November Real Estate News Recap
More Homeowners Treading Water
As we mentioned on Monday, foreclosures are up, but defaults are down. According to CoreLogic’s Q3 negative equity report, fewer borrowers are underwater (meaning they owe more than their home is worth) on their mortgage.
The report shows that negative equity is highest in a few states:
California, which is next on the list, is finally out of the top five for the first time since 2009.
Home Prices Remain Bleak
Although comprehensive pricing data is not yet in for the month of November, one thing is sure: prices are weak. Due in part to the backlog of foreclosures, prices remain low, and in most major areas, they continue to sink.
What good news can we squeeze out of this?
· Prices are falling more slowly (Q3 saw a year-over-year decline of 3.9% as opposed to 5.8% in Q2)
· Less borrowers are upside-down on their mortgages
· More opportunity for first-time buyers (if they can qualify for a loan)
Dave Rosenberg of Gluskin Sheff sums up the state of the housing market: “Every day is Black Friday.”
While the major metrics are not easy to be hopeful about, there are some signs of recovery that will hopefully gain steam as we roll into 2012:
Stay tuned as we begin looking toward the next year—is recovery around the corner, or will we continue to see falling prices and rising foreclosures? We’ll be looking at some different opinions on where the housing market is headed in 2012.
For now, stay positive and happy holidays!
Sources: Wall Street Journal, HousingWire, CNN Money, Forbes, New York Times, SmartMoney