The Threat of Shadow Inventory Lessens

In order for the real estate market to continue to improve the reduction in shadow inventory needs to happen.   I am also hearing from other real estate agents and people who live in the hardest hit areas like Florida and Nevada that house sales have improved a great deal.  This is all very good news.    

Shadow Inventory Threat Lessens

DAILY REAL ESTATE NEWS | TUESDAY, SEPTEMBER 25, 2012

The shadow inventory of troubled mortgages and foreclosed homes saw a 1.2 million decrease in the first half of the year, according to research conducted by JPMorgan Chase. 

Chase researchers expect that progress to double before the year’s end, too. That would then bring the shadow inventory to more than 4 million, which is down from the 6 million peak reached in 2010. 

A rising number of short sales has allowed more banks to clear the shadow inventory that has threatened the housing market’s recovery, according to the research. Banks also have been increasing loan modifications. 

Shadow inventory is known for creating uncertainty in the housing market. In calculating the shadow inventory, Chase researchers include trouble mortgages that haven’t been paid in at least 60 days.

"Although re-defaults and new delinquencies will continue to keep shadow inventory elevated, the rapid decline should prevent downward pressure on home prices going into 2013," according to Chase analysts. "Combined with better existing home sales, investors have reason to be optimistic about running recovery scenarios."

Chase analysts say that if home prices rise 10 percent, the current number of 10.8 underwater borrowers could then decrease to 9 million. 

Source: “Shadow Inventory Declines by 1.2 Million in 2012,” HousingWire (Sept. 24, 2012)

Economists bullish on housing recovery!

Home prices will see steady increases through 2016 starting this year, according to a quarterly survey of more than 100 economists, real estate experts and investment strategists.

The survey, conducted by research and consulting firm Pulsenomics LLC on behalf of real estate search and valuation portal Zillow between Aug. 30-Sept. 14, 2012, asked 113 participants to project the path of the S&P/Case-Shiller U.S. National Home Price Index over the next five years.

The latest S&P/Case-Shiller Home Price Indices, which include data through June, show national home prices up 1.2 percent from a year ago during the second quarter. All of the markets in the S&P/Case-Shiller 20-city composite posted annual gains for the second month in a row, and all but two -- Charlotte and Dallas -- posted better annual returns in June compared to May.

This quarter's survey results show optimism has increased among the participants, who in the second quarter had predicted a 0.4 percent dip in home prices this year, followed by modest increases starting in 2013 and through 2016.

Economists now forecast home prices will rise 2.3 percent in 2012 from fourth-quarter 2011, and see further cumulative rises of 4.7 percent in 2013, 8 percent in 2014, 11.4 percent in 2015, and 15.2 percent in 2016.

Click on the link below to continue reading this informative article.

Economists bullish on housing recovery | Inman News

Charlemont Trails - Premier Mountain Biking Center

Did you know Charlemont is quickly gaining a reputation as the premier mountain biking center in southern New England as a result of an effort by three landowners - The Warfield House, Berkshire East and Zoar Outdoor and the New England Mountain Bike Association(NEMBA) - to establish a trail system that is now over 25 miles long. The particular attraction of the Charlemont Trail System is its variety of scenery, from mountain tops to wooded brooks and from fields with incredible views to dense hemlock groves; and its variety of terrain, from technically difficult, steep climbs to flowy downhills. 

In addition to informal visits from riders, local bikers have set aside the second Thursday of each month for a group ride that meets at the Warfield House at 6 pm. This past Thursday, 21 riders showed up to try out the trails, some for the first time, and many for repeat visits. The youngest rider was 14 and the oldest, 70, but we all came prepared for climbing over stone walls and logs, swooping through banked turns and having a great time!

You don't have to be a mountain biker to enjoy the Charlemont trails - they're great for hiking as well, and best of all, they're free and open to the public. Maps are available at A.L. Avery's, Zoar Outdoor, Berkshire East and the Warfield House. Join our Facebook page - https://www.facebook.com/CharlemontTrails - for trail updates and announcements of rides and organized hikes, and come visit anytime to enjoy your own local adventure!

This article from the SFABA Bulletin

First Time Home Buyer Workshop - Sign Up Today!

Thinking About Buying Your First House?

Rural Development, Inc. (RDI) will present a four-session

First-Time Homebuyer Workshop Series

beginning Monday, October 15, 2012.  Our participating lender is

Greenfield Co-operative Bank

These sessions will take place as follows:

Monday & Tuesday October 15, 16, 22, & 23rd 2012

6:00 PM to 8:30 PM at

Greenfield Community College, One College Drive, Greenfield, MA  01301

Room C 208

Presenters include an attorney, home inspector, lender, insurance professional, credit specialist, and a real estate professional.  Participants must attend all workshops in the series to receive a certificate, which allows them access to many affordable mortgage products through MassHousing and other sources. Materials are provided.

The cost for the series is $50 per household.

Space is limited.  Pre-registration is required.

Contact Pat Holloway to register (413) 863-9781, x 100 or pholloway@fcrhra.org

Pioneer Valley Real Estate Sales

Home sales rose 8.9 percent across the region last month, according to statistics released Tuesday by the Realtor Association of Pioneer Valley. 

The number of homes sold rose from 459 in August 2011 to 500 in August 2012. 

But the median sales price fell 3.5 percent from $210,000 in August 2011 to $202,750 in August 2012. 

Kevin P. Sears, an owner and broker at Sears Real Estate in Springfield and a former president of the Massachusetts Realtor Association, said a slow economy and a large number of homes that have been foreclosed upon by mortgage lenders is keeping prices down.  Foreclosure auctions don’t count in statistics kept by the Realtor Association of Pioneer Valley. But he said most end up getting sold through the multiple listing service soon after foreclosure, often at 60 cents or 70 cents on the dollar. “The good news is we are seeing old inventory cleared off,” he said. “But we haven’t hit that point yet where we see the prices following the rest of the trends.” 

On a month-to-month basis , sales were up 16.3 percent from the 430 homes sold in July. The median price rose 6.7 percent from $190,000 in July.

In Hampshire County, sales rose 3.9 percent from 127 to 132. The median price fell 12.8 percent from $269,000 to $234,500. 

In Franklin County, the number of homes sold fell 3.1 percent from 64 to 62. The median sales price rose 2.4 percent from $204,500 to $209,500.

Tips for Staging Historic Homes

I was visiting with a client the other day and she told me about this fabulous app named HOUZZ.  For those of us who love homes and decorating, this app is for you!     I receive weekly articles from HOUZZ and this one caught my eye.  If you own an antique home and thinking of selling  here are some staging tips that will help you get started!

6 Tips for Staging Historic Homes

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