively, as of April.
Twin Cities Housing Recovery:
Aside from consumer confidence being strong and economic factors that are driving the market, there's a major demographic shift bearing weight to help drive demand for new housing. In most U.S major metro areas, household growth is rising after years of declines, one common trend is toward multigenerational households. A survey by Pitney Bowes Software said the Twin Cities is among nearly 400 metro areas where household formation is expected to increase, albeit at at slower pace then witnessed from 2000 to 2010.
Even with winter's frost upon us, home and apartment construction in the Twin Cities almost tripled this month compared with last year, yet another sign that the Minneapolis housing market is strong and steadily improving. Builders were issued 377 permits this month to build 1,278 single-family houses and apartments, according to the Builders Association of the Twin Cities (BATC). Big apartment buildings made up most of the increase, but builders say the overall construction industry is recovering.
Download Ben Bernake's comments on the current state of the U.S. housing recovery.
Home Destination urges homeowners facing foreclosure - don't walk away form your mortgage. Read exciting foreclosure solutions in the news and that our real estate market may have reached bottom and is headed for recovery. Check out Home Destination's many home buyer and seller resources. Know Minneapolis current home prices and ongoing news about the Twin Cities housing recovery.
Jenna Thuening, a Certified Distressed Property Expert brings homeowners news on the real estate recovery process.
Eden Prairie MN 55344
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