This month DataQuick's Property Intelligence Report focuses on the Florida Gulf Coast Region.
Check out the full release here.
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Mortgage Servicing News Blog
Determining a portfolio’s exact level of risk is particularly challenging due, in part, to the sheer volume of data and information requiring thorough review. One area of risk that often vexes servicers is evaluating lien risk, especially determining the proper reserves to hold for junior liens. This is an area that must be mastered, since regulators are putting more attention on loan loss reserves to mitigate risk.
Junior liens present several areas of potential risk in a portfolio, but the greatest is the possibility of partial or nonrepayment as senior liens are paid in first.
Recent DataQuick reports have shown that For Sale inventory in many markets is very tight, as real estate owned (REO or foreclosure) sales have dropped off. Our most recent report on Phoenix, for example, showed a 1.3% gain in prices due in part to a 2.1% drop in REO sales from the previous month.
Will this trend continue, or is there a “shadow inventory” of REO’s lurking out there. DataQuick’s RiskFinder Distress model provides insight into the level of foreclosures banks are holding.
One thing that is certain in Phoenix; there are still a lot of REO’s out there that will someday hit the market. In April, DataQuick forecasts that there were more than 11,000 single-family REO’s being held in inventory by banks.
Interestingly, the level of inventory isn’t homogeneous across the metropolitan area. One-third of the inventory comes from only 16 of the 128 ZIP Codes in the Phoenix area. While the 11,000 REO’s held in inventory represents about 1% of all single-family homes, the concentration in the top 16 ZIP Codes is over double that – on average about 2% of all homes are in foreclosure in these ZIP Codes. In three of these ZIP Codes the percentage in foreclosure is over 2.5% of all single-family residences. Strangely, while the overall rate of REO resales compared to REO inventory is around 11.5%, the rate of REO resales to REO inventory in these 16 ZIP Codes is under 10%.
For more information about DataQuick’s RiskFinder Distress, visit this link at RiskFinder Distress.
DataQuick tracks home sales nationwide weekly, and in our current report we found prices continue to rise, as they have for the past several months.
During the 30-day sales period ending July 5, approximately 211,000 homes were sold in 98 of the top 100 metropolitan statistical areas.
Sales overall rose 12% from the same period a year earlier and 10.6% from 2009 levels.
Home prices also went up with the median price hitting $193,000 on July 5, up 6% from a year ago and 4.3% from three years ago.
In a little over a month, the median sales price rose from $186,000 to $193,000. In a recent survey by Trulia, which was reported in the Wall Street Journal, home shoppers are seeing much lower inventory, which naturally leads to higher prices overall.
Our report analyzes over two-thirds of all U.S. home sales.
For more details, visit DQ News at www.dqnews.com.
We all know the factors that make your home more valuable - views, updated kitchen, proximity to the ocean or a lake (or the freeway, on the downside). But, distance from a Walmart as a predictor of home values?
Apparently so. CNNMoney has outlined a new study by economists Devin Pope at the University of Chicago and Jaren Pope at Brigham Young University that reveals 2 new Walmart stores may actually improve home prices near the store.
The report analyzed over 600,000 housing transactions nearby 159 new Walmart stores, which showed that homes within a half mile of a new store saw prices increase between 2.0 and 3.0 percent, an average of $7,000 in the two and a half years after a new Walmart store opened. Homes between a half mile and one mile away experienced price increases between 1.0 and 2.0 percent, an average of $4,000. The report notes that over one mile away, and the increases were “statistically insignificant.”
The report analyzed the pre-housing crash era, looking at transactions between 2001 and 2006, but did not include rural areas where housing data was unavailable, so further studies are definitely merited.
DataQuick's property research tools provide valuation reports as well as business, school and demographic reports. Maybe we need to add “proximity to Walmart” into the valuation equation? How about a Walmart's in a 5-mile radius report?
What do you think? Is the distance from a Walmart really a factor in determining the value of a property, or just a coincidence?