Morning Briefing: Foreclosure starts hit decade-low

by Steve Randall18 Nov 2015
Foreclosure starts hit decade-low
The percentage of mortgage loans on which foreclosure actions were started slipped to the lowest level since 2005. The Mortgage Bankers’ Association has revealed that action was started on just 0.38 per cent of loans.

The delinquency rate for mortgages on residential properties of between 1 and 4 units was also lower, down to a seasonally-adjusted rate of 4.99 per cent at the end of the third quarter of 2015. The drop was 31 basis points from the previous quarter and 86 basis points from a year ago.

Those properties in the foreclosure process were 1.88 per cent of mortgaged homes, down 21 basis points from the previous quarter and 51 basis points from the third quarter of 2014.

“The serious delinquency rate - measured by those loans that are 90 days or more delinquent or in the process of foreclosure - declined for nearly every state in the nation.  The factors influencing this outcome include a nationwide housing market recovery, resolution of long-standing troubled loans that eventually proceeded through the foreclosure process, and an improving employment outlook that provided distressed borrowers viable alternatives to foreclosure” said MBA’s Marina Walsh.
 
Affordability hits October sales, prices in California
There was a 5.1 per cent drop in Californian home sales in October compared to the previous month. The California Association of Realtors’ data shows a 1.3 per cent drop from the same month in 2014. There were 403,510 sales of single-family existing homes in October 2015 (seasonally adjusted annualized figures) but despite the dip there have been seven straight months of sales above 400,000.

The statewide median price eased to $475,990, down 1.3 per cent from September but increasing 5.7 per cent from October 2014.

“Housing affordability is an issue in many parts of California, and the impact it has on sales varies from region to region. In the Bay Area, a persistent shortage of homes for sale put upward pressure on housing prices and is now presenting significant affordability challenges to home buyers in the region,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “With home prices in the Bay Area averaging more than 7 percent higher than a year ago, we’re now seeing the negative effect on sales due to low housing affordability as higher prices have put home buying out of reach for many potential buyers.”

While sales continued to improve from last year at the state level, the number of active listings continued to drop from the previous year. Active listings for California dropped 5.6 percent from September and decreased 7.6 percent from October 2014.
 
David Cassidy’s home sells for $2 million
Former teen idol David Cassidy has sold his Fort Lauderdale home for $2 million. The five bedroom waterfront home on Ocean Drive was sold Monday to an oncologist, the Sun Sentinel reports. The Harbor Beach property was bought by the Partridge Family star in 2001 for $1.1 million and has been extensively remodeled. The home was sold by Vincent Clancy of DaVinci Realty Group in Wilton Manors.
 

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